Evaluating Regenerative Agriculture Across Carbon, Water, and Ecosystems
How far can regenerative agriculture shift environmental outcomes? Data from Germany shows credible potential for lower emissions, improved hydrology, and healthier ecosystems when soil functions are restored.
Agricultural production is simultaneously a driver of environmental degradation, and one of the sectors most exposed to its consequences. Increasing droughts, heavy rainfall, and biodiversity decline are directly affecting farm productivity.
Regenerative agriculture proposes a shift in management focus from maximizing short-term output toward rebuilding soil functionality. The question is not whether change is required, but how large the environmental gains can be.
Carbon dynamics
When emissions from soils and land use are included, agriculture is responsible for about 12.5% of Germany’s Scope 1 greenhouse gas emissions. Nitrous oxide from fertilization, methane from livestock, and carbon losses from degraded soils are central contributors.
Regenerative agriculture addresses these pressures mainly through:
- minimizing soil disturbance
- maintaining permanent plant cover
- expanding crop diversity
Healthier soils can accumulate organic carbon, reduce the need for synthetic nitrogen, and lower machinery use. Together, these effects decrease emission intensity while enhancing long term soil fertility.
From an economic perspective, carbon may also gain relevance as a revenue stream. Projections for voluntary markets indicate potential prices of around €55 per ton of CO₂e by 2035, though realization depends on credible accounting standards.
Water
The agronomic relevance of soil health becomes particularly visible during extreme weather. The drought years 2018 and 2019 led to approximately €7.8 billion in agricultural damage in Germany.
Soils with low organic matter typically show limited infiltration, weak storage capacity, and higher runoff. This combination amplifies both drought stress and flood risk.
By contrast, regenerative practices that maintain living roots and promote soil structure can improve water retention and groundwater recharge. The strategic objective therefore evolves from yield maximization in optimal seasons toward yield stability under climatic volatility.
Biodiversity
Productive agriculture depends on functioning biological systems. Soil organisms regulate nutrient availability, contribute to humus formation, and support plant health. Simplified production systems and intensive input use often disrupt these processes.
Regenerative approaches strengthen ecosystem services primarily by:
- broadening rotations and integrating legumes
- reducing mechanical intervention
- in suitable contexts, diversifying landscape structures
Richer biological activity below and above ground supports nutrient cycling and natural regulation mechanisms, enabling gradual reductions in external inputs.
System perspective
The cumulative effect of improvements in carbon storage, hydrology, and biodiversity extends beyond individual farms. Increased resilience can lower supply volatility, reduce environmental externalities, and contribute to safeguarding future productivity.
Economic benefits tend to materialize over time, once soils recover and input dependencies decline. Regenerative agriculture is therefore best described as a context dependent transition pathway built on continuous adaptation and learning.
To read more about the stages of implementing regenerative agriculture, check out the previous article.