Increasingly, large numbers of dairy farmers are looking to the benefits of adding value to their businesses by diversifying into new areas as their total income becomes insufficient to make a living. The desire to survive amongst farmers is strong but if they continue with dairy farming, it is imperative that more money is made from their own produced milk, for farmers to remain in business. The farmers have a number of options to consider whereby they seek to change how their land is used or they can gain an income from activities other than farming the land directly.

To summarise:

Farmers can diversify within farming to:-

? non food crops and animals
? environmentally beneficial farming
? produce more profitable crops
? sell directly from farm shops marketing quality food products.
or
? they can diversify out of farming, but still remain part of the local rural community, into non-agricultural activities

Flow diagram of the major types of farm diversification

The government provides support to farmers who wish to diversify. The government department that oversees all rural affairs is called the Department for Environment, Food and Rural Affairs (DEFRA).

Through The England Rural Development Programme (ERDP)which is part of DEFRA a framework for operating schemes to protect and improve the countryside as well as encouraging sustainable enterprise in thriving rural communities is provided. It also aims to protect the environment and support the rural economy and communities. Resource 4 gives just a few examples of how a farmer can improve farm income using government help.

Full details are given on the DEFRA website www.defra.gov.uk/erdp. This may not be the way that you think the farmer can make the best living and none of the schemes guarantee success.

Resource 4: How does the Government help farmers?

The England Rural Development Programme (ERDP)

The ERDP provides a framework for operating schemes to protect and improve the countryside as well as encouraging sustainable enterprise in thriving rural communities. It also aims to protect the environment and support the rural economy and communities.

The 10 schemes are:
1. Countryside Stewardship 6 . Energy Crops
2. Environmentally Sensitive Areas 7. Farm Woodland Premium
3. Hill Farm Allowance 8. Organic Farming
4. Processing and Marketing Grants 9. Rural Enterprise
5. Vocational Training 10. Woodland Grant

Farmers, who wish to diversify, can apply for grants to operate any of these schemes.

Some of the types of payment that are available in the Countryside Stewardship Scheme are outlined below:
? Field boundary restoration. Some of the traditional boundaries may have been removed or neglected. They can be restored by management that follows traditional practices, reflect local customs, uses local materials and is sensitive to wildlife and landscapes
hedge laying (fig.05)and planting ?3/metre new hedges(fig.04) ?3/metre
stone wall restoration ?12/metre tree surgery up to ?50 /tree
wildlife strips ?16/100m (?267/ha)

? New Access to farmland. Provision of access to land can be an important way for people to enjoy the countryside.
annual base payment ?150/year
+ access for horse riding & cycling ?0.30/metre
+ access for educational visits ?500/year
+ providing small hard surface car parks ?5/square metre

? Restoring old orchards, orchard tree pruning and planting Old traditional orchards are characterised by widely spaced standard fruit trees of old and often scarce varieties. They support a wide range of wildflowers, lichens , insects and birds. such orchards were once common throughout England but, many have been grubbed up and those remaining are often left unmanaged. The Scheme's objectives is to restore trees by pruning, grafting and restocking and to manage the grass beneath the trees by grazing or cutting to benefit wild flowers.
restoring old orchards(fig.03) ?250/ha
orchard tree pruning ?8/tree
orchard planting for standards ?10/tree
tree guards - needed if animals are in the orchard ?12/guard

? Chalk and limestone grassland This land is characteristic of the downlands of southern England(fig.02) the Pennines and parts of the Yorkshire Dales and Wolds. It is important for archaeology and wildlife. Large areas have been lost through agricultural intensification, through increase grazing levels or fertiliser use, or conversion to arable cropping. The scheme's objectives are to:
+ conserve grassland by adjusting grazing
+ restore traditional stone walls and hedges
+ return cultivated areas to downland
+create grass margins to cropped fields and manage the crop edge to benefit the rare arable weeds found on chalky soils
Managing chalk and limestone grassland ?60/ha
Re-creating chalk and limestone grassland on cultivated land ?280/ha

NB These are just a few examples of how a farmer can improve his income using government help. This may not be the way that you think the farmer can make the best living!

The Royal Agricultural Society of England (RASE) published a media briefing in February 2003 called Farming in 2003. A sustainable business? - A crisis of business sustainability is brewing on UK farms.