How can farmers navigate environmental regulation without losing viability?

Environmental regulation is reshaping the agricultural landscape. From nutrient neutrality to water protection zones, farmers are under increasing pressure to deliver public goods while maintaining viable businesses.

With biodiversity and sustainability now central to policy, the challenge for farmers lies in balancing compliance with commercial reality.

Mark Charter, Partner in Thrings’ Agriculture team, explores how farmers can respond to environmental obligations without compromising their bottom line.

The regulatory landscape: what are farmers facing?

Farmers are being asked to play a central role in delivering environmental outcomes, from cleaner water and healthier soils, to increased biodiversity.

Key regulatory pressures include:

• Nutrient neutrality: Restrictions on development and land use to prevent excess nutrient runoff into protected habitats
• Water protection zones: Limits on fertiliser use and livestock management near sensitive catchments
• Biodiversity targets: Expectations to enhance natural habitats, often linked to planning and funding eligibility

While these goals are important, they come with real-world consequences for farmers:

• Land that was once productive may now be subject to restrictions
• Planning applications can be delayed or denied
• Compliance often requires investment in infrastructure, consultancy, and monitoring

The cost of compliance

Meeting environmental obligations isn’t just about paperwork - it’s about resources.

Farmers may need to:

• Install buffer strips or wetlands
• Reduce livestock density
• Change fertiliser regimes
• Engage with ecologists and legal advisors

These changes come at a cost. A recent economic analysis found that £5.9 billion per year is needed across the UK to support nature-friendly farming at a scale that meets climate and biodiversity targets. Currently, the agricultural budget stands at £3.5 billion, with only 20–25% allocated to agri-environment schemes.

Additionally, a four-year study conducted on English farms by Rothamsted Research shows that while agroecological practices (like wildflower margins and cover crops) can boost biodiversity and even crop yields, most systems remain financially unviable without subsidies. Only moderate schemes broke even - and only with government support.

Finding the right balance: legal and commercial strategies

While the path forward is clouded by delays, funding gaps, and shifting policies - particularly around schemes like ELM - farmers can still take proactive steps to navigate regulation without sacrificing viability:

• Understand your obligations: Seek early advice on how regulations apply to your land and business
• Explore funding opportunities: Consider which available schemes are suited to your activities
• Review contracts and land use agreements: Ensure they reflect current environmental constraints
• Consider diversification: Eco-tourism, conservation credits, and sustainable farming models may open new revenue streams
• Collaborate locally: Working with neighbouring landowners or catchment partnerships can reduce costs and improve outcomes

Mark Charter, Partner in Thrings’ Agriculture team, said: “Farmers are now being asked to deliver more than just food - they’re being asked to deliver clean water, biodiversity, and climate resilience. These are vital goals, but they must be balanced with the realities of running a viable business.

“Legal advice can help farmers understand their obligations, unlock funding, and make informed decisions about land use and diversification.”

Thrings’ Agriculture team is one of the largest of its kind in the UK with decades of experience in successfully supporting its farming and landowner clients to achieve their aims and the potential for their business. Its lawyers are ranked in the highest tier by both the prestigious Legal 500 and Chambers & Partners directories and have been chosen by the NFU to act for its members in more counties than any other firm. To find out more and for advice, please do get in touch.