Chris Walsh, Farm Insurance Specialist at NFU Mutual, explains why, with so much uncertainty and increasing financial pressure, there has never been a more important time to explore diversification opportunities.
Throughout this booklet, youll find advice on what to consider if youre thinking of diversifying your farm, as well as first-hand accounts from farmers who have experienced the opportunities and challenges associated with setting up a new venture.
Among them are Barbara Smith and her two daughters, Sam and Jo, gold winners of the 2019 British Farming Awards Diversification Innovator of the Year (small to medium) category.
Their farm, Slapton Manor in Northamptonshire, began as a traditional mixed farm, but, in 2000, they diversified into bed and breakfast accommodation.
They then expanded further into weddings and events by utilising existing farm buildings.
Theres also Jenny and Stephen McKerr, gold winners of the 2021 British Farming Awards Diversification of the Year (small to medium) category.
The first generation beef and sheep farmers identified a diversification opportunity in 2018. The couple used their savings to set up The Wee Farm Distillery, which produces more than 30 traditionally made gin liqueurs. Two years later, they added to their portfolio by renovating an old cottage into a self-catering holiday let.
These are just a couple of examples of how farmers are expanding their businesses.
Research
Our latest research* revealed that 33% of UK farmers surveyed have diversified. Of those who have already done so, 85% expect the importance of their non-farming activities to increase or stay the same in the next five years.
Of course, we understand that diversification isnt for everyone. However, with so much uncertainty, now is a crucial time to explore diversification opportunities.
*Source: NFU Mutuals Voice Of The Farmer survey, June 2022 545 of 1,654 responses were diversified.
