According to a recent report by the Nature Friendly Farming Network Cymru (NFFN), farms in Wales could increase profitability by more than 40% by adopting
nature-friendly approaches that balance food production with the natural environment. The report shows evidence of an average increase in farm profitability of 42% when farms actively work with the natural environment to manage production sustainably. The report calls for long-term funding, ambitious policy changes, and sufficient rewards for Welsh farmers to transition to sustainable farming methods that restore ecosystem health and mitigate climate change.
The report argues that previous farming subsidies under the EU Common Agricultural Policy have contributed to farm inefficiencies, biodiversity loss, soil erosion, and land degradation. Rising costs of environmental damage, such as declining soil health, are absorbed by farm businesses, resulting in a dependency on expensive artificial inputs to substitute the landscape’s natural fertility. The report suggests that increasing inputs does not guarantee higher rates of profit if the natural environment is damaged or pushed beyond its natural capacity.
The research highlights a framework, called the Maximum Sustainable Output (MSO), that reduces input reliance by adopting a range of regenerative farming techniques to enhance soil health and restore biodiversity. Taken together, these measures represent a potentially significant reduction in input costs for farmers with beneficial returns for the environment.
The report has been published just weeks before the Welsh Government’s Stage 3 debate of the Agriculture Bill, which aims to encourage environmentally sustainable food production and support the resilience of agricultural businesses. NFFN Cymru remains supportive of the Bill but cautions that it must address the climate and nature crises by moving at pace to phase out the Common Agriculture Policy and replace it with policies that encourage and reward nature-friendly practices.
The report highlights the importance of healthy soils and a thriving natural environment for resilient, reliable, and productive farms. The value of nature in farm profitability cannot be overlooked, and the Welsh Government needs to uphold this vision for agriculture in the upcoming Agriculture Bill and Sustainable Farming Scheme. The report concludes that the nature and climate emergencies require action to actively enhance the environment, and fair rewards and incentives are needed for the whole sector to transition to nature-friendly farming practices that restore and protect the natural environment while sustainably producing high-quality food. Photo by Marion Phillips, Wikimedia commons.