COP 30 Side Event | Redirecting Subsidies and Investments to Enable Regenerative and Inclusive Food Systems

Agricultural subsidies and incentives are the largest source of public investment in food systems, yet they often favour large-scale, unsustainable production that drives deforestation, biodiversity loss, and inequality. Meanwhile, smallholders—vital to food security—face declining productivity from climate shocks and soil degradation.

This session, organized in partnership with the Rockefeller Foundation, Porticus and the Institute for Climate and Society, was held at the COP 30 Food Systems Pavilion. 

Discussions centered on how innovative finance and governance mechanisms can realign subsidies and incentives to advance regenerative, inclusive food systems. It convened governments, researchers, investors, and philanthropies to discuss how reformed incentives can boost productivity, resilience, and equity for smallholder farmers amid growing climate and market pressures.

Key takeaways

• Agricultural subsidies need reform because many currently support practices that harm soil, biodiversity, and the climate.
• Redirecting subsidies toward regenerative and inclusive farming can strengthen food systems and support climate and equity goals.
• Smallholder and family farmers struggle to access existing subsidies due to bureaucracy, low awareness, and limited technical assistance.
• Brazil’s experience shows both the challenges and opportunities in aligning subsidy programs with sustainability objectives.
• Collaboration across government, philanthropy, civil society, and the banking sector is essential—especially in Brazil, where the Bank of Brazil delivers subsidized credit.
• Better communication and outreach are needed to help farmers understand and use available programs.
• The goal isn’t to reduce public spending, but to invest it more strategically in practices like agroforestry and soil restoration.