Source · Select Committees · Environmental Audit Committee

Recommendation 7

7 Accepted

Ensure policy supports farmers and land managers to deliver ecosystem improvements alongside food production.

Conclusion
The Committee agrees with the Government’s current approach to driving investment into nature recovery through drawing in private finance. Whatever the source of the funds, policy should ensure that farmers and land managers are supported to deliver ecosystem improvements while also farming to produce food. (Recommendation, Paragraph 50)
Government Response Summary
The government agrees to support farmers and land managers to deliver ecosystem improvements alongside food production, detailing an investment of over £2.7 billion annually in farming and nature recovery, including significant increases for Environmental Land Management Schemes, to provide income streams for environmental delivery and sustainable food production.
Government Response Accepted
HM Government Accepted
The Land Use Consultation set out the importance of more land becoming multifunctional, delivering both food production and increased nature and climate benefits. The scale of action needed to deliver our climate and nature objectives means that more private investment in land use change will be needed. We know that healthy ecosystems provide many private as well as public benefits, and the private sector can contribute to protecting and improving natural capital assets. The Government will support farmers and land managers to help restore nature, which is vital to safeguard our long-term food security, support productivity and build resilience to climate change. This means continuing the transition away from area-based payments and towards payments to deliver public goods for the environment. As announced by the Chancellor on 11th June 2025, we are investing more than £2.7bn a year in farming and nature recovery, providing tens of thousands of farmers with income streams for environmental delivery and capital investment that benefits productivity, nature, innovation and growth in the agri-tech sector. This includes funding for our Environmental Land Management Schemes. Funds paid to farmers through these schemes will increase by 150% from £800m in 23/24 to £2bn by 28/29. Overall farmers and land managers will benefit from an average of £2.3bn a year through the Farming and Countryside Programme, and up to £400m from additional nature schemes, including those for tree planting and our peatlands. This investment is delivering sustainable food production and nature’s recovery for today and the years ahead, while putting money into farmers’ pockets.