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Interest in farm diversification rises
Wednesday, 12 November 2025
More and more farmers are considering diversification as a way to build resilience for their farming businesses.
Defra estimate that over 71% of farming businesses in England have some diversified* activity in 2023/24 (Defra, 2024). Since 2014/15, this proportion has gradually increased by 10 percentage points.
Additionally, the NFU Mutual estimate that 17% of farmers are planning new diversification projects over the next five years, while 40% of those who have already diversified plan to expand further.
Increasing dependence on non-farming activities
Creating other income streams from farm assets has proven a popular way to reduce exposure to farming’s challenges, such as volatile and seasonal markets, unpredictable weather and changes to subsidies.
Of farms with non-core activities, farm diversification income accounted for an estimated average of 13% of farm business income in 2023/24.
Most popular forms of diversification
According to the Defra Farm Business Survey (FBS), the most popular form of diversified activity is letting out buildings for non-agricultural use, with 50% of all farm businesses in England engaging in this activity, up from 44% in 2020/21.
The next most common areas of diversification are solar energy and other renewables, with 27% of all FBS enterprises engaging in this activity in 2023/24.
Tourism and retail-focused activities are also growing areas of diversification, including enterprises with sport and recreational activities, farm shops and accommodation and catering.
Diversification opportunities for the future
The Farm Business Innovation Show shone a light on future opportunities in diversification, showcasing successes including storage, food and drink, hospitality and seasonal events.
In particular, there was an optimistic look on tourism and indication of further demand.
With consumer trust and interest in British agriculture and farmers at a record high, opportunities are available for landowners to capitalise on this momentum to increase their financial resilience.
*The definition of diversified activity adopted here excludes agricultural work on another farm and is restricted to non-agricultural work of an entrepreneurial nature on or off-farm but which utilises farm resources.
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