Article date: 26 July 2007
Farmers need increasingly different types of cover as they diversify their business, according to Norwich Union.
With *50% of full and part-time farmers having diversified business as they look to increase their income source and respond to new and evolving consumer demands they are faced with new risks.
Graeme Gibson, senior underwriter - agriculture for Norwich Union, explains: "Where farmers need an alternative source of income, they also should have the expertise and specialisation to protect themselves and their assets in diverse sectors of the market.
"We are seeing more and more farmers entering the leisure and tourism sectors as they introduce activities such as clay pigeon shooting, camping and bed and breakfast facilities. Norwich Union has the capability to underwrite such sectors and provide farmers with cover."
Diversified activities, defined by Norwich Union as the "diversification of agricultural resources into income-generating activities beyond the boundaries of conventional farming," fall into many sectors; leisure, retail and property owners, which can contribute up to *22% of a farmers' total income.
Renting out buildings for non-farming use is the most common diversified activity (38% of total farms in England) with sport and recreation and processing and/or retailing farm produce following behind at 9% and 8% respectively*.
And, according to research from DEFRA, *30% of farmers have more than one diversified activity.
* Source - The Farm Business Survey 2007
For further information, please contact: Sam Bramwell at Staniforth or 0161 919 8024/077381 96667 or Sally Leeman at Norwich Union on 01603 684225/ 07800 699670.
Notes to editors
- Norwich Union is the UK's largest general insurer with a market share of around 15%, with a focus on insurance for individuals and small businesses.
- It is a leading provider of life, pensions and investment products and one of the largest Financial Adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
- Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.