Nedbank backs regenerative agriculture in new podcast series

Regenerative agriculture is shifting from niche idea to serious business conversation in South African farming. Nedbank’s Daneel Rossouw says climate pressure, rising costs and soil health are turning it into a commercial necessity.

Regenerative agriculture is rapidly moving from a niche idea to a commercial reality in South African farming. That was the key theme in the first episode of a special podcast series with Nedbank, hosted on Farmer’s Inside Track by Food For Mzansi.

In this episode, Food For Mzansi speaks to Daneel Rossouw, head of sales for agriculture at Nedbank, about what regenerative agriculture actually means on the ground, and why more farmers are starting to see it as a commercial necessity rather than an environmental ideal.

Rossouw says the farming sector is operating in a fundamentally different environment than even a decade ago. Climate volatility, rising input costs and natural resource pressures are reshaping how farms must function if they want to stay viable.

As he puts it, “what was once seen as sustainability conversations is now fast becoming more like a commercial necessity.”

Farming under pressure is forcing a rethink

At the heart of regenerative agriculture is a shift in thinking. It is no longer just about reducing harm, but about actively rebuilding the systems that farming depends on, especially soil, water and biodiversity.

Rossouw explains that regenerative agriculture focuses on rebuilding natural systems that underpin productivity. In practice, this includes minimum soil disturbance, keeping soil covered as much as possible, and using crop rotation and diversity to improve resilience. He also highlights the importance of maintaining living roots in the soil for longer periods.

He notes that conservation agriculture and regenerative agriculture overlap, but regenerative systems often go further. In some cases, they integrate livestock strategically into crop systems, depending on the farm and its financial realities.

One of the key shifts, he says, is that for Nedbank, this is no longer just an environmental conversation. It is a production and finance conversation.

“We are talking about a significant shift in the way we think,” Rossouw says, adding that regenerative systems are ultimately about farms becoming “more productive, more resilient, and more bankable.”

The word “bankable” is important. From a banking perspective, resilience and predictability matter. Farmers who manage soil health and input efficiency well are increasingly seen as lower risk over the long term.

Soil health is now a financial variable

Rossouw stresses that the transition to regenerative agriculture is not without challenges. The first is knowledge. Many farmers are still learning what works in their specific context, and mistakes can happen when practices are adopted without proper understanding.

But the bigger challenge, he argues, is financial structure during transition. Farmers often try to change too quickly without adjusting their funding models. That can create pressure on cash flow at exactly the wrong time.

As he explains, “you need to protect your cash flow during this period” because farming already operates on tight margins and high volatility. Without the right financial structure, even good decisions can become unsustainable in the short term.

This is where soil health becomes more than an agronomic issue. It becomes a financial one.

Healthy soils improve water retention, support microbial life and reduce dependency on expensive inputs like fertiliser and fuel. Rossouw links this directly to profitability. Better soil function can reduce input costs over time and improve resilience during droughts or climate shocks.

He points to long-term improvements in systems where soil health has been prioritised. In these cases, farms tend to become more stable during dry periods and less dependent on external inputs. In his words, healthy soils help farms “absorb climate volatility a lot better.”

Why finance is starting to change

The conversation also turned to how finance is evolving alongside farming practices. Traditionally, agricultural funding has focused on short-term output and immediate profitability. That model does not always fit regenerative systems, which often require upfront investment and may include temporary yield dips during transition.

Rossouw explains that this is forcing banks to rethink how they structure agricultural finance. Instead of only focusing on seasonal returns, institutions are increasingly looking at long-term value creation, including soil health and ecosystem improvement.

Nedbank is already investing in areas like precision agriculture, drone technology and water efficiency systems. These tools are designed to improve productivity while reducing waste and input dependency.

More recently, the focus has expanded to measuring environmental outcomes. Rossouw notes that the next step is developing financial solutions that can account for soil health improvements in a structured way. The challenge is not only funding the transition, but also finding ways to measure it.

He describes this as a shift towards “patient capital,” where funding structures support longer time horizons and recognise that regenerative agriculture builds value over time rather than instantly.

That includes acknowledging temporary yield fluctuations while farms adapt, and designing debt structures that reduce pressure on working capital during transition.

The broader goal, he says, is to avoid forcing farmers into short-term decisions that undermine long-term sustainability.

Opportunity lies in early adoption

Beyond the risks, Rossouw is clear that regenerative agriculture presents a real opportunity for farmers who adopt it early and thoughtfully. He argues that it is becoming less about choice and more about survival in a changing climate and market.

Looking ahead, he warns that climate variability will continue to increase pressure on especially dryland farming systems. In that context, regenerative practices offer a way to improve resilience, reduce costs and stabilise production over time.

He believes farmers who transition successfully will be better positioned to handle both climate shocks and market pressure. In his view, regenerative agriculture allows farmers to “produce better quality food with lower input cost” over time.

Still, Rossouw is careful not to oversell it as an easy fix. The transition requires planning, learning and financial discipline. It also requires collaboration between farmers, financiers and advisers.

His final message is simple but grounded. It is never too late to start, but success depends on being realistic about both the process and the outcomes. Farmers who understand their systems, manage their cash flow carefully and learn continuously are more likely to succeed in the long run.