Private funding for soil health: Private individuals’ preferences for ecosystem services and biodiversity certificates

Achieving improvements in soil health and biodiversity on agricultural land in the European Union, as outlined in the EU Soil Strategy for 2030 and the EU Biodiversity Strategy for 2030, requires bridging the current funding gap through increased private investment. Yet the funding potential of private individuals remains largely untapped, partly due to a lack of attractive funding opportunities and well-designed incentives. Conducting a Discrete Choice Experiment with 1627 residents in Germany, we elicit private individuals’ stated preferences for investing in soil health and biodiversity improvements in agriculture via certificates offered through an existing online marketplace. Respondents exhibit significant mean willingness to pay for the attributes characterising these certificates. Bundling multiple soil management-related ecosystem services and biodiversity improvements into a single certificate increases mean willingness to pay relative to stand-alone improvements, though the magnitude varies due to significant preference heterogeneity. Our results further suggest that blended finance, i.e. combining private and public funding, may stimulate greater private individual participation. A latent class analysis reveals the presence of four segments, with older, less educated and male respondents showing the lowest willingness to pay. This study highlights the untapped potential of mobilising funding from private individuals to enhance soil health and biodiversity in. Our results provide valuable insights for policymakers on designing innovative funding mechanisms aligned with EU agri-environmental policy targets. • Private individuals show significant mean willingness to pay for soil health and biodiversity certificates. • Bundling soil health and biodiversity improvements increases willingness to pay. • Blending private and public funding may stimulate greater participation of private individuals.