Natural capital in Scotland

Scotland’s natural capital is valued at £230 billion. For farmers, crofters and land managers, this includes the value of soil, water, livestock and crops. The services that natural capital provides (e.g. food, energy, building materials and clean water) underpins our economy and the way it is managed has an effect on their value. Maintaining and improving natural capital is vital to all of our lives, but it is especially important for farm business planning.

What is natural capital?

Natural capital is a concept used to better understand the value of nature and what it provides. Most of the world’s industries rely on nature. Agriculture depends on soil for healthy crops, geology for drystone dykes, air for breathing, water for drinking, plants for fencing materials and animals for pollinating to name just a few examples. The way we use and manage these forms of natural capital have an impact on their value.

What support is available to maintain or improve natural capital on my land?

The first step is to identify the natural capital on your land and get a baseline: which elements of natural capital are doing well and which need more support? Chances are you’re already doing something, like adding organic matter to your soil or planting hedgerows!

How does whole-farm planning help to think about natural capital?

Whole farm planning for agriculture recognises the interconnectedness of a farm and its working parts, from the way different habitats or livestock on the land support each other to the different elements of the business operations. Thinking about natural capital in this way can help to identify mutual benefits and save costs.

What is the “FIRNS”?

The Facility for Investment Ready Nature in Scotland (or “FIRNS” for short) funded two projects led by the Soil Association between 2023 and 2025. These projects explored how whole farm planning and small-farm project aggregation could improve small and medium farms’ access to natural markets, alongside continued food production, benefits to the community and improved biodiversity.

Not in Scotland?

While many of the opportunities in Scotland exist for the other devolved nations as well, there are some differences. In England for example, natural capital is being supported through public funds such as the Environmental Land Management Schemes and private funds via Biodiversity Net Gain. Speak to your local farming advisor or one of ours to find out what options are available to you.