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Farm diversification

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  • Release date: 28 January 2015
  • Period covered: 2013-14
An annual report which includes information on the number of farms involved, income and ouput.

These figures are based on results from the annual Farm Business Survey. Figures are also provided on farm diversification in Wales for 2009-10 to 2012-13, in some cases updated earlier published estimates.

Key points

  • Around 3,100 farm businesses in Wales were engaged in producing output from diversified activities during 2013-14, with 2,100 farm businesses generating diversified output other than rent.
  • Farm business income from diversified enterprises increased to £15 million (5 per cent of farm business income) in 2013-14, from £14 million in 2012-13. Income from the Single Farm Payment provided the largest contribution to farm business income in 2013-14 (contributing £215 million, 74 per cent of farm business income).
  • For 61 per cent of farm businesses with diversified activity in Wales in 2013-14, the income from diversification accounted for less than 25 per cent of farm business income.
  • Diversified enterprises contributed around £27 million (2 per cent) to farm business output in 2013-14, having increased from around £22 million in 2012-13. Around 43 per cent of the output from diversified enterprises in 2013-14 was derived from the letting of buildings for non-farming use.
  • The average diversified output for farm businesses with diversified activities was £8,800 per farm in 2013-14, compared to £7,700 in 2012-13. Average enterprise income from diversified activities in 2013-14 was £4,900 per farm, with tourist accommodation and catering producing an average enterprise income of £6,800 per farm.
  • The proportion of farm businesses with diversified activities in 2013-14 was highest for the ‘very large’ farm size class (47 per cent of ‘very large’ farm businesses), as measured by labour inputs, and for the ‘large’ farm size class, with 32 per cent of ‘large’ farm businesses engaged in diversified activities.
  • For both LFA Grazing Livestock and Lowland Grazing Livestock farm types the percentage of farms with diversified activities increased over the period 2012-13 to 2013-14. Conversely, the percentage of Dairy farm businesses with diversified activities declined from 27 per cent in 2012-13 to 25 per cent in 2013-14.


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