Covalo, a French initiative, unites farmers, companies, and banks to share agroecological transition costs and risks, aiming for a more sustainable and collaborative agricultural future.
Agricultural diversity and challenges
An agricultural enterprise does not produce only wheat or potatoes. Over the seasons, it alternates between cereal crops, beets, vegetables, or legumes. However, agroecological transition programs are often organized by sector, with industrialists supporting specific producers. This approach results in repeated diagnostics, sometimes conflicting advice, and increased costs for farmers.Covalo's initiative
Covalo, a project led since 2024 by the association Pour une Agriculture du Vivant (PADV), with the support of France 2030, aims to challenge this system. Its white paper estimates the additional costs of practices and risks related to the transition at 150 euros per hectare, excluding machinery. Its goal is to bring together all those who depend on a farm's harvests around each farm to share the costs, risks, and eventually the benefits of the transition.A new focus for transition
Covalo shifts the focus from the sector to the farm and its entire rotation. Cooperatives, industrialists, and distributors can jointly fund the same diagnosis and coordinated support. The objective, as explained by David Diane, director of communication of PADV, is to engage "not the transition of a sector, but the transition of the farm." A single cost could thus be shared among more partners, depending on the composition of the coalitions.A unified reference framework
Another change involves a single reference framework, the Regeneration Index (IR), developed by PADV. Scored out of 100, it evaluates agricultural practices based on criteria concerning soils, crops, and the landscape. It is used to establish an initial diagnosis and then to build a progress trajectory. The farmer retains the freedom to choose his agroecology specialist advisor, tasked with coordinating the recommendations from his other technicians.Pilot territory mechanisms
In Hauts-de-France, the pilot territory, three mechanisms complement each other. Private actors contribute to funding new agricultural practices, especially through a minimum agroecological bonus of 100 euros per hectare, accessible under conditions of IR score and contractualization. Public actors can pay for environmental services, for example, water protection. And the bank intervenes on the investments necessary for the evolution of practices.Financial support and environmental goals
The Artois-Picardie Water Agency thus supports a payment for environmental services (PSE) of 7 million euros over five years, benefiting 85 farmers. In June, the partners announced 1.2 million euros in payments for 2026. On the other hand, Crédit Agricole Nord de France offers, with its "Transition+" offer, preferential credit and insurance conditions according to the environmental performance of the farms. More than 6 million euros in financing had been granted in a year.Industrial benefits and long-term security
Industrialists also have something to gain. McCain, a giant in the potato industry, participates in the coalition alongside other private actors such as Bonduelle, Tereos, or Coopérative U. Its interest is very concrete: maintaining sufficient yields and securing its factories' supplies. The goal is that the farmers "can deliver their contract now, tomorrow, in 10 years, in 15 years, and in 20 years," explains Charles Desutter, head of sustainability at McCain Europe.Expanding the program
In Hauts-de-France, COVALO brings together 180 farmers on 12,000 hectares, with 14 public and private partners. Three new contracts have been signed, concerning 98 wheat, corn, and potato producers, for commitments of three to five years. At the national level, the program now brings together nearly 75 partners distributed among five territorial coalitions.Progress and future goals
In June last year, the average Regeneration Index reached 55/100. The participants aim for ten additional points and a decrease of about 10% in their net carbon balance by 2028. According to PADV, the affected farms have gained an average of nine IR points between two campaigns; more than 40% have moved to a higher category. An interesting signal, to be handled with caution: the association itself acknowledges that the more favorable weather of 2025 may have contributed to this progress.Expanding beyond Hauts-de-France
The program also concerns Normandy-Centre, the West, Vendée–Deux-Sèvres, and the Southwest, with notably NatUp, Terrena, Cavac, and Val de Gascogne to coordinate the local coalitions. More than 70 partners are involved. The stated ambition is to reach 4,400 farmers nationwide. Each time, the model must adapt to crops, climate, and local economic actors.Regulatory considerations
Cooperation must also respect the rules of competition. Requested by PADV, the Competition Authority published in January 2025 informal guidelines on Covalo. They emphasize transparent access criteria, the protection of agricultural data, and the necessary vigilance around the exchange of commercial information. The real test will be economic.Future uncertainties
Covalo has now surpassed the stage of a simple idea. The coalitions are taking shape, the first farmers are being supported, and funding is circulating. But will the bonuses last? Will the environmental benefits be measurable? And will the farmers really gain economic security? If the bet works, agroecological transition may no longer be a succession of scattered programs supported only by producers. It will become a shared responsibility among all those who live off the land, without necessarily cultivating it.
