Agroecological, regenerative, Indigenous, and similar nature-based systems substantially contribute to transforming agriculture and food systems to deliver positive outcomes for people and the planet. Entrepreneurial farmers, cooperatives, food processing groups, companies and marketing initiatives at various levels are working alongside governments and civil society organizations to promote the widespread creation of sustainable and equitable systems. Enterprises in this growing and dynamic sector need improved access to knowledge and finance, and a supportive business and policy environment to thrive.

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What do we mean by agroecological, regenerative and Indigenous enterprises?

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How the terms agroecology, regenerative and Indigenous apply to enterprises is evolving, but broadly speaking they refer to holistic approaches that enhance, instead of extract from, ecological and social systems. Enterprises that align with the principles of regeneration and agroecology create positive outcomes for natural, human, social, and produced capital.

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An agroecological enterprise takes a holistic approach consistent with the 13 principles of agroecology.(1) A project by the Alliance for Food Sovereignty in Africa describes agroecological enterprises as those that are working with multiple stakeholders to link agroecology with holistic land management to optimize biodiversity and ecological systems and strengthen connection between growers and eaters through diverse markets. Through their business models, they contribute to increased co-creation of knowledge, autonomy, governance, participation, food sovereignty, and health of the farmers and associated communities.(2)

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A regenerative enterprise would transform relationships with nature and people by aligning with the eight principles of regenerative capitalism: in right relationship, viewing wealth holistically, empowering participation, honoring community and place, edge effect abundance, robust circulatory flow, and being innovative, adaptive and responsive.(3)

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Regenerative and agroecological practices draw from a range of traditions and techniques, including Indigenous land management, (4) permaculture, biodynamic farming, and other systems that Indigenous communities all over the world have been practicing for millennia.

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These systems are beyond sustainable agriculture, conservation agriculture, or climate-smart agriculture that involve single innovations or efficiencies (e.g., reducing water use through mulching or reducing the amount of chemical fertilizer by microdosing or instituting pulses in the crop rotation). These are a helpful step on a journey but partial in their focus.

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What are the needs of agroecological, regenerative and Indigenous enterprises?

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Many studies and resources describe the support needs of enterprises in food and agricultural systems in general. And, more specific understanding of agroecological, regenerative and Indigenous enterprises is emerging. 

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We take inspiration from the Agri-SME Taxonomy that was recently published by the Smallholder and Agri-SME Finance and Investment Network (SAFIN) and ISF Advisors (5). The brief proposes a taxonomy of enterprises in the food and agriculture sectors (i.e., large enterprises, small and medium enterprises, transitioning micro-enterprises, micro-enterprises) and includes general characterizations of their needs.

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The Supporting Agroecological Enterprises (AEEs) in Africa (6) project, which is a joint action research project of the Agroecology Fund (AEF) and the Alliance for Food Sovereignty in Africa (AFSA) analyzed existing AEEs in Africa and their service providers. The research is meant to build our understanding of how to enlist and engage existing enterprises and service providers in creating an enabling environment for the marketing and promotion of healthy local agroecological food in local markets. 

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The United Nations articulated “A Small Business Agenda for the UN Food Systems Summit” (7) based on consultations with thousands of small- and medium-sized enterprises (SMEs) and their advisors. The document suggests three pathways for stimulating the growth of SMEs that transform food systems and that – if oriented appropriately – could support agroecological, regenerative and Indigenous enterprises: 1. Create a business ecosystem in which food SMEs thrive; 2: Incentivize businesses to provide “Good Food for All”; and 3: Increase the power of food SMEs within sector planning.

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Another resource is the podcast by Koen van Seijen “Investing in Regenerative Agriculture and Food.” This extensive podcast series offers interviews with the pioneers in the regenerative food and agriculture sectors who share their insights about how to put money to work to regenerate soil, people, local communities and ecosystems while making an appropriate and fair return. (8)

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What do we mean by investing? 

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Public and private finance will be required for whole transitions to agroecological, regenerative, and Indigenous systems. 

 

Public investors such as governments, development banks, and donors, have opportunities to use policies, subsidies, infrastructure investments, and other mechanisms to strengthen markets and increase the availability of affordable capital for transformative enterprises.

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Private investors, including banks, pension funds, impact investors and charitable foundations, have opportunities to invest across the returns continuum (a continuum that extends from fully commercial investments at one end to philanthropic grants at the other) and across asset classes (including cash/cash equivalents; public debt; private debt; public equity; private equity / venture capital; and farmland / real assets). 

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Investors may consider a broad range of viable investment profiles, but we see a need to better coordinate capital to incentivize broad value creation for ecosystems and biodiversity, for human health and well-being, and for community wealth and resilience.

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