The fund will be used to reward farmers that take steps to reduce carbon emissions and promote nature on their farms.
As part of two projects, participating beef, lamb and dairy farmers will be able to access payments above the price they are already paid for their products.
“We know British farmers are facing many challenges and have seen first-hand the fear, anxiety and anger they are currently feeling,” said Matt Hood, managing director at Co-op.
“Backing UK agriculture is more important than ever – at Co-op, this means investing hundreds of millions every year to be one of the few UK retailers to be totally 100% British across meat, poultry and dairy throughout our own supply chain and committing support for farmers addressing the growing need for sustainability and climate resilience.
“We know our members and customers feel the same and they value being able to buy the high quality, British-sourced products they love.”
The first project will focus on the dairy sector and will see Co-op partnering with the Soil Association Exchange to support the 140 farmers in its Dairy Farming Group in reducing their carbon footprint and begin to baseline key nature indicators like biodiversity and soil health.
Payments will be rewarded as part of the project, while farmers will be able to choose an action plan with support from Soil Association Exchange advisors, which could include cutting fertiliser use, increasing fuel efficiency and investing in solar energy.
Meanwhile, the second project will pay Beef farmers that adopt on-farm sustainable practices and will be open to members of Co-op’s farming group.
The scheme, which launches after a two-year pilot, will be extended to 15% of the retailer’s beef supply chain this year and include lamb farmers for the first time.
Tom Bramall, dairy farmer and chair of Co-op’s dairy group, added: “In these uncertain times for our industry, we need to work together across the supply chain. Farmers like me, want to play our part when it comes to sustainability, but we need support.
“It’s fantastic to see the Co-op directly rewarding farmers and recognise the positive role we play in addressing the issues around climate change. I appreciate the significant investment this is for Co-op in us and look forward to working in partnership with them over the coming years.”
