Biodiversity measures impacting farming and agriculture in the UK and Ireland
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Transition to a more holistic approach
In the UK, the 25 Year Environment Plan 1 has established ambitious targets to enhance water quality and safeguard threatened plants, trees and wildlife species. Ireland has established similar objectives in the National Biodiversity Action Plan. 2 Recent measures introduced in both the UK and Ireland recognise the need to balance the protection of biodiversity with the vital role that farming plays in society. As a result, there has been a shift in focus from the individual farming activity to a more holistic approach, considering the collective effect on the area in which the farming occurs. This can be seen in the Environment Agency’s change in approach to the granting of abstraction licences, the focus moving from the individual applicant to a holistic approach based on a catchment area. Environmental groups and government agencies have generally welcomed the move towards a more holistic, landscape-scale approach, arguing that it is more effective for addressing issues such as habitat fragmentation, water quality and species decline. Farmers’ reactions are more varied depending on local circumstances and the level of support provided for adaptation.
More certainty and support required for farming
The agricultural sector is undergoing significant transformation as a result of increasing emphasis on biodiversity and sustainability. The introduction of new policies and schemes across the UK and Ireland reflect a growing recognition of the need to integrate biodiversity conservation with agricultural production, leading to a shift in industry practices and priorities. For many farmers and agri-businesses, these changes present both challenges and opportunities.
The move towards sustainable farming practices often requires investment in new methods such as reduced pesticide and fertiliser use, the creation and maintenance of wildlife habitats and the adoption of low-carbon and water-efficient technologies. While these measures can entail initial costs and adjustments to traditional practices, they are increasingly supported by financial incentives, advisory services and regulatory frameworks designed to ease the transition.
However, the ability for abstraction licences in England and Wales to be varied or revoked without compensation from 2028, where such action is necessary to protect the environment, creates uncertainty and will increase operational and financial risks for the industry. Farmers may need to adapt their operations to mitigate the risk of licence variation or revocation. Farming associations have expressed concern, highlighting that water abstraction is critical for many agricultural operations; the prospect of access to water being lost or restricted without financial compensation is seen as a major risk to farm viability and long-term planning. The consensus is that the sector is not fully prepared for this change. While some larger or more progressive farms have begun to invest in water efficiency, storage and alternative sources, many others lack the resources or knowledge to adapt quickly. Further support and guidance are essential to help farmers transition and adapt to the new regulatory environment.
Do the sums add up for consumers?
The industry is also experiencing a growing demand for sustainably produced food, with consumers and retailers placing greater value on environmental credentials. This trend is encouraging innovation and diversification within the sector, as producers seek to differentiate their products and access new markets. However, there are concerns among some stakeholders regarding the administrative burden of compliance, the adequacy of financial support and the potential impact on farm profitability, particularly for smaller or more marginal operations.
While the importance of biodiversity is increasingly recognised, its direct impact on consumers’ plates, particularly in terms of food prices and quality, remains a relatively underexplored topic in public debate. This may change as the effects of new policies become more apparent and as public interest in sustainable food systems continues to grow.
Conclusion
Overall, the drive to enhance biodiversity is reshaping the agricultural landscape, prompting the industry to balance productivity with environmental stewardship. The long-term success of these initiatives will depend on continued collaboration between government, industry and the wider rural community, as well as ongoing monitoring and adaptation of policies to ensure both economic viability and ecological resilience. Ultimately, the transition to more sustainable agriculture offers the potential not only to restore biodiversity, but also to enhance the resilience and competitiveness of the industry in a changing world.
Measures to address biodiversity loss
The emphasis in the UK and Ireland is on encouraging widespread adoption of sustainable practices through financial support and clear targets to address the impact of agriculture and farming on biodiversity.
Initiatives include the Environmental Improvement Plan (EIP) 3 and the Sustainable Farming Incentive (SFI). Notably, the EIP aims for 65-80% of landowners and farmers to adopt nature-friendly farming on at least 10-15% of their land by 2030, and the SFI provides financial incentives for farmers to adopt practices that improve biodiversity, water quality and soil health. The EIP is currently under review to assess current performance and ensure targets can be met 4 and plans for a reformed SFI scheme are expected to be announced following the Spending Review in Summer 2025. 5 In addition, the Environmental Act 2021 allows for the variation or revocation of abstraction licences without payment of compensation from 2028 where such action is necessary to protect the environment. This represents a substantial shift from previous arrangements, where licence holders were generally entitled to compensation if their rights were curtailed.
A new Sustainable Farming Scheme 6 will commence in 2026 with the objective of improving biodiversity across farmland in Wales, enhancing soil and water quality, and providing financial and advisory support to farmers implementing sustainable farming practices.
The Agriculture and Rural Communities (Scotland) Act 2024 promotes sustainable farming and agricultural practices including the use of low-carbon technologies and methods that enhance soil health. The Act supports initiatives aimed at protecting and enhancing biodiversity on agricultural land, including the creation and maintenance of habitats for wildlife such as hedgerows, woodlands and ponds. The Act also mandates the development of a Rural Support Plan, which outlines how support will be provided to farmers and rural communities, considering environmental impacts, economic viability and social benefits. In addition, Scotland’s Whole Farm Plan mandates certain reporting including biodiversity audits for farmers wishing to access the Basic Payment Scheme agricultural subsidy. 7
The Environmental Farming Scheme 8 offers financial incentives for farmers to implement measures that promote the conservation and enhancement of wildlife habitats and species, reduce agricultural run-off and pollution to improve the quality of water bodies, and reduce greenhouse gas emissions and increase carbon sequestration.
he Fourth National Biodiversity Action Plan (NBAP) 2023-2030 9 sets out high-level objectives, specific targets and actions to reverse biodiversity loss in Ireland. The Common Agricultural Policy (CAP) Strategic Plan 2023-2027 10 provides a comprehensive framework and range of measures designed to support sustainable agriculture, including the Agri-Climate Rural Environment Scheme (ACRES), which offers financial incentives for farmers to undertake actions that enhance biodiversity and improve water quality. In addition, the Fifth Nitrates Action Programme (NAP) 2022-2025 11 and the Good Agricultural Practice (GAP) Regulations 12 set mandatory standards for farmers regarding the storage, management and application of organic and chemical fertilisers, with the aim of protecting water quality and aquatic biodiversity from the adverse effects of agricultural activities.