Regenerative Agriculture - Building resilience Core principles Increasing profitability - Savills
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UK Rural - February 2021
S P OT L I G H T
Regenerative
Savills Research
Agriculture
Building resilience Core principles Increasing profitability
Growing revolution
Industrial Sustainable Regenerative Regenerative agriculture is about
repairing and improving soil health,
Soil health
Soil health
Soil health
rather than using or sustaining
current management methods
Time farming Time farming Time farming
Farming Photography
What is regenerative agriculture?
The term may have only recently surfaced as a popular concept, but it is gaining
traction as the key solution to feeding growing populations and tackling climate change
Regenerative practices have been a natural systems to restore and enhance the fertilisers, mono-cropping and a concern
groundswell movement in agriculture. They biodiversity, soil fertility and ecosystem service about the need to feed the rapidly growing
have recently been increasing in popularity provision (such as carbon sequestration and global population have all led to intensively
not only with farmers and land managers, but water retention) of farmed land. farmed soils becoming depleted of their
also with scientists, policy makers and the Regenerative models focus on increasing the natural biology and fertility. The United
public. High-profile media attention and the resilience of ecological systems, rather than Nation’s 2020 report on the state of soil
ongoing debate around the role of ruminants extracting from these systems solely to achieve biodiversity concluded that the future of
on climate impact has championed the cause. market returns. Regenerative agriculture global soils looks bleak if current detrimental
This Spotlight on Regenerative Agriculture sets not only focuses on the resilience of natural practices continue.
out the basics for those interested in exploring capital, but social capital too, with the goal Regenerative agriculture aims to reverse the
this movement, as well as pointing to some of supporting rural communities and wider degradation of soils, focusing on rebuilding soil
developments and new areas of interest. supply chains. organic matter (SOM).
Minimising soil disturbance and building
WHAT’S IN A NAME? BUILDING RESILIENCE up soil organic matter fixes carbon within the
Defining regenerative agriculture is not simple. Central to the regenerative agriculture model soil. This occurs through the transformation
There is no one universally-agreed definition. is the concept of protecting and restoring of plant and animal detritus, as well as
In its broadest terms, regenerative agriculture soils. Over the last century, mechanisation, certain bacteria that can fix carbon by using
refers to an approach that seeks to work with the increasing availability of pesticides and atmospheric CO2 as their energy source.
savills.com/research 2
Growing revolution
Under regenerative models, as soils increase in fertility their water
holding capacity also increases, thereby increasing the natural,
biological productivity of the land and encouraging species growth
Under regenerative models, as soils a long-term benefit to soil structure and FIVE CORE
increase in fertility their water holding biology. In conclusion, the recommendation PRINCIPLES OF
capacity also increases, thereby building the was that cover cropping should be seen as part REGENERATIVE
natural, biological productivity of the land of integrated soil management, rather than the
AGRICULTURE
and encouraging species growth. only applicable technique.
On the other hand, if land is intensively
cultivated, it releases carbon into the IS THIS NEW?
atmosphere and water run-off is more The term is only just becoming a mainstream
frequent. Regenerative agriculture is, concept, but producing food alongside
therefore, being proposed as a key solution nature’s rhythms has always existed. Artificial
Minimise soil
to feeding growing populations, while also inputs allowed the link to be weakened and disturbance
tackling climate change and increasing nature to be managed in search of greater
environmental risk. efficiencies. Ecologists and farmers such
as Allan Savory and Richard Perkins have
THE YIELD QUESTION popularised regenerative agriculture in recent
The pivotal question in the debate about years, which has prompted public attention
regenerative agriculture is whether it can through movements such as Regenuary and Maximise species
diversity
produce enough food. The Food, Farming the celebrated Netflix documentary Kiss The
and Countryside Commission 2021 report Ground. This is beginning to have an effect
modelled the yield potential of a regenerative on supply chains, led by corporates such as
system and found that within this model Timberland and General Mills, which have
the UK yield (of cereal crops) in tonnes per made commitments to source materials from
hectare was 27% less than within current regenerative systems, supporting farmers to Keep the soil
conventional systems. adopt new systems, upskill and scale up covered and build its
More modelling and information is needed their enterprises. organic matter
to reach concrete conclusions. Sustaining
high yields can be environmentally damaging REGENERATIVE THINKING
however, so a key consideration is the The concept of regenerative is not unique
improved long-term environmental resilience to agriculture. Regenerative capitalism, a
of regenerative models against the increasing concept coined by John Elkington, is gaining Maintain living
environmental precarity of high yielding, traction within businesses. It is intended to roots all year round
intensive systems. deliver “exponential progress in the form of
For many businesses, the financial impact economic, social, and environmental wealth
of this drop in yield may prove a prohibitive creation”. Cynics may argue that regenerative
barrier to this method of farming. However, thinking is just the next iteration in the
the beauty of regenerative practices is they box of sustainability jargon, however it is
Integrate livestock
are not a binary choice. Unlike purely organic indicative of a realisation that society has
schemes, farmers can adopt practices to suit reached an environmental tipping point, and
their soil types or individual enterprises. if environmental risk is not addressed in a
The diversity implicit within regenerative way that seeks to solve root causes, the future
models enables production layering, for could be bleak. WHERE DOES
example through grazing animals on cover SUSTAINABILITY
crops. And for some, the reduction in the use FIT IN?
of artificial inputs means that these systems Industrial vs Regenerative approach
can be more profitable. There is often confusion
over the difference
NO ONE-SIZE-FITS-ALL between regenerative
Not all principles of regenerative agriculture systems and sustainability.
will be applicable or suitable to every land All regenerative models
are sustainable however,
type. For example, recent field-scale research INDUSTRIALISED REGENERATIVE not all sustainable
from Agrii’s Stow Longa Technology Centre
action is regenerative.
demonstrated that although cover cropping Disconnected Interconnected A regenerative system
is beneficial for managing lighter erosion- fixes the root cause of the
prone soils, for those on heavier land it is Extractive Value added
problem and then renews
less successful. Controls nature Works with nature its growth potential,
Within the study, it was found that over whereas sustainability
six years, traditional cultivation techniques Higher Lower focuses on not letting the
outperformed all other cover cropping chemical input chemical inputs problem get any greater.
treatments in terms of margin over costs.
Monoculture Diversity
However, the study did demonstrate that
SOM levels increased significantly more Carbon emissions Carbon fixing
under the cover crop model, indicating
3
Regenerative systems
Collaboration is essential and should involve a team with
a broader range of skills and strong communication to
ensure that it delivers for the farmer
Regenerative techniques: a glossary
Regenerative, agro-ecology, permaculture, holistic land management, the semantics of land management
are ever changing. Below is a guide to the techniques a regenerative agricultural system might look to adopt:
TERM DEFINITION POSITIVES NEGATIVES
No-till/ Method of planting crops or pasture Reduces soil erosion and SOM losses. Challenging on heavy soils and within
minimum till that involves very limited soil Lower cost disturbance rotations that include root crops
Cover cropping Growing plant species secondary to Reduces soil erosion, can have Additional seed and establishment
the primary crops or pasture to nitrogen fixing capability, increases costs and dependency on mechanical
ensure soil is covered year-round SOM and, in turn, water retention or chemical destruction prior to next
crop
Integrated pest Focuses on long-term prevention of Reduces use of chemical pesticides, Potential yield reductions in
management pests or their damage via combinations promotes thriving soil microbe early years, higher reliance/
of biological control, habitat populations and can lead to longer less flexibility on crop rotations
manipulation, modification of cultural term cost savings by addressing the
practices and use of resistant varieties root of the problem
Compost/ Using organic or decomposed waste Improved nutrient cycling and Can be inaccessible and/or costly to
organic fertilisers as a sustainable source of fertiliser reduced reliance on greenhouse gas apply if brought into the farm system
intensive inputs
Livestock Intermittent grazing of livestock at Enables greater nutrient cycling, Infrastructure costs associated with
integration/ opportune times in the production promotes plant growth and brings grazing, time costs associated with
mob grazing cycle back natural balance to the ecosystem. frequent movements
Reduces feed costs, increases animal
health and welfare
Agroforestry/ Growing trees together with a crop Carbon sequestration benefits bio- Reduced farming area in the arable
Silvopasture or grazing pasture diversity. Increases water and nutrient system. Need for smaller, specialist
holding capacity of soil. Increases harvesting machinery. May cause
crop shade and reduces burning moisture stress in some areas
WHERE DO WE important ingredients for than traditional agronomy a key role in steering the
success. The Agriculture and and includes soil health, business strategy, managing
LEARN, HOW DO Horticulture Development cultivation systems and the the transition of expectations
WE LEARN, WHAT Board has increased its focus integration of livestock, in with lenders and investors
DOES GOOD on knowledge exchange, addition to pesticides and and integrating livestock and
with many of its Monitor crop nutrition. Consequently, arable enterprises within a
ADVICE LOOK LIKE? Farm demonstration sites advice cannot be siloed profitable system.
exploring soil health issues, into traditional roles such It is now more important
A desire to improve soil providing a forum for farmers as agronomist and business than ever that advice looks
health is a common trigger to discuss the practicalities consultant. beyond gross margins and
that leads to the adoption of integrating cover and Collaboration is essential considers the impact of
of regenerative agricultural catch crops and benefit from and should involve a team the system on fixed costs
practices on a farm. Soil type collective experience. with a broader range of skills and resource requirements
also determines the suitability Events dedicated to and strong communication within the context of a longer
of cover crop mixes and key regenerative agriculture, such to ensure that it delivers term vision.
machinery such as no-till as the Groundswell show and for the farmer. Advisory
drills, meaning that while conference, have developed services have evolved in
a successful regenerative and play an important role response, with agronomy
agriculture system has in both demonstrating the firms developing soil health
common principles, the technology and connecting reporting services, while
2.2m
best approach for a farm is farmers with each other and expanded input advisory
scenario specific. with advisors. services and product
Visiting demonstration sites, The advice farmers and offerings now include catch
tapping into the experience land managers require to and cover crop mixes, tonnes of topsoil
of others via YouTube videos
and Twitter and connecting
adopt a regenerative system,
while minimising their
biostimulant seed treatments
and foliar sprays.
is eroded annually
with mentors are often financial risk, is much broader Business consultants play in the UK
savills.com/research 4
Regenerative systems
£73,460
The average cost of a no-till drill,
4-6%
Target soil organic matter for soils within cropping
which can save time and money systems receiving medium levels of rainfall (AHDB 2019)
Soil quality in the tenanted
sector – filling in the gaps?
It is in a landowner’s interest to incentivise improvements in soil organic matter
Improving soil quality by rebuilding soil not SOM. AHA tenancies don’t have a This is a more generous position than under
organic matter (SOM) levels directly benefits baseline against which to assess soil quality the AHA as it includes enhanced capital value,
farmers, improving soils nutrient holding improvements and compensation is based on although the Act does allow a compensation
capacity, infiltration rate and working the value to the incoming tenant; there is no limit to be set.
windows. However, as a natural process, straightforward way to value the productivity Logically, improving soil quality should also
positive management actions are not benefits of soil organic matter. increase the value of land. However, within
immediately followed by results. This lag When new tenancies are being created, the a given land grade or soil type, the farmland
could be particularly significant for decision- Agricultural Tenancies Act 1995 offers more market does not currently exhibit meaningful
making on the 30% of the UK’s agricultural flexibility for soil quality objectives and a price differentiation based on other soil
land that is tenanted. If a tenant adopts management regime to be built within a FBT quality criteria. This is because scarcity is a
regenerative agricultural practices, does agreement. This could include comprehensive major driver in the market and outweighs
tenancy law allow them to be rewarded for soil quality test results undertaken at tenancy factors such as SOM levels, which can be
improving the quality of the land? commencement, a monitoring regime and remedied in time.
Tenants of Agricultural Holdings Act (AHA) reassessment protocol for the end of the Due to agricultural subsidy reform, we
and Farm Business Tenancies (FBT) can claim agreement. The default position is that for forecast that more farmland will be marketed
compensation for improvements from their routine improvements made in the normal for sale in the UK. If supply exceeds demand
landlords at the end of their tenancy term. The course of farming the holding, the tenant this could lead to greater differentiation
process for AHA end of tenancy compensation is entitled to compensation equal to the in value based on properties such as SOM
claims traditionally focused on the residual improvement in the value of the holding. levels. Taking a long-term view, it is therefore
chemical nutrient value of bought-in inputs, in a landowner’s interest to encourage the
but was widened in 2015 to incentivise tenants regeneration of the land they own. For
to farm sustainably. This allowed tenants
to claim for improvements from the use of 30% existing tenancies, assessing soil quality and
incentivising improvements via a private
digestate and compost. However, the benefits of the UK’s scheme could be one way for landlords to
from cover and catch crops still appear to align the interests of both parties under clear
fall outside the compensation provisions, agricultural objectives where the tenancy agreement
suggesting it remains focused on nutrients land is tenanted does not.
The benefits from
cover and catch
crops still appear
to fall outside the
compensation
provisions
5
Case studies
96,293
mentions of #regenerativeagriculture
£23/ha
cost saving for a tonne of no-till wheat
on social media in the past year compared to the average UK farm
A regenerative vision
at Knepp Castle Estate
Molly Biddell interviewed Russ Carrington, who is leading Knepp Castle Estate’s new
vision of a regenerative agricultural enterprise to sit alongside its rewilding venture
Knepp Castle Estate in Sussex may be best symbiotic enterprises is an important part
known for its rewilding success story, but of the estate’s overall strategy, and the social
it is also pioneering in adopting another impact will also be benchmarked.
vision. Around 150 hectares of the estate Russ is transparent in explaining that,
are in the process of being converted into a with declining Basic Payment Scheme (BPS)
new regenerative agriculture enterprise. The payments, the model relies on being able to
venture will largely be grassland-based and, tap into Countryside Stewardship and future
over time, it will integrate complementary ELM income or alternative private funding
livestock enterprises; starting with 100% for ecosystem services, despite uncertainty
pasture-fed beef cattle, followed by poultry around exactly how that might materialise.
and, as momentum builds, a micro dairy and Russ believes regenerative agriculture
pig enterprise. In preparation, fences, water will be pivotal in the future of our food
supplies and tracks are being installed. production. He explains that this is because
The project has three core aims. The first the sum of regenerative agriculture is greater
is to explore nature recovery on a landscape- The third aim is to supply nutritious, low- than the sum of its parts and the approach
scale by coordinating management practices carbon, sustainable food through a planned can not only heal earlier ecological damage,
between adjoining land parcels, working with Knepp farm shop and café. The farm shop but also increase the land’s overall fertility
neighbouring farmers and linking up patchworks will be a gateway to the estate and will sell and productivity.
of rewilded and agricultural land within meat from both the free-roaming animals So why isn’t everyone already on the
the River Adur catchment. This landscape within the rewilding project and produce regenerative journey? Russ believes that
approach will benefit from collaboration from the regenerative farm. The meat sold the main hurdles preventing farmers from
through the local farmer facilitation group from the regenerative system will be Organic adopting more regenerative practices are
and is aiming to be aligned with the proposed and Pasture For Life Certified – Russ stresses mind-set, a lack of certainty around future
third tier of the future Environmental Land the importance of communicating product agricultural policy and the knowledge and
Management (ELM) scheme. provenance to society. There are also plans skills gap that needs to be filled to promote
The second aim is to investigate the ability to create a market garden next to the farm regenerative models.
of regenerative agriculture techniques to build shop to supply fruit and vegetables. Increasing
natural capital by measuring changes taking public access and engagement through these Russ Carrington is on Twitter @CiderRuss
place on the land over time. Key ecological
indicators will be monitored at eight different
locations across the new farm. These indicators
are soil health (including soil carbon), flora
and fauna (populations and species diversity)
and water quality. Alongside this, a detailed
habitat map will be created and a carbon
account kept to record carbon sequestration,
emissions and storage. The monitoring
process, which will involve detailed on-the-
ground assessments and testing, will be
supported by additional scientific analysis.
Key ecological
indicators will be
monitored at eight
different locations
across the new farm
savills.com/research 6
Case studies
Adopting a regenerative model takes time, it’s not an
overnight system change, but it’s incredibly rewarding,
and it’s the future of resilient farming
INCREASING PROFITABILITY
AT GOWBARROW HALL FARM
Gowbarrow Hall Farm in the Lake District
is run by the Beaumont family and has
been farmed regeneratively for the past
two years. Previously, it was a traditional
upland sheep farm, but the family realised
they were making very little profit from
the conventional production system.
They sold the sheep and started building
a herd of shorthorn cattle, rearing them
on a 100% pasture-fed grazing system and
keeping them outdoors all year round.
There are now 50 head of cattle and
the herd is expanding. Sam Beaumont
explained that this new approach works
really well with the land that they have,
as they are able to mob graze the lower
meadows during the summer and then
send the cows up on to the top fells to
roam extensively during the winter. This is
inspired by the concept of Wilderculture,
and creates a hybrid regenerative-rewilded
model, which works within the natural
perimeters of the landscape, making the
most of its natural variety.
Prioritising soil health is the The greatest success of the farm’s
transition has been the substantial
key to the future of farming reduction in input costs. The only external
input for feed over the past year has been
The result: more resilient crops that need fewer inputs three bales of hay. They have removed
overheads such as indoor housing and
James Hopkinson is the founder of Cloud obvious way to approach farming. He veterinary costs – the cows’ overall health
Farming, a farm management business that keeps soil under stubble and grows cover has improved since being outdoors all
provides low cost and adaptable alternatives crops, grazing them where suitable. He has year, with less cases of problems such as
lice and calf pneumonia. The farm sells
to conventional farming. Cloud Farming conducted grazing trials on his winter cereals,
the beef at a premium price from the
work with both James’ family farm Lindertis which he hopes will allow him to cut back on
freezer direct to customers, with UK-wide
and Walker-Munro Farms. They work in chemical spend, while increasing soil fertility. delivery proving a great success during the
partnership with Arable Ventures, who provide Manure is put back on the land via a straw for Covid-19 pandemic.
the technology, equipment and labour to the muck exchange. Sam Beaumont explains that adopting
farming operations in Angus, Scotland. By focusing on plant health through an this new system hasn’t increased
With over 600 hectares of arable land, integrated pest management system, James productivity but has definitely increased
Walker-Munro Farms has been moving hopes to continue to reduce the amount of their profitability. He recommends starting
towards regenerative agriculture for the past nitrogen fertilisers, herbicides, fungicides and small and scaling up, saying “no one-size-
four years. The soils on the farm range from fits-all” and that it is important to work out
insecticides he needs to apply, understanding
what will suit you and your land best.
light sandy loams to heavy silt and clay loams. that soil health is paramount to a less reliant,
Previously, the farming operations centred more resilient crop. The farm is using gamma Gowbarrow Hall Farm is on
around conventional ploughing and power radiation mapping to better monitor and Twitter @gowbarrow
harrowing. But in 2017, the farm needed to understand changes in soil health. Over
cut its input costs in order to remain viable, the past four years, James has seen huge
and James became interested in the benefits improvements in the soil structure and the
that direct drilling and other regenerative switch to no-till and scratch tillage has not
methods could offer to the farm business. impacted his crop yields.
The farm moved way from full inversion James loves the fact that there is no
tillage to non-inversion and shallow scratch handbook for regenerative agriculture – for
tillage, cutting its fuel and labour costs. him it requires a change in mind set and
Moving to a regenerative model required some drive. Learning from other farmers and
compromises – one of the biggest being not farm visits have been important for him in
growing potatoes as deep cultivations do not his regenerative agriculture education. He The farm sells the
fit with James’ no-till vision. The farm now explains adopting a regenerative model takes beef at a premium price
grows winter wheat, spring barley, winter time, but it’s incredibly rewarding, and he from the freezer direct
barley, oats, peas, linseed, beans and grass believes it’s the future of resilient farming.
in a wide rotation. to customers, with
For James, prioritising the soil is the James Hopkinson is on Twitter @arableventures UK-wide delivery
7
Making the case for investment
Regenerative agriculture centres around the
concept of building system resilience in the
face of increasing environmental risk
Managing adoption risks
A slower transition with regenerative agricultural practices adopted incrementally
allows farmers greater flexibility while they learn what best suits their farm
Regenerative agriculture involves lower cost to double the price of an equivalent width be addressed through recruitment, however
practices such as no-till drilling and introduces cultivator drill and some no-till farmers argue there are other options. B&B contract pig and
new costs such as cover crops. In the early that both a disc drill and a tine drill are needed calf rearing, overwintering sheep on cover
years of adoption, as farmers are learning what to have the most suitable machine available for crops and bringing third party graziers into
suits their farm and before soil health starts any given season. One way to manage adoption the rotation, using grazing licences or joint
to improve, there is a risk that a farm’s overall risk could be to initially rent or share a ventures, could all be considered. Many arable
performance could be lower if yields are machine that can work with both cultivated farms historically were mixed and may have
affected. A slower transition with regenerative land and no-till drilling, allowing a farmer livestock buildings that can be returned to
agricultural practices adopted incrementally flexibility according to what the soil will allow. use. Alternatively, using bought-in manures,
may be less risky, but would also delay the For pure arable farms, integrating livestock composts and digestates can offer a way to
rate at which environmental benefits are may be complex if the business does not unlock some of the benefits of having livestock
realised. There are some parallels between this have recent experience or infrastructure for in the rotation while a livestock enterprise
transition and the two-year organic conversion managing a livestock enterprise. This could builds up.
process that is supported via Countryside
Stewardship options. However, the lack of an
official certification means that the adoption Environmental stewardship options that could
of regenerative agriculture is unlikely to be
support regenerative agriculture in England
supported in this way.
There may, however, be opportunities to
use mainstream Countryside Stewardship STEWARDSHIP £/HA PER DURATION MANAGEMENT COUNTRY
options in England to help kickstart the OPTION YEAR
process of soil recovery, providing both
financial support for the land to be under a Brassica fodder 100 Effectively one Winter grazing. England
fodder crop, sown fallow or legume-rich sward crop (AB13) growing season No herbicides
if followed by or insecticides
for longer than would ordinarily be possible in
a spring crop
an arable rotation.
One of the principles of regenerative Two-year sown 522 Two years then Cutting England
agriculture is minimising soil disturbance, and legume fallow rotate
the adoption of no-till drilling is often the end (AB15)
goal. But the journey to that goal may involve
Legume and 309 Five years Grazing or England
cultivations getting progressively shallower as
herb-rich cutting. Spot
soil health improves, meaning that the right
swards (GS4) weed treatment.
drill at the start of the journey may not be the No inorganic
most suitable drill at the end of the journey. nitrogen
Top specification no-till drills can cost up
savills.com/research 8Making the case for investment
10%
Of the UK’s emissions
95
Pasture Fed Livestock
474,000
Number of hectares of organic
are from agriculture Association accredited farms certified land in the UK
Demonstrating the impact – the role of certification
Measuring and verifying outcomes is essential to access higher value markets
As regenerative agriculture relates to an to promote the health, environmental and through EOV are entered into a “Verified
overall approach rather than a strictly defined welfare benefits of pasture-based systems. It Regenerative Supplier Roster”, from which
technique, certifying regenerative products does not encompass all aspects of regenerative participating buyers and consumers can access
and practices is not simple. It is important to agriculture, but certifies a sellable product of these products or services.
be able to validate and accredit regenerative the system. Whether to focus on verifying outcomes or
systems in order for producers to demonstrate n Regenerative Organic Certification was processes is an ongoing debate and there is a
their impact and communicate to consumers established in the US in 2017 and incorporates fear that, with the arrival of many new schemes,
the additional value. Measuring and verifying other existing certifications to provide the concept of regenerative agriculture itself
outcomes also enables investors to understand assurance for products that are organic and becomes diluted. However, finding a way to
what their return might be. Certification focus on the principles of soil health, animal quantify and prove the impact of regenerative
enables farmers marketing their own products welfare and social fairness. systems remains essential. The recent arrival
to access higher value markets, increasing n Certified Regenerative from A Greener World of regenerative agriculture investment funds
supply chain transparency and consumer trust. is another certification scheme from the US in the UK, and the demands for accountability
There is no industry-agreed method for that offers producers the ability to meet their from institutional owners, banks and retailers
certifying regenerative products, but there are own regenerative goals through an audited to quantify and reduce their environmental risk
initiatives and process-specific accreditation regenerative plan, without having to be exposure, should signal a move towards more
schemes already in existence. Some schemes certified organic. consistent standards. Elements of carbon and
are international, others are national, but n The Savory Institute has developed an water risk are likely to feature in all of them,
could be scaled up to become globally relevant Ecological Outcome Verification (EOV) system, based around global regulatory alignment on
in the future. which is a practical soil and landscape climate risk reporting. All farmers can make
n Pasture for Life Accreditation is based upon assessment that tracks ecosystem service a start on the route to a regenerative future
standards that certify 100% pasture-fed outcomes in regenerative grassland-based by baselining these elements – Savills Whole
livestock and dairy animals. It has been systems. Farms demonstrating positively Estate Reporting is one method by which this
developed by British farmers, who want trending outcomes in land regeneration can be achieved.
POLICY SUPPORT Alongside future agri- NEXT STEPS?
environmental policy is the
broader aim of reaching net Regenerative agriculture centres around
The agricultural sector
zero carbon emissions by the concept of building system resilience in
is facing seismic policy
2050, which the UK is legally the face of increasing environmental risk.
shifts with the phasing out
bound to achieve. There is If businesses, policy-makers and the
of BPS payments and a
no doubt that there will be public agree that to address this increasing
transition to new support
increasing regulation and
schemes in England, Wales, risk a whole systems shift is needed
incentives for emissions
Scotland and Northern for food production, then regenerative
reductions in the near future.
Ireland. England is focusing agriculture is part of that solution. The
With agriculture, forestry
future agricultural funding upcoming National Food Strategy is
and land use responsible
on ELM, which includes expected to recommend policy that
for 10% of emissions in the
a sustainable farming includes this.
UK, the rural sector will
incentive; similarly, Wales Challenging conventional methods
face pressure to reduce
is promoting a sustainable to offset their residual of farming should always be the aim of
this from investors, lenders
land management policy. emissions. The ability to those optimising their farming assets.
and supply chains. At the
Full details have not yet monetise carbon drawdown Looking to the future, there are significant
same time, the sector is
been published, but both is already a reality for opportunities arising around the
in a unique position to
are likely to support a sequester carbon through woodland creation through possibilities of fusing a regenerative mind-
regenerative approach, land use management. certification schemes such set with agritech advances. This would offer
such as cover cropping, Clearly, regenerative as the Woodland Carbon a hybrid future of effective and efficient
promoting biodiversity and agriculture, which increases Code. However, monitoring technology working alongside natural
nutrient management. carbon drawdown, has a part and certifying it through soil biology. There are many ways in which
The Environment Bill to play. Whether through organic matter increases this could be of benefit, for example in
will introduce the Polluter woodland creation, or is not easy as there is no ecological monitoring and data collection.
Pays principle, which increasing SOM, land standardised accreditation For regenerative agriculture to be a truly
will incentivise farmers managers can sequester scheme for soil carbon. investable paradigm shift, the industry
to increase the nutrient carbon for use as an internal This needs to be solved if needs to develop standardised approaches
holding capacity of their offset to ensure that their land managers are to be to quantification and accreditation. There is
soil, instead of risking systems are reaching net appropriately rewarded demand for systems resilience from supply
penalties for leached zero. Additionally, they and incentivised to adopt chains and policy direction, but in order
nutrients and other forms can sell the sequestered practices that increase to optimise this momentum, regenerative
of pollution. Nitrogen taxes carbon to corporates carbon sequestration within agriculture needs to be able to measure and
may be considered here. and investors looking their soils. demonstrate its impact.
9UK Rural - June 2020 UK Rural - January 2020
S P OT L I G H T
Rural Land S P OT L I G H T
Natural Capital
Savills Research
and Carbon Savills Research
Climate change action Carbon sequestration and accounting Achieving net zero Carbon Offset Market Biodiversity Net Gain Nitrate Neutrality Rewilding
UK Rural - January 2021 UK Rural - November 2020
S P OT L I G H T
The Farmland Farm
Market
S P OT L I G H T
Savills Research Savills Research
Diversification
Market update Farmland forecasts Agricultural policy Rural Vibrancy Index Case studies Planning and funding a diversification
Savills Research
We’re a dedicated team with an unrivalled reputation for producing well-informed and
accurate analysis, research and commentary across all sectors of the UK property market.
To view copies of our previous Spotlight publications, go to www.savills.co.uk/insight-and-opinion/
Andrew Teanby Andrew Wraith Andrew Macdonald
Rural Research National, Food and Farming Scotland, Food and Farming
+44 (0) 7835 445 458 +44 (0) 7801 277 376 +44 (0) 7970 033 583
ateanby@savills.com awraith@savills.com andrew.macdonald@savills.com
Molly Biddell Tom Cackett Lachlan Scott
Rural Research England, Food and Farming Scotland, Food and Farming
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molly.biddell@savills.com tom.cackett@savills.com lachlan.scott@savills.com
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