South African farmers are being asked – by consumers, financiers, and the environment itself – to fundamentally rethink how they produce food. The shift towards regenerative agriculture is no longer theoretical; it is already underway. But while the conversation often centres on soil health, carbon, and sustainability, one factor remains underappreciated ‒ finance will determine whether this transition succeeds or stalls.

Speaking at the Landbouweekblad Regenerative Agriculture Conference 2026, of which Nedbank is a key sponsor, Daneel Rossouw, Head of Sales for Nedbank Agriculture, highlighted a fundamental truth: 'The transition to regenerative agriculture is not simply operational ‒ it demands deliberate financial restructuring. Without getting this right, even the most committed producers risk losing viability.'

The Landbouweekblad Regenerative Agriculture Conference 2026 is a series of workshops held in the Free State, Western Cape, and North West province, focused on supporting the transition to regenerative agriculture. The workshops bring together farmers, researchers, and industry experts to explore practical approaches to restoring soil health, improving farm resilience, and reducing input dependency. A key theme is the commercial viability of regenerative agriculture and its potential to strengthen long-term farm profitability. The events also highlight the financial implications of transition, including risk management, cash flow, and funding structures.

Rossouw said that the starting point is existing debt. 'Too many farming businesses are locked into financing structures that were designed for conventional, input-heavy systems. These structures often leave little room for manoeuvre, particularly during a transition period where yields may fluctuate and upfront costs are high.' Debt must therefore be restructured to create sufficient margin for working capital, align instalments with realistic cash flows, and extend term financing where necessary. 'Without this flexibility, farmers are effectively being asked to change systems while standing on unstable financial ground,' he said.

Beyond restructuring, there is a clear need for additional, well-designed term financing. Transition periods require control, patience, and adaptability. Flexible facilities – those that allow for variability in cash flow and phased investment – are essential. 'This is not about increasing debt recklessly. It is about structuring capital in a way that supports change rather than constrains it,' said Rossouw.

Asset financing also plays a role, particularly as producers invest in equipment and infrastructure aligned with regenerative practices, such as no-till or minimum-till seed drills, rainwater harvesting tanks and drip irrigation systems. However, Rossouw said these investments must be approached pragmatically, noting that not every solution requires new capital expenditure. Often, the smarter approach lies in optimising existing resources and phasing in new assets strategically.

According to Rossouw, working capital is where the real pressure lies. 'Regenerative transitions often bring short-term uncertainty in income alongside additional upfront costs. Treating this as 'business as usual' working capital is a mistake,' he said. 'It should be carefully ringfenced, actively managed, and structured outside traditional norms. This creates transparency, discipline, and – critically – breathing room during a period of change.'

'Underpinning all of this is a non-negotiable principle: the numbers must make sense,' said Rossouw. 'Not just for the client, but for the bank as well. Sustainable agriculture cannot be built on unsustainable finance. If funding models rely on optimism rather than realism, they will fail, and take producers with them.'

So where are we heading?

The answer is increasingly clear: towards a world shaped by environmental, social, and governance (ESG) frameworks and consumer-driven accountability. Rossouw said that ESG reporting is rapidly becoming more than a compliance exercise – it is evolving into an effective operating framework for agriculture. Market forces, from export requirements to retailer expectations, are accelerating this shift. Farmers will not just be asked what they produce, but how they produce it, and how they finance it.

In South Africa, this shift is particularly significant. The adoption of regenerative agriculture is gaining traction as producers respond to climate variability, rising input costs, and the need for long-term resilience. At the same time, international markets are increasingly demanding sustainably produced goods, further incentivising adoption. 

However, the transition is not without challenges. These include high upfront risk, temporary yield uncertainty, and the country's difficult agro-climatic conditions. Skills gaps and inconsistent definitions of 'regenerative' also slow wider uptake. Importantly, the success of this movement will depend on whether financial systems evolve alongside farming practices. 

This is the real opportunity, and the real risk. 'If banks and financiers adapt, developing funding models that recognise the realities of transition, they can play a pivotal role in unlocking a more resilient, profitable agricultural sector. If they don't, they risk slowing progress at precisely the moment it needs to accelerate,' Rossouw warned. 'The future of agriculture will not be determined by ideology alone. It will be determined by whether capital is structured intelligently enough to support change. And that is a responsibility shared by both farmers and financiers.'

Regenerative agriculture will also be a key theme for Nedbank at the NAMPO Harvest Day in the Free State from 12 to 15 May 2026. We invite you to visit the Nedbank stand, connect with our agricultural specialists, and join the conversation around these and other important topics shaping the sector. Members of the media are also invited to a media event to discuss this topic at 12h30 on Thursday 14 May 2026.