Farmers see diversification providing a larger part of their incomes, but are currently holding back on investment, research from NFU Mutual has revealed.
The leading rural insurer’s annual diversification survey reveals that 37% of UK farmers plan to increase diversification over the next 5 years – up 3% on 2021’s figures.
However, the research also showed that farmers have held back on diversification this year as they await details of farm support systems and assess the implications of the cost-of-living crisis. The drop of 4%, to 33% this year, follows a sharp increase in 2021 when farmers were able to implement diversification plans following the Coronavirus pandemic.
A further NFU Mutual poll shows that 46% of farmers are diversifying to boost farm incomes, with safeguarding their farm’s future the second most common reason (29%). Other reasons for diversifying are providing new opportunities for family members (18%), while 7% are seeking to make use of redundant farm buildings.
John Heather, Senior NFU Mutual Agent for the Isle of Wight, New Forest and Bournemouth, has said:
“For many farmers diversification is now essential to keep a decent income flowing into their business with high input costs seriously affecting profitability in every sector of agriculture and horticulture.
“Today, farm diversification is a sophisticated sector of the rural economy, providing significant income and employment opportunities in the countryside. It also gives the public the opportunity to visit the heart of our spectacular countryside and enjoy our excellent food straight from the grower.
“Farmers’ renewable energy schemes are providing an increasing amount of the nation’s power, reducing reliance on fossil fuels and helping us towards the net carbon zero goal.
Article continues below this advertisement “We’re not surprised to see that some farmers have put a hold on their plans while waiting for more details of an expected new government farm support scheme. For new ventures involving the public, such as holiday accommodation, food processing and retailing, it’s now vital to assess the likely impact of the cost-of-living crisis on public spending”.
Homemade botanics farm diversification on the Isle of Wight
Farmers who have successfully diversified will often talk about launching a venture that plays to the strengths of the farm and making use of what they have, whether that’s buildings, landscape or existing skills. In the case of Duxmore, a 350-acre family-run livestock farm on the Isle of Wight, all 3 have been essential to the success of Duxmore Botanics, which makes quality home fragrance and body care products.
Char Legge started her business on the farm in 2019 and continues to run the growing operation. Meanwhile, husband Matt primarily takes care of the agricultural duties – with some help when needed from Char and their 3 children.
Before starting the business, Char spent 13 years working in product development for a leading skincare brand. Having left the business, she wanted to continue creating her own products. She started making candles in her kitchen that she sold in her sister’s local shop.
As well as providing a creative outlet, the botanics business also provided a way of diversifying the farm, with the farming activities and botanics business closely linked. The farm, landscape and Isle of Wight location are all part of the brand identity and marketing.
The kitchen has long since been abandoned for the growing business, it has been replaced with an old straw barn, which Matt helped convert into a lab. Once made, the products are provided to stockists on the Isle of Wight and UK mainland, as well as being made available for sale from the Duxmore Botanics online shop.
Good luck, but will be too expensive
Can’t beat Home Bargains for Candles.
All the very best , at least you are being pro active in trying something new .
Good luck .