"There is a conflict of land uses at present. Over time we have evolved to maximize food production, but there has been a carbon impact and a loss of biodiversity as a consequence of that. Since that's been realized, there has been much more focus on the environment. But the war has focussed everyone on food again."
A key topic in the UK is whether alternative land uses offer a more attractive option than farming. Renewables and carbon capture are two alternative income streams that will potentially require agricultural land to be taken out of production.
As the carbon market evolves, real estate partner David Holland considers that carbon capture will become a significant feature of the British agricultural sector. "The demand for farmers and landowners to monetize carbon reductions will increase over coming years. At the moment, carbon capture is focused on woodland and peat, but grassland also presents a significant opportunity."
However, David adds, long-term management agreements will be needed, and thus far, no statutory framework has emerged to regulate the market in carbon credits. This is not helping UK farmers to resolve the dilemma of whether to maximize food production, focus on biodiversity or perhaps devote land to producing renewable energy.
Read more at withersworldwide.com