Beyond compliance: Regenerative farming and the legal landscape

As UK agriculture faces growing pressure to deliver public goods while meeting onerous environmental requirements, many farmers are rethinking traditional production models. Increasingly, they’re looking beyond compliance to adopt sustainable, resilient practices that support both the environment and the bottom line.

Regenerative farming, a holistic approach centred on soil health, biodiversity, and low-impact techniques, is gaining traction not just as an environmental ideal, but as a strategic advantage.

Mark Charter, Partner, and Harvey Davies, Head of Natural Capital in Thrings’ Agriculture team explore the legal and commercial landscape shaping this transition.

What is regenerative farming?

Regenerative farming aims to restore and enhance natural systems through techniques like cover cropping, rotational grazing, reduced tillage, and agroforestry. These practices improve soil structure, increase carbon sequestration, and support biodiversity while reducing reliance on synthetic inputs.

The legal landscape

While regenerative farming is not yet formally defined in UK law, it intersects with several legal areas:

• Land use and planning: Infrastructure to support regenerative practices (e.g. composting sites, water retention systems) may require planning permission or fall under permitted development rights;
• Contracts and tenancies: Farm Business Tenancies may need updating to reflect regenerative methods, especially where practices diverge from traditional norms;
• Environmental agreements: Conservation covenants and natural capital projects can formalise regenerative commitments and unlock crucial new capital investment;
• Subsidies and incentives: The Sustainable Farming Incentive (SFI) rewards actions aligned with regenerative principles, but eligibility and scheme overlap can be complex and new SFI agreements are not available currently.

Commercial benefits

Regenerative farming isn’t just good for the planet - it’s good for business:

• New income streams: Farms may be able to generate important new income streams from natural capital markets such as BNG, nutrient neutrality and carbon;
• Succession planning: Regenerative farms may be more attractive to next-generation farmers and investors;
• Resilience: Healthier soils and diversified systems reduce vulnerability to extreme weather and market shocks.

Getting started with regenerative farming

Transitioning to regenerative farming can be a standalone objective of part of a wider reconsideration of your farm business. Here are some practical steps farmers can take to begin the journey:

• Assess your land and current practices: Start by understanding your soil health, biodiversity levels, and existing inputs. Soil testing, biodiversity audits, and mapping can help identify areas for improvement;
• Consider planning and environmental impacts: While regenerative farming often focuses on land management rather than development, farmers will need to consider what permissions and consents are required if infrastructure changes are planned or the changes to their agricultural practices are part of a wider strategy for the farm.. For example, woodland planting may require a consent under the EIA Regulations;
• Measure: Whether it’s improving soil structure, reducing synthetic inputs, or increasing biodiversity, establishing the current environmental ‘baseline’ of your land and quantifying the ways it will be enhanced could help open up access to natural capital markets or meet supply chain requirements;
• Seek advice and build networks: Connect with agronomists, regenerative farming groups, and legal advisors to understand best practices and any implications for land use, tenancies, or environmental schemes;
• Review legal and commercial frameworks: Consider whether your tenancy and contractual agreements are up to date, and what permissions or consents may be required to facilitate adoption of new farming systems. Legal advice can help ensure compliance and unlock funding opportunities;
• Document your journey: Keep records of changes, outcomes, and any agreements made. This can support future funding applications, succession planning, and even natural capital market participation.

Regenerative farming offers a powerful way to align sustainability with profitability. As policy evolves and environmental pressures grow, farms that embrace regeneration may find themselves not just surviving but thriving.

Mark Charter, Agriculture Partner at Thrings, said: “Regenerative farming is a strategic shift, not just an environmental ideal. As pressures mount, farms that invest in soil health and biodiversity are building resilience and unlocking new commercial opportunities”.

Harvey Davies, Head of Natural Capital at Thrings, added: “We have numerous clients who have adopted more regenerative techniques and have seen increased resilience in their production systems particularly with the very challenging weather conditions this year. In addition, they are also grasping the opportunities presented by natural capital markets and the pivot towards a more sustainable agricultural enterprise.

“But it’s not a one-size-fits-all journey. Farmers need practical steps, legal clarity, and support to make the transition. From conservation covenants to natural capital markets, the legal landscape is evolving to help them do just that.”

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. To find out more and for advice, please do get in touch.