Agri-environment schemes: Are they worth it?

A new AHDB review pinpoints how agri-environment schemes (AES) are affecting profitability, environmental outcomes and long-term farm stability across the UK’s cereals and oilseeds, beef and lamb, pork and dairy sectors.

The study, conducted with Harper Adams University, found more than 40 public and 35 private schemes currently available to UK farmers, with 63 studies published since 2019 assessing how these schemes affect farm resilience.

After reviewing the data, the conclusion was that public schemes like the Sustainable Farming Incentive (SFI) are easy to access, but many are short-term and subject to political change, making it hard to plan long-term investment.

Private schemes, such as carbon credits or biodiversity net gain (BNG), offer new opportunities, but also present challenges and risks. They often require long-term contracts (30–50 years), rules can be complicated and may exclude tenant farmers and there may be questions about the credibility of the environmental claims.

Some farmers are looking at a blended approach, combining public and private funding. However, this is complex and needs expert advice to avoid pitfalls, such as double-counting environmental benefits.

One concern is the trade-off between environmental actions and food production. Some schemes only reward ‘additional’ improvements, which can leave early adopters out of pocket – but while the financial benefits aren’t always immediate, they can lead to long-term gains, like better soil health, lower input costs and improved climate resilience.

We are working on a digital tool for levy payers that will allow them to search easily for schemes available in their sector and location. This should be available by mid-November.

Sarah Baker, AHDB Head of Economics – Analysis, said:

“As farming faces new pressures – from changing policies and reduced levels of support to climate challenges – UK farmers need to explore more options to mitigate their loss of income through environmental schemes.

“These schemes, both public and private, are becoming part of everyday farm decisions. But how do they affect your business’s resilience? And how do you choose which are best for you and your individual business? How do you know what is available in your location or sector?

“This report will help answer levy payers’ questions. And we are excited about the new digital tool, which will save them time and money by providing a list of suitable AES when they input their sector and location.”