Farmers are “desperate” to make extra money through carbon capture schemes, but worry they are “poorly regulated” and that the financial risks are too high, according to a new report.
The report, Natural Capital – What farmers and policy makers need to know, by researchers at Middlesex University, London, looked at the challenges farmers face through carbon capture schemes.
Researchers Professor Fergus Lyon and Dr. Amy Burnett concluded that “without good regulation”, many farmers consider the risks of getting involved in public or private schemes to be too high.
Prof. Lyon said: “There has been a delay in action due to uncertainty, at a time when we need fast progress.
“Lots of the pieces of the jigsaw are in place with businesses wanting to finance change and farmers wanting to put the projects into practice. What is missing is a safe, certain, and assured market place.”
He added that the government “plays a key role” in creating “certification”.
Results
In total, 104 interviews were conducted across England, Wales, Scotland and Northern Ireland as part of the report’s research.
Out of the total, 25 of the interviewees were farmers working in the UK. 10 of the farmers were tenants, and they included similar numbers of livestock and arable farmers.
Other interviewees included 22 land agents or consultants; 21 policymakers or non-governmental organisations; 15 businesses with agri-food businesses in their supply chains; 12 representatives of accreditation systems or initiatives; and five financiers or banks.
Some of the risks the report identified which cause “worry” for farmers when applying for carbon schemes include:
- Farmers not being able to access or afford advisors;
- Voluntary markets are unregulated;
- Farmers and landowners may be encouraged to enter into an advisor’s own scheme;
- There would be a declining price for credits if buyers were avoiding a specific market;
- Prices being paid to farmers now may be lower than in the future when there is growing demand from buyers for carbon sequestration or biodiversity offsets;
- There is also a risk that the prices paid do not adequately cover the management costs for the full term of the agreement if these costs rise higher than expected inflation.
Carbon schemes
The academics explained many of the potential money-making schemes for farmers to support nature recovery and contribute to climate targets. The schemes include:
- Payments for carbon sequestration (woodland creation) and emission avoidance (peatland restoration) through carbon offset credits;
- Payments for verified emission reduction, often called ‘carbon certificates’;
- Payments for reducing fertiliser, avoiding intensive cultivations, planting cover crops;
- Building developers can pay farmers to create habitats to offset damage created by new builds, which could include sponsorship from businesses for wildlife projects;
- Selling farm produce with a premium in recognition of benefits to the environment;
- Water companies can pay farmers for reducing phosphate and nitrate with long and short-term contracts.
The report also highlighted that farmers can offer nature-based diversification for tourist and local community rural stays.
It included a case study of how one livestock farmer based in southwest England offers glamping ecotourism on a campsite, with access to wild swimming opportunities.
