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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DAIRY

How a 420-cow Yorkshire dairy manages at high altitude

Setting up a simple, grazing-based milk production system at 300m above sea level in North Yorkshire meant adapting to a cold spring and lower grass yields. But good infrastructure allows…

LIVESTOCK

Why a mixed farm’s focus is on local food for local people

A mixed, tenanted farm in the Scottish Borders is using agritourism to help create a more resilient business and promote local food to the local community. The first idea for…

LIVESTOCK

How a Norfolk dairy diversified into tourism and hospitality

Converting a set of Georgian barns into holiday lets 20 years ago involved market research by post for dairy farmers Joanna and David Burroughs. Today, their daughter, Lindsay Miller, is…

OTHER LIVESTOCK

Why an Irish beef producer diversified into snails

Snails may not be a regular choice in British and Irish diets, but in mainland Europe they remain popular as an everyday staple and delicacy. Yet, in Ireland, snail farming…

DIVERSIFICATION

Scotland trip inspires Canadian grower's distillery

A trip to a Scottish distillery completely changed Canadian grain producer Lars Hirch’s life when he realised all he needed to produce whisky was barley, yeast and water. At a…

DIVERSIFICATION

How Canadian grower became Alberta’s first craft malthouse

Hamill Farms in Canada diversified their traditional grain farm into Alberta’s first craft malthouse in a bid to add value to barley crops and ignite the family’s succession plan. It…

Practical advice

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FARM ENERGY

More potential for renewables revenue with Rego scheme

The Renewable Energy Guarantee of Origin (Rego) scheme has seen some dramatic changes in the past couple of years, greatly increasing the potential returns from this once overlooked income source.…

TAX

Tax rulings show importance of diversification planning

Successfully claiming business property relief (BPR) from inheritance tax (IHT) on diversified farm enterprises depends largely on demonstrating that the business is a trading operation, rather than an investment. Most…

DIVERSIFICATION

Top tips for successful commercial lets on farm

An additional income stream can often be found with buildings that are no longer fit for purpose or in need of conversion. A vital factor in this type of diversification…

DIVERSIFICATION

Rural tourism: How to expand and attract customers

Diversification usually allows farmers more control over the prices they charge for goods and services than they have over farmgate values for produce. Farm income from diversification is steadily rising,…

FARM ENERGY

Wind turbine exclusivity agreements – what to watch out for

Onshore wind turbine developments have been all but prohibited for almost a decade due to the restrictions imposed by the National Planning Policy Framework (NPPF). A recent amendment to the…

AGRICULTURAL TRANSITION

Expert advice for making trees work on your farm

Large-scale tree planting has come under fire for taking up productive farmland and altering the character of local environments. But the right tree, planted in the right place, can generate…

Insights

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DIVERSIFICATION

Late bookings and high expectations in farm holiday market

Farm-based holiday accommodation providers are feeling the impact of policy changes, the weather and the cost-of-living crisis. David Brown, a director with Farm Stay UK, which represents more than 400…

BUSINESS

What opportunities does new biomass strategy offer farmers?

The area of land devoted to perennial biomass crops has remained stubbornly low, despite an aspiration to increase the use of home-grown biomass in the power, heat and transport sectors…

FARM ENERGY

Why England’s onshore wind planning rules need reform

Onshore wind is a low-cost and efficient technology that is well-suited to the UK, given it is one of the windiest countries in Europe. The cost of installing turbines is…

OTHER CROPS

Could sunflowers be grown on more UK farms?

Farmers looking to diversify their rotation or attract people on-farm to generate income could benefit from growing sunflowers this spring. Sunflowers provide a bulk ingredient in the bird-seed market and…

DIVERSIFICATION

Sheep’s milk vodka diversification goes national

The 2022 Diversification Farmer of the Year winners, Tim and Tanya Spittle, from Moreton-in-Marsh, Gloucestershire, have taken their unique sheep's milk vodka to a national level – though its distinct…