BNG (Biodiversity Net Gain) is no longer a pilot or a promise – it’s the law in England. Most new developments must now deliver a minimum of 10% net gain in biodiversity, measured with the Statutory Biodiversity Metric and secured for at least 30 years. For landowners and estates, that unlocks a brand-new, long-term market for nature: creating, enhancing, and managing habitats on farmland and selling the resulting biodiversity units to developers.
Before we explain the BNG opportunities for agricultural land, let’s quickly recap on what BNG means.
BNG is an approach to development. It makes sure that habitats for wildlife are left in a measurably better state than they were before the development. In England, BNG is mandatory under Schedule 7A of the Town and Country Planning Act 1990 (as inserted by Schedule 14 of the Environment Act 2021). Developers must deliver a BNG of 10%. This means a development will result in more or better-quality natural habitat than there was before development.
At Intelligent Land, we use the Land Value Accelerator™ (LVA Method™) to turn this policy shift into bankable value – fast, meaning we can increase the value of agricultural land.
Why farmers are central to BNG
- Demand is mandated: Since 12 February 2024, 10% BNG applies to most planning applications in England, with only specific exemptions. Developers must find units – on-site or off-site – or they can’t proceed.
- Supply lives in the countryside: The most cost-effective unit creation is often on agricultural land where habitat baselines are lower and uplift potential is higher.
- 30-year contracts favour patient capital: BNG habitats must be secured for a minimum of 30 years via Section 106 obligations or Conservation Covenants with designated Responsible Bodies.
Think of how you could reframe Biodiversity Net Gain for farmland development as an opportunity. BNG isn’t a “green cost centre”; it’s a new, policy-driven income stream with predictable, contracted cashflows – but only if you structure it correctly.
What can agricultural landowners actually sell?
You sell biodiversity units, calculated using the Statutory Biodiversity Metric (latest user guide July 2025). Units come from creating or enhancing habitats (e.g., species-rich grassland, wetland, woodland) and then securing and managing them for the 30-year term under an agreed Habitat Management and Monitoring Plan (HMMP).
Key steps:
- Baseline survey & metric run – quantify current habitats and potential uplift using the Statutory Metric.
- Legal security – choose Section 106 (via the LPA) or a Conservation Covenant (via a Responsible Body).
- Register the site – list on the Natural England Biodiversity Gain Site Register (current fee £639; typical 6-week processing).
- Allocate units – once contracted, allocate units to a named development on the register.
Can BNG stack with farm development schemes?
Often, yes – within rules. Guidance allows combining BNG with SFI, Countryside Stewardship, Environmental Stewardship and Landscape Recovery, and also with nutrient mitigation credits, provided you don’t claim payment twice for the same outcome (additionality matters). In practice, this means careful design of actions, timing (“temporal stacking”), and outcomes across schemes.
Reality check: if your land is already under SFI/CS delivering similar outcomes, the available BNG uplift may be lower – plan for that in the baseline.
Where is the market now?
- BNG is live and growing, but early delivery has been patchy and enforcement capacity uneven. The first-year picture shows strong developer demand, rising habitat banks, and a sector scaling up skills – alongside concerns about under-delivery and local authority resourcing. Translation: solid fundamentals with execution risks you must price and manage.
- Policy is evolving. Government continues to refine exemptions and guidance; exemptions include “de minimis” habitat impacts, householder and certain small-scale scenarios. Keep an eye on consultations and reforms that can influence volume and price.
Five practical BNG opportunities for farmland and estates
1) Arable to species-rich grassland (the classic uplift)
Convert low-diversity arable or improved grassland into species-rich grassland to generate sizable unit gains with comparatively manageable establishment and maintenance. Lock in the HMMP and secure via covenant/S106.
2) Wetland creation in floodplains
Where hydrology suits, wetlands can deliver high unit density and co-benefits (natural flood management, carbon, amenity), with potential to stack alongside nutrient mitigation where rules allow.
3) Woodland creation and hedgerow networks
Woodland and linear features can be powerful in the metric when sited strategically. Blend with shelterbelts and agroforestry actions under farm schemes, ensuring distinct outcomes for any stacking.
4) Habitat banks
Aggregate multiple parcels into a managed habitat bank to diversify habitat types and maturities, smooth cashflows, and create a repeatable offer to local developers. Early UK examples demonstrate the model’s viability – with professional monitoring and tight legalities.
5) Strategic significance targeting
Units score higher if they align with local strategies (e.g., LNRS/strategic significance in the metric). This lifts value per unit and sales velocity.
Risks to price in (and how LVA mitigates them)
- Additionality & double-counting: Poorly structured stacks risk invalid units. We map overlaps and sequence actions to keep each revenue stream compliant.
- Delivery & monitoring risk (30 years): Enforcement is real; Responsible Bodies and LPAs can act. We specify robust HMMPs, measurable milestones, and monitoring budgets up-front.
- Registration & allocation delays: The register and allocation processes are improving but still administrative. We programme critical paths and factor the £639 registration cost and timelines into cashflows.
- Policy drift: We track live updates (metric guidance, exemptions, governance changes) to protect pricing and exit options.
How Intelligent Land’s LVA Method™ unlocks value
We blend proprietary AI with 30 years of planning expertise to turn policy into profit:
- Review Planning Permissions
We interrogate local demand (pipeline consents, volume builders, infrastructure promoters) and exemptions/transitional effects to forecast unit demand and preferred habitat types – so you create the right units in the right place. - Undertake Research
We run technical, legal, BNG and ESG due diligence: soils and hydrology, baseline ecology, LNRS alignment, covenant vs S106 suitability, Responsible Body options, and the registration pathway. - Scenario Testing (AI-driven)
Our models simulate habitat mixes, stacking sequences, time-to-maturity, and cashflow curves, using the Statutory Metric and local market intel to isolate the maximum value route – often delivering £1m+ uplift within 24 hours in many cases.
Perceived value is real value: We reframe “set-aside” as a contracted, index-like income stream underpinned by planning law. That reframing changes decisions – and outcomes.
What a strong BNG business case looks like
- Clear baseline & uplift proven by the Statutory Metric (including strategic significance).
- Legally secured habitat (Covenant or S106) with a costed HMMP and performance triggers.
- Registered on the Natural England gain site register with a defined allocation strategy (local developers first).
- Stack-aware finance plan aligning SFI/CS/LR/Nutrient credits without double-claiming.
- Market narrative that speaks to developer pain: speed, certainty, proximity, strategic fit.
FAQs we hear from farmers
- Is my farm “exempt” from BNG? Agricultural operations aren’t the target of BNG; developers are. Your opportunity is to sell units off-site to those developers, if you can create compliant habitat. Certain developments are exempt, which can influence local demand.
- How do I find a buyer? Once registered and secured, units can be allocated to developments; many estates proceed via direct agreements with local promoters/housebuilders or through brokers/exchanges. Guidance sets out the steps for selling units and recording allocations.
- Who monitors my site?
Your Responsible Body (for covenants) or LPA (for S106) will monitor compliance against the HMMP, with enforcement options if delivery falls short. Price in monitoring and adaptive management. - Is BNG required for agricultural buildings?
Sometimes. To find out more, read this blog about BNG and agricultural buildings.
The Intelligent Land advantage
Most advisers give you paperwork. We deliver outcomes for maximum land value optimisation.
With the LVA Method™, we identify the BNG strategy that banks the most value, the fastest, while protecting long-term compliance. We don’t just advise; we accelerate.
Ready to turn fields into biodiversity units – and cashflow?
Book a BNG Value Sprint with Intelligent Land and unlock hidden millions today.
