Balancing UK agricultural production and environmental objectives

Jonathan Wentworth

Overview

Agriculture is the predominate UK land use. In 2021, the UK agriculture industry was made up of 216,000 farm holdings on 17.2 million hectares of land, 71% of the UK land total.[1] Around 80% of land is used for agriculture and forestry combined, contributing about 12% to the UK’s net greenhouse gas (GHG) emissions.[2] In 2023, the agricultural sector emitted:[3]

12% of total GHG emissions in the UK
70% of total nitrous oxide emissions
49% of total methane emissions
2% of total carbon dioxide emissions

In 2023, UK farms produced 62% of the food consumed domestically.[4] Crop production, including field vegetables, on lowland drained and cultivated peat soils are the largest source of land use emissions (PN 668, PN 707).[5] Intensification of land management is the main driver of nature loss within fields and adjacent habitats, such as inorganic fertiliser and pesticide use to improve grassland for grazing (PN 617, PN 627).[6]^{,[7],[8],[9],[10],[11]}

Agricultural practices have also caused erosion, compaction, carbon loss, nutrient imbalances and contamination of soils (PN 662). Agriculture contributes to water (PN 661, PN 710) and air pollution (PN 691, PN 710).

Contributors suggested a systems shift is required in agriculture and other land uses to achieve net-zero GHG emissions by 2050, nature recovery and other environmental commitments.[12]

Challenges and opportunities

Commentators such as the Wildlife Trusts state that changing rural land management is critical to achieving environmental objectives.[13] Changing practices to reduce the impacts of crops, livestock and forestry production on wildlife, climate and natural systems remains controversial.[14] However, Natural England’s Agri-Environment Evidence Annual Report 2023 set out research evidence that schemes paying farmers for the provision of environmental services leads to landscape scale increases in butterflies, bees, bats and breeding birds.[15]

The Agriculture Act 2020 provided for the phased withdrawal and complete ending by 2027 of the basic payment support set up under the common agricultural policy.[16]^,[17] Commentators including the National Audit Office have raised concerns about uncertainties created for farming businesses, particularly the ability of smaller farms in some regions to diversify.[18]^{,[19],[20],[21],[22]} In 2025, the government will apply a 76% reduction to the first £30,000 of previous payments, with the rest of payments above the £30,000 phased out.[23]

Farmers in England can opt into Environmental Land Management (ELM) schemes,[24] which provides three tiers of payments (House of Commons Library Insight):

the Sustainable Farming Incentive (SFI) pays for adopting practices that may mitigate the environmental impacts of food production, such as improving soil quality (PN 662).[25] Applicants are able to put up 25% of their land out of direct food production into six SFI options.[26]
Countryside Stewardship pays for more targeted actions relating to specific locations, features and habitats, with additional payments to join up action across local areas[27]
Landscape Recovery pays for long term, large scale restoration projects,[28] such as the Wendling Beck Partnership project along the river Wensum in Norfolk (PN 678)[29]

The UK Centre for Ecology and Hydrology undertook an evidence assessment of more than 700 land-management actions proposed for inclusion in ELM schemes. [30]^,[31] For example, agroforestry, integrating woodland onto farmland to mitigate climate change (PN 636) while maintaining production.²⁴ The effects of actions on 30 ecosystem services (benefits provided to humans by the natural environment, such as flood alleviation, pollination or food production, PN 627) and trade-offs between them and possible disbenefits were assessed.[32]

£1.8 billion is available for ELMs in 2025/26, but there was a £130 million underspend in 2023-2024, £103 million in 2022-2023 and £125 million in 2021-2022.[33]^,[34],[35] Contributors stated the need to better engage farmers in the scheme design and to target ELM investment on upland National Parks to provide optimal benefit provision.[36] Scotland, Wales and Northern Ireland are developing their own replacements for EU farming subsidies.[37]^,[38],[39]

In England, the 2033-37 carbon budget requires reductions in agricultural emissions by up to 6m tonnes of CO₂ equivalents each year.[40] Contributors highlighted a lack of strategic assessment of changing farming practices to reduce emissions,[41] with neither the net carbon emitted in the production of a food item on a farm nor the carbon removed through its land management presently assessed (PN 702).

Low uptake and lack of knowledge exchange around regenerative agriculture,[42]^,[43] one of several soil stewardship approaches, was raised as a concern. Positive examples cited included frameworks and certifications of sustainable production emerging for materials such as wool and cotton, with fashion brands creating partnerships with farmers adopting regenerative practices. Resilience frameworks linking place, skills, resources, cultures and local identities are a part of this.[44]^{,[45],[46],[47],[48]}

Regenerative agriculture may reduce GHG emissions and other impacts such as water pollution and improve the soil microbiome (PN 601).[49]^,[50] While there is no single definition it is described as a set of practices that include: keeping soil surfaces covered; maintaining living roots year-round; minimising soil disturbance; growing a diverse range of crops; bringing grazing animals back to the land, and sometimes reducing chemical inputs.[51]^,[52]

Improving nitrogen management and reducing reliance on fertilisers through practices, such as through more effective use of organic wastes, legume crops, legumes in cover crops and herbal leys, and improving the nitrogen use efficiency of crops, can reduce nitrous oxide emissions (PN 710).[53] However, lower chemical input agricultural systems (reduced synthetic fertiliser and pesticide use),[54] may require the development of new crop varieties, although some older traditional varieties may perform better than current ones.[55]^,[56],[57]

Grants are also available in England to improve farm productivity through innovation, research and development, and to improve animal health and welfare.[58]^,[59] Animal welfare is usually excluded from life cycle assessments (LCAs) of farming systems because of limited consensus on how to measure it. LCAs are systematic techniques for quantifying a diverse range of impacts (such as greenhouse gas emissions or land use) across all stages of a product’s lifestyle and are used to compare the impacts of products and to identify mitigation strategies (PN 702).

A consistent, research-informed animal welfare scoring system could enable better-informed food and farming choices in the UK.[60] For example, use of antibiotics for animal farming is major contributor to antimicrobial resistance in human pathogens and is projected to grow by 8% between 2020 and 2030 despite ongoing efforts to curtail their use.[61]^,[62]

Key uncertainties/unknowns

The impact of climate change, including extreme weather events, on agricultural production in the UK and food imports.[63]
How changes in land use, farming practices and dietary change potentially required to meet net zero can balance the needs of farmers, consumers and other stakeholders.[64]^,⁷^,⁴¹
If environmentally sustainable farming approaches, such as ‘wetter modes of farming’ to reducing emissions from agriculture on lowland peatland soils (PN 668) or regenerative agriculture, will maintain both food security and livelihoods.[65]^{,[66],[67],[68]}

Key questions for Parliament

How to balance environmentally sustainable approaches with ensuring levels of agricultural production that are resilient to future economic shocks and environmental change. Whether ELMs evaluation criteria are sufficient to determine public value for money for the delivery of ecosystem service benefits.
Whether current strategies for adapting UK agriculture to climate change impacts, such as increased flooding, are sufficient, as well as mitigation approaches to reducing GHG emissions from UK agriculture.
Development of effective knowledge exchange and transfer mechanisms from researchers to and between farmers (PB 42).¹³^,[69] For example, uptake of ELMs option such as agroforestry are uncertain given lack of awareness of the benefits,[70]^,[71] and costs of implementation.

References

[1] Defra and the Government Statistical Service. (2022). Agriculture in the UK Evidence Pack

[2] Climate Change Committee. (2020). Land use: Policies for a Net Zero UK

[3] Defra. (2024). Accredited official statistics. Chapter 11: Agri-environment

[4] Defra. (2024). Accredited official statistics. Food statistics in your pocket

[5] Rhymes, J., et al. (2023). The future of UK vegetable production – Technical Report. CEH

[6] Suggitt, A., et al. (2023). Linking climate warming and land conversion to species’ range changes across Great Britain. Nature Communications, volume 14, Article number: 6759

[7] McKay, D. et al. (2019). To what extent has sustainable intensification in England been achieved? Science of The Total Environment, Volume 648, pg. 1560-1569

[8] Ridding, L. et al. (2019). Ongoing, but slowing, habitat loss in a rural landscape over 85 years. Landscape Ecology, Volume 35, pg. 257–273

[9] Burian, A. et al. (2024). Biodiversity–production feedback effects lead to intensification traps in agricultural landscapes. Nature Ecology & Evolution volume 8, pg. 752–760

[10] Burns, F., et al. (2023). State of Nature 2023. The State of Nature partnership

[11] Burns, F., et al. (2016). Agricultural Management and Climatic Change Are the Major Drivers of Biodiversity Change in the UK. PLoS ONE 11(3): e0151595

[12] Defra. (2023). Environmental Improvement Plan 2023

[13] Rayment, M. (2023). An assessment of the financial resources needed for environmental land management in the UK. A report for the RSPB, the National Trust and The Wildlife Trusts

[14] Whitton, J., et al. (2024). Systemic barriers preventing farmer engagement in the agricultural climate transition: a qualitative study. Sustain Sci

[15] Waygood, U. A. 2024. Agri-Environment Evidence Annual Report 2023. A summary of recently published projects. Natural England Research Report, NERR138. Natural England.

[16] Institute of Government. (2021). Agriculture subsidies after Brexit

[17] Upland Farmer Toolkit. (2024). Changes to the Basic Payment Scheme

[18] Short, C., et al. (2022). Assessing the impact of Agricultural Transition in Cornwall & the Isles of Scilly, Devon, Dorset and Somerset: Research to inform future planning. Stage 2 Final Report, Report to Great Southwest Partnership. Countryside and Community Research Institute: Cheltenham.

[19] Landzettel, M. (2021). Things will only get worse: Post-Brexit reality is hitting farmers hard. Sustainable Food Trust.

[20] NAO. (2024). The Farming and Countryside Programme

[21] CRE (2023) Rural Policy Revisited: Key messages for future sustainable communities, enterprise and land use. Centre for Rural Economy, Newcastle University.

[22] Berry, R. (2022). Economic resilience of agriculture in England and Wales: a spatial analysis. Journal of Maps, Volume 18, Issue 1

[23] Defra. (2024). Budget 2024: maintaining momentum

[24] Defra. (2023). Policy paper. Environmental Land Management (ELM) update: how government will pay for land-based environment and climate goods and services.

[25] Defra. (2024). Sustainable Farming Incentive (SFI) Handbook for the SFI 2023 offer

[26] The six options are: flower-rich grass margins; pollen and nectar flower mix; winter bird food on arable and horticultural land; grassy field corners and blocks; improved grassland field corners or blocks out of management; and winter bird food on improved grassland. Defra and RPA. (2024). Government ensures food production remains primary purpose of farming

[27] Defra, RPA, FC and NE. (2023). Guidance. Countryside Stewardship: get funding to protect and improve the land you manage

[28] Defra. (2023). Guidance. Landscape Recovery: guidance for round 2 applicants

[29] Wendling Beck. Led by Nature.

[30] Carbon Brief. (2023). Q&A: Will the UK’s new farm payments cut emissions and help nature?

[31] Defra. (2024). Policy paper. Technical annex: The combined environmental land management offer

[32] CEH. (2024). Evidence Assessment

[33] White, W. (2024). What does the government’s farming budget mean for Environmental Land Management? Sustain

[34] Defra. (2024). Corporate report: Farming and Countryside Programme annual report 2023 to 2024

[35] Case, P. (2024). Defra set to surrender £100m ELM underspend to Treasury

[36] Procter, A. et al. (2023). Co-producing environmental futures: public goods, land managers and protected areas

[37] Scottish Government. (2024). Rural Payments and Services

[38] Welsh Government. (2020). Sustainable Farming Scheme

[39] Department of Agriculture, Environment and Rural Affairs. Environmental Farming Scheme (EFS) general information and guidance

[40] Climate Change Committee. (2020). Sixth Carbon Budget

[41] agrifood4netzero. AFN Network +

[42] Petry, D., et al. (2023). Cultivating farmer prosperity: Investing in Regenerative Agriculture. World Business Council on Sustainable Development.

[43] Lemke, S., et al. (2024). Drivers and barriers to adoption of regenerative agriculture: cases studies on lessons learned from organic. International Journal of Agricultural Sustainability, Volume 22, Issue 1

[44] Regenerative Organic Alliance. Farm like the world depends on it.

[45] Textile Exchange. (2023). Regenerative Agriculture Outcome Framework

[46] British Pasture Leather

[47] Fibershed

[48] UAL: Centre for Sustainable Clothes. Life in Clothes

[49] FAIRR. (2023). Regenerative Agriculture: Why it should be on investors’ agenda

[50] DEMOS. (2023). Sowing Resilience: Unlocking the potential for regenerative farming

[51] Beacham, J., et al. (2023). Contextualising farmer perspectives on regenerative agriculture: A post-productivist future? Journal of Rural Studies, 102, 103100

[52] Soliman, A. (2024). How to climate-proof crops: scientists say the secret’s in the dirt. Nature,

[53] House of Commons Environment, Food and Rural Affairs Committee. (2023). Soil health. First Report of Session 2023–24

[54] Devilliers, E., et al. (2024). Estimation and comparison of the performance of low-input and conventional agricultural production systems. Q Open, Volume 4, Issue 1, qoad032

[55] Jyoti, S., et al. (2024). Rice breeding for low input agriculture. Front. Plant Sci., Sec. Plant Breeding, Volume 15

[56] AHDB. (2024). ‘Low-input’ variety development may need selection-system changes

[57] Karley, A. (2016). Exploiting Diversity for Sustainable Agriculture. The James Hutton Institute

[58] Defra. (2023). Corporate report. Farming and Countryside Programme annual report, 2022 to 2023

[59] Defra. (2024). Policy paper. Animal Health and Welfare Pathway

[60] Bartlett, H., et al. (2023). Advancing the quantitative characterization of farm animal welfare. Proceedings of the Royal Society B, Biological Sciences, Volume 290, Issue 1995

[61] Reardon, S. (2023). Antibiotic use in farming set to soar despite drug-resistance fears. Nature

[62] Wang, H. et al. (2023). Intensified livestock farming increases antibiotic resistance genotypes and phenotypes in animal feces. Communications Earth & Environment volume 4, Article number: 123

[63] Met Office. (2023). Food security under pressure from climate change

[64] Manning, L., et al. (2023). Threat or opportunity? An analysis of perceptions of cultured meat in the UK farming sector. Front. Sustain. Food Syst., Sec. Social Movements, Institutions and Governance, Volume 7

[65] Defra. (2023). Policy paper. Lowland Agricultural Peat Task Force Chair’s report: government response

[66] Greenham, T., et al. (2020). Farming Smarter The case for agroecological enterprise. Food, Farming & Countryside Commission.

[67] Giller, K., et al. (2021). Regenerative Agriculture: An agronomic perspective. Outlook on Agriculture, Volume 50, Issue 1

[68] Voisin, R., et al. (2023). What goes in and what comes out: a scoping review of regenerative agricultural practices. Agroecology and Sustainable Food Systems. Volume 48, Issue 1, pg 124-158

[69] Food and Farming Futures. (2022). Application of Science to Realise the Potential of the Agricultural Transition. Harper Adams

[70] Woodland Trust. Agroforestry benefits farming, nature and climate

[71] Burgess, P., et al. (2019). The Agroforestry Handbook: Agroforestry for the UK

Photo by: Fer Troulik, via Unsplash