The Green Avon Valley Project
The Environmental Farmers Group (EFG) is a farmer-led cooperative helping farmers generate income by selling ecosystem services. The group focuses on markets like Biodiversity Net Gain (BNG), nutrient mitigation, and carbon sequestration. By forming local “equalisation cells,” farmers share revenue from ecosystem service trades.
The project has successfully raised over £1 million in nutrient trading and is expanding to new regions. It supports farmers with guidance, training, and market intelligence, while aiming to increase biodiversity, improve water quality, and mitigate climate change.
This project is one of 24 case studies published in 2024, alongside a report evaluating the process, impact and value for money of NEIRF Rounds 1 and 2.
Access full case studyThere is a developing demand from private investment to fund environmental improvements in the UK. However, the market is still not established and there is much uncertainty about how this investment can be delivered:
- How does the farmer (whatever their size) who wants to deliver an environmental project find the organisations who have the funds to invest?
- How does the farmer know that they are getting fair consideration for their project?
- How do investors know that the potential environmental improvements are based on assured science and appropriate for the local environment?
- Where can investment funds find projects of the appropriate scale which can attract major capital investment?
The Environmental Farmer’s Group was established to solve these problems and deliver significant investment opportunities to deliver positive environmental change. It can do this in two main ways:
1) By bringing together farmers through existing farm clusters to create the landmass required to deliver appropriate environmental projects at a scale that is attractive to the development and corporate sectors.
2) By facilitating an efficient trading environment between farmers and investors through establishment of standard a legal frameworks and wholesome comparable financial data which promotes trading confidence to both parties.
NEIRF grant funding is essentially the seed funding which will transform the EFG into a fully sustainable organisation through which environmental trades are efficiently facilitated. This will ultimately deliver environmental change in rural our region at a scale and speed required to tackle the environmental issues arising today and tomorrow.
Project Aim
The reverse of biodiversity and water quality decline in the Avon Valley.
To become a regionally significant organisation which will increase the knowledge on natural capital trading amongst farmers and facilitate trading with developer and corporate partners until it is able to sustain itself through a sound business model.
Project partners
Funding model
The EFG receives investment from five main sources:
Membership fee – Each farmer pays an annual fee per hectare to become part of the group. The EFG’s first membership milestone is 50,000ha.
Sponsorship – Currently, the EFG has two regional sponsors who pay a fixed sum over two years. The EFG hopes to attract more sponsors over the coming months to sustain income as it grows.
Equalisation on trades – The EFG operates an equalisation model which shares trading revenues between active and passive members as well placing a small percentage toward group overheads in order to help continue to build executive capability and fuel growth.
Supplier Partnership – The EFG is expecting to partner with a carbon code tool which will provide investment into the group to provide revenue resource to be able to compete carbon audits of participant Member farms.
Grants – The EFG will seek appropriate grants that facilitate the acceleration toward our goals. Grants will primarily be for projects and activities that provide no or little initial return but build our capability and efficiency to be a stronger organisation.
Future Investment Potential
Thriving plants and wildlife: Delivering up to 44 BNG v3.1 audits on farms giving farmers an understanding on where biodiversity improvements can be made.
Clean and plentiful water: Delivering a tried and tested framework agreement for reed bed creation with phosphate offset investment which will pave the way for important water quality improvements in local rivers.
Mitigation of and adaptation to climate change: Increasing farmer membership to cover 50,000ha by June 2023 – this will drastically increase the scale of ‘oven-ready’, investable environmental projects. Providing access to active trades, website & members portal and regular members events for all members – this will increase the quality and scale of environmental projects.
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