Why farmland natural capital matters
Farmland is where natural capital is both most visible and most measurable. It is the basis for global food production, and as such, its productive sustainability is subject to widespread publicity and intense research. Agriculture depends directly on using the finite foundational inputs of farmland’s natural capital to enable crops to grow. Plants extract these finite inputs to build their molecular structures and incorporate nutrients which in turn provides the nutrient support for all animal life. If these inputs are used faster than they are replenished, then they are eventually depleted.
Purely extractive models of agriculture use natural capital inputs without replenishment. Over the past century, cropland has lost up to 50% of its original soil organic carbon and water stress is intensifying. Monoculture systems, which prioritize the continuous growing of single crops over large areas, have reduced biodiversity, weakened soil health, and diminished long-term yields. The extractive models of agriculture can lead to significant or permanent loss of farmland asset values as it depletes the land’s productivity, ultimately rendering it barren and economically unviable. However, the inverse is also true: agriculture practiced with a focus on regenerating natural capital ensures that land remains fertile, valuable, and resilient.
A simple example with profound impact:
Consider this: a 1% increase in soil organic matter can boost water holding capacity by up to 20,000 gallons per acre. This enhances drought resilience and crop reliability—key drivers of long-term farm profitability. In this case, natural capital becomes a measurable and actionable lever for agricultural performance.
How Crescero enhances farmland natural capital
Recognizing natural capital as real, tangible, and measurable is only the beginning. The more critical step — and where value is unlocked — lies in managing it as a living, performing asset. At Crescero, an essential part of our land management strategy is to optimize farmland by enhancing natural capital in partnership with our farm family operators, driving long-term return to investors and reducing the risk of the asset class.
1) Soil health
Soil is the foundation of agricultural productivity, and at Crescero, we treat it as the core asset of performance. We focus on improving key indicators such as organic carbon content, nutrient availability and cycling, soil structure and compaction, and microbial diversity — all of which directly influence fertility, water retention, and yield stability. Our approach includes routine soil testing, the application of targeted organic amendments, reduced tillage practices, and cover cropping. We also manage inputs with precision, aligning them with regenerative principles to build long-term soil function and resilience.
2) Water access and retention
Water is one of the most limiting and volatile factors affecting farmland performance, and it is also one of the most overlooked. At Crescero, we enhance water resilience by improving how land stores, retains, and moves water across the landscape. We focus on subsurface drainage to mitigate waterlogging and expand planting windows, while improving soil porosity to increase infiltration and reduce runoff. Our team strategically integrates topography, buffer zones, and retention features — such as conservation ponds and wetland enhancements — to manage water more effectively and protect the long-term viability of each asset.
3) Biodiversity
Biodiversity is the biological infrastructure that underpins agricultural resilience. Diverse microbial communities below ground and plant diversity above ground support essential functions such as nutrient cycling, natural pest suppression, and ecological stability. At Crescero, we incorporate crop rotation, wetland preservation, and ecological corridor protection into long-term farm planning. Furthermore, we implement integrated pest management strategies and design cropping systems that reduce input dependence while enhancing overall ecosystem function. The result is farmland that becomes increasingly self-regulating and, over time, more productive, adaptable, and resilient.
How farmland asset managers should approach natural capital
When farmland asset managers invest in farmland’s natural capital they can prioritize the generation of returns and reduce risk while promoting sustainability. By systematically enhancing soil health, improving water resilience, and restoring biodiversity, the farmland is optimized to produce long term returns and reduce the risk of depletion of the asset all while advancing healthy environmental ecosystems. These natural capital improvements are measurable, and compounding and lead to stronger rental economics, accelerated land appreciation, and materially lower investment risk.
Crescero’s outlook
Farmland globally is under mounting pressure. Decades of extractive farming have eroded soil health, strained water systems, and reduced biodiversity, undermining the natural capital on which agriculture depends. Meanwhile, global food demand continues to rise annually, with nearly 70 million new people to feed each year.
This presents a clear investment thesis: as the base of productive natural capital shrinks, the value of restoring and managing it grows.
At Crescero, our mission is to be leaders of farmland investment, partnering with investors and farm families to create value by actively optimizing, managing, and protecting Canadian farmland. Enhancing natural capital is one of the ways in which we execute this mission and seek to be effective stewards of investors capital, the land and balance the prioritization of financial return with environmental sustainability.