What makes a farm? That might sound like a loose rhetorical question, but it is one that could have increasing importance in the coming years as issues like food security, environmental impact and responsible use of our pressurised green spaces sweep other concerns aside.

The first sub-clause of the question could be: how big does a holding have to be before it can be considered a real working farm? How many acres do you need before a holding is deemed capable of feeding people other than those who farm it and therefore the potential to turn a profit?

Seeking answers to questions such as these will become ever more important as the pressures on the natural landscape increase alongside burgeoning requirements for good healthy food.

Throw factors such as the rising cost of fossil fuels in to equation – in tandem with probable moves to somehow penalise "food-miles" which contribute to climate change – and suddenly the loose rhetorical question about 'what makes a farm' becomes more urgent and vital.

For decades we seem to have assumed that farms need to become ever larger in order to be efficient and profitable.

But suddenly this assumption has been turned on its head. New research carried out by the University of Plymouth has discovered that in the UK it is perfectly possible to make a living out of 10 acres or less.

The research, entitled 'Small is Successful: Creating sustainable livelihoods on 10 acres or less', believes micro-holdings could play a significant part in a more sustainable society, "Increasing local food production and boosting the rural economy in both developed and developing countries."

Several smallholdings in the Westcountry, including ones near Taunton, Bruton, South Petherton and Dorchester, took part in the survey which examined financial accounts and monitored working practices.

Larch Maxey, a research fellow at the University of Plymouth who led the year-long study, said: "These farms' success turns upside down the established understanding that only large farms are viable. The fact that these businesses can succeed on tiny pockets of marginal land flies in the face of the perceived wisdom on farm viability.

"A wide range of enterprises are based on these small farms, from the traditional market gardening of fruits and vegetables, to more innovative ventures such as champagne cider.

"Adding value is a key element of success, for example, with producers also processing and marketing food," he told the Western Morning News.

So why is all this so important? And in what way will the survey help address the plethora of issues presently facing the British countryside?

Well, for a start, it will inform the current process of developing a National Planning Policy Framework for England. "Our research shows the value of policies which allow highly sustainable, 'low acreage livelihoods' to flourish within the Framework and sets out recommendations to achieve this," Dr Maxey told us.

"This benefits sustainable smallholders, as it replaces the risk of being overlooked with policies which specifically acknowledge and support them."

To take one example: at present planning officers can simply turn down permissions when wannabe-smallholders apply to build a home or some kind of agricultural development which they claim will enable them to farm on a modest-sized piece of land.

If Dr Maxey's findings are eventually adopted at a central government level, a planning officer will no longer be able to simply state: "Permission refused – it is widely accepted that such small parcels of land do not provide a viable living."

There's a case in point being contested at the moment in the Westcountry – high on the southern slopes of Dartmoor chilli-growers Phil and Kay Palmer have been in a lengthy battle with planners from the local national park authority in an attempt to gain planning permission on their smallholding for developments which they say are necessary for their flourishing business to continue.

Mr Palmer sighs wearily when asked about Dartmoor's hot chilli-war: "The present state of play is that the national park put enforcement notices on us – we asked them to wait until it went to committee in April, but they didn't.

"What happened is that they've got hold of their own agricultural consultant – who in fact has written the most glowing report imaginable in our favour – but even so we will have to appeal each enforcement notice which means that will cost us £1,340.

"Only yesterday we got another bill for £2,700 for legal bills spent on fighting the planners – which has meant that, unfortunately, we've had to let go our part-timer go and offer our full-timer just part-time work."

"I am really pleased to hear about this report," he said. "I agree with its findings – we have eight acres here and at the moment we only farm two of the acres with chillies, but in time we might plant more up with orchards to use in our apple chutneys.

"If we can get the red tape out of the way we could kick-on and make this business work and employ local people," said Mr Palmer.

Dartmoor Chilli Farm has been in business for over four years, so no one could argue that it is not a commercial undertaking – and the Palmers have won all manner of awards, all of which suggests they are staking a genuine claim.

But many planners will fear that the new "small is successful" report might offer unscrupulous developers a back door route to building homes in open countryside that have no real agricultural relevance.

I put the concern to Dr Maxey, who agreed that there could be grounds for such fears if stringent rules weren't put into place. "One of the changes we desperately need is to tighten up the tied-dwellings law," he told me.

"Currently there is a tied-dwelling provision, but it is far too easy to get around it. People get conditions removed and sell the home with no agricultural tie. We are saying that should be tightened – and that will then hopefully make the planners see that there is scope.

"Another part is close monitoring of smallholdings," he went on. "That's where organisations like the Ecological Land Cooperative (which backed the new report) can come in – it maintains freehold ownership and has 999-year leases. If a smallholding becomes unproductive they can work with a tenant, but they do have the ultimate sanction.

"There are lots of different actions you could take – that is exactly why we've produced the report. We can now look at what the figures are saying – it won't be the case that every proposed smallholding is viable, but we can say it is possible."

Brett Spiller, chairman of the Royal Town Planning Institute, has welcomed the new report saying that planners often took a "precautionary approach" which could sometimes be perceived as imposing "bureaucratic red tape".

"Small is Successful responds with reassurance on what is possible, presenting examples of small farms where economic, social and environmental needs have all been nurtured," he said, adding: "There is renewed interest in the growing, provenance, production and distribution of food in the UK. With proper forethought, Neighbourhood Plans could present an opportunity to reinvigorate urban and rural areas to support small farms and the creation of sustainable livelihoods."

One successful Westcountry smallholding examined for the report was Honey Pot Farm, near South Petherton in Somerset. Owners Colin and Julie Comben won't exactly be holidaying in the Caribbean with profits from their 5.5 acre holding where the annual turnover of £12,300 brings in a net income of just £7,500 – but the couple did begin their business with just a derelict house and a bare field, none of which had any infrastructure.

"To actually make money out of a small area like this you have to have some other enterprise – so we primarily make cider from our apples and keep bees, make cordials and other seasonal products," says Mr Comben.

"We're not there yet – it's still something that's growing – you cannot do it overnight. My view is that, when you see fuel prices going up and up, what we'll need in future are lots of small farms or smallholdings around towns and villages supplying them with good food."

Mr Comben would be the first to agree that this idea is hardly revolutionary – as a nation we relied on highly productive smallholdings supplying local markets for far more centuries than the few decades when food has become available as a global commodity.

But it is an exciting thought that small, highly intensive units where people work hard to add value to products could once again fill at least some of the nation's shelves.