Farm diversification is a hotter topic than ever, with reduced BPS support and the new SFI Scheme leaving quite a gap in farm income levels.  With planning support and grant funding opportunities available many farmers can see non-farming diversification as a golden opportunity, but care must be taken to fully assess and understand the detail that will underpin any new venture.  

Ellen Plowright, one of the Wilson Fearnall team and farmer in her own right, sets out some of the key issues to consider from her own recent diversification experience installing vending machines on her farm at home. 

“1. What is your farm’s character or strength of location?  

Anyone wanting to diversify should first ask themselves – what does my farm have that others don’t?  

This could be many things.  You might have lots of old buildings, lovely views and walking routes or you might be close to the motorway, city or town.  You might, like us, be within a short drive of several towns and be seconds from a main road.  

1. What are your available resources?  

• Financial – what can you afford to spend or are you able to borrow? What grant or funding support is available ? 
• Staff – how much spare staff time do you have / could you have? 

• Produce – what is the farm physically producing which could be sold directly to consumers?  Where could value be added?

2.  What are you interested in ? 

Over half of all new businesses fail. There is no point starting a diversification if you are not interested in the business you are starting – you need to be determined and personally invested in your project to get things up and running.  You will need to maintain the right sort of energy to attract and retain customers.  

3. How will you structure the new business?  

It’s always worth speaking to your accountant for advice about keeping things inside existing arrangements or setting up a new vehicle.  We went for a Limited Company as it was the lowest risk, keeping any finical exposure separate from the existing core business.  

4. Consents and Permissions 

Planning permission is the obvious one here but, if you are a tenant, have you got approval from your landlord?  With a lot of projects developing ‘organically’ these key aspects get overlooked during the exciting initial stages of project only to come back to haunt you further down the line. 

Finally, it is important to make a business plan, to be realistic about your goals and to try to stick to timelines.  Remember, all goals you make should be Specific, Measurable, Achievable, Relevant and Time bound, and you should regularly reflect on progress against the objectives”, Ellen concludes.

We can ‘sense check’ business plans and are able to support with planning and grant applications as well as providing more general advice.  If you have any questions please give Ellen or one of the team a call – Good luck!