As Europe bakes, momentum grows for climate-resilient farming

By James Davey, Simon Jessop and Alexander Marrow

GREAT WALTHAM, England, Aug 19 (Reuters) - With Britain about to record its hottest summer yet, Sam Squier's nearly 200-acre beef farm in south east England stands out as a lush, green oasis surrounded by scorched brown fields.

As neighbouring farmers have resorted to using winter feed, Squier's herd of Aberdeen Angus feeds on dense pasture maintained by planting that has retained water and improved soil quality.

"This year is a testament to what you can do in a dry year," Squier told ‌Reuters.

"Our vision was to improve the soil structure and build resilience within our business, mitigating against both prolonged periods of dry hot weather and prolonged periods of wet weather," he said.

His cattle, which carry genetic traits from Japanese Wagyu that are renowned for producing tender beef, graze ‌on a mix of grasses, deep-rooting herbs and legumes, known as herbal leys.

The method is inspired by ancient practices and reflects decades-long efforts to introduce climate-resilient farming as governments and regulators across the world have sought to make supply chains less vulnerable.

After years of intensive agriculture that was designed to feed the maximum number of people most cost-effectively, this year's extreme weather has added urgency to ​the debate over whether climate change has transformed the economics.

According to Reuters' interviews for this story with more than 25 people engaged on the issue, banks, insurance groups, water companies, governments and major food groups such as McDonald's are funding a shift in farming practices.

FINANCIAL LOSSES FROM EXTREME WEATHER

Meteorologists have said they expect to declare Britain's summer, which officially ends on August 31, the hottest yet and Europe as a whole has this year experienced more extreme warming than any other continent with five heatwaves and far below average rainfall.

After its hottest June and driest July on record, almost three-quarters of England is officially in drought.

Livestock and dairy farmers have reported poor grass growth, the UK's cereal harvest is set to be the worst since comparable records began in 1984, and fruit and vegetable growers have said production will be reduced, echoing warnings from across Europe.

The losses for farmers in the European Union and Britain from failed crops in the June heatwave could be up to €2.3 billion ($2.7 billion), according to ‌the Energy and Climate Intelligence Unit. There are knock-on effects for inflation, which has already been driven higher ⁠by the increased energy and fertiliser costs linked to war in the Middle East.