Enhancing Soil health through Values-based business models

Project Information

SoilValues

Grant agreement ID: 101091308

DOI

10.3030/101091308

EC signature date 15 November 2022

Start date 1 January 2023

End date 31 December 2026

Funded under

• Food, Bioeconomy Natural Resources, Agriculture and Environment

Total cost

€ 4 999 922,50

EU contribution

€ 4 999 922,50

Coordinated by

KATHOLIEKE UNIVERSITEIT LEUVEN
Belgium

Periodic Reporting for period 1 - SoilValues (Enhancing Soil health through Values-based business models)

Reporting period: 2023-01-01 to 2024-06-30

Summary of the context and overall objectives of the project

Soil is a key asset that is essential for agriculture and food production requiring continuous investments from land managers to maintain good conditions. In addition, soils are also important for society, generating key ecosystem services such as clean water and carbon sequestration. Land managers combine man-made resources with natural resources to produce marketable products like food and fiber, but at the same time produce ecosystem services that are generally not marketed. However, land managers often have little incentive to invest in healthy soils, as they cannot sufficiently capture the value generated by ecosystem services. SoilValues contributes to the conditions for developing successful soil health business models, where managers make production decisions that result in higher levels of soil-based ecosystem services (SES) and in which they are paid for the non-marketed services they generate. For such business models to function, three important conditions need to be fulfilled: 1) the outcomes of SES need to be measured, 2) the information generated by these indicators and models need to be exchanged to facilitate monitoring, reporting and verification, and 3) these activities should be governed by an appropriate institutional framework. To enhance the conditions for developing successful soil health business models, SoilValues address five strategic objectives. First, SoilValues aims to construct a comprehensive assessment framework, including a quantitative bio-economic model, that takes into account relevant criteria for the selection, co-design and evaluation of testing grounds. Second, 6 testing grounds will be established across Europe to test and improve emerging, and desig new, soil health business models. Third, 12 communities of practice will be established bringing together a variety of stakeholders across the value chain to further develop and upscale the soil health business models. Fourth, a comprehensive toolbox of incentives and policy recommendations will be designed to facilitate actors to create soil health business models. Fifth, SoilValues will raise awareness and exchange knowledge on soil health business models by showcasing good practices and communicating project results.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

An extensive mapping of scientific literature on soil ecosystem services was carried out (WP1). Evidence was compiled in an internal report, and was then used as a basis for the development and completion of the basic evaluation framework. The scientific rational (i.e. linking ecosystem services with farming practices, soil health and farm economics) has been enlarged with relations between (1) ecosystem services and farming practices, (2) farming practices and soil health indicators and (3) ecosystem services and farm economics. Seven regional testing grounds (TGs) have been established across Germany, Denmark, Belgium, The Netherlands, Poland and Portugal. In each TG, a (core) group of actors has been identified and engaged to co-design and implement a(n) (emerging) business model. Each TG has produced an implementation plan with a completed SoilValues business model canvas, based on a preliminary design of a Soil Health Business Model (SHBM) and in interaction with regional stakeholders. The process of co-design and implementation of the seven respective SHBMs are being actively tracked through log-books and periodic reflections between TG leads. The first 6 Communities of Practice (CoP) were formed in the initial countries (Portugal, The Netherlands, Belgium, Germany, Poland, and Denmark). This was achieved through a variety of activities including a network analysis, workshops with the CoPs and a literature review. Frequent consultation with the CoP-leads, TG leads and the wider consortium ensures that the CoPs and TGs remain aligning in their aims towards the validation and scaling-up plans of the business models. Through comprehensive interviews and stakeholder consultations, critical information has been gathered from organisations that supply incentives for SHBMs. This has built a robust understanding of the current landscape, identifying what works and highlighting best practices. Anchored within this, an assessment framework has been outlined and a set of general recommendations for effective incentives have been formulated. Building on these, we have elaborated tailored advice on an effective financing approach and optimal targets for policy incentives through drafting one policy and one practice brief. The SoilValues website has been created and developed to be a strong tool supporting the actions of raising awareness and inform about the projects and its results. Further, social media channels (X and LinkedIn) ensure visibility and access to the various stakeholder groups. Finally, a number of promotional materials have been produced for communication and dissemination purposes during project-related outreach activities.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

Analysis of 54 semi-structured interviews with a variety of stakeholders across five sectors (corporate, banking & insurance, private investors, policy makers, policy experts, project intermediaries) generated insights about who is involved in promoting soil health and about the effectiveness of existing incentives. More specifically, the stakeholders involved in the regenerative transition include both established entities within the agri-food ecosystem and newcomers bringing innovations to the market. The landscape is divided between actors who are in pursuit of standardised and reliable methodologies to underwrite regenerative practices, and actors experimenting with new, tailor-made, farmer-centric support mechanisms. While 29 types of incentives have been inventorised, no single incentive is effective in isolation, and no individual instrument or scheme can single-handedly drive farmers towards regenerative agricultural practices while simultaneously enhancing the viability and attractiveness of their business models. Specifically, 1) while some incentives exhibit potential in environmental or economic terms, farmers’ adoption is hindered by various factors such as programs’ scale, outreach challenges, uncertainty, and bureaucratic procedures. Some incentives are not effective because their impact on soil health is challenging to measure and verify, 2) other incentives fail to provide farmers with a cost-effective and economically viable opportunity to adopt new practices or alter their operations, 3) the effectiveness of incentive mechanisms associated with specific farming practices cannot be uniformly assessed or universally applied due to the diverse conditions across different agricultural contexts.