Farming

Farm diversification more difficult in Wales

Published

4 years ago

February 14, 2020

Diversification: Upland farming makes task difficult

ALMOST half of UK farmers are planning to pursue diversified income streams to support their agricultural businesses, according to new research from leading rural insurer NFU Mutual.
With changes to Government support and the way Britain trades with the rest of the world ahead, farmers are diversifying their businesses to boost profitability and fortify their farms for the future.
Forty-eight per cent of farmers are planning to set up or expand diversification businesses following Brexit, moving into new areas such as tourism, hospitality, retail and renewable energy.
This figure has doubled since NFU Mutual carried out similar research in 2018 and found 23 per cent of farmers were planning to expand or start diversification enterprises.
The sharp increase in diversification comes as agriculture undergoes the biggest change to funding in decades following the UK’s exit from the European Union.
In a report published on Friday (Feb 7) NFU Mutual provides advice on setting up new diversification businesses and looks at case studies of successful schemes from wedding venues and glamping to kefir dairy products and cosmetics.
“The next seven years will be crucial for the farming industry,” explained Chris Walsh, NFU Mutual’s Farm Specialist. “Because of this, many farmers are looking at new business opportunities to spread their risk.
“Farmers have always had to adapt to changing times, and a number have been diversifying for decades. But even more are now deciding to support their agricultural work with new ideas.
“Whether it’s building holiday cottages, launching a wedding venue, or opening a farm shop, not only can these new businesses supplement the existing farm, they often provide other members of the family with a crucial role in the business.
“Our research shows nearly half of UK farmers are either looking into setting up new businesses on their land or expanding existing diversification ideas, with a quarter planning to diversify to create business opportunities for family members.
“There is only room for a certain number of farm shops, holiday cottages and wedding venues so farmers planning to diversify need to do careful research and costings before they start converting cow sheds into cafes.
“Farmers and their families also need to have the right skills – particularly if they’re going to be working with the public. It’s a big change looking after a demanding wedding party if you’re used to being on a hillside with a flock of sheep all day.”
The report stresses the importance of detailed planning to minimise risks to the public and employees and make insurance of new diversification schemes straightforward. It also highlights the importance of looking at the financial implications of setting up non-farming activities to avoid higher Inheritance Tax Bills.
Looking ahead, the report suggests there may be new opportunities for farmers to access Government financial support for diversification schemes as changes to agricultural support are rolled out.
DEFRA statistics show that diversification activity brought in £740m of income in 2018/19 – up 6% on the previous year.
NFU Mutual’s report, together with a series of videos and podcasts produced to help farmers considering diversification, is now available to download at nfumutual.co.uk/diversification
NFU MUTUAL DIVERSIFICATION ADVICE
Diversification means using your farm’s assets, such as its land, buildings or machinery to develop a new business activity. Diversification ventures usually set out to provide additional revenue and can complement the agricultural activity or may even, over time, replace it.
Before you start, consider:
• Do you have the skills, resources and commitment to make it work or would it be a distraction from the core farm business?
• Have you fully reviewed your farm business and identified strengths and areas where you can add value to your existing model?
• What are your assets – from people, land, location, buildings, finance to skills – and have you realised their full potential?
• What market and demand is there for your diversification venture?
• What makes your farm unique and sets you apart from the competition?
• Have you asked the experts for advice? For example, speak to insurers at the planning stage to ensure you understand the risks and have the right level of cover to meet your needs.
DIVERSIFICATION TOUGHER IN WALES
Farming businesses in Wales face many hurdles, such as poor upland land quality, and remoteness from centres of population. These factors severely restrict business resilience and diversification.
Improving farm efficiency, developing non-food and non-crop revenues, participation in agri-environmental schemes, or access to rural development funding and business support, are more difficult in Wales than elsewhere.
When compared with England, Welsh farms are also smaller and less well resourced and receive an average of £3,300 less in funding.
Although diversification on Welsh farms has grown over the past decade, diversification revenues on Welsh farms represented on average only 3.4% of total farm revenues in 2017, compared to an average of 7.7% in England.
That suggests reliance on increased farm diversification to build resilience in Wales remains an optimistic strategy. In the worst-case post-Brexit scenario diversification revenues might need to increase up to tenfold to replace other lost revenues.
Farms in Wales depend on income streams separate from the main farming business.
A range of actions might support the continued growth in diversified income. However, although they could help deliver wider social and environmental public goods, they might not support farming, community identity or build economically sustainable farm businesses.
Welsh Government policy might want to pull in one direction but reality suggests that its goals will be far harder to achieve than sunny optimism and glib soundbites suggest.

Farming

Pembrokeshire Agricultural Society in search for county’s top progressive farmers

Published

2 weeks ago

April 9, 2024

Tom Sinclair

IF you farm in Pembrokeshire and can demonstrate your farm’s use of the latest technological methods to promote progressive, sustainable agriculture then the Pembrokeshire Agricultural Society encourage you to enter the prestigious Baron de Rutzen Award.

Adam Thorne, Pembrokeshire County Show President, said, “We are looking for local Pembrokeshire farmers, under the age of 45, who can demonstrate their farm’s use of the latest technological methods to promote progressive, sustainable agriculture. They also need to show consideration for the environment and habitat sensitivity on their farm as well as present an aesthetically pleasing example of farming in the county. The competition welcomes all livestock and arable sectors to take part.”

Last year’s winners of the Award were Mark and Caroline Davies of Little Newcastle, Haverfordwest. They milk 230 pedigree Holsteins through a fully automated system. They rear their own replacements and also have a small beef enterprise. The farm is all grassland and they follow a strict reseeding and liming policy to optimise the yield from their multi-cut silage system. The couple place significant emphasis on animal health, husbandry and breeding to maximise the efficiency of their system.

Baron John Fredrick De Rutzen was President of Pembrokeshire Agricultural Society in 1936 and the Baron de Rutzen Trophy was produced in his memory. The third Baron served in the Welsh Guards and tragically died, aged 36, in 1944.

This year’s entrants must be fully practising farmers within the county of Pembrokeshire and were under the age of 45 years on 1 January 2024. Entries can either be by nomination or direct application online on the Pembrokeshire Agricultural Society website. Click here to apply: Baron de Rutzen Award | Pembrokeshire County Show | Pembs Agricultural Society (pembsshow.org)

The closing date for nominations and applications is at noon on Wednesday, 29 May 2024.

Farming

Pembrokeshire Agricultural Society elect new president

Published

3 weeks ago

April 1, 2024

Tom Sinclair

ARABLE and beef farmer, Adam Thorne, has been unanimously elected to become the new President of Pembrokeshire Agricultural Society for the year ahead. Adam is the third generation of his family to hold the position.

During the Annual General Meeting of Pembrokeshire Agricultural Society, held last week on the Pembrokeshire Showground, Mr Tim John and his wife Margaret John were also voted in as Presidents elect.

Adam Thorne has had a long association with Pembrokeshire Agricultural Society. After visiting the show as a toddler, then helping show the family’s pedigree Herefords, his uncle got him into helping him with stewarding in his early teens. From there he progressed to being a Steward with his own section, Commercial Cattle, and then also the Butcher’s Lambs section.

From stewarding, Adam became involved with committee work, starting as an Executive and then on to the former Finance and General Purposes Committee. He has been Chairman of the Estates Committee for 12 years and is now a Board member and a Trustee.

Adam said, “I am proud of my long association with Pembrokeshire Agricultural Society. I am the third generation to now be President, following my late grandfather, Walter Thorne, my father, Robert Thorne and more recently my uncle, George Thorne. I am looking forward to my year in the prestigious position.”

Away from his work with the society, Adam runs the family’s arable and beef farm in Robeston West, Milford Haven. He has been heavily involved with Tiers Cross YFC from an early age, having been Club Secretary twice and Chairman. He has also sat on Pembrokeshire County YFC Committees and the Wales YFC Rural Affairs Committee.

The 2024 Pembrokeshire Agricultural Society officeholders, announced at the AGM, include Miss Ffion Edwards who was awarded the role of Ambassador at last year’s show. Ffion, a nurse from Maenclochog, has enjoyed many years of attending the county show and believes that there are so many good elements to it. Ffion has been a member of Llysyfran YFC for 15 years and enjoys every aspect of young farmers – trying new experiences, competing and travelling to name a few. Mrs Nicola Owen was also elected as the Honorary Treasurer.

Brian Jones, the outgoing Pembrokeshire Agricultural Society President, took the opportunity to thank everyone who had helped and supported him throughout his presidency. During his year as President, Brian and his wife Helen, raised a tremendous amount of money for various charities including the Pembrokeshire Agricultural Society, RABI, Tir Dewi and the DPJ Foundation. Brian also gave his assurances that Castell Howell will continue to sponsor the Food Hall for future years.

Pembrokeshire County Show, the largest county agricultural show in Wales, will be held over two days again this summer on 14 and 15 August. Everyone is invited to attend the celebration of rural life in the county.

Pictured (left to right): Ffion Edwards the Ambassador for 2024; Adam Thorne, President; Margaret and Tim John, the Presidents Elect.

Farming

£1,000 bursary award available to Pembrokeshire agricultural students

Published

1 month ago

March 14, 2024

Tom Sinclair

PEMBROKESHIRE Agricultural Society’s £1,000 Bursary Award is now open for applications from students studying agriculture, veterinary science, agricultural engineering, food technology, forestry or other subjects allied to agriculture.

The Student Bursary Award 2024 is available to students, from Pembrokeshire, who are currently studying or have been accepted to start their studies. They can apply for this financial support to assist with their chosen college or career path.

Last year’s winner of the award was Lottie Wilson from Hayscastle. Lottie was studying agriculture at the University of Nottingham when she applied for the bursary. When she is at home she is a general dairy farm worker as well as a lambing hand and a calving beef herd assistant. In 2021 she was the top agriculture student at Hartpury College.

Robert James, Chairman of the Society’s Bursary Committee said, “I would urge all Pembrokeshire students who study subjects that are clearly aligned to agriculture to apply for this bursary as it won’t only assist with your studies but will also give you great experiences such as undertaking an interview which is a key employment skill. It will also assist in your future career within the agriculture industry.”

“A panel of independent judges will draw up a short list of candidates who will be interviewed and the winning candidate will be asked to give a short presentation at a future meeting of the society’s show council.

“The standard of applications has always been exceptional which gives a lot of heart that there are a lot of very talented young people in our community. We are very much looking forward to receiving applications for this year’s bursary and hearing from the younger generation.”

Qualifying students must not have won the student bursary on a previous occasion, the applicant must be studying or has been accepted to study agriculture or allied subjects at a UK college or university at A-Level or higher and the applicant’s family home must be in Pembrokeshire.

The bursary is tax free and will be awarded to the student who, in the opinion of the panel of judges, has submitted the best dissertation on how the bursary will assist them to complete their course of study.

Further details and the entry form can be found online: Student Bursary Award | Pembrokeshire County Show | Pembs Agricultural Society (pembsshow.org) or by calling the show office: 01437 764331. The closing date for applications is noon on Monday, 1 July 2024.