Academic Advisory Panel – 5 August - Summary

Items and actions

Greening options for permanent pastures, and soil carbon markets and natural capital

1. Introduction  

The Chair welcomed everyone to the meeting and introduced two new panel members: Adriana Ignaciuk (OECD), and Paul Burgess (Cranfield University). The Panel discussed feedback received from ARIOB and Scottish Government policy officials on two advisory notes: ‘Agricultural Knowledge and Innovation System’, and ‘Water Scarcity and Excess’. Panel members suggested that all advisory notes should be made publicly available. The Panel also reiterated the request for ARIOB to consider the possibility of inviting representatives from SEPA and the Crofting Commission to attend ARIOB meetings as observers.

2. Climate and nature positive options for permanent pastures.

The Tier 2 - Enhanced level direct payments of the future Agriculture Support Package Beyond 2025 are designed to support active farming and food production while promoting agricultural practices beneficial to nature and climate. To expand opportunities for farmers and crofters to add value to their farm types, new Ecological Focus Area (EFA) options, aligned with the published measures are being considered, to address the current lack of options for permanent grassland.

Two new potential options for permanent pastures were presented to the Panel: low input grassland, and herb and legume rich pasture. The Panel discussed the potential impacts of proposed changes on climate and the environment. The Panel was of the opinion that the recommendations listed in the species rich pastures option had greater potential to bring a wider range of environmental and livestock benefits and that the low-input grassland option may result in the unintended consequence of EFA being moved from arable to permanent grassland (PGRS). Discussion on the guidance identified several elements, such as allowing use of high-quality manure to enhance soil health or restrictions to herbicides use which may be considered for inclusion which led into further discussions on the operational constraints of the initial offering from the Tier 2 - Enhanced. The Panel also emphasized the importance of including long-term commitment in the proposed changes, as frequent shifts between different land uses or management practices may result in negative consequences, such as loss of soil carbon or deterioration of soil structure.   

The Panel members also suggested options that should be considered in the future, including wader-grazed grassland, water margins in grassland, in-field trees, restoration of hedgerows, control of rushes, establishment of wildflowers, and control of invasive species including bracken. The maintenance of water margins in grassland was highlighted as an important measure for quick and easy biodiversity benefits, as well as for  improving water quality, and soil structure.

3. Soil Carbon and Natural Capital Markets

Many organisations have set net zero targets requiring a mix of emission reductions and carbon removals, which can be done in-house or through external projects. If this happens within the supply chain, it’s termed “insetting”, outside the supply chain, it’s “offsetting” via carbon credits. Both face challenges related to measuring baselines, monitoring changes, and ensuring financial viability, transparency, and market integrity. Inconsistent rules and slow carbon credit process reduce incentives for generating credits.

Agriculture is a key area for insetting and offsetting presenting potential income generation opportunities for farmers and crofters. However, agriculture is already subject to commercial pressures to reduce net emissions as a condition of selling into certain supply-chains. For example, suppliers to supermarkets may increasingly expect farm businesses to demonstrate net zero credentials as a “licence to trade”. Efforts to “stack” environmental credits on the same land add complexity.

Accurate soil carbon baselines are crucial to track changes and prevent accusations of greenwashing. However, measuring soil carbon is costly and lacks standardisation. Remote sensing tools may improve accuracy on mapping the soil surface but cannot yet differentiate carbon content. Soil carbon markets must address the limited potential for sequestration, potential for carbon loss from erosion and climate change, and consider long-term impacts on wider ecosystems. A standardised approach to soil carbon accounting is essential for market credibility.

4. AOB

The next AAP meeting is scheduled for 28 October 2024. The agenda will be adjusted to align with the ARIOB workplan.

Two Panel members are invited to join the next ARIOB meeting. Notes of interest should be sent to the AAP secretariat.

Panel members would like to request feedback from ARIOB on whether the Panel is providing meaningful advice that meets the needs of ARIOB.

Summary of Actions:

• The AAP secretariat  will explore options to make advisory notes available in the public domain
• The AAP secretariat will discuss with the ARIOB secretariat the possibility of inviting SEPA and Crofting Commission representatives to attend ARIOB meetings as observers.
• The AAP secretariat will request feedback from ARIOB on the advice provided by the Panel.