RELENTLESS pressure on profitability has forced many farmers to rely on off-farm income to survive, according to the latest analysis of the family farm to be published by NSW Farmers next week.

The association’s previous study of the family farm found that while farm numbers were slowly decreasing, contrary to expectations Australian farms were not getting any bigger.

Instead, according to NSW Farmers policy adviser Mick Keogh, farmers are coping with historically lower returns by increasing their reliance on diversification and off-farm income.

The trends here are similar to those in the United States and Britain, despite the heavy subsidisation of farmers in those countries.

Even for US farms with sales of up to $US500,000 ($965,000) per year, almost half of the total household income is derived from off- farm sources. Across all US farm types, 88 per cent of income is derived off-farm.

But despite the extensive assistance provided to them, US farmers have faced the same income difficulties as Australians.

UK farmers also have experienced a dramatic drop in income, particularly since the mid-1990s.

Total UK farm income is about only 70 per cent of the level it was during the late 1980s, and only 35 per cent of the level realised in the mid-1970s. In one year, the total agricultural workforce for England and Wales fell by 20,000.

As in Australia, there has been not only a rapid fall in the number of farm labourers, but an increase in the number of part- time farmers and a greater diversification into either on-farm or off-farm income sources.

A quarter of all full-time UK farms now earn most of their income off-farm.

“Our research shows that despite vast differences in government agricultural policies in the UK, US and Australia, all farmers have faced a difficult time during the past two decades,” Mr Keogh said.

“The overseas tendency to rely on off-farm income is becoming more common here, with research suggesting that Australian farms on average now source up to 20 per cent of their income off-farm.

“This highlights that many farmers are involved in the industry as much for the lifestyle as for the profits that can be generated.

“It also means that land values, especially in areas close to major urban centres, increasingly will not reflect the revenue that can be generated from that land by crop or livestock production.

“If you look at farms close to urban centres, the land value is far beyond the productive capacity of the land. The demand for and the price of land close to urban centres is only likely to increase further.”

The MacPherson family, who live on their property The Prairies outside Gunnedah, are typical of many young farming families both in the diversification of their agricultural activities and their reliance on off-farm income.

The property relies on a mix of cotton, wheat, sorghum and cattle, while Sian MacPherson earns the off-farm income through her own interior decorating company Potter and Fields.

Mrs MacPherson established the company after she married because she wanted to pursue her own interests and because as a family they wished to spread the risk of their combined operation.

“The operating costs of farming are getting greater and greater,” Mrs MacPherson said. “People are having to look at off-farm ventures more and more.”

She said they were fortunate enough to be surrounded by family and friends, so it was not difficult to leave their nine-month-old son Will when she was called out to jobs.

Mrs MacPherson said they were looking at other ways of generating income.

“Farming, and the weather patterns, are unpredictable, so it’s nice to have something where you are not relying on the weather for your income.”

But while it takes considerable ingenuity to successfully maintain a farming operation, the MacPhersons have no desire to change.

“People love the lifestyle,” Mrs MacPherson said.

“The country has so much more to offer in terms of community and support. People really rally behind each other. No one wants to move to the city.”