Understanding Natural Capital in Farming 

Traditionally, farming has been incentivised around production, with little emphasis on maintaining and improving natural resources. However, with the shift toward public money for public goods, farmers are now encouraged to measure, manage, and even monetise their natural capital. 

Dr. Glyn Jones, Head of Science (Plant) at Fera Science, explains: 

"Viewing air, soil, and water quality as assets that can be quantified and valued is a new way of thinking for many farmers. Without a clear understanding of what natural capital exists on the farm, potential income opportunities remain untapped." 

Rather than jumping straight into schemes like Environmental Land Management (ELMs) or selling carbon credits, experts recommend first assessing the natural capital already present. Many farms have underutilised assets, such as soil health, hedgerows, or woodlands, that could be optimised for environmental and financial benefits. 

Turning Natural Capital into a Business Asset 

With increasing production costs and squeezed profit margins, finding additional revenue streams is essential. According to Dr. Jones, treating natural capital like any other farm investment is key: 

"If you do not reinvest in your natural capital, it will degrade, just like farm machinery. Managing your farm as a portfolio, with income from both agricultural production and natural assets, is simply another form of diversification." 

By using baseline assessment tools like Fera Science’s LAND360, farmers can map out the quantity and quality of their natural resources. This data can then be used to explore options such as: 

• Carbon sequestration – Planting trees or hedgerows to store carbon 

• Biodiversity credits – Enhancing habitats for pollinators and wildlife 

• Soil health investments – Improving organic matter for sustainable yields 

• Water quality initiatives – Reducing runoff and increasing water retention 

Collaboration: A Key to Success 

Many farmers hesitate to engage with natural capital markets due to concerns over cost, complexity, and risk. One way to navigate these challenges is through collaborative initiatives, such as those led by the Farming and Wildlife Advisory Group (FWAG) in Suffolk. 

FWAG Chief Executive, Anna Beames, emphasises the importance of knowledge-sharing and joint efforts: 

"Bringing farmers together to restore hedgerows, plant flower margins, or establish shelter belts allows them to share costs and expertise. The key is to recognise that farming and nature don’t have to be at odds, they can work together for mutual benefit." 

A recent visit to Helmingham Estate demonstrated this in action. Farmers observed 600 newly planted oak and maple saplings thriving in agroforestry strips, occupying just 1.6% of a prime wheat field while significantly enhancing biodiversity and soil health. 

The Future of Natural Capital in Farming 

For farmers considering how to incorporate natural capital into their business models, the message is clear: start by understanding what you have, explore your options, and build a plan for long-term sustainability. 

As Ms. Beames advises: 

"We’ve never been in this position before in farming. The best thing farmers can do now is take stock of their natural assets, understand their value, and explore the opportunities available." 

Learn More at the Low Carbon Agriculture Show 2025 

To gain deeper insights into natural capital opportunities, environmental land management, and emerging market trends, join industry experts at the Low Carbon Agriculture Show 2025. The event will provide practical guidance, case studies, and networking opportunities for farmers looking to future-proof their businesses while contributing to a more sustainable agricultural sector. 

Don’t miss your chance to be part of the conversation, unlock the potential of natural capital and secure the future of your farm. 

Register your free ticket for Low Carbon Agriculture 2025