Resilient farmland and forestry belong in every climate-aware portfolio

The summer of 2026 showed how quickly heat, drought and wildfire have become material risks for Europe's farms and forests. Persistent heat and limited rainfall dried out soils, lowered river flows and created ideal conditions for wildfire, pests and lower yields. ^{1 2}

Extreme temperatures and water shortages are often linked and can reinforce each other. Plants in forests and in fields are both affected. Once again, this showed how strongly soil resilience shapes productivity, the extent of operational disruption caused by extreme weather and its overall economic cost. ^{3 4} 

Investors can play a key role in making farmland and forests more resilient to climate change and biodiversity loss. This can help keep productivity stable and limit economic losses from extreme weather. Investors cannot control the weather, but they can invest in agricultural businesses and forests that are managed in ways that strengthen resilience and support long-term sustainability.

Regenerative agriculture and nature-inclusive forestry

In practice, this means supporting regenerative agriculture and forest management that works with nature, instead of the now prevalent industrial approach focused on short-term output through monocultures, clearcutting and heavy chemical inputs.

In agriculture, regenerative practices aim to restore soil health, support biodiversity and strengthen the ecological functions that long-term productivity depends on. Methods such as cover croppings, living roots, crop rotation and low-till farming can improve soil structure and help the soil hold water better. This can reduce water loss and erosion. Adding organic matter and features such as hedgerows, ponds and planted field margins can also help regulate water and support biodiversity.^{5 6}  

In forestry, a nature-friendly approach means making room for variety and focus on the soil. A forest with different tree species and trees of different ages is less likely to suffer major damage from one pest, disease or extreme weather event. Diverse forests also hold water better, protect the soil and recover faster from disruption.⁷⁸ 

Long-term value creation

These practices are more than ecological interventions. They also help improve asset quality, protect productive capacity and strengthen resilience to climate-related risks over the long term. The challenge is putting these practices into place. While the know-how exists, time and money are scarce resources in this asset class. By investing in regenerative agriculture and nature-inclusive forestry, investors can contribute directly to healthier soils and more resilient ecosystems. They can also benefit from better land quality, lower dependence on fertilisers and pesticides, more diversified revenue streams and long-term land appreciation.

The Value Nature Fund, a closed-end fund now being developed by Triodos Investment Management and Fondaction Asset Management, is one such opportunity. The strategy invests in farmland and forests across Europe and North America, working with trusted local partners to implement regenerative agriculture and nature-aligned forestry practices.

Beyond productivity: resilience matters

When investing in farmland and forests, investors should no longer focus solely on productivity. Asset quality, climate resilience, water security and ecosystem health are becoming increasingly important drivers of long-term value creation.As climate volatility increases, the quality of the underlying land management system is becoming a critical determinant of both asset performance and long-term value. Regenerative agriculture and closer-to-nature forestry offer practical pathways to build that resilience.

This summer has underlined the need for change and reinforced the investment case for resilient farms and forests. Investors now have an opportunity to act and capture that potential.

This article pertains to pre-marketing and does not constitute an offer or invitation to subscribe to interests in Value Nature Fund 1. The information in this communication should not be relied upon, as it is incomplete and subject to change.