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.
The report – The Sustainable Farming Dividend – shows that transitioning to sustainable farming practices can strengthen the resilience of food production, stabilise food prices and generate billions in economic benefits.
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 found a significant lack of public awareness 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.
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.
Daniel Zeichner MP, Former Food Security and Rural Affairs Minister, commented: “We must stop treating sustainable farming as a niche environmental concern, and begin to recognise it as a cornerstone of our national economic and food security. I welcome Demos’ new report, which shows how we can shore up our food security and secure a resilient supply by growing sustainable farming practices across the country.”
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.”
