Posted on: April 25, 2025
Regenerative Farming: What’s in It for Your Business?
Regenerative agriculture is gaining ground across Australia as farmers look for ways to improve soil health, increase biodiversity, and build resilience against climate variability.
Unlike conventional farming, which often focuses on maximising short-term yields, regenerative practices aim to restore and enhance ecosystems. It also differs from organic farming, which limits synthetic inputs but doesn’t always prioritise soil regeneration.
What Is Regenerative Agriculture?
Reportedly developed by the US-based Rodale Institute in the 1980s, regenerative agriculture typically involves these practices, according to the NSW Local Land Services:
- Minimise soil disturbance to protect the soil
- Maintain living roots, such as retaining stubble
- Integrate livestock, as well as pest and weed management
- Avoid monocultures by planting diverse species
- Pond and spread water, and
- Reduce reliance on farm chemicals, instead investing in microbial inoculants.
Australian farmers are embracing regenerative techniques in response to environmental pressures and shifting consumer demand. The Grains Research & Development Corporation is midway through investigating the approach.
Nearly three in four Australians now consider sustainability when purchasing food, driving increased interest in agricultural practices that promote soil and water conservation.
Why More Farmers Are Making the Switch
A growing number of Australian farmers are adopting regenerative agriculture to combat issues such as soil degradation and rising input costs. Farmer’s Footprint, a peak body, champions Australia’s regenerative food story as a nonprofit.
The move to ‘regen ag’ is in response to their concerns about declining soil quality affecting their long-term productivity. Aussie farmers have had to battle carbon loss, soil degradation, acidification, erosion, and nutrient depletion over the past decades.
With extreme weather events becoming more frequent, practices such as cover cropping, rotational grazing, and minimising chemical use are being used to improve soil structure and water retention.
Government incentives are also playing a role. The Australian Government’s Carbon Farming Outreach Program provides financial incentives to farmers implementing regenerative practices that sequester carbon.
Meanwhile, some agribusinesses are offering premium prices for regeneratively grown produce, creating economic incentives beyond sustainability. However, this can fluctuate.
As well, the Australian market for goods and services supporting regenerative agriculture practices is expected to grow by 15.8% annually between now and 2030.
The Benefits and Challenges of Regenerative Farming
One of the biggest advantages of regenerative agriculture is better soil health. By increasing organic matter and microbial activity, these practices enhance water retention, reducing the need for irrigation and boosting drought resilience. Some farmers have reported yield stability even in dry years, thanks to healthier soil that holds moisture for longer.
From an economic perspective, regenerative farming can:
- Lower input costs by reducing reliance on synthetic fertilisers and pesticides
- Open doors to premium markets
- Appeal to increasing numbers of retailers and consumers seeking out regeneratively grown products, and
- Lead to healthier pastures that boost livestock weight gain, cutting vet costs, and driving profits.
However, transitioning can be challenging. There’s a learning curve for farmers, who’ll need to find time and funds to invest in education and have the inclination to experiment.
While there’s growing interest in regenerative certification, a lack of standardisation in Australia can make marketing regeneratively grown produce more complex. Aussie farmers can still apply for the global certification – Regenerative Organic Certified™ – but first need to hold a recognised Australian organic certification. Other options include Regenified Certification, Regenari, Certified Regenerative by AGW and the ASP Certified Sustainable.
Managing Risks in Regenerative Agriculture
Regenerative farming enhances resilience, but risks like extreme weather and market volatility persist. Bushfires, droughts, and heavy rain can still disrupt production despite better soil health. Market access remains uncertain, as inconsistent labelling and certification mean regenerative produce doesn’t always secure premium pricing.
Business risks extend to infrastructure investments, such as fencing for rotational grazing or planting diverse cover crops. While these investments can pay off in the long run, they will need upfront capital and careful financial planning. Understanding these risks is key to ensuring a smooth transition to regenerative farming.
How Insurance Supports Regenerative Farmers
As with any farming approach, risk management strategies are essential for farmers looking to take up regenerative agriculture. Crop and yield protection insurance can provide financial stability if production dips during the transition phase or due to unpredictable weather.
For farmers investing in infrastructure such as soil improvement, water management, or diversified operations, farm property insurance can help safeguard assets. Livestock insurance is also important, particularly for farmers integrating grazing systems that mean increased movement and exposure to different environmental conditions.
Public liability insurance is another key consideration, especially for those incorporating agritourism, direct-to-consumer sales, or on-farm education programs. As well, business interruption insurance can help manage financial risks if a shift in production cycles temporarily reduces income.
Regenerative farming sounds like an exciting opportunity for Australian farmers, but every operation is unique. As your broker or adviser, we tailor insurance to your farm’s goals, managing risks while supporting regenerative agriculture.
