New Year, New Possibilities
by Taunton Office
January 19, 2010
Another New Year brings the chance for farmers to consider the options for diversifying. This combines new business activities with traditional farming which can increase farm income, make good use of farm assets and provide more security for the future. According to DEFRA about half of all UK farms have some form of diversification and on average these bring extra revenue of £14,500 per farm.
“It is important to consider carefully what to diversify into”, says Ryan Kuszek of leading agents Carver Knowles. “On farm resources must be identified and possible local demand investigated. It is important to make use of existing skills but also target a new business that is of interest to either you or a wider family member to ensure the required level of effort and enthusiasm is reached”. Mr Kuszek recommends looking at the easy options first and notes diversification does not always have to mean a farm shop and could include wind or hydro power, tourism or other activities.
Key steps should be followed once an idea is finalised:
- Produce a full business plan which is crucial for obtaining financial support.
- Determine how much money is needed to finance the idea and how this will be obtained. It may be through a grant scheme, commercial lender or sale of assets (e.g. pony paddock).
- Apply for and secure any planning permission required.
- Determine what is needed to deliver your product or service, how this will be marketed and any training needed to increase skills.
Diversification provides a good opportunity for farmers to add to their business activities. A good business plan will often make the difference between success and failure and it is recommended that all farmers make use of the Business Link REG 1:1 advice scheme, if they haven’t done so already. If you would like to discuss a potential project then please telephone Mark Sanders, Brian Dinnis or Ryan Kuszek at Carver Knowles on 01823 350000.