March 20, 2025

UCalgary grant funds project exploring transition to sustainable agriculture

Experts from across the university will develop solutions to foster growth in the food and agriculture sectors

Author

Ali Abel, Office of the Vice-President (Research)

A man sits on a tractor while wearing a UCalgary sweatshirt
Guillaume Lhermie

As populations expand and trade wars build, the need for nationally based agriculture systems grows and the industry faces significant challenges related to climate change, the financialization of farmland, overly enriched water systems, soil loss, and carbon emissions. Moving towards regenerative agriculture is a potential solution that seeks to restore and enhance soil, the water cycle, and biodiversity. The shift to agro-ecological practices such as regenerative agriculture, however, requires support from financial institutions, who, according to a group of transdisciplinary researchers at UCalgary, may not be as motivated to support as they would for conventional farming.   

“Transitioning towards more sustainable food production not only requires mindset shifts but also major public and private investments. Our project is looking for finance solutions to foster change and growth in the food and agriculture sectors,” explains project lead Dr. Guillaume Lhermie, DVM, MSc, PhD, director of The School of Public Policy’s Simpson Centre for Food and Agricultural Policy.  

Focus on long-term outcomes is key 

According to Lhermie, success in the transition to regenerative agriculture is characterized by a J-shaped curve. In the initial three to five years, revenue for producers drops as biological systems are restored. After this initial drop, efficiencies and profitability increase. However, limited financial products are available to support farmers through this initial drop as they transition their operations.   

“We’re bringing together experts from the finance, agricultural, and policy sectors to find solutions for producers and financial institutions to move towards regenerative agriculture and to develop financial products to support that transition,” says Lhermie.  

Transdisciplinary research supported by UCalgary program 

The project, funded by UCalgary’s Transdisciplinary Connector Grants program is titled: Can the Financial Sector Support the Transition to Regenerative Agriculture? It will focus on three main activities: conducting environmental scans of the three sectors; determining the products and services offered by the financial industry, as well as the policies and programs within the agriculture sector and how they influence the decision to transition to regenerative agriculture; and finally, sharing findings with key stakeholders in a roundtable discussion.  

“This project will be the launch pad for further projects to bring stakeholders of the agro-ecological transition, the financial sector, and policy together, and to uncover questions about the role of finance in solving societal problems in agriculture, specifically around the incorporation of environmental, social, and governance outcomes and how they shape how the agricultural sector operates,” says Lhermie.   

“We anticipate that this project will unveil a host of other questions for further study, including the factors that encourage environmental, social and governance (ESG) investing, or how financial products serve different needs in the contexts of ranching, cropland, or horticulture,” he adds. “It’s all very exciting.” 

Team members 

 

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