Regenerative Agriculture

A practical guide using the example of the grain supply chain

Your expert for questions

Andree Simon Gerken
Partner, Agriculture and Climate Protection, Sustainability Services at PwC Germany
Tel: +49 151 64530740
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Environmental and economic added value in food production

Agriculture is facing major challenges. 8% of Germany’s CO2 emissions are attributable to the agricultural sector – and worldwide, this figure is at 15%. Regenerative agriculture offers solutions to many of the problems associated with these emissions: using regenerative practices, farmers can not only promote soil fertility and biodiversity, but also put themselves on a secure financial footing.

“The introduction of regenerative practices pays off equally in terms of environmental and economic indicators. Agricultural businesses can thus boost their resilience while also making an important contribution to climate action.”

Andree Simon Gerken,Partner, Agriculture and Climate Protection, Sustainability Services at PwC Germany

Our guide at a glance

Many farmers are hesitant to adopt regenerative practices because they are often not clearly defined and require significant initial investment. Additional hurdles include economic uncertainty and the amount of work required to make the changeover. Nevertheless, our analyses show that the long-term benefits – such as improved soil health and reduced operating costs – justify the investment.

The Practical Guide to Regenerative Agriculture is based on a detailed simulation and analysis of measures on a model arable farm. The environmental and economic effects of regenerative practices were simulated and evaluated over a period of six years. The results serve as a guide for other farms and illustrate how regenerative practices can help make agricultural production more sustainable.

Profitability and sustainability in harmony

The analysis shows that farmers can increase their profits in the long term by using regenerative practices. This is due to factors such as reduced use of fertilisers and pesticides and improved soil health. In our example, the use of catch crops and undersowing led to a 7% increase in winter wheat yield. At the same time, natural nitrogen fixation enabled the costs of mineral fertilisers to be reduced.

In addition, our model farm was able to significantly reduce greenhouse gas emissions – implementation of regenerative practices led to around 30% lower agricultural emissions (FLAG emissions). This is made possible by a combination of reduced tillage, catch crop cultivation and use of legumes, which improve the nitrogen cycle and reduce nitrous oxide emissions.

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Practical Guide Regenerative Agriculture

Cooperation is the key to success

The study shows that successful implementation of regenerative practices requires cooperation throughout the value chain – from farmers, to the processing industry, to food retailers. External service providers can provide support by offering financial incentives, imparting knowledge and supporting implementation. Acceptance and efficiency of sustainable approaches can be increased through long-term partnerships and direct communication. Our practical guide illustrates that close cooperation between all players creates both environmental and economic benefits.

Infografik zeigt Wechselbeziehungen zwischen Landwirtschaftsbetrieben, verarbeitender Industrie, Einzelhandel und anderen.

What is regenerative agriculture?

Regenerative agriculture aims to conserve and enhance natural resources. At its core, it’s all about promoting soil health, increasing biodiversity, and increasing the resilience of agricultural systems to the impacts of climate change. Regenerative practices include a variety of measures that help regenerate soil and maximise carbon sequestration. These include avoiding intensive tillage, growing catch crops, using cover crops, undersowing, and integrating livestock into arable farming systems.

Securing soil fertility and increasing carbon sequestration

Increasing soil organic matter, particularly by building humus, is a central principle of regenerative agriculture. Humus is crucial for soil fertility as it stores nutrients, improves water holding capacity and stabilises soil structure. By promoting humus formation, farmers can secure soil fertility in the long term while increasing carbon sequestration in the soil, which helps reduce greenhouse gas emissions.

Another important element of regenerative agriculture is promoting biodiversity. This is achieved by growing a variety of plant species that have different root depths and need different nutrients. This diversity helps to reduce pests and diseases, improve soil structure, and optimise nutrient cycling. It also promotes biological activity in the soil, which in turn helps improve the health of the entire ecosystem.

The five basic principles of regenerative agriculture

Soil cover

The soil should be covered by plants or mulch at all times. This protects it from erosion, retains moisture and promotes biological activity in the soil. Permanent soil cover also helps regulate soil temperature and suppress weed growth.

“Regenerative agriculture creates a sustainable foundation for the processing industry and food retailers, which benefit from a stable, high-quality supply of raw materials just as much as consumers.”

Andree Simon Gerken,Agriculture and Climate Protection Partner, Sustainability Consulting, PwC Germany

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Practical Guide to Regenerative Agriculture

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Methodology

To illustrate regenerative methods in practice, we analysed the changes using an example farm – a model arable farm in Germany. We simulated the use of regenerative agricultural practices over a period of six years in order to quantify their environmental and economic impacts. Six farmers and four representatives of the food retail industry were also interviewed, with a view to relating our example to the real-world experiences of relevant players.

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Andree Simon Gerken

Andree Simon Gerken

Partner, Sustainability Services, PwC Germany

Tel: +49 30 2636-4968

Julia Fendel

Julia Fendel

Manager, Sustainability Services, PwC Germany

Tel: +49 160 6983807

Joris Kruckelmann

Joris Kruckelmann

Manager, Sustainability Services, PwC Germany

Tel: +49 175 4428045