Several factors can help young farmers diversify

To be able to support young people in diversifying their businesses and contributing to rural rejuvenation, we need to know how to do that. Therefore NKJ organized a workshop facilitating discussions among key stakeholders.

 

The workshop “On-farm diversification among young farmers in the Nordic/Baltic countries” gathered key stakeholders to contribute to policy recommendations for the Nordic Council of Ministers. Before the workshop there has been both a desk research and a literature review. The purpose is to understand the role and context of farm diversification and highlight challenges and policy recommendations to support young farm entrepreneurs.

Several challenges with farm diversification have been identified. Venturing into new areas requires acquiring new competences and skills. The main “farmer identity” might be challenged with a broader range of activities and income streams. Necessary investments can be costly, and loans can be difficult to obtain for young entrepreneurs. So, how to make it possible for young farmers to diversify their businesses?

The workshop participants mentioned both financial difficulties, legislative obstacles and lack of land for sale as factors to be considered. Proposals from the participants was to inspire young people to take loans together and to provide support for the development of model pilot farms and to develop the system for buying and selling land. They also saw the need to make agricultural entrepreneurship a more high-status job, and to use social media to spread awareness about food production. The need for platforms for knowledge exchange and networking seems to be big.

– The point of views from those inside the agricultural sector, knowing it inside-out, will influence what we pass on to the Nordic Council of Ministers. The workshop was a valuable contribution to our work.

– The participants pointed out that diversification of agricultural operations leads to an increased regulatory burden as the farmer needs to familiarize himself with additional regulations, for example if they diversify into food craft or restaurant operations. This is an important issue that we will highlight in the policy brief, says Maria Tunberg, Analysys Mason, project coordinator.

NKJ goes on with the work with the policy recommendations for the Nordic Council of Ministers, and will include the workshop results.

 

Literature indicates that a changing farming landscape in Nordic/Baltic countries comes with challenges:
• The farming sector is consolidating resulting in a declining number of farms
• Farm managers are aging and predominantly male; female successors less inclined to take over
• Low youth retention pose a problem for prosperity since young people are key for innovation and growth
• Social and cultural needs are not being met to the same extent in rural environments, further hampering youth retention
• Destructive norms and stereotypes regarding rural life are among key drivers for increased relocation among youth to urban areas