Diversified income gap narrows

Around 300 farms have been providing us with their data over the last five years and figures in this section are estimated using this matched sample. This allows us to see changes in their diversified activities. 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 2023-24, 59% of farms had at least one diversified activity.

The average income from diversified activities increased in 2023-24 to around £12,200. This is an increase of 18% compared to the previous year. The average number of diversified activities on farms with any diversified activity remained stable at 1.6, compared to 1.5 in the previous year.

Despite the higher income from diversified activities in 2023-24, the income gap between farms with and without diversified activities narrowed to £17,100. Compared to the previous year, losses in income by farms with diversifed activites were higher than income losses by farms without diversified activities.

The most common diversified activity continues to be renting out farm buildings (for purposes other than tourist accommodation). Other common profitable activities include micro electricity generation, wind turbines and providing tourist accommodation and catering.

Figure 9: Average farm income, farms with and without diversified activities, 2019-20 to 2023‑24. 2023-24 prices