Seeding Sustainability

Part of

Sustainability

Reimagining Natural Capital through the lens of small farmers to create a fair, trustworthy system that will truly benefit farmers and the planet

MA 22/23

Keywords

Sustainability, agriculture, farming, finance, carbon credits

Overview

In the UK, farmers are not adequately rewarded for growing food, and need to rely on other income streams to survive. The idea of Natural Capital, where a monetary value is placed on the earth's resources and ecosystems, offers a potentially crucial way for farmers to earn a fair living. By helping to increase air and water quality, grow trees or increase biodiversity, farmers could be properly compensated for the work they do, especially by large companies trying to offset their environmental impact. But, corporate players are exploiting the system, which is creating mistrust within the farming community, and making the system weighted against small and sustainable farmers. Our project looks at the systems and interactions within the natural capital market, and looks for interventions that will re-balance the system.

Collaboration

Our project has worked closely with a number of organisations, including the Sustainable Food Trust, Agricology, and Pasture For Life. We've also collaborated closely with a number of small and medium sized farmers across the UK. We've had expert guidance from academics from Cranfield University, and guidance from private natural capital firms including Biofarm and Agreena.

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CONTEXT

Starting with small farmers

In the UK, the agricultural sector is responsible for around 10% of all greenhouse emissions. This number has not reduced in 10 years, unlike every other industry. Alongside this, the UK's food poverty rate is among the highest in Europe. Despite being the sixth richest country in the world, millions are struggling to access the food they need. It's not just the quantity but also the nutrition of food, which has decreased as the quality of soils are impacted by the use of fertilisers.

In order to overcome these challenges, there needs to be huge changes made in the sector and radical innovation is being pushed for.

‘With over 73% of our land used for agriculture in the UK, farmers have become the primary stewards of nature, climate and health.’

This really inspired our thinking to understand this complex system through the lens of farmers, especially small family-run farmers who are known to practice more sustainably and could potentially hold valuable lessons if not answers to a more sustainable future. We wanted to know if there was a way we could intervene to support this important group to thrive in the world of modern agriculture.

Learnings

Diversification of income is key

We spent time travelling around the UK and visiting farms to better understand the challenges Farmers face. We heard real stories about the risks and challenge to farming. In particular, we heard three things:

The food system has evolved for efficiency & Corporates hold the power
Farming is a very high-risk and financially challenging business
Farmers are transitioning to sustainable practices, further increasing risks

Generally, we saw diversification as a key way farmers can offset their costs and become more financially resilient, allowing them to better experiment and adapt. And as we heard from more farmers, we learnt about the concept of being compensated through natural capital markets and what an opportunity this is.

Natural Capital offers significant possibilities

Natural Capital helps farmers to diversify their income and therefore become more financially resilient, and it also helps them to adopt more sustainable practices. However, there are many negative aspects, including exploitation of the system by Corporates trying to make money from an emerging market. It also favours large farms over small, due to economies of scale.

But should nature by traded?

We've seen that although farmers may stand to benefit from this system, the system itself has been created by Corporates and financiers to solve problems of offsetting and profits as opposed to a holistic approach to correct the damage we're doing to the planet, or what's best for the farmers who are ultimately responsible for the natural capital being monetized.

This is a debate we'll be discussing as part of the show.

Our Key Learnings

Problem & Opportunity

Farmers are not adequately rewarded for growing food, and need to rely on other income streams to survive. Natural Capital offers a new and potentially helpful way to be properly compensated for the work they do. But corporate players are exploiting the system, which is creating mistrust within the farming community, and the system weighted against small and sustainable farmers.

Opportunity

How might we re-imagine Natural Capital through the lens of small farmers, creating a fair, trustworthy system that will truly benefit both farmers and the planet?

STRATEGY

Through our research, we've seen both positive and negative insights relating to natural capital. We'll be exploring three different angles through prototypes that spark debate and help us gauge perception from multiple stakeholders about where the biggest opportunities and impacts lie.

SPECIAL
THANKS

Team

Sam Royle

sam_royle@hotmail.com

Portfolio

Approved

Shivanghi Aggarwal

shivanghi.aggarwal@network.rca.ac.uk

+44-(0)7466359172

Portfolio

Approved