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 not in the farm diversification market

Wedding barn

The Granary Estates in Cambridgeshire is part of a multi-enterprise diversification based around its 18th century wedding barn on a 400ha arable farm producing wheat, oats, sugar beet, onions and potatoes.

The venue has now hosted 1,000 weddings in a little over a decade after it opened in 2013, several years after Guy Taylor came back to the family farm following two years working in Australia. 

Alternative enterprises were already being operated, with an office let and some commercial storage alongside four residential lets.

“Barn venues were still relatively niche when we began,” says Guy. “But we knew there was something special in what we had, both in terms of location and the potential of the buildings.

“Now, over a decade later, we’ve built a trusted brand, a thriving business and a fantastic team that delivers consistently.”

Market research

Careful market research will pay off, he says. “Before we diversified, we spent time visiting other venues and speaking to owners who were already in the industry.

“It gave us a better understanding of what worked, what didn’t, and where hidden costs might lie. This research was key in helping us avoid costly mistakes early on.

“We’ve always maintained good relationships with other venue owners. It has been invaluable to have those open conversations, whether it is to explore a new idea or talk through a challenge. You don’t have to go it alone.”

Exceptional service and attention to detail is key in this and many other markets.

There have been plenty of challenges along the way, including Covid and the recovery from its effects, with additions such as luxury lodges helping to expand the offering and keep it competitive.

Managing the public

“Managing the public is a completely different challenge to managing a farming business.

“One of the most important decisions we made was surrounding ourselves with the right team, people who understood hospitality and could represent the brand from day one. It’s not something you can afford to get wrong. 

“Marketing isn’t just Instagram. There’s a real strategy behind building a brand and driving bookings, from understanding your audience to developing a long-term presence on- and offline.

“It is important to focus on the bigger picture.”

Guy’s advice is to bring in professional help early on, especially in unfamiliar areas, whether that is compliance, licensing, staffing or finance.

“Every day felt like a learning curve for the first decade, and having trusted advisers made a real difference.” 

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Boxed beef and lamb

Hollie and George Sturla sell boxed native breed beef and lamb from their farm near Holywell, North Wales.

The decision to sell direct under their own Beeches Meats brand was made in 2022, after some disappointing lamb market days and uncertain returns, says George.

The decision has paid off, he says, but it can be hard work.

“The marketing, which is Hollie’s department, takes a lot more time than you think it will,” he warns.

The couple did a lot of research to establish what their market was and what price to charge, based partly on what else was on offer but also ensuring they could charge a price which would deliver them a profit.

Waiting list

Now their customer base is established, they have a waiting list and the vast majority of orders are paid for in advance through their website.

However, in the early days they learned the hard way that orders placed do not always turn into orders delivered.

Sometimes customers changed their minds, their freezers were full, or they postponed, putting things out of kilter.

The answer to this was to charge a £20 deposit, which would be rolled into the next order or a postponed delivery.

George built the website himself, after they were quoted £5,000 to have it done externally. “I’m not that tech-savvy but there’s plenty of help online to show you how to do this, including YouTube videos.”

Important support

The couple have had grant aid and other support, including £5,000 from the Royal Countryside Fund and business advice and mentoring through Farming Connect and the Cywain programme, which offers a range of support.

In George and Hollie’s case, this included funding for banners to display at farmers’ markets and other events. Grant funding also helped them buy laptops for the business.

 “Take advantage of grant aid and other help,” says George. “There’s lots of it and more than you might realise.”

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Equine livery

Currently hosting 66 horses, MBF Liveries at Hamley Hagg Farm was started in 1999 by its owner Diana Feaster.

There is further demand for places at the yard, about 30 miles north of York, but the business is currently at capacity, with three people having to be turned away in the past month.

Customer expectations have grown, and more services have been added over the years, says Diana.

These include an indoor school, a cross-country course and horse walker, as well as individual horse-care services on top of whatever type of livery is booked by the customer.

This complicates not only the day-to-day, practical side of things, but also the administration.

Diana estimates that about 80% of her customers have some sort of extra service each month, for example when they are on holiday.

The cost of these has to be added to their monthly charge and invoiced, which is time-consuming.

The ideal is payment by direct debit, she says, although some customers are invoiced and pay by BACS, with a couple still paying by cheque.

Payment in advance

With just two bad debts over her many years of operation, Diana’s tips include making sure the basic monthly charge is paid in advance.

She also says that boundaries have to be drawn, sometimes in terms of the additional services people want, or of customer behaviour and the way they treat the yard.

The patience of a saint is the key requirement for someone running a diversification which deals with the public, she jokes. A WhatsApp group for customers helps with communication.

Diana farms in partnership with her 82-year-old father Bernard. About 60% of the 81ha grassland holding serves the livery, with some of it in a wild bird food mix under the Sustainable Farming Incentive.

The farm is within the North York Moors National Park and planning was a big hurdle when she applied for her first nine stables.

Being a British Horse Society approved yard helps with reputation and marketing, says Diana. “It means more paperwork, but it gives you the edge,” she says.