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

See all


Farm couple crack social media to drive egg diversification

Farm shops remain a lifeline for rural towns and villages, despite the increasing presence of large supermarket chains. One particularly popular one is Minskip Farm Shop, near Boroughbridge, headed up…


Cornish farmers reveal secrets of successful turkey business

For Will and Kate (no, not those ones) Martin, the business of Christmas starts six months before the big day, when they take delivery of their day-old Bronze turkey poults…


Devon dairy farmers diversify with fizzy kefir milk products

How likely you are to post a photo of your food on Instagram before you eat it might will determine how likely you are to have heard of kefir. A…


Video: The amazing farmers behind inspirational farm shops

In this video we meet the inspirational farmers behind two successful farm shop diversifications that have gone a step further to sell their produce. The Rhug Estate farm shop has…


How young farm tenants plan to improve hill farm income

Young farmers Daniel Simpson and Ruby Cappleman have big plans to make their Lake District farm more self-sufficient after securing a 15-year tenancy on a National Trust farm last autumn.…


Video: Ice cream diversification doubles value of litre of milk

A dairy farm has increased the value per litre of milk from the 30p it gets from its Glanbia contact to 50p, almost double, through a new ice cream diversification.…

Practical advice

See all


So you want to… let land and property?

Deciding to stop active farming and let out land and property is a complicated task but can prove mutually beneficial for both parties. Making the switch to becoming a landlord…


How landowners could unlock income from unmanaged woodland

Landowners in England and Wales could generate an additional £20m in income each year by bringing unused woodland back into production, with timber and woodfuel prices currently at a 30-year…


So you want to ... grow and sell Christmas trees?

A dark green, pyramid-shaped, beautifully-adorned Christmas tree in the corner of your living room can't be beaten when it comes to classic festive decorations, and farmers have been growing them…


So you want to…tap into the Christmas turkey market

Farmers looking for a diversification with low start-up costs and good margins should consider if there is an opening for another direct-selling turkey producer in their area as consumers are…


Business Clinic: VAT implications of diversification plans

There’s a lot to get right when you’re starting a diversification. Lisa Oliver, associate director with accountant Hazlewoods, runs through some essential business structure considerations and outlines common VAT issues…


Business Clinic: Advice on capital taxes when diversifying

There is great scope for diversification on many farms. Nicholas Smith of accountant Duncan & Toplis outlines the importance of taking a long-term look at the tax implications of plans…


See all


Why planting trees can improve farm performance

Trees and hedgerows might shape the appearance of the Great British countryside, but their role goes way beyond simply looking pretty. From improving animal welfare to mitigating the effects of…


How farms on the edge of cities survive and thrive

Agricultural buffers at the edge of the rural-urban fringe provide their own unique challenges, but they are also home to some of the country’s most successful farm businesses. For many…