Farm Diversification

Modern farming like other businesses is at the constant peril of the markets. In these economically volatile times productivity, efficiency and long run sustainability have never been more important for businesses. Farmers have the added pressure of not only meeting economic targets in order to survive but they also must strive to act as custodians of an environment that is as fragile as it is fruitful. Although every farm and every farmer will see this custodial position in a different light, there is no denying that the natural environments ability to provide rests significantly upon its ‘health’.
Balancing the books whilst balancing the complexities of the natural environment is one of the key challenges facing our farmers today. It is important to remember that a farm is a business and there are certain features of that business that must always be sustained in order to be productive. Like in all businesses there are other areas where compromises can be made. It is the farmers job to decide between what are his priorities and passions and what makes economic sense, making choices accordingly. In order to assist in meeting these challenges many farmers chose to supplement their ‘normal’ farming activities with others, this is called diversification.

Diversification

This is when a farm branches out from traditional farming pursuits. This is often done in order to shore up income flows, enabling the farm to survive and make profit despite volatile agricultural markets.

Diversification can take place either within farming or out of farming;

Diversification Within Farming 
  • alpacasNon food crops / animals
  • Environmentally beneficial farming
  • More profitable crops
  • Sell directly from farm shops

Diversification Out of Farming
  • Aiming to still remain part of the rural community
    but with non – agricultural activities.
  • caravan signTourism – B&B, camping, hotels
  • Recreation – Teas and coffees, open days, riding schools, water sports, golf course.
  • Add Value – Cheese, ice cream, and yogurt.
  • Unconventional Enterprise – Rare Breeds, organic conservation, hemp, linseed.
  • Existing Resources – Craft centres, accommodation, offices, sports.
  • Walking
  • Horse Riding
Assistance With Diversification

The government offers a variety of advice and assistance to farmers wishing to diversify. It is to the benefit of the government and to local communities that farms not only stay in business but maintain production, which is why the state is willing to step in and assist.

DEFRA

This is the Department for Environment, Food and Rural Affairs. It is the main government body for dealing with matters of agriculture and the rural environment. These include; the environment, rural development, the countryside, wildlife and animal welfare. It supports farmers who wish to diversify.

ERDP

This is the England Rural Development Program. This project provides a framework for operating schemes to protect and improve the countryside as well as encouraging sustainable enterprise in thriving rural communities. The ERDP has 10 schemes –
 

  1. Countryside stewardship
  2. Environmentally sensitive areas
  3. Hill farm allowance
  4. Processing and marketing grants
  5. Vocational training
  6. Energy crops
  7. Farm woodland premium
  8. Organic farming
  9. Rural enterprise
  10. Woodland grant


Farmers who wish to diversify can apply for grants to operate any of these schemes. It is important to remember that all farms are different, not only in their production but also in their ability to diversify. Many of these schemes require specific environmental inputs.

Successes of the Program Since 2006 –

  • Nearly 3.7 million hectares of land were brought under management agreements within Environmental Stewardship
  • Over 377,000 hectares of land were retained under management agreements within the Environmentally Sensitive Areas Scheme
  • Over 322,000 hectares of land were retained under management agreements within the Countryside Stewardship Scheme
  • Over 137,000 hectares of land were approved for conversion to organic production methods under the Organic Farming Scheme, including conversion and maintenance agreements
  • 4,500 hectares of energy crops have been planted under the Energy Crops Scheme with a further 8,600 approved during 2006 for planting in 2007 and 2008.
  • Over 3,000 Rural Enterprise Scheme projects were approved, creating or safeguarding over 14,500 jobs, supporting over 1,200 diversification projects, funding for nearly 550 village initiatives and supporting over 3,500 new tourism enterprises
  • Over 156,000 training days were supported through the Vocational Training Scheme leading to the achievement of over 17,000 qualifications
  • More than 380 new products were brought to market with the support of a Processing and Marketing Grant helping to create or safeguard over 8,300 jobs
  • The Woodland Grant Scheme and England Woodland Grant Scheme has resulted in almost 14,000 approved applications bringing 294,000 ha of woodland under management agreements.  
The Curry Report

In 2002 The Curry Report was published, this report was titled – ‘Farming and Food a Sustainable Future’.

The report made 5 conclusions about the future of farming:

  1. That it should be profitable
  2. That is should be sustainable
  3. Farming should be internationally competitive
  4. Farmers should be stewards for the environment
  5. Farms should provide healthy food
Crouch’s Farm and Diversification

Crouch’s farm, like most other farms, has embraced the notion and practice of diversification with a variety of enterprises. This has enabled sustained production and economic success to occur despite falling milk prices and other disruptions in the agricultural world.

The diversification of Crouch’s farm began in 1988 with the conversion of our own farm building into offices and workshops. This extra income helped counter the adverse effect of falling milk and grain prices. The project was a huge success and as a result we began offering it as a service to other farmers.

J.D Courtney Ltd.

1) Offers farm consultation to farmers wishing to diversify and to broaden their income sources. With the focus being on conversion of farm buildings into offices, workshops and storage space. To date we have consulted over 600 farms in the Sussex, Kent and Surrey area.

Farmers who seek our assistance can opt. for either a full management service. Where we find the potential licensee, send out invoices and fully manage the site. Or a part service, where we source the potential licensee but the farmer manages the site.

2) We specialise in letting farm buildings within Sussex, Kent and Surrey. These buildings include offices, workshops and stores. Our buildings are finished to a very high standard and are available for tenants searching for the opportunity to work in an atmosphere conducive to the success of their business.

Flexible developments so that they can be tailored to individual tenant’s requirements.

Secure location with extensive car parking and easy access.

Relaxed working environment, surrounded by the British countryside for inspiring breaks.

Easy access to major local roads, less congestion than a town of large commercial parks.

3) We have a secure caravan storage site located at Crouch’s farm. This site is CaSSOA approved to a silver standard. The site has 24hr access, water on site and has security wardens.