Five Unique Farm Diversification Ideas

Agricultural finance can allow farmers to change their game

By nature, farmers are hardworking and innovative – traits which are demonstrated by their adaptability and willingness to diversify. A popular trend that has skyrocketed in the last twenty years, diversification has seen all kinds of farming business revolutions around the world. The trend shows no sign of slowing down, with a 2024 study by NFU Mutual revealing that more farmers than ever plan to diversify. While around 69% of all UK farms had some diversified activity in 2022/23, the study revealed that an additional 17% will be joining them in the next 5 years.

Renewable energy continues to hold the top spot among UK farmers, and the recent increase in rent costs for telecommunications’ mast sites is welcome news for those who rely on their land for passive forms of income. However, with the help of agricultural finance, farmers can get creative in finding solutions that suit them, their location and their terrain. With a working capital loan, invoice financing or commercial loan, farmers can free up the cash to make investments in their diversification business. We’ve rounded up five unique farm diversification ideas below:

1.   Transform Disused Equipment into Attractions

Many farmers who also run camping and glamping sites are further developing their premises by adding unique attractions crafted from disused farming equipment. A great example is this old grain silo converted into a bar on a campsite in Suffolk, which adds another layer of luxury to the glamping experience and also allows members of the public to visit and enjoy it on weekends too. In 2014, Scottish farmer Ernest Fenton also made headlines when he converted his old cowshed into England’s only curling rink.

2.   A Sauna On The Farm thanks to Agricultural Finance

Mobile saunas are cropping up all over the country as more and more people recognise the feel-good benefits of sweat sessions, often accompanied by cold swims or dips. Rural farmland throughout the UK naturally lends itself to relaxation thanks to the endless stretches of fields, ancient trees and sometimes even access to water. In Wales, there is a ‘sauna scene’ emerging, with new sauna installations across several beauty spots. This is great news for farmers, who could pursue this avenue of income in either a passive or active method, leasing out small parcels of rural land to mobile sauna providers, or choosing to create and run a sauna experience themselves.

3.   Creative Spaces for Corporate Retreats & Coworking

With working being more remote than ever, corporate firms of all sizes are keen to connect colleagues through unique retreats and experiences – often in a natural environment where people can collaborate over unique tasks. Farmers can capitalise on this, using agricultural finance to repurpose disused barn buildings into breakout spaces. An influx of cash can assist in transforming these buildings into venues with the space and facilities needed to host team-building events and experiences. In addition, as the UK becomes more counter-urbanised and remote workers move from urban to rural areas, co-working spaces are set to become an industry in their own right, giving farmers another unique opportunity to make use of their empty, unused spaces.

4.   Farm Shops of the Future

During COVID, many farmers turned to a contact-free means of sales to continue their farm shop businesses. The milkshake vending machine was just one of the more popular methods, resulting in viral TikTok sensations and people travelling from miles around for the experience. This has since become the norm for many farm shops around the world, providing farmers with an almost passive means of income that champions provenance. With agricultural funding, farmers can make essential investments in the machinery and marketing required to make vending sales possible.

5.   Seasonal Pick-Your-Own Experiences

Freeing up capital through agricultural finance can also help farmers invest in their infrastructure, creating an experience that will entice visitors to their Pick-Your-Own fields. Consumer trends indicate that people are opting to spend more money on experiences rather than things, which is why PYO fields are the perfect diversification project for farmers because they provide both. When combined with a strong brand identity and effective marketing strategy, PYO experiences can be transformed into a must-do seasonal event such as pumpkin picking, Easter egg hunts, summer fruit picking and sunflower or lavender field photo opportunities. By adding a farm shop or cafe, farmers can also benefit from having a captive audience onsite.

Secure agricultural finance with White Oak UK

White Oak UK has worked with farmers to pursue a range of different outcomes, including the acquisition of essential machinery and property refinancing. Whether it’s seasons, technology, or customer demands – we offer a range of fast, flexible and tailored finance options that can help you diversify your farming business and thrive. Find out more about our agricultural finance here.

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