A major high street bank has mapped almost one third of the UK’s farmland to help growers and livestock producers tackle climate change.
Lloyds Bank surveyed 5.1m hectares of arable and grassland using using geospatial data, on-farm assessments and new economic insight for a new report called Farming with Nature: Mapping the Growth Opportunity for UK Agriculture.
Building resilience
Following the warmest spring and summer on record, the report pinpoints how farmers can achieve the greatest financial returns while addressing mounting risks from climate change and biodiversity loss.
It identifies 1.2m ha of farmland with potential for habitat creation to act as carbon stores and boost beneficial species. It has also identified 600,000ha prime for tree and hedge planting – to help farms reduce flood risk and soil erosion.
The report also marks the introduction of Lloyds’ agricultural transition finance loan, a new product launching later this year, designed to support farmers make the switch to more sustainable and regenerative systems.
Lloyds describes the report was a major step forward in understanding how farming and nature interact. Targeted support can strengthen farming businesses and help restore ecosystems, but challenges remain, it adds.
Best placed
Lloyds head of agriculture Lee Reeves said farmers were best placed to decide how to manage their businesses, but key industry partners needed to support them. “Every farm is unique and there’s no one-size-fits-all solution.”
The bank’s new agricultural transition finance loan would help farm ease cashflow pressures, while supporting long-term resilience and positive outcomes for nature and the environment, said Mr Reeves.
With drought now 70 times more likely due to climate change, Lloyds says its analysis has identified 700,000ha in drought-prone regions where farmers could benefit from improved water management.
Around the regions
One 400ha arable system in Warwickshire, could save up to £61,000 annually by adopting practices such as cover cropping, more diverse rotations and legume fallows, suggests the report.
At another 154ha mixed system in Shropshire, rainwater is being harvested for livestock and a switch to a fully grass-based regenerative cattle system has already saved owners £30,000 by cutting their ad-lib feed bill.
In East Anglia, where water scarcity is a concern, tree planting and cover cropping are recommended to improve soil health and water retention. In Scotland, crop rotation and targeted nutrient management can enhance soil quality and reduce runoff.
In livestock-rich Wales, rotational and mob grazing can boost soil fertility and water quality, while in the south-west, improved slurry management, rainwater harvesting and reservoir creation will build resilience and cut costs.