Navigating the future of farming: How agri-environment schemes affect farm resilience

As farming faces new pressures – from changing policies to climate challenges – UK farmers are seeing more options through environmental schemes. These agri-environment schemes (AES), both public and private, are becoming part of everyday farm decisions. But how do they affect your business’s resilience?

A recent review looked at how AES are shaping farming across the UK’s beef and lamb, pork, cereals and oilseeds, and dairy sectors.

Its findings give useful insights into how these schemes impact profitability, environmental outcomes and long-term farm stability.

What was studied?

AHDB worked with Harper Adams University to review government reports and scientific studies to understand the current AES landscape. They found:

• 40 public schemes and 35 private schemes available to UK farmers
• 63 studies published since 2019 assessing how these schemes affect farm resilience

Key findings

Public schemes: Widely available, but uncertain

Across the UK, governments are moving toward a ‘public money for public goods’ approach.

These schemes are generally easy to access, but many are short-term and subject to political change. This makes it hard to plan long-term investments in your farm or the environment.

Private schemes: New opportunities, new risks

Private schemes – like those for carbon credits or biodiversity net gain (BNG) – offer new income streams. But they come with challenges:

• Long-term contracts (30–100 years)
• Complicated rules that may exclude tenant farmers
• Questions about how credible the environmental claims really are

Blended finance: Mixing public and private support

Some farmers are exploring blended finance, combining public and private funding. This can help maximise income and environmental impact, but it is complex.

You’ll need expert advice to avoid issues like double-counting environmental benefits.

Why take part?

The top reason is still financial incentives, followed by personal values and public recognition. But many farmers are put off by:

• Complicated paperwork
• Confusing policies
• Payments that do not fully cover costs

The financial picture

There is not much data yet on whether AES schemes pay off financially.

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.

What does this mean for your farm?

Today’s farmers face tough choices. Public schemes are more accessible but can change with politics. Private schemes may offer more stable income but require long-term commitments and carry market risks.

While the financial benefits of AES aren’t always immediate, they can lead to long-term gains – like better soil health, lower input costs and improved climate resilience. In short, AES are becoming a key part of the modern farm business model.

We will be publishing more detailed information on schemes available across the UK, enabling levy payers to quickly determine which schemes are available to them, depending on their sector and location.

It will be updated when details of the 2026 iteration of SFI are available.