NCX Guides

Regenerative Agriculture Programs

Landowners can earn income from adopting regenerative practices on their farms and ranches.

Thinking about ways to improve the long-term resilience of your farm or ranch?

Regenerative agriculture is a system of land management that promotes soil health and biodiversity while creating a productive, profitable operation. This guide highlights key concepts to understand about regenerative agriculture and how it can be integrated into your farm operations.

What are the main goals of regenerative agriculture?

There are 4 major benefits of regenerative agriculture that farmers and ranchers should consider.

  • 01 Improve Soil Health

    Increasing soil organic matter promotes positive downstream effects on crop production, water retention, and reliance on external inputs.

  • 02 Increase Biodiversity

    Regenerative practices promote biodiversity at every scale from soil microbes, pollinators and birds, to livestock like cows and sheep. 

  • 03 Conserve Water

    Healthy soil retains water more effectively than degraded soil, reducing erosion and desertification caused by mono-crop farming.

  • 04 Reduce Inputs

    The need for synthetic fertilizers, herbicides, pesticides, and supplemental feed is reduced because the farm is generating the nutrients needed to sustain itself.

Common Regenerative Practices
  • Tillage Changes

    Tillage Changes
    Reducing tillage, or switching to no-till practices, benefits soil health by preserving soil structure, enhancing organic matter, and fostering a stable habitat for essential soil organisms. Traditional tillage can disturb the natural networks that support roots, microbes, and fungi, leading to erosion and nutrient loss. Over time, reduced tillage can help build a resilient soil that supports plant growth and withstands drought and erosion more effectively.
  • Cover crops

    Cover crops
    Planting cover crops can be an effective way to suppress unwanted weeds, reduce erosion, and provide additional economic value to a farm. Different types of cover crops provide different benefits. For example, legumes like clover are great nitrogen fixers, adding natural fertilizer to the soil as they grow. Deep-rooted cover crops like radishes break up compacted soil layers and improve water infiltration, creating channels for air and water movement that benefit future crops. Grasses like rye and oats are great for building organic matter as their roots decompose, and they create a dense ground cover that suppresses weeds, conserves moisture, and protects against erosion.
  • Rotational Grazing

    Rotational Grazing
    Rotational grazing is a powerful tool for improving soil health by managing livestock in a way that mimics natural herd movements. Rotational grazing involves grazing animals through different paddocks, giving each section of pasture time to rest and recover between grazing periods. This approach encourages grasses to develop deeper root systems, improving soil structure and water retention. Livestock manure also adds organic matter and nutrients back into the soil. Over time, this cycle of grazing and regrowth leads to healthier soil, improved forage quality, and increased resilience against drought and heavy rains.
  • Crop Rotation

    Crop Rotation
    Rotating crops balances soil nutrients and improves soil structure and biodiversity. Each crop has different root structures and nutrient needs, which creates soil organic matter and structural diversity. This approach minimizes the need for inputs like fertilizers and pesticides, reduces erosion, and ultimately leads to healthier, more resilient soil over time. For example, planting legumes like soybeans or peas in one season adds nitrogen to the soil, which benefits nitrogen-hungry crops like corn or wheat the next season.
  • Agroforestry

    Agroforestry
    Agroforestry integrates trees and shrubs with crops or livestock in ways that benefit the soil and productivity, creating a resilient system with long-term soil and ecosystem health in mind. For example, silvopasture combines trees with pasture land for livestock grazing. The trees provide shade, reducing heat stress on animals, while their roots help stabilize the soil, increase water infiltration, and draw up nutrients from deep in the ground. Alley cropping involves planting rows of trees or shrubs alongside crops, where the trees protect soil from erosion, reduce wind damage, and improve moisture retention. The leaves and branches of these trees also add organic matter that can be used as mulch. The market for tree fruit and nuts can also provide additional income for landowners.

Common Regenerative Practices

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  • Tillage Changes

  • Cover crops

  • Rotational Grazing

  • Crop Rotation

  • Agroforestry

Reducing tillage, or switching to no-till practices, benefits soil health by preserving soil structure, enhancing organic matter, and fostering a stable habitat for essential soil organisms. Traditional tillage can disturb the natural networks that support roots, microbes, and fungi, leading to erosion and nutrient loss. Over time, reduced tillage can help build a resilient soil that supports plant growth and withstands drought and erosion more effectively.
Reducing tillage, or switching to no-till practices, benefits soil health by preserving soil structure, enhancing organic matter, and fostering a stable habitat for essential soil organisms. Traditional tillage can disturb the natural networks that support roots, microbes, and fungi, leading to erosion and nutrient loss. Over time, reduced tillage can help build a resilient soil that supports plant growth and withstands drought and erosion more effectively.
Planting cover crops can be an effective way to suppress unwanted weeds, reduce erosion, and provide additional economic value to a farm. Different types of cover crops provide different benefits. For example, legumes like clover are great nitrogen fixers, adding natural fertilizer to the soil as they grow. Deep-rooted cover crops like radishes break up compacted soil layers and improve water infiltration, creating channels for air and water movement that benefit future crops. Grasses like rye and oats are great for building organic matter as their roots decompose, and they create a dense ground cover that suppresses weeds, conserves moisture, and protects against erosion.
Rotational grazing is a powerful tool for improving soil health by managing livestock in a way that mimics natural herd movements. Rotational grazing involves grazing animals through different paddocks, giving each section of pasture time to rest and recover between grazing periods. This approach encourages grasses to develop deeper root systems, improving soil structure and water retention. Livestock manure also adds organic matter and nutrients back into the soil. Over time, this cycle of grazing and regrowth leads to healthier soil, improved forage quality, and increased resilience against drought and heavy rains.
Rotating crops balances soil nutrients and improves soil structure and biodiversity. Each crop has different root structures and nutrient needs, which creates soil organic matter and structural diversity. This approach minimizes the need for inputs like fertilizers and pesticides, reduces erosion, and ultimately leads to healthier, more resilient soil over time. For example, planting legumes like soybeans or peas in one season adds nitrogen to the soil, which benefits nitrogen-hungry crops like corn or wheat the next season.
Agroforestry integrates trees and shrubs with crops or livestock in ways that benefit the soil and productivity, creating a resilient system with long-term soil and ecosystem health in mind. For example, silvopasture combines trees with pasture land for livestock grazing. The trees provide shade, reducing heat stress on animals, while their roots help stabilize the soil, increase water infiltration, and draw up nutrients from deep in the ground. Alley cropping involves planting rows of trees or shrubs alongside crops, where the trees protect soil from erosion, reduce wind damage, and improve moisture retention. The leaves and branches of these trees also add organic matter that can be used as mulch. The market for tree fruit and nuts can also provide additional income for landowners.
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How do you get paid for regenerative agriculture?

There are different types of payment structures and funding sources for adopting regenerative agriculture.

  • Carbon

    There are programs available to farmers and ranchers today that compensate them for adopting practices that increase soil carbon. Carbon developers measure the changes in soil carbon over time, following certified methodologies, and sell carbon credits to corporations looking to offset their carbon emissions. The farmers are typically paid a per-acre rate, a revenue share from the sale of carbon credits, or both. These programs often help cover the costs of implementation and equipment. NCX can help you explore these programs for your land.

  • New Markets

    Producing consumer goods that are certified as regenerative organic or biodynamic can lead to higher price premiums. Farmers can capitalize on these certification labels to gain access to new markets that command higher prices.

  • Government funding

    The USDA is investing hundreds of millions of dollars into programs like the Climate-Smart Commodities fund, which incentivizes farmers and ranchers to adopt regenerative practices through financial assistance. These programs can meaningfully change the unit economics of producing regenerative crops. NCX can help you explore these programs for your land.

  • Long-term profitability

    Traditional agriculture produces significant yields, but also requires significant investment in inputs like fertilizers, pesticides, and herbicides. While these inputs support short-term yield, they are expensive and can damage the long-term viability of the land’s production. Regenerative agriculture, while it requires up front investment and potential sacrifices in yield, can provide a path to longer term, sustainable profitability.

THE MARKET

Why are farmers adopting regenerative practices?

Farmers are increasingly adopting regenerative practices to build long-term resilience and independence, improve soil health, and meet shifting consumer demands. As more consumers prioritize organic products and want transparency about where their food comes from, regenerative farming practices are becoming a way to meet this demand and capture premium pricing. These practices support the land’s health over time, creating a more sustainable foundation for future production. Also, financial support is growing through public and private programs from carbon projects to funding from the USDA. 

Where can you implement regenerative agriculture?

Regenerative practices can be implemented on various types of farms and ranches. Chances are, if you grow crops or manage livestock, there are opportunities to integrate regenerative practices into your farm operations.

Pastureland – Practices like rotational grazing, silvopasture, and diverse forage planting can improve soil health on pastures. Healthier soils with higher organic matter support a wider range of nutritious forage plants, allowing livestock to graze on high-quality grasses and legumes. This can improve weight gain, milk production, and overall animal health. Effectively rotating grazing animals on pasture also has positive effects on water retention, carbon sequestration, and resilience to unwanted weeds.

Row crops – Practices like reduced tillage, cover cropping, and diverse crop rotations help suppress weeds and pests, reduce input costs, improve soil health and enhance water efficiency, leading to more resilient and sustainable farming. This enhanced soil health improves nutrient availability and uptake, leading to crops that are often more nutrient-dense. These methods also contribute to carbon sequestration while supporting crop production.

Risks, Rewards, and Restrictions

Interest in regenerative agriculture is expanding rapidly. Farmers and ranchers should consider all the risks and rewards before pursuing programs.

  • Risks

    Regenerative agriculture offers many long-term benefits, but there are some risks and challenges that can make adoption difficult. Startup costs are often significant because practices may require new equipment and infrastructure. Transition periods are another challenge. It may take several seasons to see improvements in soil health, yields, or input costs, which can put financial strain on farmers used to immediate returns. Yields also may simply be lower for regenerative practices than a farmer’s current system, which is challenging. Short term benefits should be weighed against the long-term goals for each farm. Knowledge and skill gaps can also be a barrier. Farmers may need extensive training and technical assistance to implement regenerative practices, adding time and expense. Market access and premiums aren’t always guaranteed for regenerative products, especially in areas without established demand, so the financial reward may take time to materialize. Finally, threats like extreme weather or pests remain a risk to regenerative farms.

  • Rewards

    Regenerative practices can have both environmental and economic benefits. Your soil health can improve significantly and become more resilient to threats like erosion and drought. Adopting regenerative practices can also help reduce your input costs and increase the profitability of your growing operations.

  • Restrictions

    Programs that measure and pay for soil carbon restrict the types of activities that farmers can do on their properties. Typically, a farmer will sign a contract lasting anywhere from 1 to 30 years. During this time period, the project developer will periodically visit the property to take measurements of soil carbon and verify that the farmer has complied with the terms of the contract. If farmers conduct activities like tilling that violate the contract, they are at risk of receiving financial penalties from the carbon project developer. If farmers choose to become certified under labels like the Regenerative Organic Alliance Certification or Demeter Biodynamic Certification, they must abide by the rules, regulations, and verification requirements of those methodologies as well.


Get support on your regenerative agriculture strategy.

NCX makes it easy for you to explore regenerative agriculture practices and programs for your farm or ranch. We’ll outline market opportunities and funding sources so that you can make an informed decision on if regenerative agriculture is right for you. Create a free account to get started today.
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