Scaling sustainable farming ‘would prevent £150bn hit to economy by 2050’

Urgent government action is needed to support the transition to sustainable farming at a time when the UK’s food system is under unprecedented pressure.

That’s the headline call from a new report by cross-party think tank Demos, supported by McCain Foods, which details key challenges facing farmers, from rising input costs and uneven profitability to the persistently uncertain policy landscape.

The report, entitled The Sustainable Farming Dividend, argues that transitioning to sustainable farming practices that aim to support positive outcomes for land, nature and the environment – often referred to as regenerative farming – can strengthen the resilience of food production, stabilise food prices and generate billions in economic benefits across the £150bn UK agri-food sector.

Among the report’s findings are that nature restoration through sustainable practices could unlock £56.3bn in natural capital by 2035, while the adoption of sustainable methods could increase farm profits by £1.6bn a year by 2035, helping address a system where nearly one in five farms currently operate at a loss.

With some 60 per cent of nitrogen fertiliser imported, sustainable methods could reduce total inputs by £905mn annually and reduce fertiliser imports by £449mn each year, it states.

Public awareness gap

Despite these benefits, the report found that there is a significant public awareness gap on the issue. When the links between farming, climate impacts and food prices are made clear, support for action from the public rises sharply, it claims.

Specifically, it found that 61 per cent of people back greater government investment in sustainable farming, 45 per cent say it should be prioritised over other spending areas, and 31 per cent would view the government more favourably if it increased investment.

Taken together, Demos says the findings highlight a growing public appetite for leadership, with the data revealing a significant opportunity. With the public behind the transition, it says, the UK now has a real window to unlock coordinated national action.

Call for action

The report calls on the government to improve farming profitability by:

• Building strong partnerships: using the Farmer Collaboration Fund and upcoming Land Use Framework to scale up farmer clusters and develop regional Agri-Growth Hubs. This also includes partnering with local authorities and anchor institutions to convene farmers and investors, and embedding co-design models into the management of council-owned farmland;
• Supporting nature outcomes: developing standardised baselines for carbon, soil, water, and biodiversity;
• Plugging knowledge gaps: commissioning Skills England to review sustainable farming skills gaps and opportunities, and embedding an understanding of sustainable farming’s benefits.

Daniel Zeichner, the former food security and rural affairs minister, said: “We must stop treating sustainable farming as a niche environmental concern, and begin to recognise it as a cornerstone of our national economic and food security. I welcome Demos’ new report, which shows how we can shore up our food security and secure a resilient supply by growing sustainable farming practices across the country.”

Dan Goss, lead researcher at Demos, added: “In an increasingly unstable world, Britain cannot build a secure economy on depleted land and fragile food systems. Rising food prices have become one of the clearest signals to the public that the cost-of-living crisis is biting and our economy is not working as it should.

”This is why sustainable farming is not just about protecting nature. It is about protecting the foundations of our economy and the financial security of citizens. By expanding its ambition to build partnerships across the farming sector, the government could deliver this powerful sustainable farming dividend.”

And James Young, VP of agriculture at McCain GB&I, said: “The Sustainable Farming Dividend report shows that sustainable practices strengthen the resiliency of our food system and protect farmers and their businesses. The findings reflect what we are seeing and hearing from our 250 British growers who are feeling the pressures of climate volatility and know the transition to a more sustainable system is essential.

”At McCain, we’re already investing in this transition in a number of ways, including our commitment to implementing regenerative agriculture practices, but what is clear is that farmers cannot be expected to make this transition alone. We need all parts of the value chain, from policymakers to farmers to producers, working together to support it.

”Farmers are ready to lead this change, but they need long-term policy certainty and the right incentives to invest with confidence.”