Analysis of soil health business models from an environmental and socioeconomic perspective: a Tuscan case study

Introduction Soil health is defined by its ability to provide vital ecosystem functions, such as sustaining animal, plant, and human communities (Lehmann et al., 2020). Agricultural production largely depends on soil and its health; however, conventional agricultural management often contributes to its degradation. Indeed, conventional methods prioritize the maximal exploitation of resources, the use of external inputs, extensive land utilization, and high mechanization to maximize yields per unit area (Nisar, 2021). As a result, soil degradation raises serious concerns about the sustainability of current agricultural practices, especially in Europe, where over 60 percent of soils are classified as unhealthy (COM/2021/699). This context has therefore generated public awareness by creating pressure on policy makers;. In Europe, the response has taken the form of ambitious initiatives such as the Green Deal (COM/2019/640), the EU Soil Strategy for 2030 (COM/2021/699), and the proposed Soil Monitoring Law (COM/2023/416). This situation is further exacerbated by climate change, which adds complexity and requires the adoption of flexible rather than standardized agricultural systems (Gomiero et al, 2011; Malhi et. al, 2021). Consequently, farmers are increasingly calling for effective and economically viable alternatives to conventional practices. Therefore, there is a growing demand to explore and determine business models that enhance soil health while being economically viable for farms (Nikolov et al., 2024). To study these perspectives, we applied a single case study (CS) approach. To do so, we focused on the Santa Luce Valley in Tuscany: a marginal rural area with a long history of extensive cereal cultivation. In response to declining soil health in the area, some farmers are increasingly interested in new business models. In this context, the Integrated Supply Chain Project (Progetto Integrato di Filiera (PIF)) “FLORA aromatica Santa Luce e la valle dei profumi,” funded by the Tuscany Region in 2016, was born. The integrated supply chain was implemented to benefit the economic, social and environmental aspects of the Santa Luce area (Scaramuzzi et al., 2020). The CS highlights the transformation of these areas into new economic and tourism hubs. To this end, the project aimed to create a new supply chain of organic aromatic plants and an organic cosmetic line based on lavender essential oil. To ensure stable revenues in the supply chain, the project farmers signed a long-term supply chain agreement, in which Flora srl (the project leader) committed to purchase all the inflorescences produced by the partner farms for eight years at market price. Recent changes to the contractual arrangement provide a unique opportunity to reassess a supply chain nearly a decade after its inception. Previously recognized as both soil-sustainable and economically viable, the initiative has been the subject of prominent studies (Scaramuzzi et al., 2020) that evaluated its environmental and economic impacts on the area. However, these assessments were conducted while a purchase agreement was still in place, ensuring stable conditions for local farmers. With the termination of this arrangement in 2024, farmers must now freely bargain for their inflorescences on the market, introducing new dynamics into the supply chain. While previous studies focused on the overall impact of the initiative, our research specifically examines local farmers, a key stakeholder group in rural development policies and the backbone of agri-food supply chains. In particular, we investigate policies supporting the creation of supply chains in rural areas and their potential to improve soil health. Our study aims to assess farmers' perceptions and willingness to adopt such policies, using a successful case study to identify key success factors, challenges, and potential trade-offs that have emerged over time. Data and research methodology In order to better understand the environmental, social and economic impact of the initiative, we used a single study design and a mixed method approach. The research process was divided into two phases. In the first phase of our investigation, a preliminary study was necessary to understand the history of the supply chain and the territory under analysis. The CS had already been extensively studied due to the PIF project. Therefore, we reviewed the project reports that provided us with valuable data on the situation prior to the creation of the supply chain and its economic performance between 2016 and 2021. A scientific publication analysing the economic aspects of the implementation of the supply chain at the end of the project was also taken into consideration (Scaramuzzi et al. 2020), Data on the biochemical characteristics of the soil of some of the soils involved in the project were also analysed. These data, available from the beginning of 2016 to the present, allowed us to have monitoring parameters of soil quality useful in the context of the analysis. The second phase of our analysis focused on qualitative data, in detail: 1) Stakeholder analysis. We identified the stakeholders affected by (or influencing) the supply chain and then mapped their relationships. This helped us to determine the main stakeholders in the area in order to involve them in the research process. These included farmers in the area, representatives of Flora srl and local policy makers. 2) Based on the stakeholder analysis, we conducted four pilot and five semi-structured interviews, a focus group and a participatory workshop. The initial (pilot) interviews were conducted to understand the general context of the area before and after the introduction of the supply chain. The five semi-structured interviews, on the other hand, were used to delve into the perceptions of those involved in the supply chain creation project, focusing on the original objectives and the results achieved to date. A subsequent focus group served to stimulate the group discussion among the interviewed stakeholders. In detail, the effectiveness of the economic incentives currently available to the actors involved in the supply chain was explored during the event. To add to this discussion, and to understand more about the perception of the future of the supply chain and the possible need for new policies and incentives, a participatory workshop was finally held. In this last event, more stakeholders were involved, in addition to those from the previous events, including regional policy makers and Italian lavender growers. To finalise the research process and fully understand the context of the key issues identified by the stakeholders, we visited the Santa Luce area and observed their daily practice. During this phase, field notes were written and photographs taken, which were later analysed with the rest of the data. The data from the qualitative research were analysed using thematic analysis, which was performed using MAXQDA 24 qualitative analysis software. Codes and categories were created for later interpretation. Expected results Our study aims to assess the actual impact of the CS supply chain on soil health by evaluating farmers' perceptions of these changes. By comparing measured soil conditions with farmers’ perspectives, we expect to determine whether their perceptions align with the observed environmental effects. Additionally, we anticipate gaining insights into how farmers' initial expectations of the project compare with their evaluations after ten years of implementation. Moreover, we expect to identify how evolving market conditions have influenced business models and supply chain relationships. The removal of the purchase agreement has likely exposed farmers to greater market competition, potentially affecting their economic stability. Understanding these dynamics is crucial for ensuring the long-term viability of environmentally and economically sustainable business models. From a policy perspective, our study seeks to highlight the challenges posed by the fragmentation of soil health policies in Italy. Since no specific measures are dedicated exclusively to soil health, regulatory complexity may hinder coordinated action, particularly in marginal rural areas. Such fragmentation could weaken sustainable business models, increasing the risk of farmers reverting to conventional practices. In our CS, this reversion would compromise the supply chain’s sustainability and confine its impact exclusively to the tourism sector. Finally, our findings could provide valuable insights for policymakers, emphasizing the need for policies and incentives that enable farmers to adapt to changing conditions. Without mechanisms to support flexibility, structural changes in the system may put the sustainability and continuity of such initiatives at risk.