Green Shoots Amidst Global Turmoil: Regen Ag Sees Record Investment in Q1 2025

Courtesy: Unsplash ph. Roman Synkevych

Despite ongoing economic turbulence and political uncertainty—especially in the United States—2025 has begun with a remarkable surge in investments focused on building a more sustainable and regenerative food system. According to new data released by the Regenerative Food Systems Investment (RFSI) Forum, the first quarter of the year saw over $1.17 billion committed to regenerative agriculture and food system projects across the globe. That figure not only edges out Q1 2024’s $1.13 billion but decisively eclipses the totals seen in the latter half of last year, suggesting a renewed appetite for funding initiatives that can help reshape the way we grow, distribute, and consume food.

At a time when many investors remain wary of geopolitical tensions and economic volatility, the sustained flow of capital into regenerative food systems offers a striking contrast. From soil health initiatives in Europe to sustainable land projects in Latin America and Asia, these investments signal that long-term environmental resilience is increasingly viewed as both a moral imperative and a viable financial opportunity.

Big Deals, Bigger Ambitions

Driving much of the quarterly total was the acquisition of Simple Mills by Flowers Foods, Inc. in January for $795 million. The deal marked one of the largest regenerative-focused transactions to date and underscored the growing appetite among major food companies for brands rooted in sustainable practices. As an early mover in the regenerative snack food category, Simple Mills had long been on the radar of investors looking to capitalize on consumer demand for transparency and ecological stewardship.

While the Simple Mills deal dominated headlines, it was part of a broader flurry of activity. In total, RFSI tracked 37 deals in Q1 2025 across a diverse set of themes and regions. Venture-backed deals continued to be the most prevalent in number, making up 46% of the total tracked transactions and amounting to over $123 million. Equity investments, including acquisitions, accounted for 24% of the deal volume and were the largest category by financial size due to the blockbuster Simple Mills acquisition. Debt and grant-based funding each made up 14% of the quarter’s activity, with one public market deal rounding out the dataset.

Importantly, these investments extended beyond startups and into new funds and platforms designed to catalyze long-term change in the agricultural landscape. Over $650 million was tracked in fund raises and closes specifically geared toward regenerative outcomes or closely aligned adjacent sectors.

Europe Surges Ahead

Geographically, Europe emerged as the most active region for regenerative investment, representing 38% of deals tracked, just ahead of North America’s 35%. This shift may reflect Europe’s relatively more stable regulatory environment and continued policy support for agroecological practices, particularly at a time when the U.S. grapples with political fragmentation and inflationary pressure. Asia accounted for 16% of deals, while Africa and Latin America saw 8% and 3%, respectively.

Among the standout European developments was the final close of the SLM Silva Europe Fund at €30 million. Spearheaded by real asset manager SLM Partners, the fund targets a 9% net IRR and has already deployed over €22 million into diversified orchard projects across the Iberian Peninsula, including almonds, pistachios, and olives. This fund reflects growing confidence in land-based strategies that combine ecological regeneration with robust financial returns.

Meanwhile, the French private equity firm Eurazeo raised €300 million in the first close of its Planetary Boundaries Fund, targeting innovations that operate within ecological limits. Its first investment was in an agricultural pest control firm—further evidence that regenerative ag is expanding into critical yet often overlooked parts of the food value chain.

Q1-2025 Deals by Type of Capital

From the Farm Gate to the Fund Floor

While biological-based input innovation continued to lead investment themes—making up 27% of all tracked deals—interest also remained strong in farm transition services, practice adoption tools, and post-farmgate infrastructure like supply chain and processing systems. These areas, which together made up a significant proportion of both deal count and deal value, reflect a maturation in investor understanding. It’s no longer just about products that can reduce chemical inputs or enhance soil biology; it’s about building the scaffolding for a fully regenerative agricultural economy.

Private equity and climate-focused funds also made major moves. Just Climate, founded by Generation Investment Management and supported by Al Gore, secured $175 million from Microsoft’s Climate Innovation Fund and the California State Teachers’ Retirement System (CalSTRS) to pursue emissions-reducing agricultural solutions. French impact investor Mirova closed out the quarter with about €100 million in commitments for its Sustainable Land Fund 2, later boosted by a $75 million injection from the Green Climate Fund.

In the early-stage space, Toniic-affiliated investors reaffirmed their commitment to At One Ventures, which now manages $525 million across two funds. The firm specializes in “invention catalysts”—technologies with the potential to radically transform systems of production, consumption, and environmental interaction.

New Vehicles on the Road to Regeneration

A defining feature of Q1 2025 has been the emergence of new investment platforms tailored to regenerative principles. Mycelium, for instance, launched with a mission to channel institutional capital into European farmland projects, starting with a 1,500-hectare initiative in Italy. In the UK, Oxbury—the only bank exclusively serving the agriculture sector—introduced a novel facility to help farmers adopt sustainable practices.

On the philanthropic and blended finance side, the Savory Foundation began laying the groundwork for its first large-scale investment project in Uruguay, aimed at regenerating both ecosystems and local economies. British International Investment also partnered with HBL Bank in Pakistan to deploy a $75 million facility focused on empowering smallholder farmers to transition to climate-resilient methods.

The quarter also saw the rise of "regen-adjacent" vehicles, such as Goldman Sachs Asset Management’s new biodiversity-linked bond fund and PRPLife’s GreenHarvest, which integrates smart agriculture technologies with sustainable land practices to optimize productivity while reducing environmental strain.

The Road Ahead

As climate shocks, food insecurity, and social inequalities become more pressing, regenerative agriculture has emerged not just as a hopeful narrative but as a legitimate investment thesis. The surge of activity in the first quarter of 2025 suggests that investors—from venture capitalists to sovereign wealth funds—are increasingly convinced of its relevance and potential.

Still, questions remain. Will the momentum hold as election cycles in major economies create further policy unpredictability? Will larger funds stay committed to regenerative principles as they scale? Can innovation keep pace with ecological need?

For now, however, the early months of 2025 paint a promising picture: one of capital flowing not toward extractive industries or quick returns, but toward living systems, resilient communities, and the long arc of agricultural transformation. If the rest of the year follows this trajectory, 2025 could become a watershed moment for regeneration—not only of land and soil, but of finance itself.