Sustainable farming 'could increase profits by £1.6bn a year'

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Farmer checking crops in lush green agricultural field

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‘In an increasingly unstable world, Britain cannot build a secure economy on depleted land and fragile food systems,’ said Demos lead researcher Dan Goss

McCain Foods has called for urgent government action to support the transition to sustainable farming.

Titled ‘The Sustainable Farming Dividend’, the report from cross-party think tank Demos, supported by McCain, found sustainable methods could increase farm profits by £1.6bn a year by 2035 among its key findings.

It also found nature restoration through sustainable practices could unlock £56.3bn in natural capital by 2035, reduce total inputs by £905m annually, and reduce fertiliser imports by £449m each year.

Inputs from fuel to fertiliser have come sharply back into focus in recent weeks due their escalating costs, driven up by the US and Israel’s war with Iran.

“In an increasingly unstable world, Britain cannot build a secure economy on depleted land and fragile food systems,” said Demos lead researcher Dan Goss. “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.”

There is a significant public awareness gap on the issue but, when the links between farming, climate impacts and food prices clearly states, support for action rises sharply, the report found.

It revealed 61% of people backed greater government investment in sustainable farming, 45% said it should be prioritised over other spending areas, and 31% would view the government more favourably if it increased investment.

Goss added: “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.”

James Young, VP of agriculture at McCain GB&I, said the report’s findings reflected what his company was “seeing and hearing from our 250 British growers feeling the pressures of climate volatility and know the transition to a more sustainable system is essential”.

“What is clear is that farmers cannot be expected to make this transition alone,” Young continued. “We need all parts of the value chain, from policymakers to farmers to producers, working together to support it.”

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

The report has called on the government to improve farm profitability by using the Farmer Collaboration Fund and upcoming Land Use Framework to scale up farmer clusters and develop regional Agri-Growth Hubs.

It also called for the development of standardised baselines for carbon, soil, water, and biodiversity, as well as commissioning Skills England to review sustainable farming skills gaps and opportunities to embed an understanding of sustainable farming’s benefits.