Farmers in a new market

FARMERS have been diversifying for years.

Faced with increasing difficulties in earning a living from agriculture, more and more farmers have turned to other economic activities, such as tourism or food production, to boost their income.

But as the competition increases, farmers are becoming more innovative. Last week, The Press reported how villagers in Wheldrake are leasing land for allotments from farmer Nick Hobson.

Last month, Mark and Jenny Rooke, from Beadlam Grange, near Helmsley, opened a new farm shop and tearoom stocking home-reared meat and local produce, while Wendy and Ian Newham, of Pexton Moor Farm, at Low Dalby, near Thornton-le-Dale, have invested in an eco-friendly shower and toilet block in the North York Moors National Park.

York Maze, in Grimston Bar, is going from strength to strength, Ryeburn of Helmsley is winning national acclaim for the ice cream it began making to use up the milk quota, and farmers near Norton are earning extra income by using household vegetable peelings and garden rubbish to fertilise their fields.

Rachael Gillbanks, press officer for the National Farmers' Union, said diversification had gathered momentum.

"Part of faming is making use of the assets that your farm has," she said. "For many years, farmers have been involved with the tourism industry, and I suppose what we're seeing more of now is a broader range of different business ideas being explored by farmers, including businesses that capitalise on their core farming business."

For example, where dairy farmers might venture into clotted cream, ice cream or yoghurt production, arable farmers might invest in micro breweries and livestock farmers could sell meat directly to customers.

"The politics of farming have changed and we've had reforms to the Common Agricultural Policy," she said.

"Farmers are now being told by the Government and Europe they need to make their farm business pay and provide them with a living and profit. As that starts to kick in, more and more are looking at diversifying. Not everything works for everybody though, and they have to really look at their business to see what will work for them."

Farmers have to consider their land and what buildings they could utilise, what machinery they have, and how close they are to main roads, she said.

They also need to make sure they are not latching on to an idea too late.

There are still farmers who want to make a living purely through farming, she added. Such farmers may have to adapt, but they should survive.

"Farmers are extremely adaptable and ingenious and I'm sure they will make the changes that are necessary to move things forward," said Rachael.

Bill Langhamer, general business adviser at Business Link York and North Yorkshire, said farmers were becoming more innovative about diversifying.

"It's extremely difficult for farmers to come up with an innovative idea they are passionate about, because without that passion it is not going to work," he said.

"A lot of diversification demands skills which farmers may or may not have, and each farm is faced with different problems and assets.

"One farm might be very strong in location, whereas another might be isolated. One might have buildings that be converted and personnel within the farm, and one might not.

"The key to farmers' success is to really think of something which nobody else is doing.

Business Link can offer advice to farmers who wish to diversify by looking at a farm's strengths and weaknesses, offering skills workshops and helping to apply for funding through Yorkshire Forward's rural development programme for England.

Case studies

Maze

DIVERSIFYING definitely paid off for York Maze owner Tom Pearcy.

It was a difficult decision to give up livestock and arable farming to create his maze in Grimston Bar, but the time was ripe for change.

"At the time, farming was in a bit of a recession and things weren't looking too good, so I decided to try and find some way to bring income in," he said.

"Beef had been through the BSE crisis and arable crops weren't selling very well. I'd seen one or two of the first maize mazes down south and thought it would be a good idea."

Setting up the maze was difficult, he admits. Tourism and marketing were alien concepts because he had not had to encourage people on to his land before.

The business has expanded over the years and 50,000 people now enjoy the crazy golf course, inflatable maze, giant sand pit and go-karting each summer.

It has not been easy. When the University of York announced its plans to expand, Tom, as a tenant farmer, was told to leave. It took him two years to find a new farm in Elvington Lane, but he hopes to make York Maze bigger and better.

His new work is not without its problems, but he is glad he made the change.

Diversification won't work for everyone, however, he warns.

"They can't all diversify. There is only room in the market for a number of things like mine. If there are two mazes, then realistically you don't make as much money. It's the same with anything, with things such as farm shops. It's down to location as well. If you rely on customers, you need to be accessible."

Cheese

JUDY BELL is at the helm of one of North Yorkshire's biggest diversification success stories.

More than 20 years ago, the farmer's wife indulged her passion for good cheese by making it herself. Shepherd's Purse Cheeses, in Thirsk, is now the UK's largest sheep's milk producer and is on the cusp of cracking the American market.

The business began when Judy and her husband, Nigel, were pondering the future of their 400-acre farm. "The Government were in the very early days of asking people to look at diversifying to add value to the products they produced," she said.

"We were earning a living; not a lot, but we were okay and we had a young family who we thought might want to do something in a rural area, so we decided to look at diversifying.

"I discovered there were a lot of people who had problems with bovine products, and also realised there was high nutritional value in sheep's milk, and it really developed from there."

One of the biggest problems lay in marketing. It was hard to get her product noticed, until she discovered a regional food network.

Her most costly mistake was talking to a consultant rather than people in the industry, she says. Establishing links with people in the same field helped overcome problems such as sourcing ingredients.

"We've grown steadily over the years and the pressures and trials and tribulations vary from day to day," she said. "For example, we decided to expand the business quite considerably in 2001, then we were hit by foot and mouth.

"It hasn't all been plain sailing, but the product is in demand and it's very gratifying to see it wining prizes still."

More farmers will diversify in the coming years, she believes.

"The pressure on the farming industry is immense at the moment. It will inevitably come back, but whether people can hang on is another matter."

Hats

WHEN it comes to diversifying, farmers' wives can play as bigger part as their husbands.

Beryl Otley, founder of Get Ahead Hats, near Poppleton, decided to go into millinery after paying over the odds for a hat 23 years ago.

She soon found there was a niche in the market and, after several more farmers' wives asked if they could take part, formed a cooperative.

Working together enables them to share costs, she explains. It also suits their commitments as farmers' wives. "A farmer's wife nowadays is expected to be the office manager, will often drive tractors or trailers, the person who runs for spares, sometimes the shepherdess and she will also help with calving," she said.

"They are expected to do all sorts while their husband is out in the fields, whereas 50 years ago, they would have been at home baking apple pies."

Get Ahead Hats is one of the best examples of diversification in the country, she said. It has enabled people to learn a skill, as well as filling a gap in the market.

"We've been held up as a shining light of what can be done on a farm."

One farmer who does not want to diversify

FARMER Chris Hawkswell hopes to avoid diversification for as long as he can.

His family have farmed the same piece of land in Heslington since 1957. He is enjoying farming less and less, but would not want to do anything else.

"Call me a traditionalist but I wanted to be a farmer," he said. "I always thought as long as I can make a living doing what I'm doing, then I'm happy.

"The paperwork side of it is taking up so much time, but you have a wide range of jobs and you're not doing the same thing all the time. You're out in the open and you get a sense of satisfaction when you see something you've grown and know you've earned enough to keep yourself going for another year."

As tenant farmers, it would be difficult for Chris and his wife, Sally, to diversify, he said.

Opening a farm shop would increase the traffic and there are so many equestrian businesses, he would need to offer cheap prices to attract businesses, he said.

Most projects also require capital investment, which he might not have.

There may come a time when he has to diversify, he admits, but he hopes it won't happen.

"As long as I can earn a living doing what I'm doing, then I'm happy."