If roller coasters aren’t your thing, steer clear of agricultural commodities markets.
Intense heat and rain have slammed West Africa’s cacao harvest, forcing cocoa prices to double in 2024. Intensifying hurricanes and disease have battered Florida’s citrus industry, leading to a decades-long slide in production. Climate change and land degradation are making it tough for farmers to provide some of our favorite indulgences. With these problems now starting to impact corn, rice and wheat – the three global staple crops – we face the prospect of cascading price hikes, market disruptions, deepening hunger and food insecurity, economic contractions and the political instability accompanying all of it.
Those of us who study the economics and sciences of modern agriculture, food systems and climate change have seen this volatility and systemic risk coming for years. Many have realized that regenerative agriculture and a holistic land stewardship approach called Integrated Landscape Management (ILM) are among the most potent solutions. These natural solutions can sustain commodity production and ensure food, water and livelihood security. They can also restore the ecosystems that make agriculture possible.
Agriculture Needs A New Playbook
Agriculture is not in good shape overall. The sector contributes 20% of humanity’s total greenhouse gas emissions. Fertilizer overuse triggers some 405 marine dead zones in coastal waters worldwide. Massive plantings of single kinds of crops, pesticide application and agriculture-related deforestation are major contributors to the extinction of wildlife species. These realities are driving growing enthusiasm in many quarters for a transformative shift to regenerative farming.
Regenerative agriculture is both a process and an outcome. Farmers adopt practices such as growing cover crops and instituting mixed farming systems like agroforestry or integrated crop and livestock production. These evidence-based approaches rebuild soil health, protect water resources, restore biodiversity and strengthen communities. Researchers have found these methods benefit producers and nature while potentially helping humanity respond to climate change.
After an initial transition period, regenerative agricultural practices can make sound financial sense to farmers and supply chains through reduced input costs and reduced risks. One study estimated an up to 25% return on investment for farmers shifting from conventional to regenerative agriculture. For these reasons, regenerative agriculture is currently experiencing significant investment growth.
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This story was written by EcoAg’s CEO and President Sara Scherr. The full story was originally posted on Forbes EQ Brand Voice on May 13th, 2024.