Harper Adams is supporting farmers monetarise natural capital

It is increasingly becoming possible for farmers to monetarise the ‘natural capital’ associated with their businesses. Harper Adams University is focused on the tools, relationships and skills to develop the monetarisation of a range of environmental services.

Since April 2024, it has become compulsory, with only a few exceptions, for developers of residential and commercial projects to enhance biodiversity by at least ten percent – already some local authorities have increased this to 20%. This Biodiversity Net Gain (BNG) is a measurable improvement for wildlife, and it can be achieved either on-site, offset, or through purchasing statutory ‘Biodiversity Credits’ that will be used to create habitat projects in the future.

Every development project will need a BNG plan to gain approval, but the calculations are complex. Harper Adams University is working with Legacy Habitat Banks to develop the tools and approaches needed to support calculations of BNG as well as to build ecological skills in specialists and other adjacent professional roles to ensure the opportunities that BNG offers are optimised both financially and environmentally.

The UK Habitat Classification is the official description and grading of habitats and feeds into the statutory Biodiversity Metric, the standard method of baselining biodiversity. However, these are difficult for non-specialists to interpret.

Scott Kirby, Agriculture and Sustainability Consultant at Harper Adams, comments: “There are real opportunities emerging for landowners to develop alternative income streams through the provision of ecosystem services and public good. Some markets like BNG are underpinned by legislation and are developing rapidly. However, they need to establish a 30-year commitment with the developer that takes into account the opportunity cost of any alternative uses for that land.

“Other services such as Carbon sequestration lack the regulatory governance and are developing in a more complicated voluntary environment with a myriad of options.

“At Harper Adams we are especially interested in horizon scanning for other ecosystem services that landowners may be able to develop. A recently established project partnering with Cranfield University is looking at how advanced remote sensing and modelling could allow landowners to monetarise and manage both high and low water flows in a catchment.

“We see a future where a range of environmental services such as nutrient removal, flood mitigation, habitat creation or peat re-wetting become an established enterprise on many farms.

“To achieve this requires good metrics to measure and manage these assets, such as those being developed by Harper Adams.”

Harper Adams University will be exhibiting in the Agri-TechE Innovation Hub at the Royal Norfolk Show 2024 on 26-27th June. The hub is sponsored by BBRO.