Regenerative farming

In our view, farmland:

• provides the potential for an attractive financial return from a variety of sources, including: crop yields, productivity improvements, increase in land value and carbon capture.
• is a good store of value; it is a real asset, and productive soils are growing scarcer, limiting downside risk.
• makes a positive impact by providing healthy food, fostering biodiversity, limiting global warming and promoting circular agriculture.
• contributes positively to several of the United Nations’ Sustainable Development Goals.
• can boost portfolio diversification; farmland is subject to different return drivers to traditional asset classes. 

Our investment team work closely with a network of local farmland experts globally, to:

• manage a well-diversified portfolio of farmland assets from across the globe, but with a focus on developed countries.
• invest in a variety of farms, covering both annual and permanent crops.
• focus on medium-sized farms in the region of EUR 10–25 million, and grow with farmers in step with their future ambitions.
• help meet Sustainable Development Goals by setting and measuring progress of their investments against clear ESG targets.

The agricultural sector plays a key role in several of the major problems currently facing our society: sufficient and healthy food production, deteriorating soil quality, biodiversity loss and global warming. Intensive modern farming practices have played a big part in this. 
Regenerative farming can offer comprehensive solutions to these issues. We believe that investors must become active in the transition to a more sustainable food and agricultural system and that farmland should play a more important role in institutional investment portfolios. This can generate attractive long-term revenues and capital growth. 
In this report, we examine how regenerative agriculture takes a conservation and rehabilitation approach to farming, the contrast with conventional farming, how regenerative farming works in practice and why it is imperative to act now.