Financing Institutional Investment in Regenerative Agriculture

This technical report discusses the challenges and strategies related to financing the transition to regenerative agriculture. It outlines the significant barriers to adopting sustainable agricultural practices, including fragmented ownership, diverse regulations, and misaligned incentives that hinder farmers from transitioning. The report emphasizes the critical financing gap that exists, which is estimated to require an additional $300-$400 billion annually to transform the agriculture and food industry. It presents a proposed financing structure aimed at mobilizing institutional capital from asset managers and owners to support farmers in adopting regenerative practices. The document details the roles of various stakeholders, including governments, multilateral development banks, and financial institutions, in facilitating this transition. It also highlights the need for collaboration among these entities to provide the necessary capital and support for farmers, ensuring that the agricultural sector can meet rising food demands while addressing climate change challenges.