Why peatland restoration is an effective farm diversification idea

In the last two decades, farm diversification in the UK has taken off, with 34% of farmers now running a diversified business (NFU).  

This trajectory is only set to grow, with many landowners looking to generate revenue from non-productive land, while farmers expand agricultural operations beyond traditional practices to create new income streams.  

Renewable energy schemes and agritourism have been popular options for land and farm diversification ideas, yet for those with degraded peatlands on their land, peatland restoration increasingly poses an attractive and potentially profitable farm diversification idea.  

 

Why peatland restoration is an effective farm diversification idea  

20% of Scotland’s land mass is occupied by peatlands however, the vast majority are in the North and West of the country. Up to 80% of these peatlands can be degraded and in need of help.  

While degraded peatlands emit CO2 into the atmosphere, when restored their capacity to sequester carbon presents a unique advantage to landowners.  

 

Income generation  

Nature finance opportunities offer landowners and managers the chance to grow the financial value of their assets while helping to achieve net zero.  

In the case of peatland restoration, public/private funding can be secured to recover damaged wetlands to reduce emissions and store carbon which would otherwise be released into the atmosphere. This, in turn, generates verified carbon credits which can then be sold to individuals, SMEs and larger corporations looking to offset their carbon emissions. The Peatland Code is a Government endorsed, independently assured, carbon certification scheme that is ran and operated in the UK for this purpose.  

The economic advantage to landowners is, therefore, twofold - stemming both from the initial investment support and the long-term selling of carbon credits.  

 

Supporting Net-Zero  

In Scotland, peatland restoration represents a powerful solution to climate change. Storing billions of tonnes of carbon, revitalised peatlands are one of the most cost-effective mechanisms to cut greenhouse gas emissions.  

Beyond this, healthy peatlands provide vital ecosystem services, such as water purification and flood mitigation. Habitat creation, enhanced biodiversity and the proliferation of endangered or specialised species are all positive consequences of peatland restoration.  

For landowners looking to contribute to Scotland’s net-zero goals and to support the nature and climate emergency, restoring dried out peatlands on their farmland is a worthwhile land diversification idea.  

 

Community  

What’s more, offering non-productive land up for peatland restoration adds value to the community through job creation, boosting the local economy and businesses. For rural areas that have suffered from depopulation and economic decline, the restoration process offers a wealth of social and community benefits.  

Restored peatland also provides a beautiful space for recreational pursuits such as hill walking, trail running, climbing and wild swimming. By creating a stunning green space in which to practice such activities, peatland restoration encourages more time in nature, which in turn is known to improve one’s mood and increase mental wellbeing. The potential for nature tourism, through walking tours or races, can again add to the rural economy.  

For landowners considering farm diversification ideas, peatland restoration is one that holds value both for the individual and the wider community, building up rural areas and supporting local business.  

 

Mitigating the impact of future legislation 

A recent YouGov/John Muir trust survey found that “64% of Scots support the introduction of a carbon emissions tax on Scotland’s largest landholdings”. Whilst the survey size was small, at 1086 responses, the Scottish Government has subsequently confirmed that it are going to consider such a proposal. This presents real concern for landholdings over 1000ha, that being the threshold suggested. 

Where degraded peatlands are present on larger landholdings, they can often represent a significant proportion of the holding carbon emissions.  

Restoring these degraded assets could mitigate against a future Carbon Emissions Land Tax, by ensuring that an estate's overall carbon budget is favourable.   

 

Low-risk 

When carrying out a peatland restoration project with Caledonian Climate, the risk to the landowner is low. Unlike other farm diversification ideas which may incur significant risks to the owner, our rigorous processes and ongoing maintenance services ensure that potential issues with the peatland restoration project are caught early and addressed.  

From feasibility surveys to securing validations and verification audits, we relieve landowners of the burden. of documentation and ensure integrity of the project to give landowners peace of mind. With Caledonian Climate managing the project, landowners and farmers can relax in the knowledge that we are focussed on delivering the projected outcomes and having an independently verifiable, positive impact on climate change.     

As a land or farm diversification idea, peatland restoration is a strong option. Posing significant economic, environmental, and social advantages, the restoration of damaged, dried out peatlands present landowners and farmers alike with an alternative income stream that benefits the environment, adds to global net zero ambitions and enhances the community.  

 

Interested in discovering how Caledonian Climate can make the most of your land? Get in touch with us here.