​By Zainab Oyetunde-Usman, Rothamsted Research
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​This project, led by Zainab, was one of 16 scoping studies to receive funding from the AFN Network+ in 2023

In the UK, agriculture has a large impact on greenhouse gas (GHG) emissions, accounting for 68% of nitrous oxide and 47% of methane emissions – with a significant impact on the ecosystem. Farms are diverse and complex and mitigating farm emissions and achieving the UK’s 2050 net zero target will require experimentation to establish which combination of net-zero practices work best on each farm. Also, farms are open systems, meaning that agricultural production occurs in a wide range of lands and climate risks such as flood, biodiversity carbon loss etc can be linked and do not occur in isolation. Tackling climate risks and reducing farm emissions will therefore require collaboration at a landscape scale.

How do we reduce risk for farmers who want to experiment with various practices  and see which can effectively tackle climate risk?  This was the key research question raised by our team at the AFN Network+  Crucible workshop in June 2023, made up of researchers at Glasgow University (Rachel Opitz), Rothamsted Research (Zainab Oyetunde-Usman) and the SRUC (Joana Ferreira). Our idea of farmers’ risk-pooling through collective insurance to jointly tackle climate risk is akin to people taking building insurance for blocks of flats to cover major risks such as fire, flood, theft etc. Taking insurance individually is expensive and collective farm insurance products can provide a cheaper risk-pooling option accessible to all farmers. Also, innovation at a large scale has more impact than on a single farm.

A new model of collective insurance for farmers

Collective insurance products are uncommon and to support farmers in experimenting and taking risks as a group, our project explores the design of a new model of collective insurance for farmers trying new climate-smart practices as a cohort, across a catchment. We will consult with farmers, insurance companies and other key stakeholders to understand varying needs. For example, we will carry out market research on what attributes of collective farm insurance are preferable, farmers’ willingness to participate, and what activities and innovations can be insured.

To practically test this out, we will experiment with an example of net-zero farm practices – use of nitrification inhibitors – which are effective in reducing nitrous oxide emissions from nitrogen fertilisers.  It also increases nitrogen use efficiency, reduces leaching and indirectly improves water quality. We key into Portsmouth Water’s objectives of promoting efficient nitrogen fertiliser management practices for reduced emissions and improved water quality, by engaging arable farmers in their catchment areas

The key outputs from our project will include:

• A report summarising focus group discussion
• Reports and an advocacy toolkit for farmers
• Data set and supplementary materials
• Peer-reviewed publication​​

One of the main outcomes we aim to achieve at the end of this project is to design market attributes of collective farm insurance that can incentivise farmers to change their practices. Our research will accelerate the appearance on the market of a viable product which can drive changes in farmers’ practices, leading to material reductions in GHG and co-benefits of more sustainable farming practices.

For our experiment, if farmers buy into collective insurance, they can jointly experiment with efficient fertilisers at low cost, and as well benefit from improved yield, increased adaptability and resilience.  Also, efficient fertilisation means reduced farm emissions and water pollution and improved local environment which is beneficial to the rural populace.