7 steps to help agri-businesses transition to net zero

General view of Frogmary Farm in Devon © PRESS ASSOCIATION/Alistair Heap/Commotion

With the National Farmers Union (NFU) setting the ambitious target of reaching net zero by 2040, Lloyds Bank is helping agri-businesses take steps towards a greener future.

1. Measure your carbon footprint

While almost two thirds of farmers we polled feel very or somewhat confident they’ll be able to reach the 2040 net zero target, 87% don’t know their business’s current annual carbon footprint.

Having a comprehensive understanding of your carbon footprint can help you create an action plan for lowering it.

Carbon calculators like Farm Carbon Calculator, Agrecalc or Cool Farm Tool can identify sources of emissions, benchmark emissions against similar businesses and create a baseline for monitoring progress towards low carbon farming practices.

2. Plant trees and hedgerows

Reforestation is a powerful way to fight climate change, with trees and hedgerows acting as ‘carbon sinks’ that naturally absorb carbon emissions from the air.

However, many farmers may be missing out on these benefits, with almost three quarters of those we surveyed saying they hadn’t taken any steps towards reforestation or didn’t plan to.

Our partnership with the Woodland Trust can help agricultural businesses plant trees and hedgerows at heavily subsidised rates.

Increasing the trees on your land can also protect valuable topsoil from being eroded, as well as offering protection from drought and floods and helping boost biodiversity.

3. Improve productivity and efficiency

Sustainability is at the heart of many new farming practices, so taking steps to improve productivity can also reduce emissions levels.

Precision farming, using controlled-release fertilisers and increasing use of organic manures, can contribute to a reduction in nitrous oxide emissions, while gene editing and breeding, as well as improving livestock health, can lower methane emissions.

4. Invest in low-carbon agri-technology

The rapidly growing agri-tech market can play a key role in helping farms become more sustainable.

Sustainable intensification by investing in solutions like nitrogen-fixing bacteria, vertical farming and drones, aims to improve productivity with reduced inputs and lower environmental impact.

Farmland view of the vale of Aylesbury from the Chilterns © Shutterstock

5. Boost renewable energy generation

Three-quarters of the farmers we surveyed have either already taken steps to make their farm more sustainable through renewable energy or are planning on doing so in the future.

Circular waste streams such as Anaerobic Digestion (AD), which involves converting animal manure food waste and crop by-products into energy, are becoming increasingly popular, with almost 500 AD plants operating in the UK in 2019 and a further 343 under construction.

Alongside generating clean energy, AD plants can offer opportunities for generating extra income and improving waste management.

6. Improve soil health

The UK’s soil currently contains the equivalent of 80 years of carbon emissions. However, depleting fertile topsoil levels mean improved farming practices are needed to help rebuild the soil’s carbon stores and prevent the loss of greenhouse gases.

This process is already underway, with 78% of farmers we surveyed saying they had either already started improving soil to become more sustainable or planned to.

Soil health could be improved by:

• using cover crops within crop rotations to help maintain organic matter
• management and timing of cultivations and grazing pressure to reduce soil compaction
• planting more trees in ‘shelterbelts’ along field boundaries to help prevent soil erosion
• introducing minimum till cultivation and regenerative grazing practices

7. Restore peatlands

Peatlands are a key part of the UK landscape, covering 12% of the nation’s land area. Historically they’ve acted as a significant carbon sink.

However, as a result of modification, drainage and damage over the years, they are now a source of carbon emissions.

Restoring peatlands is therefore key. Adapting grazing routines and considering grip blocking, drainage and re-wetting peat soils to restore natural functioning of peatland can all help prevent erosion and loss of carbon emissions from peat soils.

Supporting agri-businesses

• All relationship managers have received expert sustainability training from the Cambridge Institute of Sustainable Learning
• Discounted lending through our Clean Growth Financing Initiative – for a broad range of sustainable agriculture investments
• Help with finding a suitable free carbon calculator
• Regular Sustainability Webinar sessions on a range of environmental and low-carbon issues

Find out more

All lending is subject to status.