Regenerative Agriculture: Stages and Impact
Regenerative agriculture is a gradual transformation, not a single measure. Based on studies by the DLG and BCG–NABU, this article explains the stages of development and the measurable benefits for soil health, the efficiency of input use, and the long-term resilience of agricultural operations.
Step-by-step transformation
Regenerative agriculture is best understood as a step-by-step transformation, not a fixed historical movement or a single set of practices. This approach focuses on restoring soil functions, improving ecosystem performance, and strengthening farm resilience over time.
The stages of regenerative agriculture
Farms typically move from basic soil protection toward diversified, biologically driven systems. Quantitative evidence from shows that this transition can reduce input costs, stabilize yields under extreme weather, and deliver measurable ecological benefits. Regenerative agriculture develops through progressive stages. Each stage builds on the previous one and is adapted to local conditions.
Stage 1: Understanding the starting point
The transition begins with a clear assessment of soil condition, crop rotations, and input use. Farms with degraded soil often rely more heavily on fertilizers and plant protection products, making this baseline analysis essential for defining priorities and realistic goals.
Stage 2: Protecting the soil and reducing disturbance
Early implementation focuses on protecting soil structure by reducing intensive tillage and keeping the soil covered with crop residues or cover crops. According to the BCG-NABU analysis, improved soil structure can significantly reduce erosion and nutrient losses, forming the foundation for later biological improvements.
Stage 3: Increasing diversity and living roots
As soil conditions stabilize, regenerative systems expand crop diversity and aim to keep living roots in the soil for longer periods. DLG highlights those diversified rotations support soil biology and nutrient cycling. BCG-NABU data show that diversified systems can improve water infiltration and water holding capacity by approximately 10-20%, increasing resilience to droughts and heavy rainfall.
Stage 4: Strengthening biological and organic matter cycles
At this stage, management increasingly relies on biological processes. Building organic soil matter and microbial activity allows farms to gradually reduce synthetic inputs that were agronomically feasible. It is estimated that regenerative practices can increase soil organic carbon stocks by around 0.2-0.5 tons of carbon per hectare per year, depending on site conditions.
Stage 5: Whole farm system optimization
In advanced stages, regenerative agriculture is managed as an integrated system. Decisions are guided by continuous observation and adjustment rather than fixed rules. According to BCG-NABU, farms operating at this level can reduce variable input costs by 10-25% while maintaining stable yields and improving resilience to climate-related risks.
Economics of Regenerative Agriculture
According to the BCG-NABU analysis, regenerative agriculture can significantly improve farm economics once practices reach a steady state. After six to ten years of implementing Stage 1 and Stage 2 regenerative practices, farm profits can increase by 60% or more compared with conventional systems, with gains driven mainly by lower input costs, reduced fuel and labor use, and improved yield stability. No-till practices alone can raise profits by around 25%, while the combined effect of basic regenerative practices can increase profits by 40% or more, partly supported by revenues from carbon credits where available. Integrating legumes into crop rotations can save approximately 60 kg of nitrogen per hectare, equivalent to about €115 per hectare per year in fertilizer value. Regenerative practices also reduce economic risk: during the 2018 drought, German wheat yields fell by about 16%, and BCG-NABU estimate that regenerative Stage 1 practices can reduce such yield losses by roughly 30%, improving resilience in increasingly frequent extreme weather conditions.
How long does transition take?
Neither DLG nor BCG-NABU define a fixed timeline. However, both indicate that regenerative agriculture unfolds over multiple years. Initial improvements in soil structure often appear within one to three years, while measurable gains in soil organic matter and system resilience typically require five years or more. Regenerative agriculture is therefore best described as a continuous improvement process, not a destination. If you want to know some facts and myths about regenerative agriculture, check out our previous blog post Regenerative Agriculture: Myths Facts and Why Europe Needs It.