What are the policy and market incentives for agribusinesses to invest in agroforestry and soil protection?

1 Benefits of agroforestry and soil protection

Agroforestry is the integration of trees and shrubs with crops and livestock on the same land, and soil protection is the conservation and improvement of soil quality and health. Both practices can offer multiple advantages for agribusinesses, including increased crop yields and quality due to improved soil fertility, water retention, and pest control. In addition, agroforestry and soil protection can reduce input costs and risks by diversifying income sources, enhancing resilience to climate change, and lowering dependence on external inputs. Furthermore, these practices can enhance environmental and social outcomes by sequestering carbon, reducing erosion, and providing habitat for wildlife and pollinators.

2 Policy incentives for agroforestry and soil protection

Policy incentives are regulations, subsidies, and programs offered by governments and other institutions to promote agroforestry and soil protection. For instance, payments for ecosystem services (PES) reward farmers and landowners for providing environmental benefits, such as carbon storage, biodiversity, and water quality. Agro-environmental schemes (AES) provide financial and technical aid to those who adopt practices like organic farming, agroforestry, and cover cropping. Additionally, land tenure and property rights secure access and ownership of land and resources for farmers and landowners, allowing them to plan and invest for the long term.

3 Market incentives for agroforestry and soil protection

Market incentives, such as certification and labeling, value chain development, and consumer awareness and education, are the demand, prices, and standards that consumers and businesses create for agroforestry and soil protection products and services. Certification and labeling verify and communicate the environmental and social attributes of these products, while value chain development connects farmers with buyers who share a common vision. Consumer awareness and education also increases knowledge of these products and influences purchasing decisions.

4 Challenges and opportunities for agroforestry and soil protection

Despite the potential benefits and incentives for agroforestry and soil protection, many agribusinesses face challenges and barriers to adopt them, such as a lack of information and knowledge about the technical aspects, costs, and benefits of these practices, as well as a lack of access to finance, credit, and insurance to cover the initial investment and transition costs. Furthermore, there is a lack of coordination and collaboration among stakeholders, such as farmers, landowners, extension agents, researchers, policymakers, and businesses. However, there are opportunities and solutions to overcome these challenges. For example, participatory research and innovation can involve farmers and landowners in the design, implementation, and evaluation of agroforestry and soil protection practices. Additionally, inclusive business models can enable farmers and landowners to participate in the value creation and distribution of these products. Lastly, multi-stakeholder platforms can facilitate dialogue, learning, and action among stakeholders to foster collective action and advocacy for agroforestry and soil protection.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?