Environmental Land Management schemes

668.  The Review has heard that the necessary incentives on farmers and land managers to decarbonise are not in place. Particular attention was paid to the Environmental Land Management schemes that are expected to replace EU farming subsidies, where stakeholders were frustrated with the time taken to provide clarity to farmers and land managers.

"We recognise that there is no food security without nature, and the UK has an opportunity increase resilience and competitiveness of our industry by transitioning to low impact farming. We are fully supportive of the need for the Environmental Land Management Scheme and its direction of travel and wish to work with Government to accelerate its rollout and ambition." - Marks & Spencer484

"Net zero should be given the priority it deserves within Defra's Agricultural Transition Plan (ATP). Net zero needs to be embedded into schemes, given equal weight to other environmental targets. Farmers have seen business benefits from implementing a range of net zero activities including resource efficiency, renewable energy, and the bioeconomy, in addition to nature-based solutions." - NFU485

669.  At the same time, incentives to decarbonise farming should be reviewed to ensure they are competitive and sufficient, there is clarity about 'stacking'xxvi of payments for achieving multiple outcomes, and to assess the risk of public funding crowding out private finance.

"The reforms on agriculture subsidies in each devolved nation towards net zero and regenerative agriculture needs to be results-based in terms of rewarding farmers for achieving environmental outcomes, and to a funding level that is needed to achieve UK net zero and nature positive targets. This action de-risks finance that is available to farmers and provides farmers with a clear business case that can cover the upfront costs involved with buying capital equipment, and changing their agricultural practices to become more regenerative." - NatWest Group486

"There is currently significant uncertainty within the land management community around how different public and private payment for environmental outcomes can be combined, or 'stacked'. This has led to hesitation among many landowners to engage in schemes, as they worry that they will inadvertently block themselves from accessing another source of income." - Palladium487

670.  Farmers report feeling disengaged with the transition - and do not always see the opportunities that could be available to them through different productive uses of their land.488 Some stakeholders felt there were missed opportunities for peer-to-peer learning, where farmers learn from those who have already made a success from decarbonising their land and other innovations.489

671.  Further detail on the Environmental Land Management Schemes should be published as soon as possible and address the issues described above. In particular, it should provide the following:

•  A clear plan for engaging farmers in decarbonisation - recognising that there is a serious risk of farmers feeling as if they are being treated as blockers to the transition, rather than partners.

•  Clarity on the anticipated interaction between public and private finance to ensure that land managers can confidently deliver and be rewarded for multiple outcomes on landscapes.

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xxvi  'Stacking' payments: layering payments for delivering a range of different services and outcomes on the same piece of land.