Like any business, farmers will seek to make the most of emerging opportunities.
Farm diversification gives potential for farmers and growers to take advantage of their business knowledge, land and resources. The low commodity prices and downward pressure on farm incomes that have characterised agriculture for much of last decade have only served to highlight the commercial potential of diversification.
Farmers have turned to a wide variety of options to generate income. These range from ventures linked with existing farm enterprises – such as opening a farm shop or selling produce at farmers markets – to something more standalone. Letting out farm buildings for storage or office use is a popular option, while using land for sport and recreational facilities such as cycling, golf and shooting has also seen some increases.
Figures show that 51% of farms in England have moved into some form of diversification. Collectively, diversification adds £300 million to the bottom line of agriculture and accounted for 10% of total farm income last year. The most popular form of diversification is renting out farm buildings for office space, workshops and storage. However, given that consumers are increasingly interested in buying food direct from farm and look at the countryside as a provider of leisure, the major growth has been in these areas where farmers play a more active day to day role in the business.
It is important that anyone considering a move into diversification appreciates that there are risks with any new business, and farmers and growers should ensure that they undertake appropriate research into the market and plan for new ventures.
Where can I get help?
There are a variety of sources where you can find out more and get some help. For those farmers looking at small scale food production, NFUonline has information on how to obtain SALSA approval. If it is help with business planning you need, then Business Link provide both guidance and tools to help you develop your plan. There is also a network of local advisers, who you can contact via dedicated phone line.
Funding for some diversification may be available through the Rural Development Programme for England, a jointly funded scheme by the EU and Defra. This runs until 2013 and is delivered by Regional Development Agencies across England.
Full details and regional contacts for the RDPE can found on Defra’s website.
For further details on how the industry benefits from diversification and the most popular types of enterprises, contact NFU senior economic adviser Phil Bicknell call 02476 858544 or email Philip.Bicknell@nfu.org.uk
Useful links
Useful telephone numbers
- SALSA helpline 01295 724248
- Business Link helpline 0845 6009006