Farm diversification has benefited many farmers and their families over the years.
Diversification is when a farmer branches out into a new form of business to boost their revenue stream.
With increasing energy costs, low food prices and Brexit looming over our heads, many farmers are looking for new ways to make money.
Diversification can widen revenue streams, support local communities and offer a more sustainable way of living. 62% of UK farmers have diversified their traditional farm to reduce the risk of investing all of their time and resources into one revenue stream.
Farm diversification can be anything from starting a bed and breakfast to adding unusual livestock, like llamas, to attract tourists. For farmers less interested in tourism, there is the pastured poultry and organic beef production route instead.
More than half of England’s farms have diversified in some form.
Before you begin widening your farm business operations, you should consider a few essential things.
First up, make a list of your under-used existing resources and identify how you can use them to your advantage. Unused buildings and farm resources are a great way to begin a new side hustle.
Your local community is the perfect target market for your business. Is your community lacking a particular product or service? Meet unfilled local demand by filling this gap in the community and broaden your farm’s income in the process.
You need to make sure you have the finances to start the business.
Invest in farming insurance to protect your business through unforeseen circumstances. Make sure to research the legal requirements of diversification as well.
Use your existing skills and expertise to start a new business adventure. You will find it much easier to build a successful business if you already have the necessary knowledge.
Make sure your business idea is of interest to you as well. You are far more likely to put in extra hours if you enjoy the process.
Diversification has many benefits for farmers and their surrounding communities. Increased revenue leads to greater financial stability and income for your family, leading to a better quality of life.
A few income streams can secure your farm’s long-term future and make you less susceptible to one income having a detrimental impact on your finances.
You need to be flexible and able to adapt to new opportunities that present themselves. Learn what works for your land so you can make better changes in the future.
Farming is often a family tradition and one that needs to be maintained. Unfortunately, traditional farms do not make the same income they used to by farming alone. Provide your family with security by continuing the tradition and adapting to the modern world.
Expanding your business will give you a new opportunity to increase your skills and network of business contacts.
You can learn about marketing, management, finance, customer service and much more. These skills can be passed down the generations to help your children evolve the farm.