Cheese shops, camping barns, golf driving ranges, clay pigeon shooting, brewing, renewable power and riding centres – farm diversification comes in many different guises.
Diversification plays a crucial role in the modern agriculture and rural business sector and has become an increasingly likely consideration to future-proof business from the market and economic changes.
New enterprises often complement the existing business model, drawing upon the existing skills, experience, buildings, machinery, and land capabilities.
In fact, more than almost a fifth of farmers plan to diversify to make their farms sustainable post-Brexit, according to the NFU Mutual Diversification Report 2018. Read on to find out reasons to diversify and the tax implications it may have.
Ensure you carefully consider the long-term tax consequences of farm diversification projects before embarking on a new project
There are many ways in which farmers can look to diversify and for those that choose the right options, the benefits can be substantial.
A study by DEFRA Farm Business in 2017 revealed more than 60 per cent of UK farms had made the decision to diversify, highlighting how many businesses operating in the agricultural sector are looking for new ways to boost income streams. When undertaking any new business venture, it is always important to look at the possible implications and to do thorough research before making a decision.
Local company Baboo Gelato has been shortlisted in the Best Rural Food or Drink Business (South West) at the 2019/20 Rural Business Awards, held in partnership with Amazon. The proudly Dorset artisan ice cream producer will be up against fellow rural businesses, entrepreneurs and enterprises from across the South West region to secure a place at the national final. This year marks the Awards' fifth year of celebrating the success of businesses across the UK's rural economy - a sector which employs more than 3.4 million people in England alone.
Baboo Gelato was launched in 2015 by Annie Hanbury, a Bologna-trained gelatiere, who wanted to combine her passion for ice cream making with the glut of fabulous ripe fruit from her kitchen garden. The company also use the finest fresh, local ingredients including organic milk from a South Somerset farm. Annie and her team handmake all Baboo's gelato and sorbet from scratch using traditional techniques.
Becka Wright, Creative Manager at Appetite Me, on entering into rural diversification in a seemingly saturated market…
With more and more land owners and farmers looking into diversifying their land and business in order to secure a more financially stable future it can leave you questioning what new ways can you expand your business, especially when so many markets seem over saturated. However, there are new trends and ideas being developed all the time, below we talk about the trends we are seeing in farming diversification.