Considering the unpredictable nature of farm margins, what straightforward opportunities are available for farmers to earn extra income through carbon initiatives?

Today, our experts shed light on this. 

• Agrii’s Amy Hardwick, Sustainability and Environmental Manager, 
• Agrii’s Neil Harper, Agronomist and Arable Technical Manager, and
• Alan Clifton-Holt, Farms Director at AA Clifton Ltd, who farms on Romney Marsh in Kent.

Carbon Farming: Can UK Farmers Earn Additional Income Without Changing How They Farm?

With arable margins under sustained pressure, many UK farmers are asking a simple, practical question: are there realistic ways to generate additional income without undermining core food production?

In a recent episode of Tramlines, Agrii experts and a commercial arable grower explored whether carbon initiatives can provide a credible, low-friction income stream for farm businesses.

What emerged was a grounded, experience-led discussion, less about theory, more about what is genuinely working on farms today.

Why are farmers looking beyond traditional income streams?

Farm profitability is increasingly shaped by factors outside a grower’s control — volatile markets, shifting policy, environmental regulation and climate pressure.

As Amy Hardwick, Agrii Sustainability & Environmental Manager, explains, this uncertainty makes it vital to focus on what can be controlled within the farming system:

• Input choices and efficiency

• Soil health and long-term resilience

• Diversifying income alongside food production

Environmental revenue streams,  carbon in particular, are now part of that conversation, sitting alongside schemes such as SFI and private-sector initiatives.

Recent analysis suggests there are more than 70 environmental income opportunities available to UK farmers. The challenge is not availability, but understanding which are practical, proportionate and relevant to individual businesses.

What are carbon farming schemes and how have they changed?

Carbon programmes have existed for several years, but early versions were often unattractive to farmers:

• Long-term (10–15 year) commitments

• Heavy paperwork

• Little flexibility

• Perceived conflict with productive farming

That picture has changed markedly.

Modern carbon schemes - including those supported through Agrii - are now typically:

• Annual, rolling contracts rather than long-term lock-ins

• Designed to work alongside food production, not replace it

• Focused on emissions reduction across the whole system, not just soil carbon

This shift has opened the door for many more growers to at least explore their potential value.

Can carbon income really stack with food production?

Yes! And this is one of the most important developments.

Unlike some environmental options that require land to be taken out of production, carbon programmes often allow farmers to stack income streams on the same hectare.

Carbon value is influenced by how crops are grown, not whether crops are grown at all. Key factors include:

• Cultivation approach

• Nutrient management and fertiliser choice

• Use of cover crops

• Fuel and diesel efficiency

• Crop rotation and diversity

In practical terms, this means carbon income can act as a bolt-on, rather than a trade-off.

Is carbon farming accessible for most farms?

According to Neil Harper, Agrii Agronomist and Arable Technical Manager, accessibility is no longer the main barrier, understanding and time are.

Farmers are already dealing with significant paperwork and compliance. Any additional scheme must clearly justify the time required.

Encouragingly, newer platforms now reduce that burden substantially:

• Farm data can be auto-generated using SBI numbers

• Cropping history, cultivations and cover crops can be remotely sensed

• Growers can receive early estimates before committing time to full data entry

In many cases, this allows farmers to decide very quickly whether a scheme is worth pursuing further.

How much time does it actually take?

For larger arable businesses, the full process may still take several hours, but the return on that time can be significant.

Neil shared examples where:

• 4 - 5 hours of data input

• Generated tens of thousands of pounds in potential carbon value

• With no fundamental change to existing agronomic practice

As platforms improve and historical data is reused year-on-year, that time requirement continues to fall.

What does carbon income look like on a real farm?

Alan Clifton, Director at Holt Farms on Romney Marsh, has been actively involved in carbon programmes for several seasons.

His experience is instructive:

• Estimated annual carbon value of £35,000–£40,000

• Generated largely from practices already in place

• Including long-term cover cropping, spring cropping and diverse rotations

Crucially, this was not driven by chasing carbon for its own sake. As Alan puts it, the farm was already operating in a way that delivered agronomic and environmental benefits, the carbon scheme simply recognised and valued that.

While carbon markets fluctuate, the presence of a tangible, bankable asset has become a meaningful addition to the business conversation, including with accountants and financiers.

Do farmers need to go fully regenerative to benefit?

No.

While direct drilling, organic amendments and regenerative systems can increase carbon value, many conventional or hybrid systems also perform well.

Most farmers involved have not radically changed practice. Instead, the schemes reward:

• Efficient nutrient use

• Thoughtful cultivations

• Sensible rotations

• Long-term soil stewardship

In some cases, awareness of carbon value may gently reinforce decision-making,  but it is rarely the sole driver.

What’s the real takeaway for UK farmers?

Carbon is not a silver bullet. Values will vary, markets will move, and it will not suit every business in the same way.

However, the message from this discussion was consistent:

• Carbon schemes are simpler, more flexible and more farmer-focused than they were

• They can deliver meaningful additional income

• They do not require abandoning productive agriculture

• The initial step, exploring potential value, is often free and low risk

As Amy summarised: have a look. Understanding the opportunity does not mean committing to it.

In an industry under sustained pressure, carbon income may not be the whole answer, but for many farms, it is increasingly a sensible part of the wider picture.

Listen to the full discussion on the Tramlines podcast to hear the voices and experiences behind these insights.