🌧️ Why farms diversify
Farm incomes can be low or can change a lot from year to year. A second income stream protects the farm if one product sells badly or one harvest fails.
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Unlock This CourseFarming can be a risky way to earn a living. Prices change, bad weather can ruin a harvest, and a farm that sells only one product can lose a lot of money in a bad year. Many farmers now look for other ways to earn money from their land and their skills.
This is called diversification. In this lesson we look at two ways to do it: growing GM crops and growing specialist crops and food. Organic farming and recreation and leisure come in the next lesson.
Key terms:
Farm incomes can be low or can change a lot from year to year. A second income stream protects the farm if one product sells badly or one harvest fails.
More money, steadier money and more jobs. A farm that earns more can keep its workers and its family on the land, which helps the rural area stay alive.
Scientists can take a useful gene from one living thing and put it into a crop plant. The new plant is a GM (genetically modified) crop. Farmers may choose GM crops that resist pests, put up with weedkiller, or cope better with dry weather.
Bt cotton has a gene added that makes the plant produce a protein that harms some insect pests. Farmers in India grow it, and the aim is fewer crop losses and less spraying of insecticide. Cotton is also sold for cash, so a good crop gives the farmer an income.
Higher crop yields, because fewer plants are lost to pests or drought. Less money spent on sprays. More crop to sell, so a higher income.
GM seed can cost more than ordinary seed, and farmers may have to buy new seed each year. Some people worry about effects on wildlife and other plants, so the crops are debated and are banned or controlled in some countries.
Instead of competing on price with huge farms, a farmer can grow something unusual and sell it for more. Specialist crops are often sold directly to customers, in farm shops, at markets or online, so the farmer keeps more of the money.
Higher prices, new customers, new jobs in making and selling, and a farm that stands out from others.
Start-up costs for equipment and shops, new skills to learn, and a smaller market. If the crop fails or fashion changes, the farmer may lose money.
A farm sells 100 tonnes of wheat at a low price. The farmer plants one field with lavender and uses part of the barn as a farm shop selling lavender oil and jam. Now the farm has three income streams: wheat, lavender and the shop. Each one brings in money in its own way. If wheat prices fall, the other two still bring in money.
(a) What is meant by farm diversification? [2 marks]
(b) Explain one benefit and one problem of growing GM crops. [4 marks]
(a) Adding new activities to a farm (1) so that it earns money from more than one source (1).
(b) Benefit: GM crops can resist pests (1), so fewer plants are lost and the yield and income are higher (1). Problem: GM seed can cost more than ordinary seed (1), so the farmer may spend a lot before earning any more money (1).
For an "explain" question, give the point and then a because. Writing "pest resistance, so fewer plants die, so income rises" earns both marks.