Future Fit Farming: Policy solutions for diverse, resilient agricultural systems
Mounting challenges underline the need to rethink the future of agriculture and food production. The combined social, economic, and environmental costs of global food systems are estimated to be as high as 19 trillion USD annually, or 22% of global GDP in 2020.1 2 Additionally, natural ecosystems play a critical role in growth and economic development. More than half of global GDP relies on ecosystem services, with the agriculture and food-and-beverage sectors among the top-three most dependent sectors. Together, these two sectors generate around 4 trillion USD in value.3

Biodiversity and healthy ecosystems are essential for agriculture, providing crucial services such as pollination, soil fertility, and water regulation. Intensive animal agriculture, however, drives biodiversity loss by clearing forests and high-value ecosystems, predominantly for livestock or feed production. This loss negatively impacts food systems, weakening resilience and contributing to issues like soil erosion, pollinator decline, and the proliferation of invasive species. Safeguarding ecosystems is therefore vital to ensuring agricultural sustainability and productivity.

Global food systems are responsible for a third of greenhouse gas (GHG) emissions, and contribute significantly to climate change.4 Extreme weather events caused by climate change compound these harms, as agriculture and food security are particularly vulnerable to fluctuations. In fact, the less sustainable a food system is, the more likely it is to be impacted by accelerating climate change.5 6
Policy landscape
On a global level, the FAO, the UNDP, and the UNEP estimate that 87% of agricultural subsidies are inefficient, inequitable, distort food prices, harm people’s health, or degrade the environment.7 8 Current income-support payments that are tied to farm size encourage intensive production, monocropping, and other unsustainable practices, further driving corporate consolidation, as smaller farms are outcompeted. This policy approach favors fewer, larger farms, leaving smallholders at a disadvantage in the open market. Policy frameworks need to address these issues and aim to broadly prioritize the livelihoods of agricultural workers, farmers, and rural communities, while also supporting the production of foods that contribute to meeting climate targets, enhancing biodiversity, and improving human health.
Agriculture, as a key driver of these problems, also needs to be central to their solutions. Addressing these challenges requires a fundamental shift to the current production paradigm. Diversifying agricultural production should involve:
- Shifting away from intensive livestock production
- Adopting a ‘less and better’ approach to livestock production
- Incentivizing the production of plant-based whole foods for direct human consumption – such as lentils, beans, chickpeas, fruits, and vegetables – or for ingredients in plant-based food products
On-farm solutions explored in this policy brief include:
- Increasing production of specialty crops
- Expanding plant-based protein crop processing and manufacturing
- Adopting organic practices
- Adopting regenerative farming practices

Policy recommendations
Click on a recommendation for more details.
Reform agricultural subsidies
Advocate for international frameworks that prioritize subsidies and incentives for sustainable crop production and diversification.
Reforming subsidies to prioritize sustainable production and promote healthy diets is essential for strengthening global food security, improving public health, and preserving the integrity of ecosystems. By restructuring subsidy systems to allocate funds based on population or GDP, countries could also potentially enhance the availability of healthier food options. Shifting to performance-based subsidies that are linked to tangible sustainable farming outcomes could also advance Sustainable Development Goals.
Promote the adoption of true-cost accounting in food production by integrating environmental and health costs into subsidies.
True-cost accounting for food production should shape subsidy reforms by aligning financial incentives with farming practices that reflect the external costs of production. This involves redirecting subsidies from systems that contribute to environmental degradation and impact negatively on public health toward sustainable, organic, and regenerative farming methods.
Improve access to capital and funding
Develop value chains that empower farmers to capture more value from sustainable production, supported by infrastructure and market development.
The incumbent system of agriculture, especially intensive livestock production, is entrenched in several path dependencies, including cultural attitudes, existing infrastructure, institutions, policies, power dynamics, and research-and-innovation priorities. Given that strategic support for crop diversification is essential, stronger provisions are needed for incentivizing farmers to grow more protein-rich crops for direct human consumption. Expanding legume production, especially as part of organic and regenerative methods, can enhance soil health, increase crop biodiversity, and reduce reliance on synthetic fertilizers, while also creating new economic opportunities for farmers and across the value chain.
Establish a dedicated grant fund to help farmers to diversify their crops and shift toward more sustainable agricultural practices and products.
A just-transition funding mechanism is needed for the agri-food sector, similar to that which the World Bank and European Commission have done for the energy sector. Such a mechanism could incorporate investment to support the development of new infrastructure that meets environmental requirements and targets, while also promoting the adoption of sustainable business models. Additionally, access to funding is needed in order to cover investments in equipment, infrastructure, and technology, as well as to provide credit protection and offer guaranteed mechanisms for farmers who are looking to diversify into new agri-food businesses.
Increase access to low- and no-interest loans to help farmers develop viable and sustainable businesses that meet evolving consumer demands.
Increased access to financial support, including low- and no-interest loans and capacity-building services, is crucial in order for farmers to shift to viable business models that incorporate sustainable agri-environmental practices. Farmers’ programs on financial literacy, rural entrepreneurship, and mentorship can provide vital skills to support diversification, such as business planning, credit management, and capacity-building.
Develop knowledge and infrastructure systems
Establish comprehensive technical assistance and infrastructure development programs.
The changes in agricultural practices that are required for diversification need to be accompanied by investments in training and knowledge networks. Farmers and other land managers will need access to a broad range of diversification strategies, supported by advisory services (also called ‘extension services’). Advisory services are currently geared predominantly toward intensive production. Rebalancing these services to support farmers pursuing or currently practicing organic, regenerative, or plant-based (or other broadly agroecological) farming will be essential for fostering a diverse, resilient, and sustainable farming sector.
Launch public trials with farmers and create model-demonstration networks to inform technical support for diversifying farming practices and improving regional supply chains.
Model demonstration networks would improve rural advisory services (or ‘extension services’), build trust within farming communities, and assist in developing regional supply chains, with a strategic role for farmers and targeted agricultural products.
Set up peer-to-peer knowledge-exchange programs to facilitate collaboration and skill-sharing among farmers.
Governments and NGOs should allocate resources in order to establish peer-to-peer consultant networks that bring together farmers, local communities, governments, and industry partners. These forums would help to facilitate the sharing of knowledge about diversification and climate-resilience strategies, as well as helping to mobilize funding and advocate for policy changes.
Drive demand for sustainable produce
Introduce minimum requirements for plant-based and organic foods in public food-procurement policies.
Establishing minimum requirements for plant-based, organic, and regeneratively-produced food can help local governments to reduce and mitigate the long-term impacts of unsustainable diets. These requirements could also create a stable market for local, small-scale producers, stimulating local economies and reconnecting consumers with their food sources.
Lower VAT rates on plant-based and organic products in order to make sustainable options more accessible to consumers.
VAT on organic and plant-based foods is often higher than that on animal-based products. Retailers also tend to apply higher profit margins to organic and plant-based products. These factors collectively reduce the affordability of more sustainable options. Creating a level playing field for these more sustainable options is essential, while continued innovation in plant-based food production will reduce long-term costs.
Foster farmer-forward policies
Build long-term support systems for farmers that focus on autonomy and community engagement.
Effective policies need to reflect farmers’ perspectives, avoid overly prescriptive measures, and restore their decision-making autonomy. In order to successfully diversify agricultural production systems, securing buy-in from farming communities is imperative. However, short-term concessions will only dilute the intentions of environmental-policy frameworks and build resistance to the uptake of new technologies. A systems-transformation on this scale needs to be founded on a long-term vision and decisive leadership. Governments need to enhance planning security and provide structural support for sustainable practices, thus helping to foster agency and capacity building.
Streamline reporting requirements so as to reduce the administrative burden on farmers.
The responsibility for monitoring, reporting, and verification systems, including aspects such as methane emissions and labor intensity, often falls on producers, which places an unfair burden, especially on smallholders. Streamlining these complex reporting methods could enhance the uptake of eco-schemes, making it easier for farmers to adopt sustainable practices and receive incentives for doing so.
Download the full policy brief
Explore these challenges and solutions in greater detail by downloading the full policy brief. This brief provides actionable insights and recommendations for building a more resilient, sustainable, and inclusive agricultural future in Europe. Its insights are informed by conversations with representatives from farming organizations. The brief closes by considering some examples of notable policy interventions and frameworks.
Authors
Nicole Rocque & Josh Bisig
References
- Ruggeri Laderchi, C., et al. (2024). The Economics of the Food System Transformation. Food System Economics Commission (FSEC), Global Policy Report.
- Hendriks, S. et al. (2023). The True Cost of Food: A Preliminary Assessment. In: von Braun, J., Afsana, K., Fresco, L.O., Hassan, M.H.A. (Eds.) Science and Innovations for Food Systems Transformation. Springer. https://doi.org/10.1007/978-3-031-15703-5_32
- Herweijer, C., et al. (2020). Nature risk rising: Why the crisis engulfing nature matters for business and the economy. World Economic Forum. https://www3.weforum.org/docs/WEF_New_Nature_Economy_Report_2020.pdf
- Crippa, M., Solazzo, E., Guizzardi, D., et al. (2021). Food systems are responsible for a third of global anthropogenic GHG emissions. Nature Food, 2(3), 198–209. doi:10.1038/s43016-021-00225-9
- Owino, V., Kumwenda, C., Ekesa, B., et al. (2022). The impact of climate change on food systems, diet quality, nutrition, and health outcomes: A narrative review. Frontiers in Climate. https://doi.org/10.3389/fclim.2022.941842
- Ercin, E., Veldkamp, T. I. E., & Hunink, J. (2021). Cross-border climate vulnerabilities of the European Union to drought. Nature Communications, 12, Article 3322. https://doi.org/10.1038/s41467-021-23584-0
- FAO, UNDP, & UNEP. (2021). A multi-billion-dollar opportunity: Repurposing agricultural support to transform food systems—In brief. FAO. https://doi.org/10.4060/cb6683en
- UNEP. (2021). A multi-billion-dollar opportunity: Repurposing agricultural support to transform food systems. https://www.unep.org/resources/repurposing-agricultural-support-transform-food-systems