Sustainable practices could increase farm profits by £1.6bn annually by 2035, driven by lower input costs and greater resilience.

The Sustainable Farming Dividend report reveals scaling sustainable farming is one of the most effective ways to strengthen food system resilience, support farm profitability and unlock billions in economic value across the UK agri‑food sector.

The report comes as Demos modelling, supported by McCain Foods, warns deteriorating natural systems linked to food production could deliver a £150bn hit to the economy by 2030 and against a backdrop of mounting pressure on the UK’s food system: food prices are up 35 per cent in five years, farm profitability is in crisis, and 51 per cent of farmers are considering leaving the industry.

Key findings from the report include:
• Protecting the economy: Nature restoration through sustainable practices could unlock £56.3bn in natural capital by 2035.
• Boosting farm profitability: Adoption of sustainable methods could increase farm profits by £1.6bn a year by 2035, helping address a system where nearly one in five farms currently operate at a loss.
• Reducing reliance on volatile imports: With 60 per cent of nitrogen fertiliser imported, sustainable methods could reduce total inputs by £905m annually and reduce fertiliser imports by £449m each year.
• Building strong partnerships: using the Farmer Collaboration Fund and upcoming Land Use Framework to scale up farmer clusters and develop regional agri-growth hubs. This also includes partnering with local authorities and anchor institutions to convene farmers and investors, and embedding co-design models into the management of council-owned farmland.

With global yields expected to fall by 24 per cent without climate action, the report calls for clear long‑term policy direction, targeted incentives and coordinated support to unlock the UK’s ‘sustainable farming dividend’ and safeguard the future of British food production.

Daniel Zeichner MP, former Food Security and Rural Affairs Minister, commented: “We must stop treating sustainable farming as a niche environmental concern, and begin to recognise it as a cornerstone of our national economic and food security. I welcome Demos’ new report, which shows how we can shore up our food security and secure a resilient supply by growing sustainable farming practices across the country.”

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