Cumulus has been leading the field in the economics of regenerative farming, agroecology, and agroforestry. Over recent years, there has been an increasing interest in regenerative farming. This is partly driven by the need for resilience of farm soils and farm businesses, but there is also the hope that it provides an answer to the climate emergency and nature crisis.
Regenerative (‘regen’) agriculture focuses on a set of broad practices that aim to enhance soil health and generate other positive environmental impacts, as well as social impacts. Whilst a consistent definition of regenerative farming is lacking, there are common practices such as minimising soil disturbance, crop diversification, efficient nutrient management, and livestock integration into arable rotations. There is growing evidence of the benefits of regenerative farming.
The Challenge
The challenge is that there is very little economic evidence publicly available on regenerative agriculture. Economic data from Defra is mainly based on conventional farming, while research around agroecological and regenerative farming is mainly focused on environmental (and social) benefits. Cumulus fills the gap, using the latest research from scientists and practical information from regenerative farmers to understand the economic, environmental and social impacts of the agricultural transition.
Insight and Outcomes
Cumulus has provided insight on the economic impacts (e.g. in farm input costs, income and overall profitability and productivity) for all farm types: upland and lowland cattle, sheep, and dairy farm types, as well as cereal, arable and more mixed farming systems (for the Soil Association). We presented the economic impact of a transition to UK agroecological farm businesses at Soil Association’s Nature & Net Zero & Food Security Conference in London. Cumulus has also shown the financial impacts for alternative land use scenarios in Wales. Furthermore, we tested recommendations for how different food system actors could help to realise the opportunities and overcome the barriers associated with a large-scale shift to agroecology and regenerative agriculture. For example, for a UK bank, we identified the finance requirements for different types of dairy farms during their period of transition, to inform their future lending policy (this links with our Green Finance practice).