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Agri-environment scheme use and precision farming techniques provide a win-win for Duddo Estate
With reducing BPS payments in England, and much discussion about Biodiversity Net Gain and other nature markets, many farms are looking at these opportunities as a way of developing new income streams. This article explains how one farm in the North East of England went about it evaluating its natural capital on farm
Farm Facts
- 1418Ha owned and 60ha FBT
- Mainly Grade 3 land, some Grade 2
- Cultivations, 70% of land min tilled, 30% ploughed
- Rotation – Winter wheat, Beans/Oats/Potatoes, Winter wheat, Winter barley, Oilseed Rape
- Digestate used as a soil improver
- Agri-Environment agreements include HLS/ELS/CSS
- 272 gimmer lambs are grazed and sold as breeding ewes
Duddo Estate explores natural capital opportunities to replace Basic Payment Scheme (BPS)
Frank and Claire Dakin farm near Berwick, Northumberland. They have been HSBC customers for over 12 years, working with our Agriculture team to expand the farming business as opportunities arose through bespoke financing solutions. The farm is predominately an arable unit, growing a range of combinable crops and potatoes.
Over the years, the farm has entered several agri-environment schemes so that they can take marginal areas out of production, create infield habitats and restore several archaeological features on the farm. Sons, Will and Henry have worked elsewhere to gain experience, with Will recently returning to the farm, having worked over in Australia on large arable farms, this excites Frank whose ambition to grow the business and explore new opportunities hasn’t diminished. This has led Frank to look at the farm’s Natural Capital assets.
Following a regular farm visit by HSBC, a natural capital evaluation was discussed that could help the business understand what condition habitats on the farm were in, “we had heard lots about Biodiversity Net Gain (BNG) and rather than wait we decided to get ahead and map the farms natural assets,” explained Frank
Reducing BPS and the uncertainty over future income levels from Agri-environment schemes, meant I was keen to look at what income streams there might be from carbon markets, BNG and reducing our carbon emissions.
Natural capital evaluation uncovers several opportunities
The Natural Capital Evaluation was carried out by SAC Consulting, it has helped Frank and Will understand what habitats they have on the farm, the condition of these habitats and where their carbon emissions are “The report we had done has helped us, both in understanding our starting point on emissions and what habitats we have on farm, the information also helped us meet our audit requirements in order for us to supply our potatoes to the retail market” The work involved both digital mapping, and identification of habitat types, as well as walking the farm to undertake more detailed survey work to assess biodiversity, species, condition and quality of habitats. The farm records for the carbon audit data were supplied over email and the data inputted by SAC.
The report also highlighted several opportunities for the farm, integrating regenerative practices, precision agriculture and renewable energy, that would provide a realistic pathway to make carbon and natural capital wins. ‘We’re exploring all of these, solar panels on the new grain store roof will provide a way to offset energy costs as the farm has a high energy demand through September to March when we refrigerate and store the potatoes’ said Frank.
Will has also taken forward the precision agriculture work, using variable rate drilling and fertiliser applications this autumn, they already had much of the technology needed, it was a case of training the team on farm, having the right subscriptions and online software, and making sure they had soil tests carried out. The farm then uses min till across 70% of its land and will continue to increase this practice to minimise soil disturbance, the exception to this is where they have heavy land and some black grass problems, ‘you have to find a balance that works for your farm’ explained Frank.
Today we finance a number of industries that significantly contribute to greenhouse gas emissions. We have a strategy to help our customers to reduce their emissions and to reduce our own. For more information visit www.hsbc.com/sustainability.