IT began as a machinery ring 12 years ago, now it composts poultry feathers - Leominster's 7Y Rural Services has been held up as a shining model of rural enterprise at a major county conference.

Diversification is its key to success. Managing director Julia Morgan said many of its hundreds of members are leaving pure agriculture and a new 21st century breed of rural business person is emerging.

The last speaker at the 'Stepping Stones to a Healthier Rural Economy' conference, arranged by Defra and co hosted by the West Midlands Rural Network and the Rural Affairs Forum, the 150-strong audience heard how 7Y had itself kept pace with change.

"7Y started life as a farming based organisation. For the first 10 years the majority of the work was done for members working in agriculture. It is now evolving rapidly to meet changes," said Julian at Hereford Racecourse.

The service, which employs 30 people, is becoming increasingly diverse. As well as a farm labour relief service and agricultural training, there are now courses for non-agricultural business people and administrative support and technological help for a wide range of businesses. One of its latest projects, Bioganix, even turns feathers and organic waste into compost. As a result, the company, owned by a co-operative of business people, is increasingly supporting 'new entrants' with businesses as diverse as constructing marquees to letting off fireworks.

On Julian's own family farm a cattle shed has been converted into an industrial unit, providing jobs for 40 people.

"New businesses are growing fast and providing opportunities. As a service provider we have to be flexible and meet their requirements quickly. We have to respond to the needs of new businesses and many of our members diversifying out of pure agriculture," he said.

Julian claims 7Y's diversity is increasing the economic vitality of rural Herefordshire by helping members diversify and seeking new ones from businesses coming to the county.

Chairing the conference, Dr Tony Harris of the West Midlands Rural Affairs Forum and Heart of England Fine Foods, said: "This is a splendid example of how a collaboration business has responded to change, providing many of the services required."

Delegates heard how the Strategy for Sustainable Food and Farming can help. Its aim, for a competitive and efficient farming and food sector, focuses on reforming the Common Agricultural Policy, investing in people and technology and protecting the environment.

They also heard about free advice from the Farm Business Advice Service. Representatives have helped farmers put together business plans and even restructured farms to increase profits.

For further information about the Farm Business Advice Service contact 01952 208221.