The global agricultural industry is undergoing a transformative shift, driven by the urgent need to address environmental challenges such as climate change, soil degradation, and food security. One of the key movements shaping this change is regenerative agriculture (regen ag), which focuses on farming methods that restore ecosystems, increase biodiversity, and capture carbon. In this context, Soil Capital, a Belgian start-up that facilitates farmers' transition to regenerative agriculture, has emerged as a significant player. Recently, Soil Capital secured a EUR 15M Series B funding round, led by Trill Impact Ventures, signaling increased interest in the intersection of agriculture and sustainability. This round also saw participation from Ring Capital, Sandwater, SFPIM, and Santander Alternative Investments, further highlighting the momentum within the sector.
The success of Soil Capital is part of a broader trend that is gaining traction in regenerative agriculture, with several other companies pioneering innovations and attracting substantial investment. This article delves into the significance of the Soil Capital investment, the trends driving regen ag, and similar ventures contributing to this critical transition.
Soil Capital: A Pioneer in Regenerative Agriculture
Founded in 2013, Soil Capital has made significant strides in advocating for the regenerative agriculture transition. The company is unique in that it not only supports farmers in adopting sustainable practices but also issues carbon certificates, helping food corporations offset their emissions while improving the resilience of their supply chains.
Since the launch of its carbon certificate program in 2019, Soil Capital has expanded to include over 1,600 farmers covering 350,000 hectares across Belgium, France, and the UK. The start-up collaborates with well-known players like MARS, Royal Canin, Boortmalt, and Cefetra, demonstrating its ability to build impactful partnerships in the agri-food sector.
With the EUR 15M raised in its Series B round, Soil Capital plans to accelerate its international expansion and broaden its platform to encompass other environmental indicators such as soil health, water quality, and biodiversity. By focusing on measurable outcomes, the company stands out as a key player in the growing carbon credit market, where demand for high-integrity carbon certificates is increasing.
The Rise of Regenerative Agriculture: A Broader Trend
The financing round led by Trill Impact Ventures is part of a larger trend where regenerative agriculture is becoming a focal point for sustainability-focused investments. The combination of environmental benefits and economic incentives for farmers has drawn the attention of investors who recognize the sector's potential to combat climate change, improve food security, and enhance rural livelihoods.
Several other companies are similarly innovating in this space, contributing to the growing momentum:
Indigo Ag, a U.S.-based ag-tech company, is one of the largest players in the regenerative agriculture space. With its Terraton Initiative, the company aims to remove 1 trillion tons of carbon dioxide from the atmosphere through regenerative farming practices. Indigo Ag's carbon marketplace allows farmers to earn payments for sequestering carbon, providing financial incentives to shift toward sustainable practices.
Nori Carbon, another U.S.-based start-up, Nori, has created a blockchain-based marketplace for carbon removal credits, where farmers practicing regenerative agriculture can sell their carbon offsets. Nori’s approach aims to democratize carbon credits by offering transparency and ease of access, encouraging more farmers to participate.
Kiss the Ground is a nonprofit organization based in the U.S. that educates and trains farmers on the benefits of regenerative agriculture. While not a for-profit company, the organization has played an instrumental role in raising awareness about regen ag, emphasizing the practice’s potential to restore ecosystems and sequester carbon.
reNature, based in the Netherlands, reNature works with farmers globally to implement regenerative agroforestry systems. The company partners with corporations and governments to design regenerative models that not only capture carbon but also improve biodiversity and the socio-economic conditions of farming communities.
Driving Factors Behind the Trend
Several key drivers have contributed to the rise of regenerative agriculture as an attractive sector for impact investment:
Climate Change and Carbon Markets - The growing urgency to mitigate climate change has pushed governments and corporations to seek solutions that reduce greenhouse gas emissions. Regenerative agriculture, which sequesters carbon in soils, has emerged as a viable solution. Companies like Soil Capital and others are tapping into the burgeoning carbon market, where corporates are willing to purchase carbon credits to offset their emissions and meet climate targets.
Sustainability in Supply Chains - As consumers demand more sustainable and transparent food products, corporations are being pushed to reevaluate their supply chains. Regenerative agriculture offers a way for these companies to source ingredients that are not only environmentally friendly but also resilient to the impacts of climate change. Soil Capital’s partnerships with major food corporations like MARS and Royal Canin exemplify this trend.
Increased Farmer Adoption - Farmers are becoming more open to regenerative practices as they see the long-term benefits for soil health, crop yields, and resilience to climate events. Additionally, the financial incentives provided through carbon markets and grants help mitigate the initial transition costs. Soil Capital’s success in onboarding over 1,600 farmers is evidence of growing farmer participation.
Government and Policy Support - Policymakers are beginning to recognize the potential of regenerative agriculture in addressing multiple environmental challenges. This has led to increased funding opportunities and favorable policies aimed at encouraging farmers to adopt sustainable practices.
Conclusion
The EUR 15M Series B round in Soil Capital, led by Trill Impact Ventures, is more than just an investment in a single company—it is a testament to the broader movement toward regenerative agriculture. Soil Capital, alongside other innovators like Indigo Ag, Nori, and reNature, is spearheading a transformation in how agriculture is practiced and perceived. This shift offers a promising path for mitigating climate change, improving biodiversity, and supporting farmers' livelihoods while creating new economic opportunities through carbon markets and sustainable supply chains.
As the demand for sustainable food systems grows, regenerative agriculture is poised to play an even more significant role in reshaping the future of farming.
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