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Dirk Röthig (international: Dirk Roethig) — CEO of VERDANTIS Impact Capital. Focused on sustainable investments in paulownia agroforestry and clean energy across Europe. dirkroethig.com
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Dirk Röthig
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By Dirk Röthig | CEO, VERDANTIS Impact Capital | March 10, 2026
In Germany, only 1,703 hectares are registered as agroforestry systems — out of a total agricultural area of 16.6 million hectares. The federal government aims to reach 11,500 hectares by 2027. The CAP premium for agroforestry has tripled to 600 euros per hectare in 2026. For farmers wanting to make their operations climate-resilient and economically future-proof, a window is opening — and Paulownia hybrids are the key. This article is a practical guide: From planting schemes to crop selection to subsidy applications.
Tags: Agroforestry, Paulownia, Agriculture, Climate Protection
European agriculture is caught in a structural dilemma. On one hand, climate change, soil degradation, and biodiversity loss demand a fundamental transformation of farming practices. On the other hand, farms face enormous cost pressure — every square meter must generate yield. Agroforestry resolves this contradiction by combining trees and agricultural crops on the same area — not as a compromise but as a synergy.
The numbers speak for themselves: According to the German Professional Association for Agroforestry (DeFAF), only 203 agroforestry systems with a total area of 1,703 hectares were registered on the DeFAF agroforestry area map as of December 2024 (DeFAF, 2024). The federal government's CAP Strategic Plan targets a total area of 11,500 hectares of agroforestry systems by 2027, with 65,000 hectares of supported woodland area overall (BMEL, 2023). The gap between current status and target is enormous — and with it the opportunity for farmers who enter early.
Brandenburg leads with approximately 362 hectares of registered agroforestry area, followed by Lower Saxony and Bavaria (DeFAF, 2024). Nationwide, 46 percent of the area is devoted to silvoarable systems — the combination of trees with arable farming — and 39 percent to silvopastoral systems with livestock grazing (DeFAF, 2024). Both models are excellently suited for the integration of Paulownia hybrids.
The alley cropping system is the best-researched agroforestry model for integrating Paulownia into existing arable farming operations. The principle: Woody strips of Paulownia hybrids are established at regular intervals across the field. Between the tree strips, conventional or organic farming continues — with wheat, corn, rapeseed, potatoes, or legumes.
Research provides clear recommendations for spatial arrangement. In a landmark study on the optimal size of Paulownia agroforestry systems on the North China Plain, Newman et al. (2019) determined that the optimal design consists of two tree rows at four-meter spacing, with the shading effect on crops no longer statistically significant beyond 15 meters from the tree strip (Newman et al., 2019). For Central European conditions, the following planting scheme is recommended:
The main concern of farmers regarding agroforestry is: "The trees take light from my crops." With Paulownia, this concern is justified — but manageable. Yin and He (1997) documented in a long-term study that photosynthetically active radiation (PAR) within a Paulownia-wheat intercropping system was reduced by 22 percent during flowering, 44 percent during grain filling, and 56 percent during ripening (Yin and He, 1997).
This reduction sounds dramatic — but is less problematic than initially feared for three reasons:
First, Paulownia is a deciduous tree that leafs out very late — in Central Europe not until late April to early May. The critical growth phase of winter wheat (tillering, stem elongation) falls in the leafless period. Shading primarily affects the late growing season, when grain yield is already largely determined.
Second, regular crown pruning (every two to three years) can significantly reduce shading. The prunings serve as mulch material or biomass feedstock — an additional utilization pathway.
Third, certain crops actually benefit from partial shade. Under increasingly frequent heat summers — as have been regular in Germany since 2018 — moderate shading can reduce drought stress in crops such as potatoes, lettuce, strawberries, or herbs and stabilize yields.
| Suitability | Crops | Rationale |
| Very good | Winter wheat, winter barley, rapeseed | Main growth before Paulownia leaf-out |
| Good | Potatoes, legumes, herbs | Benefit from partial shade in heat |
| Conditional | Corn, sunflowers | High light requirements but tolerant in early phases |
| Less suitable | Sugar beets | Light-sensitive throughout growing season |
The second integration model targets grassland and livestock operations. Silvopastoral systems — combining trees with livestock on pasture — already account for 39 percent of German agroforestry area (DeFAF, 2024).
Silvopasture research consistently shows that shade trees measurably improve grazing animal performance: weight gains increase by up to 10 percent, supplementary feed needs decrease by up to 50 percent, and milk yields in cows increase by 8 to 20 percent (World Tree, 2025; Cornell University, 2018).
Paulownia is particularly suited for silvopasture because its large leaves quickly form a dense shade canopy — much faster than native species like oak or beech. The bark contains bitter compounds that largely prevent browsing damage by cattle and sheep — a wildlife fence is generally not required.
For farmers considering agroforestry with Paulownia, the current subsidy framework is the strongest economic incentive since the introduction of CAP Strategic Plans in 2023. The Eco-Scheme 3 (OR3) "Maintenance of agroforestry management on arable and permanent grassland" has been fundamentally improved.
The Agricultural Ministers Conference has tripled the premium for agroforestry under OR3 from 200 euros to 600 euros per hectare of woody area (Agrarheute, 2026; top agrar, 2026). This is a clear political signal: Agroforestry is finally being adequately compensated as a climate protection measure.
Further simplifications from 2025/2026:
| Parameter | Value |
| Farm area | 50 ha arable land |
| Woody strip share | 10% = 5 ha |
| OR3 premium (600 EUR/ha woody area) | 3,000 EUR/year |
| Arable area between strips | 45 ha (continued farming) |
| Estimated yield reduction (5-10%) | -2,250 to -4,500 EUR/year |
| Timber revenue from year 8 (5 ha x 250 m3 x 300 EUR/m3) | 375,000 EUR per harvest cycle |
| CO2 sequestration (5 ha x 30 t/ha/year) | 150 t CO2/year |
Deep taproots against nutrient leaching. Paulownia develops a deep taproot system that accesses nutrients from soil layers unreachable by arable crops. This "nutrient elevator" improves long-term nutrient availability in the topsoil (Agrarheute, 2025; Paulownia Nursery Schroeder, 2024).
Erosion protection through root networks. On erosion-prone sites, Paulownia roots mechanically stabilize the soil. Combined with the windbreak function of tree strips, wind and water erosion are significantly reduced.
Humus building through leaf fall. Paulownia's large leaves — individual leaves exceed 60 centimeters in diameter — decompose quickly, forming a nutrient-rich mulch layer that measurably increases humus content over several years (Forstpraxis, 2025).
Water regulation. Paulownia roots break up compacted subsoil layers and improve water infiltration, while tree strips reduce wind speed on the field by 20 to 40 percent, lowering evapotranspiration and stabilizing soil moisture.
The wild form Paulownia tomentosa is on the Grey List of the BfN as "potentially invasive." This classification is correct — for the wild form. But in professional agroforestry projects, like those implemented by VERDANTIS Impact Capital, only sterilized Paulownia hybrids are used. These hybrids produce no viable seeds.
The evidence is clear: In German field trials, the germination rate was zero percent (Paulownia Nursery Schroeder, 2024). The hybrid Paulownia Z07 is considered demonstrably non-invasive (Energiepflanzen.com, 2025). Modern hybrids withstand frosts to minus 20 to minus 25 degrees Celsius.
For farmers, this means: Zero percent germination rate equals zero percent risk of uncontrolled spread. No wild growth on the neighboring field, no introduction into nature conservation areas, no regulatory problem.
Nevertheless, the regulatory classification remains unsatisfactory. Sterilized Paulownia hybrids should be placed on the EU Green List — as a recommended species for sustainable land use and agroforestry systems.
VERDANTIS Impact Capital offers farmers an integrated package for Paulownia agroforestry integration:
Step 1 — Site Assessment (Month 1-2). Soil analysis: Paulownia prefers deep, well-drained soils (loess loam, sandy loam). Waterlogging is an exclusion criterion. Climate check: Assess late frost risk, select appropriate hybrid clone (NordMax21® for frost locations to -25°C, BIO125 for milder sites).
Step 2 — Area Planning and Subsidy Application (Month 3-4). Create planting scheme: strip width, spacing, orientation. Submit OR3 subsidy application within the agricultural application. Since 2025, no separate management concept is required.
Step 3 — Planting (April-May). Plant after the last late frost. Paulownia cuttings are set as rooted young plants (1-year-old). Planting hole: 40 x 40 x 40 cm. Watering at planting, then naturalized.
Step 4 — Establishment Phase (Year 1-3). First winter: Cut back to 10 cm above ground (forcing cut) to promote a straight, strong main shoot. Annually: Crown maintenance, removal of side shoots on the lower stem. Between tree strips: normal arable farming.
Step 5 — Harvest and Continued Operation (from Year 8). First timber harvest: Quality timber with 25-35 cm stem diameter. Paulownia resprouts from the rootstock — up to five harvest cycles without replanting. Carbon credits are generated throughout the growth phase and can be certified annually.
Farmers who integrate Paulownia hybrids into existing cropland or grassland systems unlock a triple dividend:
Ecological: 30 to 40 tonnes of CO2 sequestration per hectare of woody area per year (Ghazzawy et al., 2024), erosion protection, soil improvement, biodiversity promotion through blossoms as bee pasture, heat protection for grazing animals.
Economic: 600 EUR/ha CAP premium from 2026, quality timber revenue from year 8, carbon credits from certified CO2 sequestration, reduced erosion damage and stabilized yields through windbreak and improved soil moisture.
Strategic: Diversification of income sources, climate resilience of the farm, competitive advantage in future sustainability requirements (CSRD, Supply Chain Act), building an asset in the form of growing trees.
The CAP reform 2026 with the tripled agroforestry premium, the elimination of the management concept requirement, and the increase of the permissible woody share to 40 percent has created the most favorable conditions ever. Paulownia hybrids deliver the tree species that optimally utilizes these conditions: fast-growing, high-yielding, climate-resilient — and with sterilized hybrids, demonstrably without invasiveness risk.
About the Author: Dirk Röthig is CEO of VERDANTIS Impact Capital, based in Zug, Switzerland. He supports farmers and institutional investors in implementing Paulownia-based agroforestry projects — from site analysis through planting to carbon credit certification. Contact and more articles: verdantis.capital | LinkedIn | dirkdirk2424@gmail.com
Von Dirk Röthig (Dirk Roethig)