New report reveals that nature-friendly farming budget is inadequate to meet climate and nature targets

New economic analysis, published today, demonstrates that the current agricultural budget is significantly less than what is required for the UK farm and land management sector to help tackle the nature and climate crisis.

  • New report reveals that UK Government must significantly increase nature-friendly farming budget to meet climate and nature targets.

  • RSPB, National Trust and The Wildlife Trusts call for long-term investment to future proof British farming and support nature recovery.

  • Benefits of nature-friendly farming include less pollution, less chemicals, natural pest control and more wildlife, including pollinating insects.

  • Kent Wildlife Trust says agricultural budgets need to reflect the urgent need to farm in a nature friendly way.

The independent analysis [1] – A Scale of Need – commissioned by RSPB, National Trust and The Wildlife Trusts, finds that increasing investment in nature-friendly farming to £5.9bn per annum across the UK is essential to meet legally binding nature and climate targets, and improve the resilience of the UK farming industry. The current annual agricultural budget is £3.5 billion – which remains unchanged since 2013 – and approximately 20-25% is currently spent on agri-environment schemes that benefit nature. [2]

Building on previous analyses [3] the updated report gives the most accurate assessment to date of the level of widespread investment required. The new figures include, for the first time, analysis of different farm types across the UK and the variable costs of nature restoration across different sectors and sizes of farms.

RSPB, National Trust and The Wildlife Trusts are now calling on the new UK Government to increase the overall agricultural budget, and for the UK and devolved governments to then increase investment in nature-friendly farming. This will also pave the way for private finance to further bolster the budget.

The charities are also insisting that environmental schemes supporting nature and climate friendly farming must be delivered at sufficient scale to meet the challenges ahead.

Furthermore, the charities say that that for every pound of public money spent on nature restoration, the return will be at least three times that investment. [4]

Kent Wildlife Trust’s Nature Recover Manager, Rory Harding said: “Kent's unique identity as the Garden of England is under threat from a changing climate and the huge pressure this puts on our agricultural sector and wider countryside. A farming future, that works hand in glove with nature, is vital for our local food security, economy and to protect our rich farming cultural heritage.

This report highlights the huge benefit we will all gain from a properly supported agricultural sector, which can drive forward improved water quality, carbon sequestration services, functional ecosystems supporting abundant wildlife and the production of nutritious food.

“Pioneering farmers here in Kent today have the tools and knowledge for this farming future, but agricultural budgets need to reflect the urgent need to get more farms on the same track.”

Beccy Speight, chief executive of RSPB, Craig Bennett of The Wildlife Trusts and Hilary McGrady, Director-General of the National Trust said: “Climate change and nature loss are the two biggest threats to UK food security and we are already seeing their impacts on food production, including the impact of the incredibly wet year to date.  We are urging the new UK Government and devolved governments to urgently rise to this challenge with more ambitious funding models for nature-friendly farming. Farmers must be rewarded for helping nature to recover and tackling climate change, as well as producing food.  These issues are deeply interlinked.

“Investing in nature restoration is a necessary, long-term strategy that will help to future proof UK farming, while also mitigating against the wider impacts of climate change. Restoring habitats can help protect communities from flooding. Protecting soils on farms helps to reduce run-off and clean up rivers. Landscapes full of wildlife lift our spirits and promote wellbeing, while also underpinning food production. The huge return on increasing investment in nature-friendly farming must be realised, and fast.”

With 70% of the UK farmed, farmers have a crucial role in nature recovery. From providing flower rich field margins, to planting native broadleaf woodlands and reducing chemical use, there is widespread ambition in the industry to provide “nature security” alongside “food security”, not least as nature underpins our ability to produce food in the UK and globally.

Across the UK, farmers are already experiencing the worsening impacts of the nature and climate crisis, with drought and flooding significantly impacting UK food production.

Martin Lines, CEO of the Nature Friendly Farming Network (NFFN), said: "This report should be a wake-up call for decision-makers across the UK and drive a step-change in investment for farming and land management.

"Tackling the climate and biodiversity crisis is not just important in its own right; it is crucial for farm business viability and UK food security. We have already seen the impact a wet winter and widespread flooding has had this year, and we know we can expect much more weather-related volatility in the future. Our ability to grow plentiful food long-term depends on improved soil health and water quality, increased resilience to flooding and drought and nature thriving on farms. Paying for this is not a negative cost to society, but a vital investment to secure our long-term food production capacity.

"As the new Government starts work in Westminster, we need to see increased ambition for the UK's farming budget and rapid scheme progress in England so the farming community can swiftly transition to nature-friendly farming at the scale required.”

While increased public funding is critical, more also needs to be done to unlock private investment in environmentally friendly farming.

Other compelling evidence demonstrating a similar need for further investment includes the UK Government's own 2021 Food Security Report [5] which identified climate change and biodiversity loss as the greatest threats to UK food security, and so any delay to providing the level of investment needed will result in higher costs in the future as problems like these across the agricultural sector continue to grow. Instead, the kinds of nature-based solutions that this investment could support can not only help provide resilience against these climate impacts, but also provide benefits to farmers such as pollination and natural pest control -– reducing the need for expensive chemicals.

The findings of this latest Scale of Need report also follow on from the evidence presented earlier this year by the Green Finance Institute that ongoing nature degradation could cause a 12% loss to UK GDP [6].

As one of the two biggest drivers of nature loss in the UK, the intensive way in which we manage our land [7] is already being left behind by some farmers and land managers across the UK in favour of more nature-friendly and sustainable approaches. Incentivising others to take this approach will be crucial if we are to meet our legally binding nature and climate targets and secure our long term food security.

 

Editor's notes

Enquiries Sally Smith 07376 445567

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About Kent Wildlife Trust 

Kent Wildlife Trust is the county’s leading conservation charity with more than 31,000 members and over 1000 registered volunteers. We manage and protect over 9000 acres of land across more than 90 different sites and nature reserves, alongside 3 visitor centres.  

We work closely with local communities, landowners, and partners to protect and improve habitats in the countryside, coast, and town for the benefit of the wildlife and people of Kent.   

The charity also campaigns against inappropriate and damaging development; and educates and inspires young people to help secure a more sustainable future and create a Wilder Kent.   

Visit our website here: kentwildlifetrust.org.uk 

1: The RSPB, The Wildlife Trusts and the National Trust commissioned independent economist Matt Rayment to produce For farming, nature and climate: Investing in the UK’s Natural Infrastructure to Achieve Net Zero & Nature's Recovery on Land (the latest Scale of Need analysis) which is available to download here: Scale of Need Report – July 2024

2: The current agricultural budget is £3.5bn, of which approximately 20-25% (less than £1bn) is currently spent on agri-environment schemes. Most of this spending is in England, where the scheme is further developed compared to Wales, Scotland and Northern Ireland. The analysis shows what nature needs is £5.9bn invested in nature friendly farming. However, before government seeks ‘new money’, we need to ensure the current budget is better spent, including on more targeted action for nature, and that as the schemes develop in the other countries, they also focus on investment in nature friendly farming – while also exploring the role of regulation, and leveraging complementary private sector funding in the long-term.

3: The updated report builds on previous analyses, including here. The updated report gives the most accurate assessment to date of the level of widespread investment required. For the first time, this analysis considers how farm type, size, and performance impacts on the cost of delivering environmental goods and services and consequently how this affects the overall scale of investment required to meet a range of environmental priorities.

4: The 2019 Scale of Need report found that every pound of public money spent on nature restoration, the return will be at least three times that investment – Paying for public goods final report.pdf (wildlifetrusts.org)

5: The UK Government’s own Food Security report in 2021 found that climate change and environmental pressures like biodiversity loss are the greatest threat to UK food production in the medium to long term

6: Damage to the natural environment is slowing the UK economy and could lead to an estimated 12% reduction to GDP in the years ahead – larger than the hit to GDP from the global financial crisis or Covid-19. Source: Green Finance Institute

7: The State of Nature is the most comprehensive report on the UK’s current biodiversity. The report shows that the intensive way in which we manage our land for farming and the continuing effects of climate change, are the two biggest drivers of nature loss.

8: While increased public funding is critical, more needs to be done to unlock private investment in environmentally friendly farming. Much work has already been done on how public and private finance can work together, but government now needs to accelerate the creation of viable markets that farmers and land managers could access for developing sustainable methods that restore and protect the natural environment. Fundamental to this is having solid protocols in place and establishing the much-needed governance framework. This needs to build on progress with the ‘Natural Markets Framework’ and initiatives like the ‘Natural Environment Investment Readiness Fund.

 

Supporting quotes:

Jenny Burrett, Sustainability and ESG Finance Director at Lloyds Bank: “As the biggest financial services provider in the UK, we recognise that nature decline and continued degradation is an inherent risk to our clients, customers and to the economy, and to our own business too.

We need to value, stop degrading, and invest in nature.  Nature based solutions provide multiple additional benefits such as climate resilience, flood prevention and more nutritious food.

With 70% of the UK land in agriculture, the way we farm is critical to reversing the nature decline.  Some businesses, like Lloyds, are starting to take action and have invested in different projects to enhance nature in the UK, such as ‘Projects for Nature’: the government-backed nature funding platform. As the biggest lender to agriculture in the UK, we have also invested in our partnership with the Soil Association Exchange, to provide our farming clients with some of that needed support. 

We need to make investing in nature easier and mainstream.  We need a clear roadmap for farmers, finance and business on how to approach nature and climate in a combined and holistic way, reform of the Carbon and Nature Markets with a robust code of conduct, and the right incentives to direct finance towards climate resilient, net zero and nature-positive outcomes.  This will further enable the urgent action needed by the public and private sector to invest more in widespread nature protection and restoration in the UK.”

 

About the RSPB

The RSPB is the UK’s largest nature conservation charity, protecting habitats, saving species, and helping to end the nature and climate emergency. For over a century we’ve acted for nature through practical conservation and powerful partnerships, campaigning and influence, and inspiring and empowering millions of people, including almost 1.2 million members. Our network of over 200 nature reserves sits at the heart of our world-leading science and conservation delivery. Nature is in crisis, but together we can save it.  For more information about the RSPB please visit https://www.rspb.org.uk/.  

The Royal Society for the Protection of Birds (RSPB) is a registered charity.  
In England and Wales, no: 207076.  
In Scotland, no: SC037654.

 

About the National Trust

The National Trust is a conservation charity founded in 1895 by three people who saw the importance of our nation’s heritage and open spaces and wanted to preserve them for everyone to enjoy.  More than 120 years later, these values are still at the heart of everything the charity does.

Entirely independent of Government, the National Trust looks after more than 250,000 hectares of countryside, 778 miles of coastline and hundreds of special places across England, Wales and Northern Ireland.

Almost 27 million people visit every year, and together with nearly 6 million members, and over 65,000 volunteers, they help to support the charity in its work to care for special places for ever, for everyone. 

 

About The Wildlife Trusts

The Wildlife Trusts are making the world wilder and helping to ensure that nature is part of everyone’s lives. We are a grassroots movement of 46 charities with more than 900,000 members and 38,000 volunteers. No matter where you are in Britain, there is a Wildlife Trust inspiring people and saving, protecting and standing up for the natural world. With the support of our members, we care for and restore special places for nature on land and run marine conservation projects and collect vital data on the state of our seas. Every Wildlife Trust works within its local community to inspire people to create a wilder future – from advising thousands of landowners on how to manage their land to benefit wildlife, to connecting hundreds of thousands of school children with nature every year. www.wildlifetrusts.org

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