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      By Matthew TiltAugust 1, 2025
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    Environmental Land Management Scheme/Policy

    New fund to reward farmers for reducing emissions

    Matthew TiltBy Matthew TiltJanuary 3, 20253 Mins Read
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    Joseph Gridley - CEO, Soil Association Exchange

    The Soil Association Exchange has announced a new Exchange Market, which will enable the supply chain to reward farmers for reducing greenhouse gases.

    Rather than selling carbon credits, the fund will pool money from a range of companies with shared supply chains to pay farmers. The organisation calls it an insetting scheme, rather than a carbon offsetting arrangement.

    Support has been provided by Lloyds, which helped to convene retailers and landowners including the Co-Op, Lidl, Tesco and the Church Commissioners for England.

    It was co-developed with Finance Earth, in collaboration with a farmer group. Farmers can choose an action plan that works for them, with support from Soil Association Exchange advisors, which includes cutting fertiliser use, increasing fuel efficiency, and investing in solar energy.

    Soil Association Exchange chief executive Joseph Gridley said: “Exchange Market is about creating real, measurable change within farming systems while empowering farmers to make decisions that work for them.

    “This carbon insetting programme demonstrates that delivering true environmental outcomes can go hand in hand with financial resilience when farmers and businesses collaborate to build a sustainable future for food and farming.

    “It represents a major step forward in aligning farming activities with climate goals and demonstrates the power of what can happen when businesses and farmers work together. Collaboration like this enables greater scalability, affordability, and ultimately more impact in reducing agricultural emissions and advancing positive environmental outcomes.”

    Participating farmers can earn £60 per tonne of CO2e (carbon dioxide equivalent) reduced annually, with half of the payment provided up front to fund the transition.

    Growers who are ahead of the curve will also be rewarded. Those who have below-average emissions, according to the Farm Carbon Toolkit, will be eligible for maintenance payments.

    James Hay, of Barton Place Farms, and member of the farmer steering group, comments: “Exchange Market has been created in collaboration with farmers from the start. The result is a fund that offers the flexibility we need to do the right thing for our farm, and provide the financial support for us to try new ways to reduce our emissions.

    “As subsidy funding changes in the UK, schemes like Exchange Market give our business further resilience by offering new income streams from private markets”

    The first round of funding has secured £1m from the businesses involved and the scheme is now open to farmers. Payments will be made annually, based on verified results.

    For more information go to www.soilassociationexchange.com

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    Matthew Tilt
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    Machinery editor for Farm Contractor & Large Scale Farmer. Matt has worked as an agricultural machinery journalist for five years, following time spent in his family’s Worcestershire contracting business. When he’s not driving or writing about the latest farm equipment, he can be found in his local cinema, or with his headphones in, reading a good book.

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