Over 60% of farms in the UK have already diversified with 90% of those saying that diversifying has been a success, according to a report from farm insurance provider NFU Mutual.
The main driver to diversify away from the core farm business was to earn extra income, the report reveals.
Other reasons included; providing a business opportunity for a family member, future-proofing the farm, utilising empty buildings or unproductive land and planning to wind-down farming activity.
Almost a third of farms that have diversified in the UK are operating renewable activities.
Types of diversification activities on UK farms:
29% renewables.15% property letting.12% other holiday lets.8% other.6% livery stables.5% outdoor leisure/recreational.3% farm shop.Two-thirds of those surveyed said that the diversification activity returned a profit in the first five years, while 19% said it had not yet returned a profit.
The top five challenges of running a diversification activity alongside a farm were:
22% lack of time.18% red tape.17% juggling diversification business with farm work.15% unreliable broadband.15% cashflow.Of the remaining farms who haven’t diversified in the UK, 20% of those are planning to diversify in to other enterprises to support their farm business after Brexit, whereas 46% believe farming provides the best potential for their holding. Other reasons include lack of access to finance, age, lack of interest from family and poor broadband.
Top choices for farmers planning to diversify are:
27% caravan/camping site.20% other holiday accommodation.20% renewable energy.According to the NFU Mutual report, 80% of farmers expect their planned diversification scheme will create one or two permanent jobs.
In England, total farm income from diversification enterprises in 2016/17 was £620m, up 8% on figures from the previous year. In 2016/17 diversification activities accounted for 29% of total farm business income, according to a DEFRA farm business study. On 21% of farms surveyed diversification contributed more income than the core farming activity, the report says.
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Over 60% of farms in the UK have already diversified with 90% of those saying that diversifying has been a success, according to a report from farm insurance provider NFU Mutual.
The main driver to diversify away from the core farm business was to earn extra income, the report reveals.
Other reasons included; providing a business opportunity for a family member, future-proofing the farm, utilising empty buildings or unproductive land and planning to wind-down farming activity.
Almost a third of farms that have diversified in the UK are operating renewable activities.
Types of diversification activities on UK farms:
29% renewables.15% property letting.12% other holiday lets.8% other.6% livery stables.5% outdoor leisure/recreational.3% farm shop.Two-thirds of those surveyed said that the diversification activity returned a profit in the first five years, while 19% said it had not yet returned a profit.
The top five challenges of running a diversification activity alongside a farm were:
22% lack of time.18% red tape.17% juggling diversification business with farm work.15% unreliable broadband.15% cashflow.Of the remaining farms who haven’t diversified in the UK, 20% of those are planning to diversify in to other enterprises to support their farm business after Brexit, whereas 46% believe farming provides the best potential for their holding. Other reasons include lack of access to finance, age, lack of interest from family and poor broadband.
Top choices for farmers planning to diversify are:
27% caravan/camping site.20% other holiday accommodation.20% renewable energy.According to the NFU Mutual report, 80% of farmers expect their planned diversification scheme will create one or two permanent jobs.
In England, total farm income from diversification enterprises in 2016/17 was £620m, up 8% on figures from the previous year. In 2016/17 diversification activities accounted for 29% of total farm business income, according to a DEFRA farm business study. On 21% of farms surveyed diversification contributed more income than the core farming activity, the report says.
Read more
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