Farmers to have environmental stock exchange?

In order to encourage farmers and landowners to maintain unpolluted water and wildlife, the CLA (Country Land and Business Association) proposes that those who follow environmental regulations should receive credits.

These credits would be exchangeable for stocks and funding that would be used to further protect rural areas of the countryside.

Additionally, if the programs were to work, the CLA hopes that the ‘green stock exchange’ system could be extended to proper landscaping of farm areas in the countryside and not just rudimentary environmental concerns.

The CIA has announced its proposition in a report entitled ‘Private Solutions to Public Problems: Developing Environmental Markets’.

The CLA has proposed three schemes that may work for the new environmental reward program: the ‘floor and trade’ in which over performing landowners are rewarded; ‘offsetting’ where businesses that fail to meet regulations must pay for funding to help land similar to theirs in other locations; and ‘bio-banking’ in which a landowner keeps land in proper environmental condition and then can sell parcels to developers who follow the same regulations.

NFU South West spokesman Ian Johnson stated he was in favour of the idea, but warned that although a market solution seems desirable, farmers may react negatively due to the increase in paper work and forms and the overall regulation of their businesses.

The system is not meant to substitute for public environmental funding, (which is in danger due to the impending CAP reform), but to aid the funds while at the same time establishing new jobs and more employment opportunities.

Henry Aubrey-Fletcher, CLA president, said that the environmental stock system is needed because as food production goes steps must be taken to protect the environment from further damage.

Currently the United States and Australia utilise similar schemes that have proven to protect against the loss of biodiversity and have increased the worth of the farm market in general.