1. Navigating the transition to sustainable food production

1.1 The need for a faster transition

Agriculture plays a central role in climate, biodiversity and food security outcomes. The report notes that global food systems generate around one-third of greenhouse gas emissions while placing pressure on land, water and ecosystems. With approximately 570 million farms worldwide, achieving sustainability goals requires rapid adoption of improved practices across millions of producers. Scaling sustainable production among 100 million farmers is identified as a near-term milestone capable of accelerating systemic change across food systems. However, progress remains slow because current financial and market structures do not sufficiently reward sustainable practices or environmental outcomes.

1.2 Barriers to faster adoption by farmers

Farmers face several economic, technical and behavioural barriers when adopting regenerative or sustainable agricultural practices. Transitioning often requires upfront investment in new equipment, inputs or training, while returns may only materialise after several growing seasons. During this transition period, farmers may experience yield uncertainty and revenue volatility.

Limited technical knowledge and access to advisory services further slow adoption. Many farmers lack reliable data on the economic benefits of practices such as cover cropping, reduced tillage or diversified crop rotations. In addition, agricultural markets frequently prioritise production volumes rather than environmental performance, providing little price incentive for sustainable practices. For farmers operating with narrow profit margins, these risks discourage experimentation and long-term investment in new production systems.

1.3 The financing and collaboration challenges

Traditional agricultural finance structures often focus on short-term productivity rather than long-term environmental performance. Credit products and investment mechanisms rarely incorporate sustainability outcomes such as soil health improvements, carbon sequestration or biodiversity protection. This limits access to capital for farmers attempting to transition to regenerative systems.

The report highlights that financing alone cannot address these challenges. Effective transition requires collaboration across value chains involving food companies, financial institutions, governments, technology providers and civil society organisations. Without coordinated incentives and shared risk across stakeholders, scaling sustainable practices among millions of farmers remains difficult.

2. Breakthrough models for financing and collaboration to support farmers

2.1 An illustration of a breakthrough model for financing and collaboration

The report outlines a model in which multiple stakeholders coordinate financing, market incentives and technical support to enable farmer transition. In this approach, food companies provide demand signals and long-term purchasing commitments for sustainably produced commodities. Financial institutions offer tailored credit products or sustainability-linked financing, while environmental markets generate additional revenue through payments for ecosystem services.

Such models distribute financial risk across actors and reward measurable environmental outcomes, helping farmers manage the economic uncertainty associated with adopting regenerative practices.

2.2 Innovative existing programmes

Several existing initiatives demonstrate elements of these collaborative models. Blended finance programmes combine concessional capital, public funding and private investment to reduce risk and expand financing for sustainable agriculture. Corporate supply-chain programmes also support farmers through price premiums, technical assistance and long-term contracts linked to sustainability goals.

Environmental markets, including carbon credit schemes and ecosystem service payments, are emerging as additional income sources. These mechanisms can monetise improvements in soil carbon, biodiversity protection and water management, creating financial incentives for farmers adopting regenerative practices.

2.3 Gaps in existing programmes

Despite progress, current programmes remain fragmented and limited in scale. Many initiatives operate in pilot phases or focus on specific commodities or regions. Measurement frameworks for environmental outcomes are still developing, creating uncertainty for investors and programme participants.

In addition, access to financing remains uneven, particularly for smallholder farmers and producers in developing regions. The report notes that significant gaps persist in coordinating finance, data infrastructure and technical support needed to scale these models globally.

3. Roadmap to drive a step-change in sustainable food production

The report proposes a roadmap to accelerate adoption of sustainable agricultural practices at scale. First, stakeholders should expand innovative financing mechanisms such as blended finance structures, sustainability-linked lending and outcome-based ecosystem service payments. These tools can help reduce transition risk and mobilise capital for farmer adoption.

Second, stronger supply-chain commitments are needed from food companies and agribusiness firms. Long-term procurement agreements and sustainability targets can create stable demand and financial incentives for sustainable production.

Third, governments play a key enabling role through supportive policies, including incentives for regenerative practices, improved environmental accounting systems and investment in agricultural research and advisory services.

Finally, collaboration and transparent data systems are necessary to measure outcomes, share knowledge and direct investment efficiently. Coordinated action across stakeholders could enable the transition of 100 million farmers, supporting climate mitigation, ecosystem resilience and long-term food system sustainability.