With rising input costs and uncertainty about the future, many farmers today face more financial pressure than ever. One way that many business owners are choosing to combat this problem is by diversifying their farm. In 2022/23, 69% of farm businesses had some sort of diversified activity on their land to supplement their income. 

Farm diversification is when farmers add new operations and facilities to their property to generate additional sources of revenue. Diversifying their ventures can help create a more robust and stable business, reducing dependence on a single source of income. There are various forms of diversification, each with different upfront investment costs, ongoing maintenance needs, and earnings potential. Depending on location, skills, budget, and property size, some options may be more suitable than others for each unique business.

If you’re considering a diversification project that requires new buildings, renovations, car parks, and more, we’re here to help. At Punchard Group, we specialise in rural developments and offer end-to-end planning and building services for business owners looking to add new residential and commercial properties, equestrian facilities, and more to their farms. Get started with a free initial site visit, where we will assess your property and discuss your goals in detail. Book a free phone call with our team by visiting our contact page and leaving your details.

Farmers are uniquely positioned in being able to offer truly farm-fresh meals where they know the start-to-end journey of the food served. This value-added approach can command higher prices and increase the profit margins on the crops, meat, or dairy you produce.

You can convert existing structures on your land into rental properties or holiday homes. Although this will require an initial investment, it has the potential to generate consistent supplementary revenue for your farm during quieter months. Long-term lets, in particular, often require less day-to-day labour and can provide a reliable income. 

Families, school groups, and animal lovers are often drawn to petting zoos, providing farms with a steady stream of visitors during slower periods. You could charge a fixed entrance fee and sell animal feed, souvenirs, and other products to increase your revenue.

Another option that provides visitors with an in-farm experience, without the need for lots of indoor facilities is Pick Your Own (PYO) events. This is an ideal choice for farms growing produce, as it can easily be integrated into your existing business model. PYO events can also minimise labour costs associated with harvesting fruit and veg, and you can add a premium to all food picked.

Opening a farm shop allows you to sell your products directly to consumers without the middlemen. This gives you more control over pricing, marketing, and customer relationships. With the increasing demand for locally sourced and organic products, a farm shop has the potential to be a lucrative venture.

For many farmers, December is a quiet month for revenue. If you have land with a lot of acreage, one way you could combat this is by creating a Christmas Tree farm. It’s estimated that 7 million Christmas trees are bought in the UK each year, 80% of which are real trees.

A well-designed corn maze can draw many visitors to your farm and create unique opportunities to earn extra revenue. You can charge an admission fee for entry into the maze, sell refreshments or snacks along the way, and use it to promote your farm's other offerings, such as your farm shop, events, accommodation, and experience days.

Foraging has become increasingly popular in recent years, with more people seeking out unique and sustainable food experiences. If you have wild areas on your land where forageable plants can be found, you could consider capitalising on this growing trend by offering foraging courses. 

 If you already have the space and infrastructure on your farm, such as barns, pastures, and riding arenas, opening a livery can be a cost-effective way to make use of these resources. Boarding fees, training services, and additional amenities can all contribute to your bottom line. With the right marketing strategy, you can attract local horse owners looking for a safe and well-maintained facility to keep their animals, providing you with consistent long-term income.

Building facilities for pet owners to safely leave their animals while on holiday can be a great way to make more income from land unsuitable for crops or animal grazing. You could opt for holiday boarding if you’d like to run a seasonal kennel/ cattery or offer doggy daycare for an income stream that is less seasonal and more reliable month-on-month.

 If you would like to produce more physical goods on your farm, you might want to consider growing flowers. You could sell them for a pick-your-own (PYO) event. While most PYO events (like strawberry and pumpkin picking) are in the late summer or autumn, some flower varieties can be picked in spring or early summer. If you have a venue on your farm, they can also act as a beautiful backdrop for weddings and events, making your property more appealing to potential clients.

Many individuals are interested in learning how to ride horses or in allowing their children to do so. However, they may not have the facilities or funds to keep horses on their own property. If your farm is close to a town or city, you may want to consider whether you can tap into this market by opening your own riding school.

If you’re not yet ready to add shopping facilities to your farm, door-to-door deliveries of items like veg boxes can be a great way to increase your shopper base without the need for new customer-facing buildings. This will allow you to reach shoppers who may not have easy access to farm shops or local markets, expanding your customer base and giving you new sales opportunities.

There are lots of people who are interested in rural life and would like to learn some of the skills associated with farming. From animal rearing to drystone dyking, there are lots of courses you could offer to suit your land and facilities. By opening the farm for educational purposes, you can build relationships with residents, schools, and other organisations. This has the potential to lead to partnerships, collaborations, and increased support for the farm.

A soft play centre can complement other family-friendly forms of diversification on your farm, such as caravan sites, corn mazes, petting zoos, farm shops and more. By offering a variety of activities for families to enjoy, you can create a well-rounded experience that will encourage visitors to return regularly.

If your farm produces wool, you could consider offering fibre courses where knitting, crocheting, and other fibre art enthusiasts can connect with your animals and traditional yarn production methods. If you have previously only sold your wool to other businesses, this is also an opportunity to reach a new audience of buyers.

Installing renewable energy technologies on your farm offers a new investment opportunity with potential returns on the power you produce to offset the financial burden of periods when your arable income is lower. The UK government has previously issued the Improving Farm Productivity grant to eligible farmers who add solar or wind farms to their operations. You can learn more about these grants here.

The number of people in the UK opting to buy motorhomes or stay in caravans for their holidays has risen exponentially over the last few years. You could make the most of this growing trend by turning a portion of your land into a caravan site.

If you like the idea of earning money from visitors staying overnight on your property but you would like to create a more long-lasting fixture on your land, you could consider adding glamping pods or cabins to your property. This may be an attractive option if you live near a beauty spot or landmark which receives lots of visitors.

The wedding venue industry in the UK was estimated to be worth 3.3bn in 2023. You could use your land to tap into this lucrative market by turning a piece of your property into an events venue. You could convert a barn into a cosy ceremony hub or set up temporary gazebos and amenities for field and woodland weddings.

If you have disused land or woodland on your property, you could consider using it to create firewood, timber, and coppice. You may also be able to claim tax relief; there is some support available through the Forestry Commission for farmers with managed woodlands and trees.

Workcations are becoming more popular as office workers transition to remote work. Many people are now able to travel and work during the day while exploring new areas in the evening. Your farm could offer a countryside retreat for these individuals, equipped with all the necessary amenities such as reliable wifi and power to ensure they can be productive during the day.

If your farm is located near a town or city, there may be businesses in your area with growing teams seeking an affordable alternative to urban offices. You could construct or convert a building on your land for businesses for these companies to rent and potentially earn a consistent monthly income.

Diversifying your crop types can give you access to new markets and make your farm’s success less dependent on the products you already sell.

 If you’re looking for ways to attract more visitors to your farm, consider setting up a pumpkin patch. This can significantly increase the value of your crop, as you can charge an entry fee or add higher profit margins to your pumpkins in exchange for the picking experience. Additionally, it may provide some supplemental income during quieter months.

Heirloom crops are not grown for their ability to be shipped long distances. Instead, they are intended to be consumed fresh and locally, close to where they were grown. Farmers who cultivate these crops have an advantage, as they can provide produce that most shoppers cannot find in their local supermarket.

Breweries and Distilleries: Many farms are already equipped with buildings that have high ceilings and open interiors, which are ideal for brewing or distilling alcohol. Adding a brewery or distillery to your business can create new revenue opportunities; you can sell alcohol to customers and businesses, as well as offer brewery tours, tastings, and events that can bring in additional income through ticket sales.

Farms with flat, open fields may be desirable locations for hosting events and music festivals. Hosting a few events each year on your property can provide an income boost without occupying your grounds year-round, freeing up space for other business activities.

 If you're tech-savvy and enjoy sharing your farm work life with others, you might be able to generate additional income through vlogging or blogging. Many people are interested in farm life and what a typical working week looks like for a farmer. You may be able to earn money through ad revenue, affiliate income, and selling your own products.

You could consider converting large disused outbuildings on your property into storage facilities. Storage facilities can provide reliable monthly revenue from customers without the expense of making the property habitable. It offers a potentially more predictable income for a potentially lower cost than creating a live-in rental property.

Overall, there are many potential business activities you can add to your farm to diversify your revenue streams and create a more dependable monthly or seasonal income. 

If you plan to start a new venture on your farm, you can receive assistance with the planning and construction of any new facilities by reaching out to our team at Punchard Group. We specialise in rural planning and provide comprehensive building services for a variety of projects, including barn conversions, renovations, farm shop/restaurant construction, equine facilities, new works buildings, and more.