Barriers to Diversification

Agriculture, Featured

This report covers a project funded by Our Land and Water, to investigate the challenges faced
by landowners when they seek to diversify via land use change. The project itself involved interactions with 11 farmers within the Waikato who were investigating various options for land use change on their properties.

This involved three workshops with the participants wherea range of issues were discussed:

Options available.
The need for good due diligence.
Access to information, especially financial.
The challenges and barriers participants came up against and how they approached
these.

The four key motivations for diversifying were identified as (in order):
Financial gain
Desire to try something new
Reduce environmental footprint
Part of succession planning

Participants were asked to identify their top supporting partners in progressing their
diversification plans. These changed throughout the project, with the top five identified at the
end of the programme as (in order):

Agribusiness consultants
Supply/industry corporates
Banks
Other farmers
Accountants

The key barriers identified to progressing diversification plans were (in order):
Skills/human capital
Physical limitations/resources
Production uncertainty
Set-up capital
Lack of information

Download and read the full report here.

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