Jeremy's Blog 11th August 2023: Preparing for Future Needs

This article by Jeremy Moody first appeared in the CAAV e-Briefing of 11th August 2023

A recent international survey by the insurance broker, Gallaher, found UK businesses curiously passive in preparing for climate change. 48 per cent said it had already harmed them, with a mix of the direct impact of extreme weather, higher operating costs and disrupted supply chains. However, 53 per cent had then taken no action, thinking it the government’s task to ensure that businesses prepared – only 16 per cent saw firms taking full responsibility That echoes a survey last year by the Cambridge University Institute for Sustainability Leadership when 82 per cent of UK business leaders thought it was for government to drive necessary climate adaptations. Less than half thought they should do so themselves – but that was 69 per cent in the USA and 76 per cent in Japan.

Those are large businesses not protecting their resilience. Farming, a sector based on extensive use of land, dependent on weather, in international resource markets and perhaps better attuned to longer term planning, faces the same questions in adapting to a changing future.

The answers will vary between types of farming and geography but will have a common theme of building in resilience against a wider range of threats, as well as seeking out opportunities in change. Improving soils might be in almost all plans, with multiple benefits. A carbon audit - almost any carbon audit - should start to draw attention to the issues, not necessarily looking for a low carbon result that could appear to limit room for improvement when suppliers demand it.

Farms reliant on water should look at maximising storage and the technology for using it efficiently. Extreme rainfall and, for many, flooding pose challenges, requiring the protection of farm infrastructure with drainage and for many livestock farmers also keeping clean water from dirty.

Having on-farm power generation could help some as the grid comes under pressure with rising electricity use. The measures that Italian and US dairy farmers are taking to fan and mist their cows in high temperatures add to the demand for electricity. DEFRA’s coming calf housing scheme will cover some solar panels and ancillary equipment.

The issues are wider as grant schemes now assist what might in only a few years become compulsory. Grants may help improving slurry storage now when regulation may soon simply require it.

We can only expect increasing action against nutrient losses. Housebuilders with businesses threatened by nutrient neutrality point to the Environment Agency granting 99.4 per cent of applications for NVZ derogations from 170kg/ha to 250kg/ha. The British Survey of Fertiliser Practice 2022 shows three-quarters of cropping farms using slurry broadcasting it. Yet, aided by FETF grants, low emission slurry spreading, reducing ammonia emissions with their financial and environmental costs but with reported lower work rates, might soon just be required.

It goes wider in looking at the business. Do its land occupation arrangements bring value to the business? What infrastructure and fixed equipment might be needed? Where will technology bring value?

The common theme is thinking now to building resilience into the business, taking advantage of support where it makes sense; taking responsibility when acting now can manage change and cost more effectively. Valuers can assist with the recognition of risks and opportunities, providing advice and review, and, as relevant, assessing and assisting with schemes, grants and other applications.