Diversifying Farm Income in the Era of Sustainability legislation

A new era of responsibility for primary producers

Upcoming EU Green Deal legislation is set to reshape the landscape for farms and companies alike. While many businesses have long approached sustainability proactively, the shift toward mandatory, full value chain accountability is a game-changer – particularly for farmers.

Under the Corporate Sustainability Reporting Directive (CSRD) and associated due diligence obligations, companies must assess the Environmental, Social, and Governance (ESG) risks throughout their entire supply chain. For farmers, this means sustainability is no longer just a requirement – it becomes an opportunity to differentiate and gain a competitive edge. In the future, the price of products will no longer be determined solely by quantity and quality, but also by the environmental and social actions taken on the farm – and the ability to demonstrate them transparently.

Ecosystem lift: a broader way to measure impact

Today, carbon sequestration already offers additional income potential, and biodiversity enhancement is quickly becoming a similar opportunity. While exact measurement remains complex, there is growing consensus that we cannot wait for perfect science. Significant action is needed now.

In many ways, the term “ecosystem lift” offers a more holistic lens than traditional sustainability metrics. It encompasses not only carbon sequestration and biodiversity enhancement, but also e.g. the protection of water bodies – and the promotion of human wellbeing. This broader framing highlights the interconnected nature of agricultural systems -where soil health, water quality, and community resilience all influence one another. By adopting an ecosystem lift mindset, farmers can move beyond isolated interventions and instead pursue integrated strategies that regenerate the land while supporting livelihoods. Recognizing and documenting these synergies is essential, especially as sustainability reporting evolves to capture not just outputs, but the quality of stewardship behind them.

Regenerative thinking: from methods to mindset

Soil, food, ecosystems, and people – none of them exist in isolation. If we continue to produce food without nurturing the ecosystems that support it, we risk undermining both environmental and human resilience. The food may fill our plates, but it loses the depth and vitality needed to truly sustain life. When we place increasing demands on farmers and workers without sufficient support or space for renewal, we compromise – not only human wellbeing -but the integrity of the entire system.

Regeneration is not just a farming method – it’s a mindset that recognizes balance as the foundation of resilience. A healthy ecosystem gives rise to nutrient-rich food, stronger communities, and more sustainable livelihoods. And in return, a society that values care, equity, and stewardship feeds back into the health of the land. To restore one is to restore them all.

Looking ahead: how today’s actions define tomorrow’s farm

We already know – intuitively and through experience – that certain practices improve ecosystem health. In the future, a farmer’s report to buyers or financiers could simply answer the question: What actions have I taken this year to improve the health of the ecosystem around me? It’s a powerful question for all of us — regardless of our role, walk of life, or connection to agriculture – because we all inhabit and influence the same living systems.

Reliable and transparent reporting is at the heart of high-quality sustainability work. Success in every area is not always necessary, but a clear effort must be shown – effort based on the best available knowledge. Now is the time to envision how you want your farm to sound, look, and feel ten years from now. Write it down, and begin charting the path toward it. This time, the entire value chain is listening – including companies, financial institutions, all the way to the end users of the products produced.

Sustainability pays off – for the farm and the future

The future of farming will depend on how well producers adapt to the changing global scenery and make use of the opportunities offered by sustainability legislation. By improving the surrounding ecosystem, farmers can, for example, negotiate lower loan interest rates and higher product prices, both of which contribute to a more resilient and sustainable business. And with financial stability comes greater wellbeing  – which, in turn, supports the environment – as we become better equipped, both mentally and materially, with the clarity, energy, and resources to take meaningful action for the surrounding ecosystem. Diversifying income through sustainable means can generate both ecological and economic benefits, and help secure the future of agriculture.

Offering more than just compliance

At Hankkija, we support our partners in achieving more than minimum compliance. We are proud to provide raw materials that are produced through sustainable and regenerative agriculture –  backed by verifiable data, transparent processes, and trusted relationships. From field to feed, we can trace the environmental practices behind the ingredients we supply, helping our partners meet their CSRD obligations while promoting real, measurable impact in the value chain.