Soil Capital, a Belgian company, is compensating 1,800 farmers across 500,000 hectares in six countries to adopt regenerative agriculture practices. This initiative aims to enhance soil quality and reduce carbon emissions, with farms currently responsible for nearly half of global agricultural greenhouse gas emissions.
Farmers working with Soil Capital implement practices such as reducing tillage, increasing plant diversity, and planting cover crops. The company monitors soil carbon improvements and issues certificates, each representing one metric ton of CO2 equivalent emissions reduced, which are then sold to partnering businesses.
These carbon certificates are priced between €20 and €60, with farmers receiving 70% of the proceeds. This financial incentive is crucial for farmers operating on low margins, mitigating the perceived risks associated with transitioning to regenerative agriculture practices.
Major food corporations are increasingly embracing regenerative agriculture. Nestlé partnered with Soil Capital in April, aiming for 50% of key ingredients to be regeneratively sourced by 2030, while Unilever and PepsiCo have similar ambitious targets for land under regenerative practices.