How farm diversification builds rural business resilience

As farming families look to the future, diversification is playing an increasingly important role in building resilience, creating new income streams and supporting the next generation, writes NFU Mutual agent Leonie King of Hertford and North Hertfordshire Agency.

Tewinbury Farm, run by brothers Ivor and Vaughan Williams, has been in the family since 1931 and, over the years, has expanded from cows, fields and crops to weddings, restaurants and wellbeing experiences.

With Vaughan’s sons Sam, Tom and Jack now helping to shape its future, the business continues to evolve.

© NFU Mutual

Throughout Tewinbury Farm’s 95-year history, NFU Mutual has provided advice and support to the Williams family as their business has developed over time.

Today, that long-standing relationship continues through Leonie King, Agent of NFU Mutual – Hertford and North Hertfordshire Agency, who has spent nearly 30 years working alongside farming businesses.

With a combination of personal service, insurance expertise and access to financial services, Leonie works with businesses as they respond to the changing demands of modern rural life.

We spoke to Leonie to hear more about how her long-term support can help farming businesses navigate the opportunities and challenges that come with diversification.

From dairy farm to rural business

Tewinbury began as a dairy farm and remained focused  on traditional farming for many years. Around 1980, the family made an important change — selling the dairy herd, investing in more land and starting to think differently about the future.

A farm shop soon followed, selling local produce, and not long after that came the first step into hospitality. They started by simply opening up four rooms in the family home, which proved very popular.

Vaughan and Ivor then began converting existing buildings, including calf sheds, into accommodation. That practical approach — making use of what was already there — helped the business expand in a measured way.

For me, this is often the point where a business really begins to feel the shift. Welcoming paying guests onto a working farm brings new expectations and responsibilities. Diversification is not just about spotting an opportunity, it’s about understanding the practical implications early.

Growth built over time

What stands out in Tewinbury’s story is how the growth has been managed. As Vaughan described, it was about reinvesting steadily and building each stage properly. That approach has given the business time to adapt to changing demands, from staffing to customer expectations.

Their earlier experience with the farm shop also helped, long before weddings and accommodation the importance of great customer service was already embedded.

New opportunities, new responsibilities

As the hospitality side of the business has grown, so too has its role in supporting local suppliers and creating jobs. Vaughan spoke proudly about the number of people they now employ, how they’ve often given young people their first job and the importance of working with local suppliers.

But growth also brings added responsibility. Staffing, compliance and guest safety all become more important, so protection needs to keep pace with the way the business operates.

This is where ongoing conversations can make a real difference. When families share what they’re planning, it becomes easier to work through the detail and make sure the right cover, support and financial planning are in place as the business evolves.

Lessons for farms considering diversification 

• Start with what you have: existing buildings and land can create the foundation for a new income stream
• Talk things through early: consider planning, staffing, safety and insurance before committing
• Recognise transferable skills: customer service is a great example
• Understand your local market: opportunities often come from identifying local demand
• Review regularly: plans and protection should evolve as the business grows

Looking ahead

Diversification is about far more than strategy. It is often closely tied to family identity and the careful decisions that shape what the next generation will inherit.

The way the Williams family has developed Tewinbury shows that resilient businesses are built over time, through considered choices, careful planning and a willingness to adapt.

For me, support is about helping businesses feel confident in those decisions – creating space for open conversation, practical thinking and a clearer sense of what comes next.

A different kind of expansion

Tewinbury’s latest developments show how new opportunities continue to emerge and how the business has responded by evolving over time.

Alongside farming, the focus has moved further into hospitality with the addition of the 28-bedroom Hertford House Hotel and a countryside wellbeing and fitness offer that makes the most of the farm’s outdoor setting.

As Ivor explained, while this marks a different kind of expansion, the thinking behind it remains the same — taking a long-term view and making sure each step strengthens and supports the wider business.

One consistent theme throughout Tewinbury’s story is the value of having trusted people to talk things through with, before making the next move.

Ivor and Vaughan often pick up the phone to sense check ideas, not to hand over decisions, but to test their thinking, explore the options and make sure each step feels right for their business.

Ever thought about becoming a self-employed agent of NFU Mutual?

People join the NFU Mutual Agency Network from a wide range of backgrounds — including farming and rural industries.

If you understand farming life, enjoy building long-term relationships and want to support rural businesses through change, becoming a self-employed Agent could be a natural next step.

Find out more about becoming a self-employed Agent of NFU Mutual and how to apply.