Co-op has unveiled a new fund to support sustainable farming efforts, building on its long-term investment in UK agriculture.

The convenience retailer’s fund will see farmers directly rewarded for their efforts in reducing carbon emissions and promoting nature on their farms across beef, lamb and dairy sectors.

The £820,000 will be allocated across two key projects, with participating farmers able to access sustainability payments above the price they are already paid for their products.

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.

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Sustainability payments will be rewarded to the farms as part of the project, whilst farmers will be able to choose an action plan that works for them, with support from Soil Association Exchange advisors, which could include cutting fertiliser use, increasing fuel efficiency, and investing in solar energy.

The second project will focus on Co-op’s beef sustainability scheme, and will reward farmers for adopting on-farm sustainable practices.

The scheme, which launches after a successful two-year pilot, will be extended to 15% of the grocer’s beef supply chain this year and include lamb farmers for the first time.

More than 100,000 tonnes of carbon are expected to be saved under the programme over a five-year period as it grows its percentage of beef and lamb supply covered by the scheme.

Co-op managing director Matt Hood said: “We know British farmers are facing many challenges and have seen first-hand the fear, anxiety and anger they are currently feeling.

“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.”

Co-op’s funding follows hot on the heels of Tesco’s relaunch of its Sustainable Pig Group (SPG) to show further support for British farmers and suppliers.