Incomes from traditional farming have fallen

The government's farm business survey (FBS) reveals almost a third of farmers in the region are now diversifying.

The figures show 370 farmers have diversified into sport and recreation, 590 are running tourist ventures and another 300 are involved in retailing.

The government says non-agricultural activities are becoming more important to farming households.

The survey figures show income from traditional farming has fallen over the past year - mainly due to lower market prices for cereals, potatoes, cattle and sheep.

Among the North East's entrepreneurial farmers who have already diversified are shepherd Jon Monks, of Northumberland, who writes walking guides in his leisure time.

Devastating impact

And dairy farmers John and Susan Archer, of County Durham, have transformed a former stable and forge into an ice cream parlour.

The survey suggests that average earnings were �5,000 per farm from diversification.

The big switch to other incomes follows the devastating impact of foot-and-mouth disease and an increase in government incentives to help farmers diversify.

Food and Farming Minister Lord Whitty said: "These figures show that diversification is an increasingly important earner for farmers, and diversification activities are becoming more and more successful.

"Reasons for the drop in traditional incomes include lower market prices for crops and cattle and a rise in costs as a consequence of higher world oil prices and exchange rates."