Note: this article was first published on June 30 by Sustainable Views, written by our Chief Impact Officer – Andrew Voysey
Europe’s food system is under pressure – and our farmers are at the front line. Climate shocks, trade tensions, wars, rising input prices, ageing farmer demographics and market consolidation are all converging to create a perfect storm. The result: rising prices, volatile yields, and livelihoods on the line. As the EU sets its next budget, it faces a clear choice: treat food and farming as strategic assets – or risk eroding our agri-food sector’s competitiveness.
For too long, Europe has relied on a farming model that depends on fossil-fuelled inputs and natural capital depletion – especially soils. This erodes food security and piles pressure on farmers already operating on wafer-thin margins – the average annual farm income across the EU stands at just €28,876. That’s not a foundation for resilience, it’s a vulnerability.
At the same time, the public is losing access to affordable, nutritious food. Farmers are struggling to adapt to erratic weather caused by climate change. And degraded soils mean lower productivity and bigger risks. The cracks are widening across the food chain and our politics hasn’t yet matched the scale of the threat.
But there’s another path. A growing number of farmers across Europe are showing that regenerative agriculture – with a strong focus on soil health, reduced reliance on fossil-based inputs, and improved biodiversity – can be both financially and environmentally viable. This isn’t hypothetical. It’s already working. At Soil Capital, we see it every day: done right, regenerative systems reduce input costs, boost resilience and yield, and unlock new revenue streams for farmers. Regenerative methods do not ask farmers to choose between sustainability and productivity – they deliver both.
So, what’s the hold-up? The reality is that many farmers want change but need the right incentives. Transitioning to regenerative agriculture involves upfront costs, technical risk and market uncertainty. Farmers can’t afford to carry these upfront costs alone. Right now, less than 10% of the estimated tens of billions of euros needed is being met.
This must change, which is why the next EU budget and especially the future of the Common Agricultural Policy (CAP), must catalyse investment in farming systems that are resilient, low-risk and future-proof. That means three things:
The CAP should support farmers not just to maintain income, but to transition to practices that strengthen Europe’s food security and climate resilience. While public money alone won’t get us there, it can be leveraged to crowd private capital into the transition. We need blended finance models that bring in investment from the food industry, reward farmers for measurable outcomes, and reduce risk across the board. Done right, this unlocks value throughout the supply chain – from field to fork.
Ongoing food price inflation underscores the collective burden of a fragile food system. It is in all our interest that investment in the agricultural transition is incentivised and fairly shared across the value chain. Right now, a handful of forward-looking food agri-food businesses are investing in regenerative supply chains while others free-ride and farmers bear the cost. This is neither fair nor sustainable. The revision of agri-food policies related to unfair trading practices provides an opportunity to correct this market failure and ensure farmers are compensated fairly for the ecosystem services they provide.
At the same time, the so-called Omnibus simplification agenda should do more than cut red tape for the agri-food sector – it needs to give such businesses the time, tools and guidance to plan ahead with confidence. Consistent disclosure rules across the value chain can be directed to help businesses pinpoint where climate and nature risks are most pressing in their supply chains and how their suppliers are responding. This transparency will drive investment by revealing how regenerative farming boosts resilience – through healthier soils, water and biodiversity.
To scale this transition, we need simple, trusted, EU-wide metrics that track outcomes on farms and inform capital flows. That’s why tools like the Carbon Removal Certification Framework matter. But carbon is just the start. A credible, standardised benchmarking framework for all key indicators – from soil function to water use, to biodiversity – is essential. If farmers are to be rewarded for the ecosystem services they provide, we need to measure them consistently and transparently.
This transition is not about stary eyed optimism, it’s about geopolitical and economic realism. A food system built on depleted soils and volatile inputs is not competitive. One that secures yield, improves autonomy, and supports farmers’ prosperity is.
Europe has a unique opportunity to lead. But only if it backs its farmers – not just with words, but with well-designed finance, fairer markets, and smart regulation. With the right legal and financial architecture in place, regenerative agriculture can go from fringe to mainstream. But only if we treat farmers as strategic partners in our collective resilience – and invest accordingly to secure our food, our economy and our future.
