A new report from UK think tank Demos, supported by McCain Foods, argues that scaling sustainable farming practices could play a central role in stabilising farm profitability, reducing input dependency, and protecting the long-term resilience of the UK food system.

The report, The Sustainable Farming Dividend, comes at a time of increasing policy focus on land use and agricultural sustainability, following the UK government’s recent publication of its Land Use Framework. Together, these developments point to a growing alignment between policy direction and economic arguments for change in primary agriculture.

For potato growers, the report addresses several structural pressures already affecting the sector, including input cost volatility, reliance on imported fertilisers, and exposure to climate-related production risks. Potatoes are among the more input-intensive arable crops, particularly in terms of fertiliser, water, and soil management, making them directly exposed to the cost and availability challenges outlined in the report.

According to the findings, transitioning to farming systems that support soil health, biodiversity, and resource efficiency—often described as regenerative or sustainable farming—could generate measurable economic benefits across the UK’s agri-food sector.

The report estimates that nature restoration linked to these practices could unlock £56.3bn in natural capital by 2035. It also projects that farm profitability could increase by £1.6bn annually over the same period, in a context where nearly one in five farms are currently operating at a loss.

Input dependency is identified as a key risk factor. With approximately 60% of nitrogen fertiliser imported into the UK, the report suggests that more sustainable farming systems could reduce total input costs by £905m annually, including a £449m reduction in fertiliser imports.

For potato producers, fertiliser use remains a critical cost component, particularly given crop sensitivity to nutrient management and yield consistency requirements. Any structural reduction in fertiliser dependency would therefore have direct implications for production economics.

The report also highlights a gap between public awareness and policy urgency, while suggesting that support for government intervention increases significantly when the link between farming practices, food prices, and climate impacts is clearly communicated.

Among surveyed respondents, 61% supported greater government investment in sustainable farming, while 45% said such investment should be prioritised over other spending areas.

The findings are positioned as a call for coordinated national action, with recommendations focused on scaling collaboration mechanisms and improving policy alignment. These include using existing instruments such as the Farmer Collaboration Fund and the newly introduced Land Use Framework to support farmer clusters and regional development initiatives.

Daniel Zeichner MP, Former Food Security and Rural Affairs Minister, said:

“We must stop treating sustainable farming as a niche environmental concern, and begin to recognise it as a cornerstone of our national economic and food security. I welcome Demos’ new report, which shows how we can shore up our food security and secure a resilient supply by growing sustainable farming practices across the country.”

Dan Goss, Lead Researcher at Demos, added:

“In an increasingly unstable world, Britain cannot build a secure economy on depleted land and fragile food systems. Rising food prices have become one of the clearest signals to the public that the cost of living crisis is biting and our economy is not working as it should. This is why sustainable farming is not just about protecting nature. It is about protecting the foundations of our economy and the financial security of citizens. By expanding its ambition to build partnerships across the farming sector, the government could deliver this powerful sustainable farming dividend.”

From an industry perspective, McCain Foods points to direct feedback from its grower base, including potato producers operating under contract.

James Young, VP of Agriculture at McCain GB&I, said:

“The Sustainable Farming Dividend report shows that sustainable practices strengthen the resiliency of our food system and protect farmers and their businesses. The findings reflect what we are seeing and hearing from our 250 British growers who are feeling the pressures of climate volatility and know the transition to a more sustainable system is essential. At McCain, we’re already investing in this transition in a number of ways including our commitment to implementing regenerative agriculture practices, but what is clear is that farmers cannot be expected to make this transition alone. We need all parts of the value chain, from policymakers to farmers to producers, working together to support it. Farmers are ready to lead this change, but they need long term policy certainty and the right incentives to invest with confidence.”

The report’s recommendations include developing standardised baselines for soil, carbon, water, and biodiversity metrics, as well as addressing skills gaps through targeted training and education initiatives.

For potato growers, the direction of travel is consistent with broader policy signals: increased emphasis on resource efficiency, reduced input reliance, and measurable environmental outcomes, combined with a continued need for yield stability and economic viability.