Supply chain urged to work fairly with farmers on carbon insetting
Press ReleaseA coalition of farming and rural organisations has called on the agricultural supply chain to ensure farmers and growers are treated fairly as businesses seek to reduce carbon emissions.
In an open letter to the supply chain and the governments of the UK – a letter led by Scottish Land & Estates (SLE) and the Central Association for Agricultural Valuers (CAAV) - the organisations warn that some farmers are facing increasing pressure to meet evolving compliance requirements linked to sustainability, regenerative farming and emissions reductions - but without enough consideration of the costs, risks and practical implications for farming and producer businesses.
Carbon insetting, where buyers claim carbon reductions delivered by their suppliers, is recognised as an appropriate way to support supply chain decarbonisation – the drive to deliver scope 3 emissions reductions under the Greenhouse Gas (GHG) Protocol.
However, signatories including the Tenant Farmers Association of England and Wales, The Game and Wildlife Conservation Trust and the Country Land & Business Association – as well as SLE and CAAV - have stressed that it must be delivered in a fair, transparent and high-integrity manner.
The letter says buyers must address four key issues when developing insetting arrangements with farmers and growers:
Adequate payment for carbon outcomes, in addition to payment for the product itself.
Free, prior and informed consent, with suppliers given time to consider agreements and seek professional advice.
Permanence, ensuring carbon removals meet recognised standards and monitoring requirements.
Ownership, with farm data and unsold carbon outcomes remaining the property of the supplier.
The letter also highlights the importance of good contract practice, including ensuring farmers are not discouraged from seeking advice, tenants are able to discuss agreements with landlords, and clear dispute resolution or appeals processes are included.
The organisations are also asking the supply chain for improved recognition that agricultural policy is devolved, meaning agreements involving farmers in Scotland and Wales should reflect the laws and policy frameworks of those countries rather than assuming an England-only approach.
Eleanor Kay, Senior Policy Adviser for Scottish Land & Estates, said: “Farmers and growers have a vital role to play in helping the supply chain deliver on climate and sustainability ambitions, and there are already many examples of constructive relationships that reward sustainable and regenerative practice.
“However, we are increasingly concerned that some supply chain approaches risk placing disproportionate cost, responsibility and legal uncertainty on primary producers. Decarbonisation cannot be delivered by simply passing obligations down the chain without proper remuneration, consent or clarity.
“We are aware of actors within the supply chain that are not currently adhering to appropriate best practice. Insetting can be a positive and legitimate tool, but it must be done properly. That means fair payment for the carbon outcomes being claimed, transparent use of data, respect for ownership rights, and agreements that allow farmers to take proper professional advice.”
George Dunn, the chief executive of the Tenant Farmers Association of England and Wales, supported the concerns for farmers and growers around insetting.
Mr Dunn said: "It is wholly inappropriate for processors and retailers within farm produce supply chains to use their leverage to gain unfair advantage over farmers and growers.
“In the emerging and developing carbon insetting environment, we must build in good practice and ensure fairness for all participants. Farmers and growers are well placed to deliver considerable benefits to wider society through their ability to sequester and store carbon which must be recognised.
“Insetting arrangements within supply chains need to also understand and respect the complexities of the contractual and statutory obligations that exist between owners and occupiers of agricultural land including within farm tenancies."
The open letter can be read here.