New incentives launched to alleviate barriers to sustainable farming practices
4th May 2023
To reduce financial barriers for potato farmers transitioning to sustainable agricultural practices, McCain Foods, the largest manufacturer of frozen potato products in the UK, has joined forces with NatWest in offering financial support with the costs of switching to a regenerative farming system.
Smart and sustainable farming is a key pillar of McCain’s commitment to make planet friendly food, anchored on its pledge to implement regenerative agriculture across 100% of its global potato acreage by 2030.
However, the transition to regenerative farming often requires up-front investments in new equipment and practices from farmers, which can create a barrier to uptake.
To incentivise more farmers to make climate-friendly changes, NatWest will be offering a first-of-its-kind initiative to potato farmers in the UK through its asset finance arm Lombard. In addition, McCain has also committed to offering a contribution towards the interest payable for assets that support regenerative agriculture practices.
“Given the increasingly unpredictable climate, the shift towards regenerative agriculture practices is vital to futureproof the farming industry, and we want to support McCain potato farmers who are making the transition towards more sustainable operations,” said James Young, vice president of Agriculture at McCain GB&I.
“We know that switching to regenerative agriculture can come with financial implications, and this new partnership will be a part of the effort to alleviate those barriers.
“We are working with our growers, customers and key stakeholders to ensure the long-term viability of potato growing in the UK.”
Ian Burrow, head of Agriculture at NatWest, added: “NatWest and Lombard are thrilled to be working with McCain to help their farmers invest in sustainable farming practices. Agriculture is a sector of paramount importance to the UK economy, and one which is at a turning point, facing higher costs, inflation and the daunting challenge of net zero.
“This partnership further enhances the aims and ambitions of the Sustainable Markets Initiative (SMI) taskforce, which NatWest is proud to be a part of, and we will continue to stand by farmers and work closely with influential partners, like McCain, to help drive change across the industry.”
To further accelerate the scaling of greener practices in the farming industry worldwide, McCain joined the Sustainable Markets Initiative (SMI) Agribusiness Task Force alongside a number of businesses and NGOs. The company’s other initiatives include grants for cover crop seed and fully-funded soil health assessments, as well as offering free pollinator seed this spring.
In addition to its partnership with NatWest, McCain has committed to a 31% contract indexation in 2023 to offset the pressures of rising inflation in farming, which equals a £35 million investment.
What’s more, to further enhance knowledge transfer to its farmers, McCain is testing regenerative agriculture practices and trialing new technology at its Farms of the Future projects, located in McCain’s hometown of Florenceville, New Brunswick and in South Africa. In the UK, the work is being supported by three demonstration farms across the country.
