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Can Regenerative Agriculture Fix the US Food System?

We may not recognize regenerative agriculture, but we know the process. Regenerative agriculture is about connecting farming systems and our ecological system. Is this a revolutionary idea? No. Indigenous people knew it worked centuries before food production became a modern industry.

The Food and Land Use Coalition cites six principles

  • no-till or reduced tillage
  • cover crops
  • crop rotations
  • compost applications
  • green manures
  • organic production

As a kid, I imagined the food on our table came from those amber waves of grain we drove by throughout the Midwest. It was naive to think those farmers were responsible for the produce we ate.

Not only do those crops not feed Midwesterners, but most don’t feed humans. What’s more, most US corn and soybeans would grow at a loss if not for government farm subsidies. Those subsidies are why independent farmers are disappearing and being replaced by corporate growers.

Large farming organizations all but abandoned traditional regenerative farming and crop rotation practices. Instead, they replace annual nutrients by pouring chemicals such as nitrogen and potassium onto their fields.

What’s Wrong With the US Agriculture Industry?

Some call conventional farming today a bastardized version of farming developed within the last 100 years. It relies on genetically modified (GM) seeds, now known as bioengineered, instead of using seeds derived from harvested crops. The heavy use of chemical nutrients, pesticides, and herbicides characterizes modern farming. As a result, the agricultural industry produces chemical-laden crops, kills our soil, and contaminates our water supply.

For thousands of years, humans employed organic, regenerative agriculture practices focused on healthy soils and growing diverse nutrient-rich crops. The switch to newer farming methods damages the environment and the US food system.

US Agriculture by the Numbers

Diving deeper into US agriculture, let’s focus on crops themselves. Per the 2024 USDA Crop Production Summary, US farmers (more corporate than independent) planted 358 million acres of farmland in 2024. The two most dominant US crops were corn (91.5 million acres planted, 25.6% of total planted acreage) and soybeans (86.1 million acres, 24% of total planted acreage). These two crops represent more than 50% of cultivated farmland in the US annually.

How much of those crops do humans consume? For corn, less then 2%, and almost none is in pure, healthy, original form. Instead, it’s mainly sold as soybean oil, high fructose corn syrup (HFCS), corn meal, and other sweeteners.

Where do the rest of the crops go? Most feed livestock. According to the USDA Economic Research Service, livestock consumes 70% of soybean and 40% of corn crops.

Many of those crops end up in ethanol plants that produce biodiesel fuel. Ethanol plants use 45% of corn and 5% of soybean crops. Humans only consume about 21% of soybean crops (15% as oil and 6% as beans) and just under 10% of corn crops (primarily as HFCS and sweeteners).

Yes, but What About Food Crops?

If most US cropland feeds animals and cars, where do we get our vegetables? According to the United States Department of Agriculture in 2022, they came largely from California, Florida, and Mexico. California leads crop production, accounting for over 40% of the vegetable acreage. California is overwhelmingly the largest producer of carrots, celery, cauliflower, and spinach. Specifically, they produced $850 million worth of the nation’s broccoli crop valued at $926 million.

The agricultural industry wasn’t always unbalanced. Certainly, some crops (oranges, nuts, grapes, bananas) thrive in hotter climates and grow best in places like California. The Midwest grew carrots, broccoli, celery, cauliflower, and spinach a century ago. But not anymore. Food is expensive because we don’t produce as much as we once did.

Why?

The US Government Changed Our Agriculture Industry

The most significant change to regenerative agriculture came with farm subsidies during the Great Depression. During that decade, US unemployment soared to 25% across all industries, including agriculture. People without jobs cannot afford any food, let alone fresh produce.

Politicians feared for the stability of the US food system. If enough farmers gave up their farms, the US could not feed its population. Consequently, the government passed three farm bills to stabilize farm profits and encourage farmers to stay. Politicians had to determine which crops to subsidize to manage these subsidies effectively. Ideally, they sought high-yield multi-use crops that farmers could store for long periods. Ultimately, the government chose corn and soybeans. Farmers can store dried corn and soybeans safely for many months. And as we have seen, both crops are widely used for food and other products.

The government succeeded in converting much of our farmland to corn and bean production. Consequently, entrepreneurs found innovative uses for the surplus.

  • High fructose corn syrup – for sweetening foods and beverages.
  • Ethanol – for fuel
  • Cornstarch – used in diapers, in baking, in crayons, and many more applications
  • Soy Lecithin – used in frying fats and margarine
  • Corn-based plastics
  • Soy ink
  • Soy-based lubricants

Well-Intentioned Government Programs Create Unintended Consequences

These new products created a growing reliance on corn and soybeans. Still, the government supported huge surpluses of these crops yearly, and prices plummeted, resulting in unprofitable farming.

Except for brief, weather-related spikes, corn prices bounced between $2 and $4 per bushel during most years since the 1970s. Most experts peg the break-even range for corn farming between $3 and $4 per bushel. That’s hardly a successful formula.

Profits Continued To Fall

Now, we face high inflation, elevated prices for farming materials, and supply disruptions from various global events and crises. Farmers struggle as annual costs rise steadily.

Two companies control 71.6% of corn and 65.9% of soybean seeds in the US. The USDA ERS estimates that GM corn seed and GM soybean seed prices rose 325% and 259%, respectively, between 1995 and 2011.

Consider the increasing costs of chemicals, herbicides, pesticides, and farming equipment, and you can see the immense pressure placed on farmers.

Better-for-You Revolution and Regenerative Agriculture

Increasingly, consumers want organic food and non-bioengineered food products. The US organic food industry posted sales of over $63.8 billion in 2023, a 3.4% increase from the year before. That number has grown steadily for the past 20 years. Unfortunately, less than 1% of farms are certified organic, while organic demand booms.

A fair amount of our organic food comes from other countries because US farmers have been slow to adopt the process. People resist change and fear innovation. Organic demand won’t abate; eventually, farmers will see the light. Big ag companies may have to reconsider their methods.

But there is cause for optimism.

Every year, more groups of organic farmers re-adopt sustainable and regenerative agriculture practices. They plant and rotate diverse crops, and those rotating crops return particular nutrients and bacteria to the soil, maintaining a healthy balance. Sustainable growing doesn’t need chemicals because plants, like legumes, provide Nitrogen to the soil, while other plants provide different vital nutrients. Large grocery chains and green-focused companies like Patagonia and Blue Apron are invested in the trend.

Farmers are learning that these regenerative crops command higher prices per acre — sometimes double corn’s price — and require less fertilizer or other production materials.

Sustainable Agriculture Is Our Future

Informed consumers are changing the world. They want better-for-you food with cleaner ingredients and sustainable agricultural practices, so they vote with their wallets at grocery chains and restaurants. Organizations like Regenorganic work to pass the message to all parts of this planet.

“We imagine a world in which farmers, brands, policymakers, educators, researchers, and individuals unite to create a healthy food system that respects land animals, empowers people, and restores communities and ecosystems through regenerative organic farming.”

And So…

Traditional consumer packaged food companies will need time and experience to adapt, but ultimately, they must yield to consumer pressure.

Farmers and major agriculture conglomerates are beginning to understand that this trend will change demand for decades. As people tune back into the Earth’s needs and pressure legislators, we may well return to our roots and to what our ancestors knew. Less is more.


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This article was originally published on June 12, 2017 and updated on November 22, 2022. This article was most recently updated by the Financial Poise Editors.]

©2025. DailyDACTM, LLC d/b/a/ Financial PoiseTM. This article is subject to the disclaimers found here.

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About Tyler Mayoras

Tyler Mayoras is the Cofounder and CEO of Cool Beans. Tyler has spent more than 20 years in private equity investing and consulting, focused on sustainable food and agriculture. Prior to founding Cool Beans, Tyler was a principal in the Advantage Capital Food and Agriculture Fund where he led transactions involving Shenandoah Growers, Navitas Organics,…

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