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🇬🇧Are sustainable farm incentives focused in the right areas?

Clover growing in a field for sustainable incentives

With climate change and food security being two of the most important things threatening our livelihoods, the UK has highlighted the need to change the way we produce food. Since leaving the EU in 2020 and cutting the subsidies from Europe, the UK’s devolved nations promise new payments for farmers. The governments are rewarding them for farming in a sustainable and environmentally-friendly way. 

What environmental schemes are available in the UK?

The Sustainable Farming Incentive (SFI) in England has yet to be finalised. However, at the moment farmers can choose from 23 individual actions through which they will receive payments.

The main objectives of the SFI are:

  1. Maintaining and enhancing the natural environment
  2. Reducing carbon emissions
  3. Improving the health and welfare of farmed animals

All of the above actions can aid productivity of livestock and therefore have a positive impact on profitability. The key, however, is getting the balance right and the transition right.

Up to 50 new actions are expected in the coming months. Farmers will receive payments upon carrying out each action. This may be a one-off annual payment, or it might be based on a certain price per hectare.

Scotland:

Funding via a National Test Programme was announced in Scotland in 2021. The first part of the programme, Preparing for Sustainable Farming (PSF), rolled out in 2022 with the agricultural community able to claim for:

  1. Carbon Audits
  2. Soil Sampling and Analysis
  3. Animal Health and Welfare Interventions

Regardless, soil sampling and analysis, as well as animal health and welfare interventions can positively support enhanced food production. The healthier the livestock, the more efficient and therefore productive it is. Carbon audits might seem a little more distanced in their connection with food production. However, carbon baselining can uncover how a farm can increase its productivity and decrease some of its costs.

Wales:

In Wales, the Sustainable Farming Scheme (SFS) was meant to start from early 2025. However, following several consultation periods, the start date is now delayed by at least 12 months. Conditions for the SFS have yet to be finalised.

Farmers who join the SFS will likely have to abide by several “Universal Actions” to be eligible for the funding. These actions will range from improving soil health, planting tree cover, and maintaining vital habitats to planting cover crops, using integrated pest management, and improving animal welfare.

Does the SFI cap in England prove the focus on sustainable incentives isn’t right?

Having published the goals of the SFI in England, Defra has now introduced a cap on how much land farmers can take out of food production. This was arguably in response to one percent of farms putting 80% of their farm into actions that take the land out of food production.

The new cap means SFI applicants can only put 25% of their land into the six actions not directly involved with producing food:

  1. Flower-rich grass margins   
  2. Pollen and nectar flower mix   
  3. Winter bird food on arable and horticultural land   
  4. Grassy field corners and blocks   
  5. Improved grassland field corners or blocks out of management   
  6. Winter bird food on improved grassland.

This highlights that we are yet to create schemes that balance both a focus on food production and the environment. However, those in favour of the new schemes stress the importance of producing food whilst also caring for the environment. So, how can farmers do both and also still ensure profitability? It is hoped that, as changes and adjustments are made to these new schemes, farming in a sustainable way can feed the nation. But do this whilst also helping to reach the UK’s target of net zero and ensure a livelihood for the farming sector. It is a big challenge, but not an impossible one.

What influences farmers’ decisions to adopt a sustainable incentives?

The decision to jump onboard with the various farm incentives out there is shaped by many factors. These include, but are not limited to, personal opinions, degrees of risk aversion, income levels, age, asset ownership and market trends.

It is therefore not an easy task to design a farming incentive programme. Generally, incentive programmes that have a higher adoption rate among farmers are those that deliver short-term economic benefit. However, one of the strongest motivations for the long-term is perceived benefits for the farm and the environment.

It seems that the most successful schemes will be the most flexible, allowing farmers to adapt the incentives to their own personal and business goals.

What impact do the key sustainable farm practices actually make? 

Farming in a sustainable way has proven to be successful at reducing the negative environmental impact farming can have. This translates into increased profits if done effectively. One example is:

  • Increasing the grazing season. This reduces time spent indoors, electricity used in shed, fuel used to scrape out sheds and yards. It also reduces quantities of slurry and health conditions associated with indoor housing.

The benefits from making the decision to keep cattle outside for longer provide immediate, short-term benefits (both economic and environmental). See our blog on outwintering here.

However, some actions are long-term investments such as growing legumes to reduce artificial fertiliser usage resulting in improved soil health. The benefits from improved soil organic matter and structure are likely to make a difference over the next several growing seasons rather than right away.

Why we need a baseline

A baseline is a measurement of your farm’s performance before you make any changes or improvements. Naturally, it is difficult to calculate the success of your outputs without having a figure to relate it to. (For more information on measuring baselines, see our blog post On why you need a baseline).

Therefore, once you have a baseline, it is easier to see whether the changes made to farming practices (such as sustainable actions) is improving productivity.

It also allows farmers to make adjustments as they go, so you can modify how you work without directly affecting profits. Regular monitoring of things like soil health and animal performance can help spot changes quickly.

Here at AgriWebb, we can help you to keep track of your farm’s performance in a visual and user-friendly way. Please contact us for more information.

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