THE FARM DIVERSIFICATION GRANT SCHEME - ADOPTION AND NONADOPTION IN ENGLAND AND WALES

The Farm Diversification Grant Scheme, introduced in the United Kingdo m in 1988, encourages farmers to diversify their business activities o n the farm. In this paper, the Scheme is described and both the 'farm' and 'farmer' characteristics of a sample of 'adopters' and 'nonadopte rs' in England and Wales are examined as well as the reasons for adopt ion and nonadoption. The results indicate that adopters are drawn from larger farms, those with higher incomes and levels of borrowing, the younger, better educated farmers, and from farms where spouses are mor e actively involved in developing the business. Considerable resistanc e towards diversification was found among nonadopters, who have still to be convinced of the financial viability of this type of business de velopment; to many, it is just not farming.