Lloyds TSB has just released an updated guide to farm diversification.
Tim Porter, the bank’s agriculture director, said more farmers were thinking of diversifying but a well-thought out plan was essential for success.
“The guide is designed to help businesses see their way through the whole decision-making processing by assessing diversification projects and giving example costings for over 70 alternative enterprises,” said Mr Porter.
Mr Porter said the most popular diversification route was renting redundant buildings for non-farming use.
Other popular schemes included retiling farm produce and the development of tourist accommodation, he added.
Farmers needed to consider three factors when exploring a farm’s diversification potential, said Mr Porter.
- What additional resources does the farm business have?
- What is the potential market for the new product or service?
- Is the amount of the risk you are prepared to take balanced with the amount the business can stand?
Copies of the guide are available by emailing email@example.com