Farms to receive cash injection from private sector to save the planet

Improving data access and giving clarity on high-integrity environmental markets could boost a sustainable agriculture sector

Unlocking private sources of finance to expedite the farming transition is crucial for food, environmental and economic security, as well as achieving the UK’s net zero objectives.

That’s according to a new report commissioned by Defra and led by the Green Finance Institute which identifies four investment enablers that could address these challenges and unlock private sector finance for farmers to promote food production and environmental improvement while diversifying their incomes.

The report reveals that both the finance and agrifood sectors are eager to invest in and support the farming transition following consultations with over 75 stakeholders across the value chain, including Tesco, Morrisons, the National Farmers’ Union, Lloyds Bank, and NatWest.

The Financing a Farming Transition report outlines four crucial enablers for a sustainable agricultural sector.

Firstly, the report emphasises the need for a common platform and language for environmental and spatial data access to assist farmers, banks, and the private sector in integrating natural capital improvements into their businesses and decision-making processes.

Secondly, the private sector and farming community require a clear vision from the government to know where to invest their time and resources.

Thirdly, greater clarity and formal guidance on high-integrity environmental markets are necessary to provide confidence in the sector.

Finally, the report stresses the need for support, including funding and a community of practice, to encourage landscape-scale environmental improvements and greater capacity for farmers to attract private finance.

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