Net zero policy poses an “existential threat” to already hard-up farmers across the UK, a think tank has reported.
Farms are set to face up to an additional £1billion in expenses per year, but the report claims this is an “entirely manageable sum” if passed on to the consumer.
Decarbonising the agriculture industry has "barely started", according to the report by Resolution Foundation, with only a five per cent in emissions over the past 15 years.
Tom Bradshaw, President, National Farmers’ Union, said: “We all know there is an urgent need for the UK to take further steps to decarbonise, and the NFU remains committed to climate-friendly farming.
Similarly, Niall Holman, a seventh generation farmer, said: “We see climate change everyday here - it gets worse and worse.
“You can’t be a farmer and not notice it.”
However, Mr Bradshaw said: “But we can’t get there on our own – we need government support through well thought out policies, equitable trade policy and incentives if we are to drive progress.”
The report says carbon savings will be achieved through changing how food is grown and made - specifically, reducing livestock, using more eco-friendly fertiliser and animal food, and “repurposing [land] that is currently used to rear animals”.
Decarbonising the agriculture industry has 'barely started', according to the report by Resolution Foundation
| PAFarms across the country have been enduring significant financial strain, with the report describing margins as “razor-thin - and often negative” - in 2024, farmers earnt an average of £6 an hour.
Over 6,000 farms have closed since this Labour Government started.
Richard Tice, deputy leader, Reform UK, told The Telegraph: “Net zero is a disaster for farmers.”
However, Mr Bradshaw said: “On many farms, climate friendly farming is more than a moral imperative; it makes good business sense.”
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Farms across the country have been enduring significant financial strain
| GETTYThe projected £1 billion per year increase in farming expenses to make way for decarbonisation, calculated by the Climate Change Committee, equates to 2.5% of annual farm output.
A 2.5% increase in farming costs, would “reduce average farmer pay last year by around a fifth (from £43,000 to £35,000).”
For one-in-twenty UK farms, this additional cost would slip them into the red - worse still, excluding government subsidies from the calculation and median farm income falls close to zero.
The think tank’s report concludes the government must find ways in which these costs are passed on to supermarkets and consumers, as farmers are unlikely to pass on costs due to weakened pricing powers.
It estimates these costs will add an additional 50p to an average family’s weekly shop.
The report points to the complexities of farming as the reason why decarbonisation isn’t progressing, where there isn’t a “silver bullet”, such as electric cars for the automobile industry.
Mr Bradshaw said: “We need a strategic approach to climate smart agriculture with a clear prioritisation within Environmental Land Management schemes, and a recognition of the level of capital expenditure required to deliver our ambitions of reducing our climate impact alongside ensuring food security for the nation.
“Delivery of long-called for policies which incentivise greenhouse gas audits and baselining, as well as investment in low-carbon farm practices and technologies, will enable farming businesses to continue producing affordable food for the nation alongside work in enhancing and protecting the environment.”