Farmers can cash in from new boom in tourism
Diversified activities will generate increased income over coming years
AN agricultural expert is predicting a surge in rural tourism ventures across the South East with latest figures revealing farmers across the region received 35 per cent of their income from diversified business activities in 2020.
Total income for the region’s farmers fell by £174m last year to £360m, according to the Department for Environment, Food and Rural Affairs, with £127m coming from diversified business activities.
With farmers now facing the loss of direct payment subsidies – as the tourism sector accelerates its recovery from Covid – Rupert Wailes-Fairbairn of rural insurance broker Lycetts believes 2022 will be year they reinvent their businesses.
“The vast untapped business opportunities for the sector are clear, with diversification
last year making the smallest contribution to South East farming output,” said Mr Wailes-Fairbairn.
“As farmers face burgeoning financial challenges and a period of unprecedented industry change, many will be planning now to protect their financial futures over the next 12 months.
“To help them achieve
this, a range of new business activities are likely to be embarked upon, from the hosting of experience days to putting non-productive land to revenue-generating use with the introduction of glamping pods, tent pitches or yurts.
“Renewable energy projects also promise lucrative opportunities, with operators paying farmers and landowners rents of up to £1,000 per acre.”
But Mr Wailes-Fairbairn has warned of the risks of launching new business ventures in markets where farmers’ experience and expertise can often be limited.
“Due diligence and prudent steps should be taken to avoid falling foul of unexpected financial pitfalls,” he said.
“Tourism-related projects will invariably involve members of the public setting foot on farmland.
“Health and safety risk assessments, along with measures and procedures to ensure a safe environment, are therefore essential considerations at the design stage.
“Public liability insurance is a must – and in some cases, new holiday projects may see farmers employing staff for the very first time, resulting in a new requirement for employers’ liability cover.”