In 2024, over 295 million people across 53 countries and territories faced acute hunger. Mitigation of hunger across the planet is urgent. As the population grows, food production also needs to be doubled by 2050. And while agricultural activities are CO2-intensive, innovative practices are needed to sustainably increase agricultural production, improve the global supply chain, decrease food losses and waste, and ensure that all who are suffering from hunger and malnutrition have access to nutritious food.

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The ASR Dutch Farmland Fund, which is the real estate arm of a.s.r Nederland (the insurance company) invests in agricultural land in the Netherlands. The fund facilitates land transactions for agricultural entrepreneurs. It targets climate-smart farmers and provides institutional investors with stable returns and a unique diversification effect. The fund has a strong focus on long-term value creation for both investors and agricultural entrepreneurs. 

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One such example within this fund portfolio is of a local Dutch farmer aiming to improve the soil quality and promote biodiversity by reverting to the use of old landscape elements such as trees and hedges. Without these traditional elements, which have eroded because of modern farming techniques, the quality of the soil goes down. Without natural hedges surrounding the farms, the soil also retains less water and allows nitrate to flow in the direction of waterways. 

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Creating natural hedges (thickets of trees or shrubs) and additional elements such as a pond will ensure the soil maintains its quality, resulting in better quality produce without the need for additional (and harmful additives). Additionally, these elements attract more animals such as birds, butterflies, and insects, which will improve the surrounding biodiversity in the region. 

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The intention with the farmland fund is to invest in farmlands across the Netherlands and focus on promoting and improving agricultural practices to ensure they are in line with today's climate needs, which involves improving soil health, protecting and enhancing biodiversity, and reducing greenhouse gas emissions. ​The ASR farmland fund has currently invested 2.2 billion euros in 38,700 hectares of land across the Netherlands and targets a return of 4% annually.

 

Read more about the farmland fund here.

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The NAB hosted a workshop on impact investing in regenerative agri-food and biodiversity. Read our blog and follow presentations from experts showing strategies and examples here.