Is Sustainable Agriculture Profitable?
With corporations, consumer demand and government interest committing to net zero and sustainable practices; moving from traditional cropping systems to regenerative agriculture is not only crucial for the future of our planet but also a profitable venture.
The Soil Wealth report estimates that more than $700 billion over the next 30 years is needed to scale regenerative agriculture. But what makes sustainable agriculture profitable for investors and how so?
Wealth Is Rooted in Soil
Great civilizations are built on the wealth of their soil and there is a strong link between soil health and cash. Investing in farmland can be more profitable than conventional farming, as consumers are willing to pay higher premiums for organic produce.
Promoting soil health using organic matter and producing nutrient-dense food is a driver for increased yields. It targets sustainably marketed products and drives demand.
Crop rotation in a single field creates diversified revenue streams. So in sustainable farming increased soil health leads to greater profitability.
Biodiversity and Resilience
Regenerative practices such as integrating livestock, abandoning tillage and using multi-species cover crops can produce more profit than traditional farming.
Increased biodiversity results in higher crop resilience, reduces the impact of pests and diseases and improves yields. Soil covered with vegetation that promotes hydrophilic bacteria creates a better habitat for pollinators. This stimulates the hydrologic cycle and reduces desertification.
Investing in farmland supports the integrated relationship between plant and animal ecology. Systemic solutions in sustainable farming focus on moving our planet forward in harmony with nature.
Conserve Resources
From fertilizer to water-related costs, rising inputs impact profitability and affect break-even levels. What makes sustainable agriculture profitable is the ability to tackle these costs, resulting in a better ROI.
Fewer costly inputs are involved when promoting organic matter. Take water for instance — irrigation and water-related expenses are reduced as water is conserved. Eliminating synthetic fertilizers, pesticides, and herbicides boosts margins while preventing soil erosion and improving the quality of crops and livestock.
So, Is Sustainable Agriculture Profitable?
So how profitable is sustainable agriculture? Ultimately, understanding the water cycle, nutrients cycle and how soils function is key to profitability and success. Once break even is achieved the initial costs of transitioning to regenerative agriculture pay for themselves, as the farm is in a better position to reach higher profits.
With careful planning and long-term management, sustainable agriculture can be a profitable and sustainable way of farming and contribute to a healthy and sustainable food chain.
If you’re interested in learning more about the profitability of sustainable farming and investing in farmland, explore investment opportunities today at NetGreen.com.