7.1 Farm Diversification Among Young Entrepreneurs
The Nordic-Baltic region is facing challenges with rural depopulation. To attract young people to rural areas, entrepreneurial opportunities in the rural sectors could be strengthened. In this context, the diversification on farms represents opportunities in combining enterprises on farm level. The policy brief presents initiatives and challenges related to young rural entrepreneurs in the Nordic and Baltic region. It is based on a systematic mapping of literature, a complementary snowball search strategy, and a stakeholder workshop.
The policy brief addresses demographic and structural challenges facing rural areas in the Nordic and Baltic region. There are fewer and larger farms, and the generational renewal is lacking. The report highlights that rural quality of life is increasingly strained by unmet social needs and economic opportunities. In the Nordic region, youth are for example disfavoured of the housing market, and the fewer career opportunities for educated youth in the rural areas is another challenge. As younger people leave, rural communities lose key drivers of innovation and economic growth.
Against this backdrop, farm diversification emerges as a strategic tool to create new income streams, attract young people to rural life, and stimulate local development. The identified benefits include the possibility to diversify sources of income and the use of all available farm resources which contributes to resilience. The report also highlights employment generation as a positive secondary effect. Examples of diversified farm activities include farm tourism, wool and wood products, local food initiatives, renewable energy, forest management and nature-based health interventions.
Despite the potential benefits, young entrepreneurs face several obstacles related to competence, identity, financial risk, and regulatory complexity. Diversification inherently requires the acquisition of new skills, including competencies in areas such as marketing and market orientation. Limited access to financial capital might be discouraging. Diversification further entails increased regulatory complexity and navigating these complexities can be particularly challenging for young entrepreneurs. Ongoing efforts by EU, national, and local actors provide some support, but gaps remain in accessible funding, knowledge-sharing structures, and coordinated policy frameworks.
7.2 Inspiring Rural Entrepreneurs
Building on the insights from above mentioned policy brief, the report Inspiring rural entrepreneurs – Five Nordic role models aims to highlight how young rural entrepreneurs can contribute to revitalising Nordic rural areas under conditions of structural change and difficulties in attracting young people to agricultural and land-based careers. By showcasing five young entrepreneurs from across the Nordic region, the report seeks to provide inspiration for viable business models and encourage greater Nordic knowledge sharing on rural entrepreneurship.
The report is based on qualitative interviews with five rural entrepreneurs from Sweden, Finland, Norway, Denmark and Iceland, and is informed by earlier Nordic policy work, particularly Nordic Agri Research’s Policy brief on farm diversification (2025) and Nordregio’s Growing Food(ies): Empowering youth in the Nordic food systems (2025).
Across the five case studies, the report identifies recurring patterns among the featured entrepreneurs, including a strong connection to place and family traditions alongside a willingness to explore new ideas and business models. Several role models combine primary production with activities such as food processing, direct sales, or services, illustrating different ways of creating added value and broadening income streams. The cases also point to the importance of a viable core business and strong attention to day-to-day operations as a foundation for additional activities. Many entrepreneurs emphasise their relationship with the surrounding community, describing farms as social spaces and using social media and customer interactions to increase visibility and interest in local food and rural businesses.
7.3 Recommendations
To support farm diversification among young farmers in the Nordic and Baltic region, the report Farm Diversification Among Young Entrepreneurs proposes a set of targeted policy recommendations. These recommendations aim to expand funding mechanisms, raise awareness of bioeconomy opportunities, facilitate knowledge sharing, and explore ways to reduce the regulatory burden on diversified farm businesses. Among these, the steering group highlights three key priorities:
Through best-practice examples, awareness of the potential of farm transition can be increased, helping to make rural entrepreneurship more attractive. Showcasing different pathways can enable young entrepreneurs to find inspiration and role models among peers engaged in diversified farming.
Facilitate knowledge sharing and help build a stronger group identity by, for example, supporting youth clusters and coordinating cross-regional events that particularly target young farmers and rural entrepreneurs. Platforms where young entrepreneurs can meet, exchange experiences, and access peer support can contribute to problem-solving and to strengthening a shared sense of identity.
For rural areas to remain attractive for youth, there is a need for local community services such as education, health, housing, and cultural activities. Strengthening these areas requires greater political attention.