The world of farming is in a constant state of flux, with traditional methods giving way to new challenges and opportunities. As rural landowners navigate shifting agricultural policies and changing markets, the need to diversify and secure future income has never been more pressing. To shed light on the options available and the practical steps involved, we caught up with Tiffany Radford-Hancock, Partner in our rural property management team. Tiffany shared her insights on how landowners can harness diversification to not only safeguard, but enhance, their livelihoods for years to come.
Gone are the days when farming businesses could simply depend on income from agriculture. With the Basic Payment Scheme (BPS) now a thing of the past and only limited access to agri-environmental schemes and capital grants, today’s farmers are presented with a new set of challenges to secure a profitable future. Now, more than ever, farmers need to spend time exploring national and local funding opportunities, all while unravelling the complexities of the planning system to open doors for new farming or diversification opportunities.
Crucially, location plays a key role in deciding which alternative income streams are worth pursuing. Farms on the urban fringe are especially well placed to tap into a larger customer base, making them prime candidates for ventures that thrive on footfall - such as farm shops, self‑service fruit or milk vending machines, pick‑your‑own enterprises, or even adventure play areas for families.
Take, for example, one client, whose land sits on the edge of a major city. When HS2 sliced through their holding, it initially felt like an insurmountable disruption. Yet, out of this upheaval sprang opportunity and small, isolated parcels of land are being cleverly repurposed, with one farm tenant proposing a dog‑walking field. The demand for such spaces has soared since the post-Covid boom in dog ownership. To embark on this kind of diversification, farmers need to weigh local demand, scope out the competition, consider land constraints and planning hurdles, calculate setup costs, and map out a sustainable management plan. These small plots, typically 1-3 acres, can generate attractive returns of £20,000-£40,000 per year, all for a relatively modest upfront investment.
Another avenue that is gaining traction is industrial open storage, particularly in areas with excellent transport links. This option boasts comparatively low setup costs and caters to end users needing robust surfaces, be it hardcore, concrete, or tarmac and a secure boundary fence. Kitting out the site with lighting, electricity and water supply and security cameras can further boost its appeal and rental value. With the right conditions, open storage can generate returns of £20,000-£50,000 per acre depending on location and site condition. That said, the path to planning permission can be a little trickier to navigate.
For those nestled in the tranquillity of rural or scenic settings, tourism remains a tried-and-tested route for diversification. Glamping sites and holiday lets are popular, but with fierce competition, standing out from the crowd is key. One such success story saw us secure planning permission for a client to convert a traditional brick barn into a versatile venue for weddings and corporate events. Even though full project funding was out of reach at first, the Rural England Prosperity Fund, open to qualifying councils until March 2026, has since stepped in to offer capital support for projects that spark growth in areas with lower productivity, sparse connectivity, or limited access to essential services.
Ultimately, farmers looking to boost their bottom line through diversification must take a close look at which parts of their land are not vital for agriculture, pinpoint opportunities that align with their own interests and drive, and understand the opportunities afforded by their location. Teaming up with professional advisers for planning and funding guidance is vital to turning bright ideas into thriving new ventures.
The world of farming is in a constant state of flux, with traditional methods giving way to new challenges and opportunities. As rural landowners navigate shifting agricultural policies and changing markets, the need to diversify and secure future income has never been more pressing. To shed light on the options available and the practical steps involved, we caught up with Tiffany Radford-Hancock, a partner in our rural property management team. Tiffany shared her insights on how landowners can harness diversification to not only safeguard, but enhance, their livelihoods for years to come.