A new report has warned that failing to scale up sustainable farming could cost the UK economy billions, as pressure mounts on government to support the transition across the food system.
Research from cross-party think tank Demos, supported by McCain Foods, found that adopting more sustainable agricultural practices could help avoid a £150bn economic hit by 2050 while improving resilience across the food supply chain.
The report, The Sustainable Farming Dividend, highlights how regenerative farming methods could stabilise food production, reduce reliance on imports and deliver wider economic gains across the UK’s agri-food sector.
Among its findings, the report estimates that nature restoration could unlock more than £56bn in natural capital by 2035, while boosting farm profitability by £1.6bn a year. It also suggests sustainable practices could cut fertiliser use and reduce import costs, with the UK currently reliant on overseas supply for around 60% of its nitrogen fertiliser.
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The analysis comes as many farmers face rising input costs, squeezed margins and ongoing policy uncertainty, with nearly one in five farms currently operating at a loss.
The report also points to growing public support for action, with a majority backing increased government investment in sustainable farming once links to food prices and climate impacts are understood.
McCain GB&I vice president of agriculture James Young said farmers are already feeling the impact of climate volatility but need greater support to shift to more sustainable practices.
“The findings reflect what we are seeing and hearing from our growers, who know the transition to a more sustainable system is essential,” he said.
“Farmers are ready to lead this change, but they need long-term policy certainty and the right incentives to invest with confidence.”
The report calls on the government to strengthen partnerships across the sector, improve measurement of environmental outcomes and address skills gaps to support the transition.
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