There is a lot happening in the agricultural world at present, prompting almost daily articles in the press. I, like many farmers forget who I am talking to sometimes and often use jargon when discussing a certain topic. This theme was prompted by a discussion with one of my work experience students who asked what ‘Natural Capital’ was.
Natural Capital is a way of viewing the environment as a set of assets that benefit wider society, rather than any single individual or organisation. A good example can be seen on a dairy farm where changes to how they manage their on-farm slurry can improve groundwater quality. This in turn benefits water companies and the general population, not just the farm itself where the improvements take place.
It is difficult to put a value on the work done and the public goods generated by improving natural capital. This challenge makes natural capital difficult to understand in a farm business setting. Speaking from personal experience this makes it harder to justify investing in natural capital rather than other parts of the business. As a result of this, farmers have often been blamed for putting output and productivity first at the expense of the environment.
So where are we today. Natural capital is now the cornerstone of Government policy, incentivising farmers to increase or enhance natural capital. For farmers, it is important we realise there are two elements to natural capital. On one hand we have the hedgerows, trees, soil and biodiversity on the farm which we call the natural capital stock and on the other the ecosystem services, or operational bit which includes the carbon sequestration which our stock provides.
At Manor Farm we have been part of the Countryside Stewardship scheme for 20 years. This alone has helped us to increase and enhance what effectively used to be regarded as ‘free’ by nature and taken for granted. Now with the collaboration of neighbouring farmers we are doing this on landscape scale.
We are in the process of measuring our carbon footprint, this will help us understand where investment can be targeted to improve productivity in a sustainable way, as well as highlighting areas that may provide value to third parties in the form of carbon credits.
On any farm soil and water are vital assets or we don’t have a business. Both these assets have a value for the wider public because they are the foundations for wholesome food and clean drinking water, in the face of climate change both soil and water have to be managed even more carefully. As a result of this we have implemented crop rotations that reflect this. Thames Water are now collaborators with us in this goal further emphasising the bigger scale of our ambitions.