Half of farmers making plans to diversify

Almost half of UK farmers are planning to diversify their businesses to support incomes after Brexit, according to NFU Mutual.

A survey by the rural insurer found 47% are planning to set up new, or expand existing, diversification schemes – up from 23% in 2018.

The survey coincides with the launch of the insurer’s diversification report today, which provides advice on setting up new diversified farm businesses.

“Scotland’s farmers are looking for new business opportunities in order to spread their risk as we adapt to trading outside the EU and with major changes to government support for agriculture on their way,” said NFU Mutual manager for Scotland Martin Malone.

He said new ventures were being set up to safeguard farm businesses for present and future generations.

“Whether it’s building holiday cottages, launching a wedding venue, or opening a farm shop, not only can these new businesses supplement the existing farm, they often provide other members of the family with a crucial role in the business,” added Mr Malone.

“However, farmers need to do careful research and costings before they start converting cow sheds into cafés.”

The diversification report contains case studies from a range of diversified farm businesses, including Chris Scottpark’s venture offering speedboat tours on Loch Lomond.

Chris, and his father David, have transformed a dairy farm into a tourism venture complete with holiday accommodation and a grass-fed beef herd.

He said: “Take advantage of your location – are you in a tourist area?

“Do you have walking or cycle paths going past your front door?

“Make use of what you have got, for example an unused building, and don’t be afraid of competition – but try to look for ways to be different.”