Farmers today are competing with produce sellers from across the globe, and ensuring that their prices are competitive enough to still end up on supermarket shelves is a difficult task. Just 17% of the fruit and veg consumed in this country are from UK farms, and 65% of farmers are facing lower profits or bankruptcy.

In order to create more resilient businesses, many farmers are turning to alternative methods of earning revenue. Rural diversification is when agricultural land owners seek new ways of making money by introducing activities that go beyond traditional farming practices.

For example, many farms are turning to customer-facing enterprises, like farm shops, restaurants, events venues, and holiday lets to help them increase their profits and help sustain their livelihoods. Other forms of diversification include non-customer-facing activities, such as providing land for harnessing renewable energy.

Traditional methods of making a profit through selling crops and livestock are often affected by changing weather conditions, customer demand, and competition from sellers in other countries, leading to volatility. Having an additional source of income outside of these factors can help ensure that farmers continue to make a profit during difficult seasons.

There are many forms of rural diversification. Every farm is different, and will benefit from different activity types depending on their unique needs, specialisms, land type, number of employees, existing properties, and more. We've covered a few of the most popular forms of rural diversification below.

A popular rural diversification method is to let a building. For example, many farmers have disused agricultural buildings on their property which may qualify for class q development, meaning that they can be converted into residential properties under permitted development rights.

Lettings can provide a reliable source of income month-to-month that is not dependant upon agricultural activity. This can ease some of the financial pressure and uncertainty farmers face, providing stability during slower periods and earnings that are easier to predict for future planning.

Another form of rural diversification involves adding customer-facing commercial activities such as a farm shop or garden centre. Selling produce directly to customers helps eliminate the middleman and allows for potentially higher profit margins. Commercial ventures like these can easily compliment existing activities and add a premium to produce that is already being farmed for being fresh, local, and therefore more sustainable than many options in the supermarket.

For farmers who don't want their land to become a customer-facing space year-round, but would still like to gain some of the benefits of opening up their property to the public, events or events venues may be an attractive option. Existing works buildings like barns can be converted and utilised for private events such as weddings, while flat, open fields could be used to accommodate temporary structures like stages for concerts and plays.

With rural stays increasing in popularity, many farmers also have the option to add holiday lets to their property. This may be a particularly worthwhile option for properties close to areas high in natural beauty that are desirable to tourists and holidaymakers.

Another popular form of diversification is through experience days, such as "pick your own" events, and petting zoos. These can complement existing farm operations. For instance, during the spring, offering guests the opportunity to bottle-feed lambs can be a highly attractive option, while pumpkin picking is likely to be popular during the autumn months.

Rather than expanding into new customer-facing activities, farmers can also expand their existing operations and experiment with new crops, livestock, and more. New works buildings such as chicken sheds, grain stores, and livestock sheds can provide new opportunities for expansion and the creation of additional revenue streams.

The UK government has previously incentivised farmers to add renewable energy operations to their farms with grants such as the Improving Farm Productivity grant. Renting land for renewable energy projects can offer steady income, while owning the equipment could lead to profits from the electricity generated.

This list of rural diversification ideas isn't exhaustive! There are endless ways rural land owners can make the most of their property and increase their earning potential. If you're searching for more inspiration, we've explored 30+ other farm diversification ideas in a separate post.

At Punchard Group, we specialise in rural planning. We can guide you through the process of obtaining planning permission for your new development on your property. Our team can be as hands-off or hands-on as you require, managing your project from end-to-end and liaising with the council on your behalf or solely offering advice.

Visit our farm diversification application page find out more about our planning services and register for a free initial consultation. We'll discuss your plans with you and suggest the best next step for your project.