Growing strong: The case for sustainable farming

Government action is required to support the adoption of sustainable farming practices a new report from Demos and McCain Foods finds, with progress currently stalled due to a lack of clarity and incentives[i].

Entitled ‘the Sustainable Farming Dividend’, the research explains that sustainable farming practices are urgently required in the UK to address the unprecedented pressures currently faced by the food system. These range from rising input costs and uneven profitability, to the persistently uncertain policy landscape itself- making the challenges faced by farmers both considerable and varied.

In addition, the growing impact of climate change could have significant consequences for the UK economy. Research released last year from the Green Finance Institute (GFI) and the WWF found that continued nature degradation in the UK, exacerbated by climate change, could lead to a 4.7% reduction in GDP by 2030.

Food security pressures aren’t simply a concern at the national level, they extend to households too; UK food prices have risen by over 37% between 2020 and 2025, and the cost of living has remained the UK public’s biggest concern for the past three years. Adding to this, climate change is expected to increase the average UK family’s food bill by 9% by 2050 (rising to 13% for families in the lowest income bracket).

By introducing sustainable farming practices - nature-friendly agriculture or farming methods that drive wider social and economic outcomes - the UK could see more resilient food production and more stable food prices. Additionally, these changes could deliver billions of pounds worth of benefits including an increase in farm profits by £1.6 billion per year by 2035, alongside unlocking £56.3 billion in nature capital from implementing nature restoration. In a high-yield scenario, farmers could also see an increase of £385 million in UK farm yields each year. Further benefits would come from a reduction in the UK’s reliance on imports, with a reduction of £520 million per annum, and a cumulative impact of more than £10 billion fewer imports by 2050. For households, they could see a 7% reduction in annual food bills relative to current trajectories, this would equate to £240.74 per household.

Dan Goss, Lead Researcher at Demos, has said: “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.”[ii]

However, despite the clear benefits of sustainable farming there remains a gap in awareness, with survey data revealing that the British public incorrectly assume that sustainable farming would raise reliance on imports and reduce farm profitability long-term. Additionally, 60% of respondents believe that sustainable farming would raise food prices in the long term.

This lack of understanding aside, the public broadly supports the government investing more in the outcomes that sustainable farming generates. Almost two-thirds (61%) say that they think the government should be investing more money to support UK food security, and 58% say that the government should spend more to lower food prices. A net 31% of the public say they would feel more favourably about the Government if they invested more in sustainable farming, with this rising to 41% when the public are told about the benefits this can have on farm profitability.

Next steps

The report outlines several areas where the UK government can target support to drive uptake of sustainable farming. These include:  

·         Build strong partnerships, including raising the scope and ambition of the Farmer Collaboration Fund. This includes using the Land Use Framework to scale up Farm Environmental Delivery Groups (e.g. farmer clusters) across the UK and develop Agri-Growth Hubs at a regional level. Additionally, the Government should partner with local authorities and anchor institutions to convene farmers and investors to develop productive partnerships.

·         Plug knowledge gaps by setting out clear nature outcomes- for example through the development of a standardised baseline for carbon, soil, water and biodiversity outcome.

·         Commission Skills England to review sustainable farming skills gaps and opportunities and disseminate the knowledge to training providers, Farm Environmental Delivery Groups and Agri-Growth Hubs.

·         Lastly, embed an understanding of the benefits of sustainable practices into departmental communications, workshops and training.

References

[i] Growing-Strong_Report_March_2026-1.pdf

[ii] Scaling sustainable farming would prevent £150bn hit to the economy by 2050, new report reveals

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