Measuring and valuing soil health is becoming increasingly important – but it’s not easy to do. Now, one regenerative farming adviser has written a Centenary Scholarship paper for the Central Association of Agricultural Valuers entitled ‘The value of soil health’, setting out the practicalities of this complex area.

“Regenerative farming is driving changes, and farmers are now being paid to provide carbon and other ecosystem services,” explains report author Harry Epsom. “But we’re operating within legislation written decades ago – I wanted to create a guide on soil principles and valuing soil health.”

At a fundamental level, soil quality and soil health are different. “We have been destroying our soils slowly for years; our high input, high output focus has created these problems,” he says. “But soil can be healed quite quickly, which presents us with an opportunity.”

Multi-pronged approach

Measuring soil health requires a multi-pronged approach including biological, chemical and physical assessments. It can include compaction testing, worm counts, organic matter and carbon measurement, nutrient analysis and plant health tests, says Harry. “Healthy soil is the foundation of our existence – it’s crucial to food, water security, ecosystems and biodiversity.”

With the advent of regenerative farming and trade for carbon credits and biodiversity net gain, there is increasing demand for both measurement and valuation of soil health. But both of those factors might vary according to the client’s objectives. “We can’t give the right advice if we don’t understand the vision, landscape, skills, soil, climate, social, financial and regulatory context.”

For a farmer, healthy soil will increase profits and resilience; for a landowner it might command a higher rent; for the public, it could be flood mitigation. So when it comes to valuations, there are three areas of value to consider: Business, public, and asset.

Deciding a price

For example, when valuing a field for sale, a field with healthy soil could perhaps command a higher price than degraded soil. But when valuing a field for an organisation seeking to sequester carbon and build biodiversity, they might see more value in a degraded soil that can be improved. And when it comes to tenanted land, soils are increasingly relevant to rent reviews, tenants’ improvement and dilapidation.

Clearly, measurements of soil health must be undertaken before and after any improvement projects, and land managers will need evidence to provide a direct link between management decisions and soil outcomes, notes Harry. Contracts also need to be carefully drawn up at the start, to avoid unexpected surprises. “What rights are you granting or reserving, and what compensation will be paid over what period of time? There’s a lot to be thought through at an early stage.”

However, the opportunities are tremendous, and by working with a range of experts offering a holistic perspective, agricultural valuers will secure the best outcome for their clients, he adds. “We certainly have the potential to undo the damage that’s been done, and the truth is, it’s not that difficult.”

·                 The full report is available at https://bit.ly/4gd4DD5 and a podcast with Harry Epsom can be accessed at https://bit.ly/4g5Cmyh.