The Hidden Wealth Beneath Our Feet: Unlocking Growth Through Regenerative Farming
The World Bank is calling for a radical rethink of the way the world produces food, warning that soil degradation and input-heavy farming are not only undermining agricultural productivity but also fueling climate change and hidden social costs estimated at $10 trillion annually.
Its latest report, Reboot Development: The Economics of a Livable Planet, argues that regenerative agriculture, farming practices designed to restore and enhance soil health, offers a viable path to sustainable food systems, higher farm profitability, and better public health outcomes.
Soil at the Heart of Agriculture’s Future
Soil health, the report stresses, is the foundation of resilient and productive farming systems. Conventional agriculture has long prioritized short-term yield maximization, but often at the cost of depleted soils, reduced biodiversity, and ecosystem instability. Regenerative practices such as no-till farming, mulching, contouring, terracing, cover cropping, and crop rotation aim to reverse that trend. These techniques improve soil structure, increase organic matter, retain moisture, and foster microbial diversity, all of which are critical to protecting yields in the face of droughts and extreme weather.
The World Bank cites evidence that diversified cropping systems increased yields by 14 percent and biodiversity by 24 percent. In more than 60 percent of cases studied, regenerative approaches simultaneously boosted production and ecosystem services, showing that sustainability and productivity can go hand in hand.
From Soil Health to Human Health
The report also highlights the often-overlooked connection between soil quality and the nutritional value of food. Nutrient-rich soils produce crops higher in vitamins and minerals, while depleted soils lead to deficiencies that cascade into human health crises. Zinc deficiency, the most widespread micronutrient deficiency in crops, limits productivity and nutrition worldwide. In Nepal’s Tarai region, low soil zinc levels were directly linked to child stunting, underscoring how soil health is a public health priority as much as an agricultural one.
Emerging research even suggests a link between soil and gut health, with foods grown in healthier soils potentially supporting stronger human microbiomes. This finding, while still under study, reinforces the case for making soil restoration central to development and health agendas.
Economic Barriers to Adoption
Despite the promise, the report acknowledges that high upfront costs remain a major barrier to widespread adoption of regenerative practices. Measures like erosion control can raise farm costs by 7 percent, while transitioning to reduced tillage often requires investments 62 percent higher than conventional methods. For smallholder farmers in low- and middle-income countries, who already face liquidity constraints and uncertain payoffs, these costs make adoption risky without external support.
Yet over time, regenerative agriculture has proven profitable. A meta-analysis of 66 studies across 17 countries found that practices such as agroforestry, biochar use, cover crops, and residue mulching improved farm margins, with profitability increasing year after year as the practices matured. Residue mulching stood out as especially effective in retaining soil moisture and boosting returns.
Redirecting Subsidies and Financing the Transition
The World Bank notes that governments worldwide spend $650 billion annually on agricultural subsidies, much of which still supports yield-driven, input-heavy systems that degrade soil. Redirecting even a portion of these funds to support regenerative agriculture could accelerate the transition. Examples already exist, the US Farm Bill and the European Union’s Common Agricultural Policy include conservation and eco-schemes that incentivize sustainable land management.
For developing countries, the report recommends targeted support such as temporary subsidies, credit guarantees, and matching grants to help smallholders shoulder upfront costs. These financial mechanisms, it says, should be treated as investment expenditures, recognizing the long-term environmental and economic benefits of soil regeneration.
Africa’s Emerging Momentum
Africa is singled out as a region where the stakes are high but the potential is immense. With many governments already rethinking fertilizer strategies, the focus is shifting from boosting immediate yields to ensuring long-term soil productivity. Regenerative practices could improve resilience against climate shocks, diversify rural incomes, and enhance food security while cutting emissions. The World Bank argues that properly structured financial support in Africa could unlock one of the world’s most significant opportunities for regenerative agriculture.
Unlocking the “Secret in Our Dirt”
At its core, the report frames regenerative agriculture not as a niche movement but as an essential pillar of global development and climate strategy. “The secret in our dirt,” it concludes, is the capacity of soils to underpin resilient food systems, healthier populations, and more livable economies. With the right policies and investments, regenerative agriculture can shift the global food system from being one of the planet’s biggest problems to one of its most powerful solutions.
