A new direction

Diversifying your holding is a great way to broaden your horizons and potentially boost income, but what are the options and how should you go about it?

- Stephanie Bateman

In an era when small-scale farming (or large scale, come to that) can seem to be one never-ending struggle, diversification is inevitably not far from many smallholders’ minds. In an ever-changing landscape, farmers and smallholders are constantly finding that they have to come up with innovative schemes to keep their rural idyll financially afloat.

“Diversified income streams can help some farmers secure their business and add resilience during uncertain times, while providing others with an opportunity to really optimise their assets and unlock entrepreneurial skills within the family,” says Jim McLaren, chairman of NFU Mutual. “Although our research shows that the majority of farmers who diversified found it a success, diversification isn’t for everybody and it has to work with, rather than against, the farm.”

A recent report by NFU Mutual showed that 48% of farmers are planning to set up or expand diversification enterprises and 65% of farms in England have diversified. What’s more, total income from diversified activities on farms in England rose from £699m in 2017/18 to £740m in 2018/19 — an increase of 6% (Defra 2018/19).

Diversification means using your holding’s assets, such as its land, buildings or machinery, or using your own skills, whether these are in hospitality, craft, fitness or therapy. And don't discount any idea until you have researched it thoroughly and know that it won't work — for, you never know, your new diversification idea could kick offa new nationwide trend, or at the very least boost your bank balance.

FROM FARM TO WEDDING VENUE