Why diversify?

At the moment many farmers are engaged with only one or two types of agricultural enterprises, due to varying conditions and circumstances, entire businesses can stagnate. Especially with uncertainties around Brexit it’s impossible to secure a reliable and predictable income.

In the meantime, all taxes, expenses and overheads need to be supported. Since there is no solid cash flow available it puts farmers who are not cash rich under pressure.

According to Defra’s most recent Farm Business Survey, two-thirds of farm businesses within England have already diversified. Generating an income of £620 million and welcoming an average of £17,000 in additional income per farm in the last 12 months.

What we love about the diversification projects that farmers are embarking on is their ability to involve the community in rural life. If you fancy making cheese, picking cherries, smoking fish or glamping on a working farm, it’s now on our doorsteps. We are even seeing more essential oils and cashmere products being produced- what’s not to love?

Whilst diversifying your farm can be a complex process, the benefits outweigh the negatives. Farmers also have the right foundations to develop a lucrative business.

Helpful pointers to think about when considering diversification:

  • Do you have unused buildings and farm resources? Many farms that successfully diversify are usually able to put their existing farm assets to good use.
  • Consider the local community and if there is demand for your product or service before proceeding plans.
  • Your existing farming knowledge will increase rate of success and make the transition from traditional farming to rural enterprise easier.

For more information on our products and services or to get advice on how we can help support your farm, contact us below…

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01908 92 62 62 / info@moorgatefinance.co.uk