What is Resilience?
Resilience is the cornerstone of a successful farm business, in an ever-changing world. At its core, resilience means being able to withstand shocks, recover quickly from setbacks, and adapt to adversity. For farmers, this translates into maintaining stability and profitability even when faced with unpredictable challenges—from changing markets and new regulations to extreme weather and disease outbreaks.
Building Resilience Through Mixed Farming Enterprises
British farmers are no strangers to volatility. Markets fluctuate (sometimes rapidly and dramatically), regulations are for ever changing, government support seems increasingly unreliable. These events, along with the effects of global conflict, conspire to undermine confidence in the future of farming. Farmers must constantly adapt to these changes, whether it’s responding to cheaper imports, new regulations, or sudden shifts in demand. Working with nature also adds another layer of unpredictability. Weather, pests, and diseases (like bovine tuberculosis) can impact productivity and income.
One tried-and-tested approach to building resilience is adopting mixed farming enterprises. This means cultivating a variety of crops and livestock, rather than focusing solely on one area. There’s an old saying: “Up in horn, down in corn,” which captures the balancing act of mixed farming. When cattle prices are high, cereal prices may be low—and vice versa. By not putting all of their eggs in one basket, farmers can spread their risk, helping to offset poor returns from one enterprise, with a better outcome in another.
Beyond Market Volatility: The Benefits of Diversification
Mixing cropping/growing enterprises with livestock can also improve farm and soil health and yields over the longer term. Rotating crops and integrating livestock means healthier soils, reduced disease risk, and better overall productivity. Establishing pasture for three to five years and grazing livestock allows crops to be sown into rested fields with good levels of soil nutrients, reducing input costs and further reducing vulnerability to adverse conditions.
Global commodity markets are notoriously volatile, and prices often don’t reflect the true cost of production. Recent UK milk price cuts and rising costs for fertilisers and fuel, in response to war in the Middle East, illustrate the ongoing pressures faced by farmers. Mixed farming helps mitigate these shocks by providing alternative sources of income and reducing reliance on any single enterprise.
Turning Price Takers into Price Makers: The Power of Direct Sales
In the modern day grocery supply chain farmers have been “price takers,” with little or no capacity to influence the price that the market offers for their products. However, selling some products directly from the farm changes this dynamic. By marketing directly to customers, farmers can become “price makers.” This kind of diversification means prices can be set to reflect production costs and the true value of the farming behind the food produced, by offering discerning customers the chance to make more informed choices about not just where their food comes from, but how it is produced.
Direct sales create opportunities to build a brand and establish a loyal customer base. Customers who buy directly from the farm are less price sensitive, because they can build a direct relationship with the producer and they value the unique qualities and ethics behind the products. This reduces price volatility and gives farmers greater control over their income.
But, whilst direct sales can result in higher prices, farmers who market their produce this way have to bear the additional costs of processing and selling, as well are rearing animals or growing crops on the farm. It is vital that small producers carefully asses the potential margin to be be made, as they will not achieve the economies of scale enjoyed by large retailers or processors, in getting raw material food at farm level to saleable finished product for the consumer.
New Opportunities and Generational Growth
As family farms are handed down through the generations, sufficient income is often needed for more than one generation of the family is often needed for a period in the succession process. It is often difficult to find a role on the farm, into which a son or daughter to easily slot, without extra income being derived from their participation. Resilience is all about the ability to adapt and change things in response to new challenges or opportunities. Young people coming into farming bring new ideas and new skills, to help keep the farm moving forward. Diversification and direct selling ventures can create new roles on family farms, in areas such as on-farm processing, marketing and sales. These activities can allow the next generation to establish a foothold in the business forward and contribute to its success, ensuring that the farm business grows and remains viable and vibrant for years to come.
Conclusion: Building Sustainable, Resilient Farms
By embracing mixed farming enterprises and selling some products directly to consumers, British farmers can build more resilient, sustainable businesses. Diversification of farm enterprises spreads risk, improves soil and animal health, and offers flexibility in the face of unpredictable markets. Direct sales empower farmers to set their own prices, build strong brands, and foster lasting relationships with customers. Together, these strategies turn farmers into price makers ready to weather any storm and seize new opportunities for growth.
Author: Neil Darwent
A small family farm selling beef and lamb