Finance is emerging as a decisive factor in South Africa's shift towards regenerative agriculture, as farmers face increasing pressure to adapt production models while maintaining commercial viability.
Speaking at the Landbouvikblad Regenerative Agriculture Conference 2026, Daniel Rossouw, head of sales at Nedbank Agriculture, said the transformation requires more than operational changes.
“The transition to regenerative agriculture is not just actionable – it demands deliberate financial restructuring. Without getting this right, even the most committed producers risk losing viability.”
Focus on commercial feasibility
The Landbouvikblad Regenerative Agriculture Conference 2026 is a series of workshops held in the Free State, Western Cape and North West, bringing together farmers, researchers and industry stakeholders to explore practical approaches to soil health, resilience and reduced input dependency.
A key topic is the commercial feasibility of regenerative agriculture, particularly the financial implications of the transition, including risk management, cash flow and financing structures.
debt structures under stress
Rossouw said existing loan structures are often not suited to regenerative models.
“Too many agribusinesses are locked into financing structures that were designed for traditional, input-heavy systems. These structures often leave little room for maneuver, especially during a transition period where yields can fluctuate and upfront costs are high.”
He said the restructuring is necessary to build flexibility in working capital, align repayments with realistic cash flows and extend financing terms where necessary.
“Without this flexibility, farmers are effectively being asked to change the system while standing on shaky financial ground.”
need for flexible financing
Beyond restructuring, Rossouw highlighted the need for well-designed term financing that supports a gradual transition.
“It's not about recklessly increasing debt. It's about structuring capital in a way that supports change rather than inhibiting it.”
Asset financing also plays a role, particularly for equipment associated with regenerative practices, although he said optimizing existing resources is often more effective than immediate capital investment.
Working capital is a major pressure point
According to Rossouw, working capital requirements are one of the biggest challenges during the transition.
“Regenerative changes often bring additional upfront costs as well as short-term uncertainty in income. Treating this as 'business as usual' working capital is a mistake,” he said.
“It must be carefully circumscribed, actively managed, and structured outside traditional norms. This creates transparency, discipline, and – critically – breathing space during periods of change.”
sustainable finance important
“Underlying all this is a non-negotiable principle: The numbers must mean something,” Rossouw said. “Not just for the customer, but also for the bank. Sustainable agriculture cannot be built on shaky finances. If funding models rely on optimism rather than realism, they will fail, taking producers with them.”
Rossouw said environmental, social and governance (ESG) frameworks are increasingly influencing how agriculture is financed and evaluated.
Farmers are facing increasing pressure from export markets and retailers to demonstrate not only what they produce, but how production is financed and managed.
balancing opportunity and risk
In South Africa, regenerative agriculture is gaining momentum as producers respond to climate variability, rising input costs and the need for long-term resilience.
However, challenges still remain, including upfront risks, potential yield fluctuations, skills gaps, and inconsistent definitions of regenerative practices.
“The future of agriculture will not be determined by ideology alone. It will be determined by whether capital is structured intelligently enough to support the transformation. And that is a responsibility shared by both farmers and financiers.”
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