Agroforestry in Europe: How Trees in Fields Improve Yields and Climate
By Dirk Roethig | CEO, VERDANTIS Impact Capital | 8 March 2026
Europe's agriculture faces a dual challenge: yields must remain stable despite climate stress, while the agricultural sector itself must contribute to climate protection. Agroforestry systems — the deliberate integration of trees and shrubs into croplands and pastures — offer an answer to both requirements, an idea that is thousands of years old yet more timely than ever.
Tags: Agroforestry, Climate Protection, Agriculture, Sustainability, Land Use
An Old Idea Gains New Urgency
Post-war industrial agriculture has placed Europe in an ambivalent position. On one hand stand record yields, food security for hundreds of millions of people, and a highly efficient production system. On the other hand stand progressive soil erosion, biodiversity loss, shrinking groundwater tables, and an agricultural sector responsible for approximately 10 percent of Europe's greenhouse gas emissions (Eurostat, 2024).
The answer to this is no invention of the 21st century. It is as old as agriculture itself: trees in the field. What generations of European farmers practiced as a matter of course — whether in the Spanish dehesa, the French bocage landscape, or German fruit meadows — returns today under the term agroforestry to the center of agricultural policy and scientific attention.
The difference from the past: we now understand more precisely why it works. And the data that research has delivered in recent years is compelling.
What Agroforestry Means — and What It Does Not
The term agroforestry describes a spectrum of land use systems in which woody plants — trees or shrubs — are deliberately combined with crops or livestock on the same area (Nair, 1993). The main systems in Europe are:
- Silvoarable systems: rows of trees between field crops (alley cropping), such as poplars or walnuts alongside wheat
- Silvopastoral systems: trees on pasture land, as in the Spanish dehesa or Irish silvopastoral farms
- Agrosylvopastoral systems: combination of cropland, trees, and pasture on one area
- Hedgerows and shelterbelts: traditional bocage structures that surround fields while simultaneously providing wood and biodiversity
- Forest gardens and food forests: multi-layered systems integrating multiple tree species
What agroforestry explicitly is not: a retreat to extensive agriculture. Modern agroforestry systems are designed with precision planning — tree spacing and species are selected so that agricultural use between rows remains fully intact, including the use of large machinery.
The Scientific Finding: More Yield on the Same Area
The central argument for agroforestry is the so-called Land Equivalent Ratio (LER) — the metric indicating how much monoculture land would be needed to achieve the same total production as an agroforestry system on one area. An LER of 1.3 means: one would need 1.3 hectares in monoculture to produce what one hectare of agroforestry yields.
Case studies from Brandenburg and Lower Saxony, evaluated by researchers at the Thünen Institute, show LER values between 1.2 and 1.4 for typical European silvoarable systems (Böhm et al., 2018). This means: 20 to 40 percent more land productivity — without requiring additional soil.
These efficiency gains arise through several interlinked mechanisms:
Microclimate and heat stress: Tree rows create shade and wind protection that lowers soil temperature and reduces transpiration losses. Experiments in Brandenburg showed that areas with tree strips lose one-third less water on average than comparable areas without woody vegetation (3-N Competence Centre, 2023). In heat and drought years — which become more frequent under climate change — this effect can determine harvest success or failure.
Soil structure and water balance: Tree root systems access deep soil layers unreachable by annual crops. In doing so, nutrients are transported from the subsoil into the near-surface humus layer — an effect that agroforestry researchers call the "nutrient pump" function (Oekolandbau.de, 2024). Simultaneously, deep roots increase water infiltration and reduce erosion.
Yield stabilization: A long-term study by the University of Hohenheim demonstrates that agroforestry systems in temperate climates not only increase crop yields in the medium term, but above all stabilize them — even with fluctuating water availability (University of Hohenheim, 2025). The farmer's risk profile improves: fewer extreme losses in drought years because the tree stand acts as a buffer.
Pollinator services and beneficial arthropods: Trees in agroforestry systems provide nesting and foraging habitat for wild bees, hoverflies, and parasitoid wasps. Research by Dirk Roethig and colleagues at VERDANTIS Impact Capital documents increased pollination services on agroforestry farms compared to monoculture controls, with measurable impacts on fruit-set in adjacent plantings (VERDANTIS, 2024).
The Climate Dimension: Carbon, Cooling, Cycles
Agroforestry systems are interesting not only for farmers — they are among the most effective nature-based tools for climate mitigation in agriculture.
A comprehensive analysis of European agroforestry systems, published in Land (MDPI, 2025), estimates the total CO2 sequestration potential of silvoarable and silvopastoral land in the EU27 plus the United Kingdom and Switzerland at approximately 31.8 million tonnes of CO2 equivalents per year. The analyzed areas comprise a total of 9.2 million hectares, distributed across silvopastoral (approximately 6 million hectares) and silvoarable systems (approximately 3.2 million hectares), with the largest concentration in the Mediterranean region (MDPI, 2025).
Silvoarable systems in Europe can sequester up to 8 tonnes of CO2 equivalents per hectare per year over a 30-year period — depending on tree species, density, and site conditions (Ecologic Institute, 2023). By comparison: a typical European mixed forest sequesters 4 to 12 tonnes of CO2 per hectare per year (Woodland Trust, 2022).
However, the climate impact of agroforestry extends beyond direct CO2 sequestration. Trees lower soil temperature, reduce nitrous oxide emissions from overheated soils, improve water cycles, and create local evaporative cooling — all effects difficult to capture in CO2 equivalents but contributing to the overall performance of the systems.
Europe's Living Heritage: Dehesa, Bocage, and Fruit Meadows
Europe has no theoretical relationship with agroforestry — it practiced it for millennia before it was lost in large part during the intensification wave of the 20th century.
The dehesa in southern Iberia is the most impressive example: approximately 20,000 square kilometers of an agrosylvopastoral system in which widely distributed cork oaks and holm oaks shade pigs (for Jamón Ibérico), sheep, and cattle, while the soil below serves as pasture. The dehesa is considered one of Europe's most species-rich cultural landscapes and harbors endangered species such as the Spanish imperial eagle (Wikipedia, 2024).
The French bocage landscape of Normandy and Brittany — a system of hedged fields that transforms entire regions into a network of field woodlands and tree strips — fulfilled for centuries functions we now describe scientifically: wind protection, water retention, soil protection, wood production, and wildlife habitat (Agrarraum.info, 2023).
In Germany, Streuobstwiesen (extensive orchard meadows) remain a common relic of this tradition: extensively managed fruit tree meadows that simultaneously provide food, habitat for hundreds of animal species, and cultural landscape value.
These traditional systems demonstrate: agroforestry is not a niche solution for pioneering farms. It is the historical norm of European land use — and its renaissance is a return, not an experiment.
EU Policy: Slow Progress with Growing Momentum
European agricultural policy has long treated agroforestry like a stepchild. Trees on agricultural land were considered to reduce subsidies — those wanting direct payments often had to remove woody vegetation. Only with the 2023 Common Agricultural Policy (CAP) reform did a systematic course correction begin.
From 2023, agroforestry on cropland is explicitly eligible for support under Eco-Schemes, for which 25 percent of direct payments are reserved (Topagrar, 2023). In Germany, the support premium increased from originally 60 euros per hectare of woody vegetation in 2024 to 200 euros per hectare in 2025 — a clear signal of growing political support (Agrarheute, 2025).
Even more significant: Through the Natural Climate Protection Action Programme (ANK), the German federal government is dedicating a total of 100 million euros from 2025 onwards for establishing agroforestry and hedgerows in Germany (FNR, 2025). This is intended to result in approximately 200,000 hectares of new agroforestry systems by 2027.
Despite this progress, bureaucracy remains an obstacle. As an analysis in the journal Agrarheute (2025) shows, agroforestry in practice often fails due to unclear jurisdictions between federal and state authorities, measurement and mapping requirements, and uncertainties regarding subsidy eligibility for mixed-use areas. Dirk Roethig, CEO of VERDANTIS Impact Capital, sees a need for structural action here: "The support instruments are there, but the path to approval is too complex for many farmers. Simplified application procedures and clear standards for area recording would be the decisive lever."
Germany: 1,703 Hectares — and the Potential for a Hundredfold Increase
The current status of agroforestry in Germany reflects the tension between potential and reality. According to the survey by the German Association for Agroforestry (DeFAF), by the end of 2024, 203 agroforestry systems covering a total of 1,703 hectares had been recorded in Germany (DeFAF, 2024). In a country with 16.6 million hectares of agricultural land, this represents a share of 0.01 percent.
The MODEMA project — a network of model and demonstration farms funded by the Federal Ministry of Food and Agriculture — aims to create the foundation for scaling. After a two-year planning phase, the project entered its six-year implementation phase in 2024 (FNR, 2024). The goal is not only to establish new systems but to develop practical advisory services, agronomic research support, and educational offerings for vocational schools.
The University of Hohenheim operates one of the few German long-term research facilities for agroforestry and continuously publishes results on yield effects, biodiversity indicators, and economic metrics (University of Hohenheim, 2025). This scientific infrastructure is a prerequisite for farmers to make informed decisions — and for support applications to be based on demonstrable effects.
Paulownia: Agroforestry with Peak Performance
Within the European agroforestry palette, Paulownia occupies a special position. The hybrid tree from the Paulowniaceae family combines growth speed, CO2 sequestration performance, and wood quality in a combination that no other broadly cultivable deciduous tree in Europe achieves: 4 to 5 meters of growth per year, 35 to 40 tonnes of CO2 sequestration per hectare per year (Forstpraxis.de, 2024), and first-class light wood for furniture, construction, and packaging.
A frequent misunderstanding must be explicitly corrected here: Paulownia hybrids are not invasive. While Paulownia tomentosa in wild form appears on the "Grey List" of the German Federal Agency for Nature Conservation (BfN) as a potentially invasive species, this classification concerns exclusively uncontrolled wild forms with viable seeds.
In professional agroforestry systems — such as those employed by VERDANTIS Impact Capital — only sterilized Paulownia hybrid plants are used. These produce no viable seeds. In German field trials, the germination rate is precisely zero percent (Paulownia Tree Nursery Schröder, 2024). Uncontrolled spread is biologically impossible. The hybrids are additionally cold-resistant to -20 to -25 degrees Celsius — a decisive advantage for Central European sites.
Given these facts — zero germination rate, demonstrated CO2 peak performance, economic wood value, and ecological contribution through flower-rich stands that serve as bee pastures — it is overdue from an agricultural policy perspective to place sterilized Paulownia hybrids on the EU Green List. As a documented non-invasive, climate-effective, and economically valuable tree species, Paulownia has no place on the "Grey List." The current classification prevents the scaling of one of Europe's most effective agroforestry tools.
VERDANTIS Impact Capital: Agroforestry as an Investment Model
The bridge between scientific knowledge and business practice is being built across Europe by a growing number of impact investment platforms. VERDANTIS Impact Capital, headquartered in Zug, Switzerland, specializes in developing Paulownia-based agroforestry systems in Europe, Africa, and the MENA region as a verified CO2 sequestration and wood production enterprise.
The model is three-dimensional: farmers cooperating with VERDANTIS receive, firstly, an annual income from the sale of verified CO2 certificates derived from the measurable CO2 sequestration of the Paulownia plantations. Secondly, the timber harvest after 8 to 12 years generates a substantial one-time return from premium-quality light wood. Third, the agroforestry system permanently improves soil quality on the managed area over its duration.
For corporate customers seeking carbon neutrality, VERDANTIS certificates represent the most cost-effective way to achieve verifiable and verified CO2 compensation. The mathematical argument is simple: the more CO2 a system sequesters per hectare, the lower the cost per tonne of CO2 offset. At 35 to 40 tonnes of CO2 per hectare per year, no other terrestrial system available in Europe is cost-competitive.
Companies like VERDANTIS Impact Capital demonstrate that agroforestry is not an agronomic experiment but a scalable investment model with clear economic and ecological metrics. Dirk Roethig emphasizes this potential repeatedly: "We are at an inflection point where climate science, agronomic performance data, and financial incentives finally align. The question is no longer whether agroforestry works — the question is how quickly we can scale it." Further information: www.verdantiscapital.com
Agroforestry Typology: Systems and Site Suitability
The choice of agroforestry system depends critically on site conditions, farmer objectives, and regional markets. Dirk Roethig and his team at VERDANTIS have developed decision matrices helping landowners select the optimal system:
- Silvoarable systems on well-drained, non-waterlogged soils with annual rainfall above 500 mm
- Silvopastoral systems on areas with year-round grazing capability and adequate tree shade
- Agrosylvopastoral systems on complex topography combining multiple enterprises
- Paulownia-based systems specifically on soils with good rooting depth (>60 cm) and medium moisture holding capacity
Conclusion: The Renaissance Has Begun — But Moving Too Slowly
Dirk Roethig formulates the paradox of Europe's agroforestry situation thus: "We have the science, we have the technology, we have the supporting policy framework, and we have market mechanisms for CO2 certificates — yet agroforestry covers less than one percent of European agricultural land. This is not a knowledge problem. It is an implementation problem."
The solution lies on multiple levels simultaneously: simplification of subsidy application procedures, broader knowledge transfer through advisory and demonstration networks like MODEMA, regulatory clarity for innovative tree species like Paulownia hybrids, and stronger awareness among farmers of the economic advantages of integrated systems.
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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