Growing Returns

Collaboration between food companies and banks can accelerate regenerative agriculture in Europe and beyond

The widespread adoption of regenerative agriculture practices in Europe could strengthen crop resilience to extreme weather and support the long-term sustainability of farms, communities and ecosystems – an urgent need as the region faces record-breaking heatwaves. Despite the benefits of adopting cover cropping, no-till, nutrient management, alternative manure management and other regenerative practices, many farmers are hindered by financial barriers, including high up-front costs and risks.

These transition costs coincide with a major financing gap. A 2023 analysis from the European Investment Bank estimates that agriculture in the EU has a financing gap of up to €62 billion ($73 billion). Research by the Soil Association Exchange with farmers in the UK found that 66% of farmers agree that financial and business risks are barriers to transitioning to farming systems that prioritize climate and nature, and 60% lack the financial flexibility needed for experimentation and learning during the transition process.

We’ve conducted similar research in the United States, finding that more than half of farmers in Iowa – the highest producing state for many commodity crops – are interested in transition loans paired with other incentives to support them in adopting soil health practices.

Farmers’ financial partners – commercial and agricultural banks, lenders that provide farm loans, and food and agriculture companies that buy farmers’ products – have an important role in supporting the transition to regenerative agriculture.

Recently, EDF, Opterra and EIT Food co-hosted a roundtable bringing several leading agricultural banks together with food and agriculture companies in Europe to explore how they can collaborate to co-finance regenerative agriculture. What we learned can help accelerate regenerative agriculture in Europe and beyond.

Food companies and banks have complementary motivations to finance regenerative agriculture

Food and agriculture companies and agricultural banks have complementary business drivers and strengths that support their collaboration. Many food and agriculture companies have set environmental targets for the agricultural products they source and have already established programs offering incentives and technical support to farmers who improve environmental outcomes. They are also motivated by the opportunity to build resilience in their supply chains as extreme weather increasingly threatens food security.

Agricultural banks offer financing that can support farmers through on-farm investments that occur over time or require substantial capital outlays. They also often have existing, close relationships with their farmer clients and insight into the entirety of farm businesses. They are motivated to support their farmer clients who want to make on-farm investments aligned with market shifts and government targets, including sustainability goals and greenhouse gas emission reductions.

When these business priorities come together, companies and banks have the opportunity to support farmers by offering holistic financial solutions in which market incentives and financing are packaged and tailored to the regenerative transition. In addition to providing better financial solutions for farmers, collaboration between food companies and agricultural banks will also expand the total amount of transition finance available to farmers. This would be a dramatic improvement to the status quo, in which farmers must try to fit together different incentives and financing that often have incompatible or burdensome requirements.

Building from examples of success

Participants in the roundtable shared existing programs and initiatives that could be learned from or expanded with a broader collaborative effort.

Across Europe, offering interest rate incentives within agricultural loans for sustainable projects is increasingly becoming the norm. For example, the Bank of Ireland has expanded its Enviroflex loan program to be available to 95% of Irish dairy farmers, and has received €30 million in loan applications to date. This financing supports the Irish dairy sector – a critical economic driver and major source of the country’s greenhouse gas emissions – to implement climate-friendly practices and technologies.

Earlier this year, the United Kingdom agricultural bank Oxbury also launched a new loan facility to incentivize and reward farmers to make sustainable changes. The Oxbury Transition Facility operates in conjunction with other financing initiatives, such as government grants and supply chain incentives, to create a blended finance model that extends the impact of multiple partners.

Additionally, the Swedish alternative finance provider Gårdskapital was created to help more farmers transition to regenerative practices and offers a variety of tailored financing options.

Value chain collaboration can drive progress

To bring financial solutions such as these and others to scale, participants weighed how they can enable greater collaboration between food and agricultural companies and financial institutions.

One key idea of interest was a blended finance facility at a landscape scale – an entity that could help convene finance providers to offer lower interest rates or take on higher-risk projects, and better align with supply chain programs and incentives in a specific region. Other opportunities that emerged for collaboration on financing or de-risking products included bi-lateral partnerships when companies’ product sourcing regions and financial institutions’ service territories have farmer customers in common.

This kind of collaboration promotes a voluntary, whole-value chain approach to advancing regenerative agriculture – one that enables farmers to make a change by supporting them through the transition.

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Modernizing agricultural insurance to strengthen farmers’ ability to adapt

Last year, the U.S. faced its fourth most costly year of extreme weather, contributing to more than $20 billion in agricultural losses. As this trend of increasingly extreme weather continues, modernizing agricultural insurance in the U.S. is a crucial step toward protecting farmers’ financial stability and reducing the risks they face when transitioning to climate-resilient practices.

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Climate Change Demands a Global Paradigm Shift in our Relationship with Wildfires

A few weeks ago, the Canadian province of Manitoba declared a state of emergency as a result of wildfires, with Manitoba Premier noting “this is the largest evacuation Manitoba will have seen in most peoples’ living memory”. This marked an ominous start to the country’s wildfire season, with about 225 wildfires burning, half of them out of control, by mid-June and some already turning deadly.  Canada is not alone in facing a crisis. Wildfires are intensifying in fire-prone areas, and emerging in regions that have never previously grappled with high fire risk. In January, outside the typical fire season, Los Angeles was on fire for weeks. In 2024 alone, countries including Brazil, Bolivia, Peru, the Republic of Congo, Greece, Portugal and Canada battled devastating blazes.

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A new normal for Irish dairy: Pioneering sustainable change for Ireland’s climate future

Black and white cows graze along a coastal hillside in Ireland.

Ireland’s lush pastures and deep-rooted agricultural traditions have long made it a global dairy powerhouse. But with agriculture contributing nearly 38% of the country’s greenhouse gas emissions — four times the EU average — there’s no escaping the uncomfortable truth: Ireland’s booming dairy sector must evolve to meet the country’s climate targets.

To respond to this pressing challenge, Environmental Defense Fund Europe (EDF Europe) and EIT Climate-KIC partnered to explore a new vision for sustainable dairy. The goal? To co-create a future-proof model that balances climate action with economic resilience in Ireland’s rural heartlands.

Below, we’ll outline a new roadmap for sustainable dairy. Read More »

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Major federal funding cuts leave communities less prepared for hurricane seasons

On April 4, the Federal Emergency Management Agency (FEMA) was directed under the Trump administration to eliminate one of the largest disaster preparedness programs in the country. By defunding the Building Resilient Infrastructure and Communities (BRIC) program, the administration will be canceling more than $882 million in funding aimed at helping communities reduce their risks and minimize costs ahead of natural disasters. These programs help keep people safe and save taxpayer dollars when future storms hit. As we enter this year’s hurricane season, BRIC funding cuts, along with other actions targeted at dismantling disaster safety nets, leave vulnerable states and communities less prepared than ever.  

Damage and destruction on the west coast of Florida caused by Hurricane Ian.

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Learn how to navigate federal flood planning with the U.S. Army Corps of Engineers

Flooding is the costliest disaster in the United States, touching communities from coastlines to cities to inland towns, and wreaking havoc across countless homes, businesses and ecosystems. Estimated to cost the nation up to almost $500 billion per year, more frequent and severe flooding events are causing communities to find solutions that tackle the potential impacts.  

Many local communities and entities seek opportunities to collaborate with the U.S. Army Corps of Engineers (Corps), who conduct federally funded flood risk management studies. These studies can be a great way to understand flood risks in a community and to build large-scale resilience.  

However, through a series of surveys and EDF experiences, many advocacy partners that have participated in these studies expressed the Corps planning process is confusing and complex! To address this concern, EDF is releasing a new step-by-step guide to help communities and fellow advocates navigate federal flood planning and learn when and how to engage.  

Explore our step-by-step guide now 

Delta flyover – Mid-Barataria Sediment Diversion wetlands restoration project in the MS River Delta region of Louisiana

What is federal flood planning and how can it help your community? 

Before we get into the ins and outs of the step-by-step guide, let’s bring it back to the beginning. What is a federal flood feasibility study anyways?  

In simple terms, a federal flood study emerges when a local community or entity, later known as the study’s non-federal sponsor, raises flooding concerns to the Corps and expresses the need for a feasibility study that can identify solutions to this problem. The proposal must be authorized by Congress and receive funding through appropriations, and if that happens, the Corps will move forward with conducting a feasibility study that may eventually lead to the construction of a project(s). Potential projects could include anything from developing floodplain management plans to installing grey and green infrastructure to forming disaster response strategies.  

Why should you seek a federal flood study? No matter the size, budget or location, the Corps provides an opportunity to address flood risks in a community. Federal flood studies and their projects are designed to help leaders and communities prepare for extreme weather and disasters, which are increasing in frequency and severity. Experts agree it is financially smart to prepare before disaster strikes, with research showing that every dollar spent on mitigation can save $13 in damages. It also provides a safety net for residents to better protect their homes, businesses and families.   

Using our step-by-step guide to navigate federal flood planning 

EDF’s new step-by-step guide is a much-requested resource that gives advocates an overview of the complex federal flood planning process led by the Corps. This guide walks you through each step of the planning phase, allowing users to better understand and anticipate how a study and project develops. 

We also share ways advocates can engage during the planning process to ensure the study’s outcome best represents their community’s priorities and goals. The guide incorporates helpful resources, like a glossary, FAQ guide and templates along the way. 

Looking at case studies  

EDF is proud to have worked alongside several local communities on a variety of federal flood studies and projects, represented in the following case studies:  

Collier County, Florida 

In Collier County, Florida, EDF and local partners engaged in the planning process to propose the prioritization of nature-based solutions as well as hybridized, multi-hazard flooding and community engagement. We presented alternative study renderings with these priorities in mind, gaining media attention and eventually leading to changes in the proposed study. 

New York-New Jersey Harbour and Tributaries  

In the New York metropolitan area, EDF worked with a coalition of local partners to advocate for changes, like incorporating multi-hazard flooding solutions, to the Corps’ $52 billion plan to address flooding in the New York-New Jersey Harbor. The coalition launched a campaign website, gained media attention and ran advertisements, which led the non-federal sponsor to make a request for the Corps to take specific actions that better align with stakeholder priorities. 

New York City, New York State, Hudson River, USA, Water

Mid-Barataria Sediment Diversion, Louisiana  

EDF and partners at the Mississippi River Delta Coalition have guided the Mid-Barataria Sediment Diversion project and played a key role in advocating for a $2.9 billion initiative to reconnect the Mississippi River to the Barataria Basin. Learn more about the benefits of this project.  

Explore our step-by-step guide now 

  

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Farmers need technical support to balance crop yields with climate benefits

Cornfields on Ohio farm.

Cropland, which covers roughly 13% of global land surface, is integral to producing food, slowing warming and boosting resilience. Farmers find themselves in a difficult spot: they are compelled to deliver higher yields to feed a growing human population but with a lower carbon footprint.

This complexity is underscored in a recent paper published in Nature Climate Change, which assessed how tillage, cover crops and crop residue affected both crop yields and greenhouse gas mitigation over time. This work is the first to examine the yield and mitigation impacts of common regenerative agriculture practices independently and collectively at a global scale looking out to 2050 and 2100.

Importantly, farmers can use these conservation practices to produce yields and mitigation, but they will need additional technical and financial assistance to do so. This is critical to maintaining livelihoods, food stability and supporting the climate.

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To slow climate change, we must measure livestock methane accurately

Accurate enteric methane measurements from dairy cows are essential

Reducing methane emissions, a climate super-pollutant, can lessen rates of warming within decades. Since livestock farming is one of the biggest emitters of that methane gas, with enteric methane from cow burps alone contributing about a third of all human-caused methane emissions each year, lowering it can have a big impact.

To reduce livestock emissions, we first have to know where we’re starting. That requires accurate and validated measurement, but measuring methane from livestock isn’t simple — how we do it matters. These are the most important considerations.

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Celebrating the groundbreaking of a natural infrastructure project to combat flooding in North Carolina

Environmental Defense Fund (EDF) joined North Carolina’s Department of Environmental Quality (DEQ) at a groundbreaking event today to celebrate the progress of a new and significant natural infrastructure pilot project.  

The Stoney Creek pilot project is an innovative approach to utilizing natural infrastructure and nature’s processes to address flood risk in the City of Goldsboro and in the greater area of Wayne County, North Carolina. Moreover, it is a major step forward in advancing community flood resilience across the entire state.  

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Farmers need support to survive this economic squeeze

A farmer in a tractor plants rows of corn in a field.

In conversations with farmers in recent months, one word keeps coming up to describe their economic reality: “squeeze.” High farm input costs and loan interest rates are making it more expensive for farmers to grow crops. At the same time, low commodity prices mean they earn less money for the crops they grow. Farmers are caught in the middle of a bad deal with many asking whether it is even worth it to farm this year.

Farmers are facing this dilemma while also navigating additional disruptions and uncertainty. Federal funds have been frozen or canceled, putting farmers with existing contracts at risk after they’ve already invested their own money with the expectation that government funding would cover the remaining cost of farm improvements. Tariffs create another layer of price uncertainty and open the door for other countries to gain a competitive advantage in global markets. On top of this, farmers in several regions have experienced damage from extreme weather events, making their financial situation even more fraught.

Farmers are getting squeezed, and this makes it harder or even impossible for them to position their businesses for long-term success. But it doesn’t have to be this way.

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