Fewer than one in five family farms are making a profit from their farming activity, according to new research.
According to research undertaken by the Andersons Centre on behalf of the Prince’s Countryside Fund, analysis of data from 172 participants has shown that the average farm made more than £20,000 loss from farming activities, and instead is reliant on other income streams to make a profit.
The shortfall was made up by income from non-farming activity, such as tourism enterprises, renewables, direct selling of products to the consumer, or income from working off farm as well as farm payments.
Lord Curry of Kirkharle, chairman of The Prince’s Countryside Fund said the initial figure is "startling."
“The research from the Andersons Centre shows that farmers are increasingly looking at their farms as a business, and are proactively looking for how they can generate an income from diversified sources to remain profitable,” KIrkharle explained.
“This is more crucial now than ever. Farmers must develop their skills and improve their business confidence to survive. If they do not, the risk of extinction for the family farm is very real; farmers must act now to both strengthen their core farming business and to spread the risk.
“Maintaining diversity of farm size is essential to protect the British countryside and our rural communities.”
A report from the University of Exeter detailed how the loss of small family farms would have devastating effects for the British countryside, leading to loss of employment, breakdown of rural communities, and potential negative environmental consequences.
The report concluded that it was essential to maintain a diverse range of farm sizes, but that this was in significant jeopardy.
