Farms that diversify business activity earn more money
Around 350 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.
Figure 10: Average farm incomes for farms with and without diversified activities, 2017‑18 to 2021‑22
More than half of farms have diversified activities that generate additional incomes to their businesses. In 2021‑22, 58% of farms had at least one diversified activity.
There is an income gap between those with diversified activities and those without. Farms with no diversified activity on average generated £24,200 less income in 2021‑22.
The average revenue from diversified activities increased in 2021‑22 to around £10,800, up 20% 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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