Farms that diversify business activity earn more money
Around 340 farms have been providing us with their data over the last five years. This allows us to see changes in their diversified activity that generates income. Diversified activities are non-agricultural activities that use farm resources.
More than half of farms have diversified activities that generate additional incomes to their businesses. In 2020-21, 55 per cent of farms had diversified.
There is an income gap between those with diversified activities and those without. Farms with no diversified activity on average generated £16,100 less income per annum in 2020-21.
The average revenue from diversified activities increased in 2020-21 to around £11,400, up 12 per cent compared to the previous year.
The most common diversified activity continues to be renting out farm buildings (for purposes other than tourist accommodation). Other common profitable activities that farmers are doing include micro electricity generation, wind turbines and hosting mobile telephone masts.
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