Media Release: Natural capital enhances farm production, profitability and financial resilience

Led by Farming for the Future, with significant involvement by Perth NRM and RegenWA Ltd. the Livestock Pilot Program surveyed 130 livestock businesses in selected broadacre farming regions across NSW, Victoria, Tasmania and Western Australia. Fine-scale natural capital information, production data via remote sensing, and detailed financial data were collected via expert ecological observation and producer interviews.

This is the largest of its kind in the world and has generated the most comprehensive analysis to date on the relationship between farm natural capital and business performance across Australian farming systems.

A Major Achievement for WA and Australia

The study represents a significant milestone for Western Australian agriculture, with Perth NRM and RegenWA contributing to the work alongside Southwest NRM, FarmanCo, RCS, and Richard Brake Consulting.

The team at Perth NRM and RegenWA were contracted to collect on-farm agro-ecological data across 16 farms in Western Australia’s south-west region with farms ranging in size from 541 ha to 5208 ha (mean farm size 2700 ha). They utilised farmer networks, on-ground surveys and extension support to increase the industry’s knowledge and understanding of natural capital accounting NCA.

This robust scientific report supports what many farmers have observed firsthand – that integrating natural capital (i.e. trees, shelterbelts, biodiversity corridors and healthy soils) can deliver substantial productivity and profitability benefits.

“The research demonstrates clear economic signals that natural capital is not just an environmental asset, but also a business asset”, said David Broadhurst Perth NRM Executive Manager for Sustainable Agriculture.

WA Results: Natural Capital Linked to Improved Profitability

Summaries of regional differences in natural capital and farm business performance are now available online, and can be found here: https://farmingforthefuture.org.au/resources/

The WA findings are particularly compelling (https://farmingforthefuture.org.au/wp-content/uploads/2025/11/WA-region-overview-1.pdf)

• Mixed farms with higher integration of trees into the productive landscape (measured as “proximity”) recorded:
  • $100/ha/year higher gross margin in their livestock enterprise, and
  • $200/ha/year higher whole-farm profit.
• Researchers suggest these gains may be driven by improved shade and shelter for livestock, habitat for natural pest predators, and microclimate benefits that improve pasture and crop resilience.
• While the sample size is small for WA and in only one region (south-west), the results point to a strong economic case for further research and broader adoption of natural-capital approaches.

“These are very significant numbers,” David said. “They reflect what many farmers already suspect, that healthy landscapes make healthy businesses.”

What This Means for Farmers

The research provides:

• Scientific validation for the benefits of natural capital investment
• Region-specific insights for WA producers
• A stronger business case for integrating trees, biodiversity, soil health practices and regenerative grazing
• Justification for continued investment in natural capital measurement, markets and incentives

With Australia’s agricultural sector facing climate variability, rising costs and market pressure for low-emission, nature-positive products, these findings are timely and highly relevant.

A Partnership-driven Innovation Story

The study builds on several years of collaboration between Perth NRM, RegenWA, and agricultural partners across Western Australia, and links to previous involvement in NCA research funded through the WA Government’s State NRM Program.  RegenWA is excited to contribute further to this important research through our new ‘Advancing Natural Capital Accounting’ project. This project will enable 5 properties baselined in the original NCA project to be re-assessed, adding rigour and to NCA methodologies and validating the practices that build natural capital.

This work also aligns strongly with RegenWA’s statewide efforts to support the adoption of practices that can improve natural capital condition for improved productivity and profitability through collaborative projects, demonstration sites, case studies, farmer-to-farmer learning, and relevant resources.

Quotes

“This paper represents years of work and shows that farming with nature is not only good for the environment, it’s simply good business. We are proud to see WA’s contribution recognised at the international level.”

“Farmers have been asking for strong economic data to back up regenerative practices. This research provides exactly that and we’re excited to help share it with our networks.”