Diversification no answer, says bank

By Shelley Wright

DIVERSIFICATION is no answer to farmings current problems, according to analysis by Lloyds TSB Scotland.

Figures for 1999/2000 farm incomes in Scotland, published recently by the Scottish Executive, show that diversification does not offer the solution to farmers economic woes, says Donald MacRae, head of agricultural services with Lloyds TSB Scotland.

Peter Cook, head of the SACs rural business unit, says non-farming income is becoming increasingly important to Scotlands farmers.

“About 77% of farmers now have some form of non-farming income, compared with 60% back in 1990/91.

But, while income from non-farming activities in Scotland now averages about 8400 a farm, less than 5% of that comes from activities that use farm resources.

“These figures provide definitive proof that diversification is no answer to farmings current problems,” says Prof MacRae.