This was a key point raised in a panel discussion on “New approaches to regenerative agriculture for soil health and carbon sequestration”. The session took place during the Asia-Pacific Agri-Food Innovation Summit held in Singapore from 19–21 Nov 2024.
The panel consisted of Stephen Weise, managing director Asia at Alliance of Biodiversity International and CIAT; Nana Kuenkel, cluster director of Agriculture & Food at GIZ Thailand; Katrina Hayter, global head for Sustainable Land Use & Supply Chains at HSBC; Shailendra Mishra, global head of Sustainability: Grains, Oils, Wheat Milling & Feed, at Olam Agri; and Ira Noviarti, EVP at Unilever.
It was moderated by Perpetua George, managing director, Sustainability & Biodiversity, Asia Pacific, at PWC.
There are five key characteristics essential to regenerative agriculture, according to Weise.
One of them includes focusing on outcomes rather than rigidly adhering to specific practices.
“I’d start with the principle of being outcome focused. We need to avoid the trap of being dogmatic about specific practices. Instead, it’s about identifying the outcomes we want to achieve, which can vary depending on the situation, and then determining the necessary practices to reach those outcomes,” said Weise.
The key outcomes include improving soil health, ensuring water conservation and biodiversity, greenhouse gas mitigation, increased productivity, and improved farmer incomes and livelihoods.
Secondly, regenerative agriculture is inherently flexible, and maintaining that flexibility is critical. It must also be scientifically sound, relying on practices rooted in evidence that is relevant to the specific context, not just aspirational ideals, said Weise.
This flexibility stems from its adaptability to different geographic regions, types of crops, and farming conditions, which allows it to be applied in diverse ways depending on the local needs and available resources.
Therefore, regenerative agriculture is a journey involving producers and value chain actors – the third feature. The process is often knowledge-intensive, requiring ongoing learning, adaptation, and support. Change tends to be incremental rather than a one-time transformation.
Success hinges on collaboration among farmers, supply chain partners, and researchers – no single group can carry the burden alone.
Fourthly, to achieve these outcomes, clear targets and indicators should be established with “simple, pragmatic monitoring systems” that focus on the essentials instead of measuring anything and everything.
Lastly, there must be incentive for change at various levels. These incentives need to be present for producers, within the value chain, or at a national level, depending on the desired outcomes, according to Weise.
To illustrate how these principles play out in reality, Kuenkel highlighted one example of scaling regenerative agriculture in Thailand.
Scaling through partnerships: The Thai Rice Project
The discussion covered the challenges of scaling regenerative agriculture, particularly in developing regions.
Kuenkel mentioned the Thai Rice Project, a $120 million initiative that integrates public, private, and international climate finance to support 250,000 farmers across Thailand’s major rice-growing regions. This partnership model underscores the importance of multi-stakeholder collaboration in scaling regenerative agriculture and achieving broader sustainability goals.
It is a project that combines funding from private companies like Olam Agri, PepsiCo, and Mars with domestic financing from the Thai government and the Green Climate Fund.
Kuenkel highlighted Thailand’s commitment to ambitious climate targets under its Nationally Determined Contributions (NDCs) as a key driver for large-scale initiatives. By integrating carbon markets into its strategy, the Thai government creates financial incentives for sustainable practices and aligns activities across sectors.
“The Thai government puts in both resources and its extension system, leveraging carbon markets as an exit strategy while aligning all sector activities,” Kuenkel said.
Finance – the missing link
Despite the potential benefits of regenerative agriculture, financing remains a significant issue.
For one, agriculture receives a disproportionately small share of global climate finance.
“Only 2.4% of global climate finance is directed toward agriculture, compared to 50% for renewable energy and 20% for transportation. That’s kind of astounding when you consider what a low-cost source of climate action this sector is,” said Hayter.
Hayter highlighted the fragmented nature of agricultural supply chains as a key barrier to channelling funds to smallholder farmers.
“Where we have strong vertical integration, it’s much easier to get finance to flow to the farmer. But where there’s no direct relationship between food brands and farmers, it’s quite hard,” Hayter explained.
She also shared examples of solutions, such as HSBC’s $50 million credit facility for smallholder farmers in India, which provides small loans of around $1,000 each to help farmers transition to climate-smart agriculture, which help improve their livelihoods.
Tailored approach
On a related note, there should be a tailored approach to regenerative agriculture, according to Mishra.
Mishra warned against a one-size-fits-all model: “We have to understand that regenerative agriculture is a framework that varies across different geographies and commodities. There should be collaboration with academic institutions to ensure initiatives are underpinned by science.”
This collaborative, science-backed approach ensures that regenerative practices are context-specific, effective, and adaptable to various regions.
Noviarti agreed, saying that regenerative agriculture is not just a set of practices, but a business opportunity.
“It’s a source of value creation for businesses – good for the planet and good for the bottom line,” Noviarti said, explaining that this aligns regenerative practices with corporate goals, enabling businesses to meet environmental targets while benefiting economically.
Challenges
Hayter mentioned a key challenge in scaling up regenerative agriculture. The temporary reduction in crop yields, referred to as “yield drag,” often occurs during the transition to more sustainable practices. This dip in productivity can discourage farmers from adopting regenerative methods, especially if they lack assurance that their buyers or other stakeholders in the value chain will provide support during this period.
“For farmers to make an investment into regenerative agriculture without knowing their buyer will go on the journey with them – it’s hard for them to commit,” she said. This ensures all value chain actors, from producers to consumers, share a long-term commitment to sustainability.
Kuenkel also highlighted the importance of inclusivity in regenerative initiatives, stressing that solutions must be equitable and consider regional, gender, and socioeconomic differences – this will ensure no one is left behind in the transition.
