YOUNG farmers are facing serious and unnecessary challenges which impact the entire industry, a report has claimed.

A study by the Royal Bank of Scotland found that the number of young people entering the sector continues to fall, while those already the land can’t grow and diversify their farms.

The report calls for a more joined-up, cross government, farming sector and finance framework to ensure that any economic potential is tapped.

The report, 'Harvesting the future for young farmers', is based on a landmark study of over 500 young and potential new entrants to the industry in Britain.

It said that the main challenges facing farmers included limited succession opportunities on family-run farms, an inability to embrace new ways of working and access to funding.

However, the research findings also show that these millennial farmers hold a huge economic potential and are driving significant enterprise trends in the agricultural sector.

According to the report, almost 20,000 new diversification projects could be delivered by young farmers, generating £11,900 in additional income per farm.

Ian Burrow, Head of Agriculture at the Royal Bank of Scotland, said: “Millennial farmers are a high tech, high skilled, highly motivated group who hold a realistic picture of farming in their heads and want a career on the land.

They are however, seriously constrained in a number of ways. With Brexit further heightening these challenges and increasing uncertainty, it is important we act now.

"Unless additional investment is secured, it is unlikely that the economic potential these young people hold will be unlocked. Banks, government, families, and communities need to come together to ensure today’s young farmers receive the support they deserve.”