Abstract

Diversification, in its many forms, contributes an increasing proportion of income to farm
businesses. With many interpretations of what constitutes diversified activity, this study uses
findings from an empirical study of 3,000 farms to establish a typology of diversification
based on the role of the farmer and the impact of new activity on the core agricultural
business. Using this typology, the paper’s key contribution is to establish essential business
skills and strategic capabilities required by farmers to diversify successfully. These vary
according to both the farmer and the farm holding, depending on the age, experience, skills
and family situation of the farmer as well as ‘external factors’ relating to natural, spatial and
economic influences.