A new report from cross-party think tank Demos, supported by McCain Foods, reveals that the UK’s food system is under unprecedented pressure and calls for urgent government action to support the transition to sustainable farming.
From rising input costs and uneven profitability to the persistently uncertain policy landscape itself, the challenges facing farmers are considerable and varied.
The report – The Sustainable Farming Dividend – shows that transitioning to sustainable farming practices that aim to support positive outcomes for land, nature and the environment, often referred to as regenerative farming, can strengthen the resilience of food production, stabilise food prices and generate billions in economic benefits across the £150bn UK agri-food sector.
Key findings from the report include:
- Protecting the economy: Nature restoration through sustainable practices could unlock £56.3bn in natural capital by 2035.
- Boosting farm profitability: Adoption of sustainable methods could increase farm profits by £1.6bn a year by 2035, helping address a system where nearly one in five farms currently operate at a loss.
- Reducing reliance on volatile imports: With 60% of nitrogen fertiliser imported, sustainable methods could reduce total inputs by £905m annually and reduce fertiliser imports by £449m each year.
Despite these benefits, the report finds that there is a significant public awareness gap on the issue. When the links between farming, climate impacts and food prices are made clear, support for action from the public rises sharply:
- 61% back greater government investment in sustainable farming.
- 45% say it should be prioritised over other spending areas.
- 31% would view the government more favourably if it increased investment.
Taken together, these findings highlight a growing public appetite for leadership, and the data reveals a significant opportunity – with the public behind the transition, the UK now has a real window to unlock coordinated national action.
This is why the report calls on the Government to build on their momentum to improve farming profitability by:
- Building strong partnerships: using the Farmer Collaboration Fund and upcoming Land Use Framework to scale up farmer clusters and develop regional Agri-Growth Hubs. This also includes partnering with local authorities and anchor institutions to convene farmers and investors, and embedding co-design models into the management of council-owned farmland.
- Supporting nature outcomes: developing standardised baselines for carbon, soil, water, and biodiversity.
- Plugging knowledge gaps: commissioning Skills England to review sustainable farming skills gaps and opportunities, and embedding an understanding of sustainable farming’s benefits.
Dan Goss, Lead Researcher at Demos, added: “In an increasingly unstable world, Britain cannot build a secure economy on depleted land and fragile food systems. 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. 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. By expanding its ambition to build partnerships across the farming sector, the government could deliver this powerful sustainable farming dividend.”
James Young, VP of Agriculture at McCain GB&I, said: “The Sustainable Farming Dividend report shows that sustainable practices strengthen the resiliency of our food system and protect farmers and their businesses. The findings reflect what we are seeing and hearing from our 250 British growers who are feeling the pressures of climate volatility and know the transition to a more sustainable system is essential. At McCain, we’re already investing in this transition in a number of ways including our commitment to implementing regenerative agriculture practices, but what is clear is that farmers cannot be expected to make this transition alone. We need all parts of the value chain, from policymakers to farmers to producers, working together to support it. Farmers are ready to lead this change, but they need long term policy certainty and the right incentives to invest with confidence.”
