November 1, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Impact-driven carbon finance company Respira International has entered into a multi-year agreement with Phillipson Estates, the owner of Blaston Farm in Leicestershire, for the purchase of voluntary carbon certificates generated by carbon sequestration on arable farmland. 

This marks the first UK project of its kind to generate certificates based on measured high-density, direct, and verified soil sampling, and follows on the heels of DEFRA’s recent decision to pay GBP40 per hectare under the Sustainable Farming Incentive (SFI) scheme for soil improvement.

Forming the foundation of this project are:

Management, measurement, and monetization – offering an economically viable support system for UK farmers to implement regenerative practices. 

Guaranteed price – An agreed upon floor price for soil carbon certificates allows the farmer to share in the upside on pricing.

 Engagement of UK corporates – DASH sparkling water has already purchased certificates generated at Blaston Farm as part of their net zero strategy. 

“I was briefed on the work at Blaston when I had responsibility for green finance and I am thrilled to see it coming together,” said Lord Benyon, Parliamentary Under-Secretary, DEFRA. “This is a trailblazer for similar schemes rewarding farmers for doing the right things for food, for carbon and for biodiversity.”

The value of the certificates, together with the SFI payment, will provide assurance that regenerative practices will be economically viable, and for Blaston Farm, the sale of these certificates is expected to be the second largest income stream for the operation after wheat.

“The greatest medium- to long-term risk to local food production is from climate change and other environmental pressures,” said Ana Haurie, co-founder and CEO, Respira International.

Under the terms of the agreement, Respira has committed to purchase the carbon certificates from Blaston for the current and upcoming production cycles, the sale of which, on the voluntary carbon market, will give UK corporates to mitigate emissions through the funding of domestic sequestration. Hence, creating essential income streams to drive the broader adoption of similar regenerative practices on farms across the country.

“Soil degradation, erosion, and compaction are estimated to cost about £1.2 billion each year  in the UK – in addition to which they reduce the UK’s capacity to produce food.1 By establishing a financial incentive to encourage measured positive environmental outcomes, the private sector can support the much needed transition. To that end, we are seeing strong demand from corporate buyers to support this, and similar, initiatives.” 

The Blaston Approach

Hylton Murray-Philipson of Phillipson Estates set a goal for his farming operation to improve the soil by diversifying crops, farming with nature, and enhancing sustainability with the target of evolving the business into a net sequester of carbon.

Admittedly, this poses an uphill battle as the plan bucks traditionally accepted means of conventional food production, while UK farmers have lost the support of the EU Basic Payment Scheme (BPS), 

With the advice and support of independent agronomist consultant Indigro, Blaston’s plan focuses on:

Minimal soil disturbance – The implementation of direct drilling was introduced after the first cover crop was established, and today, all arable crops are now direct-drilled to preserve organic matter. 

Permanent soil cover – Soil left exposed to the elements will erode away. Therefore, a range of covering species protects the soil while also building up organic matter while reducing CO2 emissions and drawing down carbon from the atmosphere.  Also introduced were catch crops that allow green cover harvesting sunlight between harvest and autumn drilling. 

Diverse crop rotations and interactions – By reintroducing livestock grazing and rotational grasses in the arable rotation, Blaston works with nature by having livestock improve soil biology while the grasses reduce weed burdens and improve soil health. 

The Results

Detailed soil analysis across all fields in the 230-acre project area were carried out by ecometric prior to the beginning of the 2021 growing season. One year later the measurements were repeated in order to quantify the precise amount of carbon absorbed throughout the production season. These results were then cross-checked using ecometric’s satellite imagery AI analytics.

Total farm emissions, including permanent pasture and animal production, were subtracted from the carbon gain to ensure the operation is climate-positive and a net carbon sequester, concluding that more than 5,000 tons of carbon for the 2021-22 season was captured.

“ecometric’s unique soil organic carbon [SOC] monitoring  system has been developed for farmers, estate managers, agronomists, food manufacturers and retailers – and the carbon markets,” said David Wright, CEO, ecometric.

“Combining direct soil measurement with AI imagery analytics significantly increases accuracy and scalability compared with traditional systems.  Land managers can now actively contribute to climate change mitigation through  regenerative soil management, evidenced by carbon stock changes. We are pleased to work  with Blaston and Respira to deliver a template for identifying and monetizing SOC surpluses.

Sales of carbon certificates will produce more revenue than we traditionally received from Brussels and will enable Blaston to be financially and environmentally sustainable going forward,” added Murray-Phillipson. “I hope that this  transaction will encourage farmers up and down the country to adopt regenerative practices to restore life to the soil, enhance profitability and make a decisive contribution to achieving  net zero.” 

Murray-Phillipson concluded, “It’s good for the soil; good for biodiversity, and good for the planet.”

SOURCES:

1 https://quota.media/soil-degradation-costs-the-uk-1-2-billion-each-year/

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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