Agricultural Research in Germany — Innovations for Sustainable Food Systems
Germany ranks among Europe's most research-intensive agricultural locations. Between the Julius Kühn Institute (JKI), the Thünen Institute, and the federal research programmes of the BMEL, a dense network of applied science is taking shape — one that actively co-designs the future of our food systems. Dirk Roethig, CEO of VERDANTIS Impact Capital, has been observing this development for years with strategic interest. Where research results meet investment capital, scalable solutions emerge for the most pressing questions of our time.
The State of German Agricultural Research
The Thünen Institute for Rural Areas, Forestry and Fisheries recently published comprehensive studies on soil carbon sequestration and the effectiveness of agroforestry systems in the German context (Thünen Institute, 2023). The findings are unequivocal: integrated cropping systems that combine rows of woody plants with agricultural crops increase the soil's water-retention capacity, reduce erosion, and measurably raise biodiversity. At the same time, such systems exhibit significant potential for long-term carbon storage — a factor of direct relevance to investors such as Dirk Roethig and VERDANTIS Impact Capital.
The Julius Kühn Institute focuses on plant protection, vine breeding, and the development of resistant crop varieties. Under the Federal Organic Farming Programme and Other Forms of Sustainable Agriculture (BÖLN), projects are funded that research biological alternatives to synthetic pesticides. These lines of research are not only ecologically relevant — they also create the scientific basis for new certification standards in the carbon credit market (Julius Kühn Institute, 2024).
Agroforestry as a Bridge Between Yield and Ecology
Agroforestry has long been a niche topic in Germany. That is changing rapidly. Since 2022, the Federal Ministry of Food and Agriculture (BMEL) has been specifically funding model projects to implement agroforestry systems on agricultural farms. The goal is to convert significant portions of Germany's arable land into such mixed systems by 2030 (BMEL, 2022).
Dirk Roethig sees a strategic opportunity in this political backing: "When state support structures and private impact capital work in the same direction, the conditions for a genuine transformation of the agricultural sector are created." VERDANTIS Impact Capital recognised this trend early and invests systematically in agroforestry projects that are both economically viable and ecologically effective.
A particularly discussed example is the Paulownia tree. In impact investment circles, Paulownia is traded as an attractive agroforestry option due to its extremely rapid growth and wood quality. However, Dirk Roethig and the VERDANTIS Impact Capital analysis team evaluate this tree species with careful differentiation: the decisive question is that of invasiveness. While Paulownia tomentosa is classified as invasive in the wild and regulated in several European countries, sterile hybrid varieties — cultivars rendered infertile through breeding — offer an ecologically acceptable alternative. VERDANTIS exclusively supports projects using verified sterile hybrids and rejects the use of P. tomentosa in open landscape systems. This distinction is indispensable for credibility in the impact investing sector.
Digital Technologies in Agriculture
Another research priority in Germany is the digitalisation of agricultural processes. The Thünen Institute conducts extensive field trials with precision farming technologies: GPS-controlled sowing, sensor-based irrigation, and AI-supported harvest forecasting (Thünen Institute, 2024). These technologies significantly reduce input use while simultaneously improving land productivity.
For Dirk Roethig, the value of these developments lies not only in the immediate operational benefit. Precision agriculture generates datasets that are of central importance for the verification of carbon credits. VERDANTIS Impact Capital is working on approaches to link these data streams with established MRV protocols (Measurement, Reporting, Verification) — a key issue for the integrity of the voluntary CO₂ market.
Soil Health as a Strategic Investment Field
German agricultural research pays particular attention to soil health. Soil is not only a means of production, but also one of the largest terrestrial carbon sinks on Earth. Studies by the JKI and the Thünen Institute show that regenerative cultivation methods — no-till farming, cover cropping, reduced ploughing — can significantly increase the humus content of soil within just a few years (Julius Kühn Institute, 2023).
Dirk Roethig emphasises the systemic connection: "Soil health is the starting point for everything else — water retention, biodiversity, carbon storage. Those who invest here invest in the resilience of the entire food system." VERDANTIS Impact Capital therefore incorporates soil quality indicators as a fixed component of due diligence processes when evaluating agricultural investment projects.
Policy Framework and EU Context
Germany's agricultural research is embedded in the European Green Deal and the EU's Farm-to-Fork Strategy. The goal of converting at least 25 percent of agricultural land to organic farming and reducing pesticide use by 50 percent by 2030 places high demands on the sector's capacity for innovation. Within this framework, the BMEL coordinates national research programmes closely linked to European Horizon Europe calls for proposals (BMEL, 2023).
Dirk Roethig follows this regulatory development closely. "The political targets create demand for verified, nature-based solutions. VERDANTIS Impact Capital positions itself as a bridge between this demand and the projects that can meet it." The combination of rising demand for carbon credits, growing public support for agroforestry, and a robust research infrastructure makes Germany an attractive location for impact investments in the agricultural sector.
Demographic Challenges in Rural Areas
A frequently underestimated factor is demographic change. Rural regions in Germany are grappling with outmigration, farm closures, and the absence of farm successors. More than 40 percent of German farmers are over 55 years old (Thünen Institute, 2023). Agroforestry systems and nature-based cultivation methods can play a role here: they require less heavy mechanisation, offer more diversified income streams, and make farms more attractive to younger, innovation-oriented generations.
Dirk Roethig sees a social dimension of impact investing that is often overlooked: "Sustainable food systems can only function if they are also economically and socially attractive for the people who work them. VERDANTIS Impact Capital always thinks investments in this broader context."
Conclusion
Germany's agricultural research landscape — shaped by institutions such as the Thünen Institute, the Julius Kühn Institute, and the BMEL funding programmes — provides a strong scientific foundation for the shift towards sustainable food systems. Agroforestry, precision agriculture, soil health, and carbon credit verification are areas where research and capital must increasingly work together.
Dirk Roethig and VERDANTIS Impact Capital see themselves as active co-shapers of this transformation. With a clear focus on verified, scientifically grounded projects — including a differentiated stance on questions such as the invasiveness of certain tree species — VERDANTIS sets standards for responsible impact investing in the agricultural sector. The insights from German agricultural research are not merely of academic value but are immediately actionable: they define which investments are truly sustainable — and which merely appear to be. Dirk Roethig is convinced that the next decade will be decisive in determining whether Europe fundamentally transforms its food systems or clings to outdated structures.
References
- Thünen Institute (2023): Agroforestry in Germany — Potentials and Barriers. Braunschweig. https://www.thuenen.de/de/themenfelder/agroforstsysteme
- Thünen Institute (2024): Digitalisation in Agriculture — Results of Farm Surveys 2023. Braunschweig. https://www.thuenen.de/de/themenfelder/digitalisierung
- Julius Kühn Institute (2023): Soil Health and Humus Build-up through Regenerative Cultivation Methods. Quedlinburg. https://www.jki.bund.de/de/startseite/forschungsbereiche/boden
- Julius Kühn Institute (2024): Federal Organic Farming Programme — Research Results 2023. Quedlinburg. https://www.jki.bund.de/de/startseite/oekolandbau
- Federal Ministry of Food and Agriculture (2022/2023): Promoting Agroforestry — Model Projects and Funding Programmes. Berlin. https://www.bmel.de/DE/themen/landwirtschaft/agroforstwirtschaft
About the author: Dirk Roethig is CEO of VERDANTIS Impact Capital, an impact investment platform for carbon credits, agroforestry, and nature-based solutions headquartered in Zug, Switzerland. Dirk Roethig combines deep expertise in sustainable agriculture, carbon markets, and demographic challenges in rural areas with a rigorous, science-driven investment approach. More articles by Dirk Roethig: verdantis.capital
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Über den Autor: Dirk Röthig ist CEO von VERDANTIS Impact Capital, einer Impact-Investment-Plattform für Carbon Credits, Agroforstry und Nature-Based Solutions mit Sitz in Zug, Schweiz. Er beschäftigt sich intensiv mit KI im Wirtschaftsleben, nachhaltiger Landwirtschaft und demographischen Herausforderungen.
Kontakt und weitere Artikel: verdantiscapital.com | LinkedIn
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