Farm Diversification In England 2009/10

A release from Defra giving estimates from the Farm Business Survey 2009/10 shows that about half of ther total number of farms accounted for 91% of farmed land and 96% of agricultural production. The main results from the survey are that 50% of farms diversified in 2009/10 and 27% diversified in other than letting out buildings.

The overall percentage of farms with any diversified activities has remained stable since 2006/7. The total income from diversification was £360m in 2009/10 which accounted for 15% of total farm income in 2009/10. On 23% of farms diversification provided more income than the rest of the farm. The most common type of diversification is letting out buildings for non-farming use at 36% and on the farms it generates 73% of total diversified income and over half diversified output. More farms ceased to diversify in 2008/9 than started with 3,100 discontinuing and 2,500 starting for the first time.

Regional variations exist and 73% of farms in the South East have diversified enterprises whereas only 41% of farms in the North West diversified. In most regions total income from diversification was 15% but in the South East it was 36%. The are with the lowest % of farm income from diversification was the East Midlands with 8%. In the North East and Yorkshire/Humberside it was 15% (second after the South East). After the letting of buildings for non-farm use, sport and recreation was a popular form of diversified activity with an incidience rate of 19% in the South East and 11% nationally and 14% of farms in the South East also had enterprises involving the processing and retailing of farm produce. Other popular activities included tourist accomodation and catering at 5%.

Average income from off-farm employment and self-employment was highest on very large farms at £21,400 per farm. The biggest age groups with diversified activities were the 55-64 and 65 and over age groups and the 55-64 age group has the largest share of output from diversified enterprises at £270m.

The average diversified output was £25,800 but 53% of diversified enterprises had an output value of less than £10,000 and 10% less than £1,000 and 12% have an annual output of £50,000 or more. Total farm income fell in 2009/10 after increasing for the previous four years.