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Know How / Diversification

The income generated by diversification is a vital component of many farming businesses – but it can involve unfamiliar planning, legal, staffing, plus health and safety issues.

This page offers tips and advice to guide you through your diversification journey. You’ll find information to help you to set up and run a thriving new enterprise on your farm.

Key areas of focus:

  • Inspirational farm diversification case-studies
  • Opportunities for grant support
  • Avoiding legal and tax pitfalls
  • Successful staff management
  • Business planning and marketing strategies

Case studies

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ARABLE

Micro pub adds income stream to Kent arable farm business

Diversification has been an important part of O&P Gower’s business for the past 15 years to provide a supplementary income stream, due to unstable markets, climate change and lower prices…

ARABLE

How mail-order business adds value to farm's hay and straw

A Kent farmer is successfully adding value to hay and straw by selling it boxed direct to pet owners across the UK. Shelvin Farm, run by Rupert Phillips, sells about…

BUSINESS

FW Awards 2025: Diversification Farmer of the Year

The Marshall family of Marshall’s Farm Shop, Inverurie, are the winners of Farmers Weekly Awards 2025 Diversification Farmer of the Year. From a modest self-service trailer set up 20 years…

ARABLE

Lavender diversification finds success as tourist attraction

Cadwell Farm began growing lavender 25 years ago, when the Hunter family wanted to bring what was a historically grown crop back to the area. Tim Hunter, managing director of…

DIVERSIFICATION

FW Awards: Meet the 2025 Diversification Farmer finalists

All of this year's finalists have built up diversified enterprises that complement and add value to their farm businesses.  See also: FW Awards 2025: Meet the finalists Finalists Ben and Fiona…

OTHER CROPS

Grower ventures into olive oil production despite risks ahead

A 10ha olive grove – thought to be the most northerly of its type in the world – is in its second year growing on a Lincolnshire farm. David Hoyles…

Practical advice

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BUSINESS MANAGEMENT

How residential landlords can prepare for lettings changes

The country is short of housing and rural properties for rent are in high demand. Those letting rural accommodation are generally aware that change, in the form of the Renters’…

DIVERSIFICATION

Farm diversification tips from those with experience

Setting up and running a new venture can present a raft of challenges. We get tips from three farm businesses with very different diversifications. See also: What’s hot and what’s…

AGRICULTURAL TRANSITION

How trees can enhance and support your farm business

Woodland and forestry experts urged growers at a recent Transition webinar, to look again at the potential benefits of strategic tree planting. Transition Project editor and webinar host Johann Tasker…

BUSINESS MANAGEMENT

Common diversification insurance claims and how to avoid them

Farm insurance covers the policyholder only for farming activities. Cover for alternative enterprises needs careful thought, in terms of both the liability and the potential cost of property damage and…

DIVERSIFICATION

Tax and legal considerations for farm diversifications

The tax and legal considerations for alternative enterprises depend very much on the type of enterprise and how it sits within or separately from the farming business.  One of the…

DIVERSIFICATION

What's hot and what's not in the farm diversification market

It is a tall order to maintain a quality offering while managing rising costs, but it’s a balance which many diversified farm businesses are having to strike. Those with a…

Insights

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DIVERSIFICATION

Why farm shop success calls for constant innovation

Cash-strapped consumers and rising costs mean farm shops have to fight for turnover. They appear to be winning – footfall and revenue are growing for the 300 members of the…

DIVERSIFICATION

Fashion, fibres and farming – steps to sustainability

As sustainability becomes a central concern not just for agriculture but also for consumers, a new “farm to wardrobe” movement is developing. The fashion industry is responsible for 10% of…

DIVERSIFICATION

Why holiday lets must show super service for IHT relief

Farmers with holiday lets are being warned to closely examine their business structure to give themselves the best chance of eligibility for a key tax relief. The warning from advisers…

DIVERSIFICATION

Why Barnsgrove is a farm diversification with a difference

Jo and James Butler decided to sell their dairy herd 16 years ago and began mulling what to do with the dairy site, which is about a mile from their…

GRANTS

Rural England Prosperity Fund for diversifications extended

The Rural England Prosperity Fund (REPF) has been extended for another year, with £33m available to fund projects which will improve local infrastructure or support businesses in rural areas looking…

FARM ENERGY

Clean power push brings grid reform and shifts site demand

In an effort to progress towards the government’s target of a net-zero energy grid by 2030, reforms taking effect now mean that for a grid connection application to proceed, developers…

DIVERSIFICATION

How a wine business managed challenges of expansion

Halfpenny Green Wine Estate at Bobbington in Staffordshire is run by husband-and-wife team Clive and Lisa Vickers. The 20ha holding has grown from a hobby area of vines planted in…

FARM ENERGY

Analysis: The pros and cons of solar farm development

The sun may be noticeable by its absence at this time of year, but the row about the pros and cons of solar farms rages on. According to guidance issued…

DIVERSIFICATION

Innovative camping brings in cash for low or no input

The staycation market has boomed in recent years, with rural holidays getting a boost as Covid restrictions meant travel abroad was still banned or shunned by many. The boom prompted…

FARM ENERGY

Could agrivoltaics address the food v fuel debate?

The integration of cropping with solar panels is almost non-existent in the UK, but it is the basis of the concept of agrivoltaics. First conceived by German physicists in the…

AGRICULTURAL TRANSITION

Transition: Ways to generate non-farming income

Developing non-agricultural income is an increasingly important consideration for farm businesses. And it doesn’t always have to come at the expense of food production, as speakers at a recent Farmers…