Is regenerative agriculture profitable?



Despite 58% of farmers being unaware of regenerative agriculture (according to a 2023 study), 95% still incorporate some of its elements. Additionally, 90% of respondents believe these practices will benefit the natural environment, and 72% believe farmers can benefit financially from them. Is regenerative agriculture truly worthwhile?


Regenerative farming in Poland – farmer awareness, environmental benefits and EU subsidies

Disturbing trends in agriculture
According to the European Commission, up to 81% of Polish agricultural land is in poor condition. Factors such as climate change, extreme weather events, and issues with soil moisture have led the Central Statistical Office to predict a 4% decrease in cereal and mixture yields and a 3% decrease in ground vegetable yields for the 2023 harvest compared to the same period in 2022.


Challenges of Polish agriculture and the potential of regenerative farming in response to climate change

The solution to these issues, both in Poland and across the European Union, is to protect natural resources and enhance biodiversity. One approach to achieving these objectives is to invest in regenerative agriculture. Given the concerning trends, the benefits of this management model are self-evident. Nevertheless, it is important to clarify its advantages and specific practices.

Regenerative agriculture, that is ecological?
Organic and regenerative agriculture pursue distinct objectives. Organic agriculture focuses on the near-total elimination of chemical plant protection products, artificial fertilizers, and antibiotics. This approach is marked by lower yields and higher prices for produced goods. Conversely, regenerative agriculture aims to enhance soil quality by fostering biological life and increasing organic matter. When natural methods fall short, it permits the use of mineral fertilizers or chemical plant protection products.


Goals and assumptions of regenerative agriculture – improving soil fertility and ecosystems

What is the focus of regenerative agriculture?
Regenerative agriculture aims to enhance ecosystem processes. It ensures:
- balance among soil, microorganisms, plants, and animals
- improvement of land quality and crop productivity.
A farmer can achieve this by thoroughly understanding the condition of their fields. Therefore, regenerative agriculture necessitates comprehensive soil analysis, encompassing the study of up to 17 different parameters and the development of 23 indicators and recommendations based on that analysis.


Soil testing in regenerative farming – importance of micronutrients and soil health

This restores the balance of soil chemistry, directly impacting its biological properties. For comparison, a standard soil analysis involves determining pH and the content of macronutrients (phosphorus, potassium, and magnesium).

Practices used in regenerative agriculture
The most commonly utilized practices in regenerative agriculture include:
- no-plough cultivation: although tillage reduces weeds, it does not support the development of biological life or humus in the soil. Minimizing tillage allows microorganisms to enhance nutrient availability for plants.


No-plow cultivation with the U436 cultivator from agricultural machinery manufacturer Rolmako

- cover crops – leaving crop residues provides soil microflora with essential nutrients for subsequent crops.


Cover crops and crop residues as components of regenerative farming

- utilization of natural fertilizers and restriction of artificial fertilizers.


Natural fertilizers and reduction of chemicals in regenerative agriculture

- the greatest possible biodiversity of crops — cultivating various plant species significantly reduces the risk of soil sterilization.


Crop biodiversity as a method to improve soil structure and protect the environment

Financial benefits of implementing regenerative agriculture
Stabilizing the ratio of macro- and microelements in the soil can result in savings of up to PLN 800/ha on mineral fertilizers, such as phosphorus, by reducing their use by 40%. The final cost of fertilizers greatly depends on soil condition, but the savings are typically significant.


Financial benefits of regenerative agriculture – saving on mineral fertilizers and EU subsidies

The development of biological life in the soil significantly impacts yield. It functions as an "engine" driving the "machine" (the field). Nutrients become more available, plant resistance to pathogens increases, and a lumpy structure forms, enhancing air and water availability. Additionally, naturally occurring microorganisms in the soil, such as bacteria, nematodes, and fungi, compete with each other and maintain the population size and potential pathogens in balance. Their actions transform plant residues into humus, directly correlating with soil fertility and yield.


The role of soil microorganisms in humus formation and soil fertility

Farmers with many years of experience who have transitioned to a regenerative agriculture model report a 25% increase in farm profitability compared to conventional agriculture. There is also an improvement in crop quality, such as beets and apples. Pesticide residues in fruit from regenerative orchards are lower than reference standards.

Environmental benefits of regenerative agriculture
Every branch of industry, including agriculture, has a significant impact on the increase in average temperatures on Earth and climate change. Regenerative agriculture allows for the reduction of emissions of carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), which are greenhouse gases. By sequestering carbon (organic matter) in the soil and improving water and air conditions, it mitigates climate change – for this reason, this model of farming is called carbon farming.


Higher yields and improved food quality thanks to regenerative practices

It is worth mentioning that actively engaging in regenerative agriculture helps prevent the destruction of the natural environment. Many farmers have observed that such practices significantly enhance their mental and physical well-being.


Positive impact of regenerative practices on the environment and farmers' well-being

Is the transition to regenerative agriculture cost-intensive?
The most critical element of the transition to regenerative agriculture is changing the mindset regarding farm management, which largely determines success. Both conventional and regenerative agriculture require financial investments. Agricultural equipment and machinery wear out, necessitating periodic replacements. During the transition between conventional and regenerative models, existing machinery can often be adapted to no-plough farming, allowing for a gradual replacement of equipment over several years. Increased profits from implementing the new system will provide funds for investment.


Transition from conventional to regenerative farming without high investment

Regenerative agriculture qualifies for support under the EU Common Agricultural Policy by facilitating the implementation of various eco-schemes. Farmers receive direct payments for pro-environmental activities. Additionally, carbon credits can serve as an extra source of income.


Eco schemes and carbon credits as support for regenerative farming – EU funding

Is it profitable for small farms to transition to regenerative agriculture?
Small farms continue to hold a significant share in Polish agriculture. While larger areas result in lower investment costs per hectare, the regenerative model is equally effective on smaller plots. Consistent implementation of regenerative practices benefits both investors and the environment, with earlier initiation leading to quicker realization of these advantages. Interest in regenerative agriculture among farmers is, fortunately, steadily increasing.


Regenerative farming in small farms – benefits and growing interest