OUT OF DAIRYING

20 July 2001




OUT OF DAIRYING

AND INTO THE

TOURISM GAME

Turning barns into self-catering cottages can be a great

way of diversifying. But youll need stamina, as one

Cornish farming couple explained to David Cousins

THERE is no great dilemma about choosing a non-farming diversification in north Cornwall. With housing estates, industrial estates, bypasses and other human conglomerations gloriously thin on the ground, its a case of leisure/ tourism or not at all.

All of which became abundantly clear to Chris and Jan Everard. They had started their farming career with a dairy herd in Carmarthenshire before buying 87ha (215-acre) West Woolley Farm near Bude in 1995.

It was a typical north Cornwall farm, 700ft up and with winds that blow straight off the Atlantic. Sixty British Friesian cows and youngstock were supported by 42ha (105 acres) of grass, 40ha (100 acres) of arable land and 4ha (10 acres) of woodland.

But then, in the winter of 1999, Chris was caught in the chest by the horn from one of his stock. Although he soon recovered from the initial injury, three weeks later he found himself getting more and more breathless. Eventually he was diagnosed as having pneumonia, a condition exacerbated by the wet and windy conditions in the milking parlour.

He recovered again in the drier, warmer summer months, but the following winter caught pneumonia twice more. This time he and Jan knew they had to stop milking permanently and find another source of income to make up for the loss of the dairy.

A meeting was arranged at the farm between the Everards, their accountant, ADAS (which had been advising them) and John Griffiths, the helpful Natwest bank manager they had kept even after moving to Cornwall.

"We looked at various options," says Chris. "The economics of expanding the herd and bringing in a full-time milker wouldnt have worked out, so we looked at the possibility of converting the calf building, grainstore and two-storey mill house – all traditional stone Cornish barns – into something else.

Luxury shortage

"In this very rural area, theres no industry to speak of and very little call for workshops. What we realised was that there was a shortage of luxury self-catering holiday accommodation in the immediate area."

So, in March 1999, the dairy herd was sold, leaving the Everards to rely on income from leased-out milk quota, grass lets and cereals. They had plans for two single cottages and one semi-detached pair drawn up by an architect and braced themselves for an encounter with the planners.

But in the event, gaining planning permission proved the least of their worries. "As it turned out the council were delighted that we were looking after the old barns," says Jan. "In fact their only stipulation was that we put in an owl box and a wall between the farmhouse and cottages to cut off access to the farmyard.

"They were keen for us to change the look of the barns as little as possible. No doors or windows were allowed to be blocked up and the Velux windows in the roof all face inwards, so the buildings still look like barns when you approach them from the outside."

The Everards had good reason to opt for the luxury end of the self-catering market, rather than the bucket-and-spade one. Not just because a premium rent can be charged, but because the cheap-and-cheerful accommodation sector is already saturated in this part of Cornwall.

"We also wanted people to come in winter, whereas most holiday lets are dead from the end of September until Easter and then from after Easter until May/June," says Chris. "The problem is that if you go for families with children, youre restricted to the school holidays. We thought there must be a market out there for older people or couples without children who arent restricted to school holiday times."

With a clear vision of what they were trying to create, the Everards decided to apply for a grant. ADAS said that living in this part of Cornwall, which is classed as an economically-deprived area, would mean they should attract Objective 5B grants.

However, though the local tourist board was initially positive about their chances of getting a grant, in the end they fell between the different criteria and received nothing. The attempt took a year and left them feeling somewhat disgruntled by the whole experience.

The grant fiasco pushed the whole project back by six months, delaying the opening from June 2000 to December 2000 and costing them £20,000 in lost business.

But, as if in recompense, the chosen builder proved to be excellent and the converted cottages turned out to be even better than the Everards had hoped. Lots of original features were kept, rather beautiful flagstone floors added and the walls deliberately rough-plastered to add character.

Decorating themselves

A total of £164,000 (excluding VAT) was spent on the three cottages before even a single lick of paint had been applied or piece of furniture installed. In fact the Everards, with help from local retired Concorde chief steward Pete Parmenter, did the decorating themselves to save the £8000 it would have cost to employ someone to do it. Jans other occupation as an artist allowed a lot of highly individual decorative touches to be added.

They reckon to have spent £8-9000 on beds, furniture, soft furnishings and kitchens, and a further £5000 on fridges, cookers, TVs and videos. The latter all came from a small local electrical store, which secured them a £2000 discount on list prices and offers a repair service. A friend in the nursery trade supplied them with £1000 worth of plants free, giving the courtyard a fashionable feel with bamboos, exotic grasses and palms.

The Everards considered advertising the cottages themselves on the internet, but they realised that wouldnt have brought in enough business. So they are marketed by Classic Cottages, which covers Cornwall, Devon, Somerset and Dorset, publishing the usual glossy brochure and posting full information on its website (www.classic.co.uk).

The Everards pay Classic Cottages 20% of the rents but are allowed to market the three cottages themselves in the off-peak season. Current prices range from £261 to £502 for the two-bed cottage and £300-£601 for the three-bed cottages.

But then in February potential disaster loomed in the shape of foot-and-mouth. Although the Everards had a few bookings over the Christmas and New Year period, their main season was set to start in February/March.

"By the time foot-and-mouth had been announced on February 20, we had four bookings in each of the three cottages," says Jan. "But then the phone just stopped ringing. Things didnt start to pick up again until the end of April and now (May 25) we have nine or 10 weeks booked in each of the cottages over the rest of the season."

According to Classic Cottages, a new operator should have had about 20 weeks booked for each cottage by now. They normally forecast 24-26 bookings per cottage for the second year of business and 30 or more for the third, and the Everards are confident that, even with the F&M setback, they will reach that target.

And in the longer term? They are hoping that the loans will be paid off in 10 years time and that the holiday lets will keep the farm quite happily after that. The farm now comprises 24ha (60 acres) of cereals, cattle reared over the winter for three different owners, and the grassland either let out or used to make silage for the cattle. And, best of all, Chriss pneumonia has never returned.

THERE is no great dilemma about choosing a non-farming diversification in north Cornwall. With housing estates, industrial estates, bypasses and other human conglomerations gloriously thin on the ground, its a case of leisure/ tourism or not at all.

All of which became abundantly clear to Chris and Jan Everard. They had started their farming career with a dairy herd in Carmarthenshire before buying 87ha (215-acre) West Woolley Farm near Bude in 1995.

It was a typical north Cornwall farm, 700ft up and with winds that blow straight off the Atlantic. Sixty British Friesian cows and youngstock were supported by 42ha (105 acres) of grass, 40ha (100 acres) of arable land and 4ha (10 acres) of woodland.

But then, in the winter of 1999, Chris was caught in the chest by the horn from one of his stock. Although he soon recovered from the initial injury, three weeks later he found himself getting more and more breathless. Eventually he was diagnosed as having pneumonia, a condition exacerbated by the wet and windy conditions in the milking parlour.

He recovered again in the drier, warmer summer months, but the following winter caught pneumonia twice more. This time he and Jan knew they had to stop milking permanently and find another source of income to make up for the loss of the dairy.

A meeting was arranged at the farm between the Everards, their accountant, ADAS (which had been advising them) and John Griffiths, the helpful Natwest bank manager they had kept even after moving to Cornwall.

"We looked at various options," says Chris. "The economics of expanding the herd and bringing in a full-time milker wouldnt have worked out, so we looked at the possibility of converting the calf building, grainstore and two-storey mill house – all traditional stone Cornish barns – into something else.

Luxury shortage

"In this very rural area, theres no industry to speak of and very little call for workshops. What we realised was that there was a shortage of luxury self-catering holiday accommodation in the immediate area."

So, in March 1999, the dairy herd was sold, leaving the Everards to rely on income from leased-out milk quota, grass lets and cereals. They had plans for two single cottages and one semi-detached pair drawn up by an architect and braced themselves for an encounter with the planners.

But in the event, gaining planning permission proved the least of their worries. "As it turned out the council were delighted that we were looking after the old barns," says Jan. "In fact their only stipulation was that we put in an owl box and a wall between the farmhouse and cottages to cut off access to the farmyard.

"They were keen for us to change the look of the barns as little as possible. No doors or windows were allowed to be blocked up and the Velux windows in the roof all face inwards, so the buildings still look like barns when you approach them from the outside."

The Everards had good reason to opt for the luxury end of the self-catering market, rather than the bucket-and-spade one. Not just because a premium rent can be charged, but because the cheap-and-cheerful accommodation sector is already saturated in this part of Cornwall.

"We also wanted people to come in winter, whereas most holiday lets are dead from the end of September until Easter and then from after Easter until May/June," says Chris. "The problem is that if you go for families with children, youre restricted to the school holidays. We thought there must be a market out there for older people or couples without children who arent restricted to school holiday times."

With a clear vision of what they were trying to create, the Everards decided to apply for a grant. ADAS said that living in this part of Cornwall, which is classed as an economically-deprived area, would mean they should attract Objective 5B grants.

However, though the local tourist board was initially positive about their chances of getting a grant, in the end they fell between the different criteria and received nothing. The attempt took a year and left them feeling somewhat disgruntled by the whole experience.

The grant fiasco pushed the whole project back by six months, delaying the opening from June 2000 to December 2000 and costing them £20,000 in lost business.

But, as if in recompense, the chosen builder proved to be excellent and the converted cottages turned out to be even better than the Everards had hoped. Lots of original features were kept, rather beautiful flagstone floors added and the walls deliberately rough-plastered to add character.

Decorating themselves

A total of £164,000 (excluding VAT) was spent on the three cottages before even a single lick of paint had been applied or piece of furniture installed. In fact the Everards, with help from local retired Concorde chief steward Pete Parmenter, did the decorating themselves to save the £8000 it would have cost to employ someone to do it. Jans other occupation as an artist allowed a lot of highly individual decorative touches to be added.

They reckon to have spent £8-9000 on beds, furniture, soft furnishings and kitchens, and a further £5000 on fridges, cookers, TVs and videos. The latter all came from a small local electrical store, which secured them a £2000 discount on list prices and offers a repair service. A friend in the nursery trade supplied them with £1000 worth of plants free, giving the courtyard a fashionable feel with bamboos, exotic grasses and palms.

The Everards considered advertising the cottages themselves on the internet, but they realised that wouldnt have brought in enough business. So they are marketed by Classic Cottages, which covers Cornwall, Devon, Somerset and Dorset, publishing the usual glossy brochure and posting full information on its website (www.classic.co.uk).

The Everards pay Classic Cottages 20% of the rents but are allowed to market the three cottages themselves in the off-peak season. Current prices range from £261 to £502 for the two-bed cottage and £300-£601 for the three-bed cottages.

But then in February potential disaster loomed in the shape of foot-and-mouth. Although the Everards had a few bookings over the Christmas and New Year period, their main season was set to start in February/March.

"By the time foot-and-mouth had been announced on February 20, we had four bookings in each of the three cottages," says Jan. "But then the phone just stopped ringing. Things didnt start to pick up again until the end of April and now (May 25) we have nine or 10 weeks booked in each of the cottages over the rest of the season."

According to Classic Cottages, a new operator should have had about 20 weeks booked for each cottage by now. They normally forecast 24-26 bookings per cottage for the second year of business and 30 or more for the third, and the Everards are confident that, even with the F&M setback, they will reach that target.

And in the longer term? They are hoping that the loans will be paid off in 10 years time and that the holiday lets will keep the farm quite happily after that. The farm now comprises 24ha (60 acres) of cereals, cattle reared over the winter for three different owners, and the grassland either let out or used to make silage for the cattle. And, best of all, Chriss pneumonia has never returned.


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