FARM businesses planning to boost income by diversifying are being urged to make sure that their expectations are realistic and their planning foolproof before taking the plunge.

Although almost half of all farm firms in the UK are supplementing their income through non-farming enterprises, Greg Fowler, Lloyds TSB regional agricultural manager for Hereford and Worcestershire, is warning that diversification isn't for everyone.

Launching the Lloyds TSB Guide To Farm Business Diversification, Mr Fowler said: "Sensible diversification can make all the difference to some farm businesses - releasing unused resources of land, buildings and entrepreneurial skills and helping develop a long-term alternative income.

"But it's not the solution for everyone. A project will often take a business operator into uncharted territory so levels of planning, budgetary forecasting and control need to be of the highest order.

"Additional training and professional help are of equal importance. The key is to plan all aspects in detail and subject every idea to the most critical examination of family, business partners, staff and professional advisers."

The new guide lists 75 different examples of new business opportunities that have been followed by UK farmers ranging from new crops and livestock enterprises to farm retailing.

Free copies of the guide are available from Lloyds TSB Agriculture on 01264 386248.

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