SAC Rural Policy Centre

Agriculture is an important sector in the economy of Scotland and despite recent difficulties farming remains a fundamental part of the rural economy, its social structure and its environment. The reform of the Common Agricultural Policy (CAP) with its associated decoupling of subsidies has had a major influence on the structure, output and land use of agriculture in the country. The sheer number of alternative enterprises from which farmers may select can be unlimited and assessing the potential profitability of these enterprises can be overwhelming.

Promoting and supporting diversification opportunities is an integral part of the Scottish Governments Forward Strategy for Scottish Agriculture as it is recognised that for agriculture to be sustainable it must fully realise the business potential from its rural resources in terms of land, environment, rural infrastructure and importantly the innovation and entrepreneurship of those engaged in the industry. The Farm Business Development Scheme (FBDS) and Agricultural Business Development Scheme (ABDS) have both provided grant assistance to support farming families create new income-generating opportunities through diversified activities either on or off farm.

(January 2008)