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Know How / Diversification

The income generated by diversification is a vital component of many farming businesses – but it can involve unfamiliar planning, legal, staffing, plus health and safety issues.

This page offers tips and advice to guide you through your diversification journey. You’ll find information to help you to set up and run a thriving new enterprise on your farm.

Key areas of focus:

  • Inspirational farm diversification case-studies
  • Opportunities for grant support
  • Avoiding legal and tax pitfalls
  • Successful staff management
  • Business planning and marketing strategies

Case studies

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MARKET OPPORTUNITIES

Wildflower seed diversification gives arable tenants security

Diversifying a traditional arable rotation with a wildflower seed business has helped secure a viable future for one tenant farming family, who faced losing their farm to building developments. In…

BUSINESS

FW Awards 2023: Diversification Farmer of the Year finalists

This year’s diversification finalists all share a strong entrepreneurial mindset which has allowed them to find ways to add value to their overall farming businesses through new opportunities and innovation. …

DAIRY

Guernsey herd A2 yoghurt gives Canadian farm viable business

A small family dairy farm in the Cowichan Valley on Vancouver Island is back in production with a different breed of cow and an entirely new business model. Caroline and…

MACHINERY

NI farm transforms slurry and food waste into bio-LNG fuel

A multi-million pound diversification project has allowed an enterprising dairy farm to convert slurry and food waste into biofuel, as it looks to tap into the growing market for renewable…

SOILS

Carbon audit highlights priorities for net-zero success

A 10-year sustainability plan put in place just over a year ago at Squerryes Estate in Westerham, Kent, has provided a framework for the business as it navigates its way…

BROILERS

Contract-rearing broilers creates cashflow for mixed farm

Diversifying into contract poultry production meant a significant outlay in sheds and equipment for Powys beef and sheep farmers Billy and Rachel Davies. But the enterprise is profitable and generates…

Practical advice

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FARM ENERGY

Experts outline on-farm renewable energy options

Renewable energy has become a popular on-farm solution for cutting emissions and reducing bills from mainstream suppliers. So what are the options for renewable energy use on farm? In the…

BUSINESS

Farm visitor attractions facing ‘unfair’ business rates

Farm attractions should consider challenging their assessments for business rates, say advisers, as they are being overcharged by up to £3m a year. This is as a result of the…

DIVERSIFICATION

Renewable energy investment: What to expect and what to avoid

Producing clean electricity is predicted to one day outstrip rural tourism as a secondary income for UK farms. Interest in investing in renewables or leasing sites to developers is high,…

DIVERSIFICATION

Farm holiday providers need to stand out to succeed

Gone are the days when a farm could rent out a cottage with a jumble of furniture and charge for the privilege of holidaying there. Today’s visitor demands high-end fixtures…

BUSINESS CLINIC

Business Clinic: What are the insurance needs if I diversify?

Whether it’s a legal, tax, insurance, management or land issue, Farmers Weekly’s Business Clinic experts can help. Rory Gibson, regional director, Scotland, at A-Plan Rural Insurance, sets out the considerations…

BUSINESS CLINIC

Business Clinic: Considerations of natural burial sites

Whether it’s a legal, tax, insurance, management or land issue, Farmers Weekly’s Business Clinic experts can help. Edward Beale, associate partner at Carter Jonas Rural, sets out the considerations for…

Insights

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FARM ENERGY

Why England’s onshore wind planning rules need reform

Onshore wind is a low-cost and efficient technology that is well-suited to the UK, given it is one of the windiest countries in Europe. The cost of installing turbines is…

OTHER CROPS

Could sunflowers be grown on more UK farms?

Farmers looking to diversify their rotation or attract people on-farm to generate income could benefit from growing sunflowers this spring. Sunflowers provide a bulk ingredient in the bird-seed market and…

DIVERSIFICATION

Sheep’s milk vodka diversification goes national

The 2022 Diversification Farmer of the Year winners, Tim and Tanya Spittle, from Moreton-in-Marsh, Gloucestershire, have taken their unique sheep's milk vodka to a national level – though its distinct…

FARM ENERGY

High prices create opportunity for renewable energy contracts

Sharp rises in gas and electricity prices may have been unwelcome for most, but for those generating renewable energy, it has increased potential returns from electricity sales.  Prices are very…

DIVERSIFICATION

Video: How farm shops are filling the supermarket supply gap

Farm shops have always played a crucial role within rural communities, offering fresher, better-quality produce to support local farmers while reducing food miles. Since the first Covid-19 lockdown in March…