A recent review by the AHDB has found many growers are still cautious of the benefits of agri-environment schemes (AES), both public and private. The AHDB worked with Harper Adams University to review government reports and scientific studies to understand the current AES landscape. They found:
- 40 public schemes and 35 private schemes available to UK farmers
- 63 studies published since 2019 assessing how these schemes affect farm resilience
The attraction for most is the financial reward, although some are still concerned about the lack of evidence that AES schemes pay off financially.
However, the key finding is that, despite the availability of public schemes, many growers are uncertain about the longer-term implications. With many schemes short-term and subject to political change, it complicates long-term planning and investment.
When it comes to private schemes, the study reveals many see new opportunities but equally new risks. Carbon credits or biodiversity net gain (BNG) offer new income streams but present challenges. Of biggest concern is the length of contracts (30–100 years) but also questions around the credibility of environmental claims and complicated rules that may exclude tenant farmers.
Another concern is the trade-off between environmental actions and food production. Some schemes only reward “additional” improvements, which can leave early adopters out of pocket.
Some farmers are exploring blended finance, combining public and private funding. This can help maximise income and environmental impact, but it is complex. The AHDB advises growers to seek expert advice to avoid issues like double-counting environmental benefits.
AHDB head of economics Sarah Baker recognises that the choices for farmers are tough. Public schemes are more accessible but can change with politics. Private schemes may offer more stable income but require long-term commitments and carry market risks.
However, while the financial benefits of AES aren’t always immediate, they can lead to long-term gains – like better soil health, lower input costs and improved climate resilience.
The AHDB plans to publish more detailed information on schemes available across the UK at a later date.
For more information visit: https://ahdb.org.uk/news/navigating-the-future-of-farming-how-agri-environment-schemes-affect-farm-resilience
