Diversification, has it worked for you?

[Two Tone]

I think diversification is a great idea, but if you are doing something solely for the money it's going to fail. There's so many other factors to consider.

Couldn't agree more. Biggest problem with most diversification projects is having to deal with other people/ general public, which farmers don't tend to be very good at. Every single one of them has their own opinions and opinions are like arseholes, everybody has got one!

There is so much more to consider other than the fact it looks good on paper, moneywise.

 

[marco]

Have you considered a creche? Surely a big income for small investment?

 

[oldoaktree]

Thankfully the two diversification’s that I started while still full time farming have become my main source of income now I no longer have a commercial farm . I still do a bit for others in the summer which suits me fine.

 

[oldoaktree]

Have you considered a creche? Surely a big income for small investment?

I think the rules and rec’s when it comes to a crèche are ridicules .
Kennels and cattery might be a good money spinner if you could stand it .

 

[icanshootwell]

So having spent the day at the Farm Business Innovation Show on Wednesday (and as a bit of a follow up from the associated thread) I now have a head full of bright ideas but not sure which way to go

I’m in an area where land is at a premium and unless your paying big spud rents expansion on the farm side can be difficult to say the least. Plus I don’t see the point in paying massive rents just to say I’m farming big acres and turning money over! Don’t get me wrong we do ok with the farm side of the business, but I’m wondering with the current political climate should I be spreading my risks a little?

We’ve already branched into other sectors, such a contract work and a ag engineering. But really they both still come under the Agricultural banner, we also have a caravan storage facility which dose extremely well and its constantly full. Ideally I would have liked to have expanded on this, however I’m have no end of troubles with the local planning officers trying to get permission as it’s green belt! (It’s ok to build 1500 houses in green belt though).

So what I’d like to know is have you managed to diversify into another sector outside of agriculture and how’s it working out for you?

Also did you manage to get grant funding to help you get set up?

Right or wrong I’d really like the challenge of branching out into something that would create some employment opportunities, even if it’s just a chance for a change of occupation for the Mrs at first (and yes I know staff can be a pain in the arse but sometimes it’s the only way to move forward).

So as part of your diversification did you have to employ staff?

Apologies for being a little long winded but I think this is definitely something that will be affecting a lot of farms in the not so distant future

Thanks again
Phil P

I diversified 20 years ago, best thing i ever did, Like yourself i want the mrs to work here from home, so after 2 years of plotting and brown nose talking we eventually have just got planning for a glamping site which the planners turned down to start with, managed to get it through on appeal. Silly old me thought it would be a walk in the park to start with, the planners will love it i told the mrs. We are being told to diversify on a daily basis, but unless you know someone that knows someone it can be very hard work indeed.
IMO go for it, there,s a lot of money to be made outside of farming. I love farming but the pay is not the best. Our supermarkets see to that.

 

[MrNoo]

I think diversification is a great idea, but if you are doing something solely for the money it's going to fail. There's so many other factors to consider.

I think it depends on how you go about it and what sort of diversification it is, after all it's not often you get something for nothing!!
We had countless people asking for storage or a shed to do "work on the side" whilst they were employed, after a few months of doing "work on the side" most actually packed in their day job to concentrate full time on their own business. So a form of start up sheds if you like. As some businesses expanded they have needed bigger sheds/units and so on it goes. Longest serving tenant has been with us circa 40 years.
I think if you start fairly small and build it up over time the financial risk isnt so great, we look to recoup all expenditure on any buildings converted within 1-2yrs max. We are fully occupied and I could build more sheds and fill them with ease.
I think you need to explore the potential market, road links/network, type of businesses locally looking etc etc but it is "doable"

 

[willy]

Just go steady. Our diversification has been going ten years (Dad’s idea I might add) from the outside looks like a great success.

From within it’s just debt, stress and worry. We’ve had to sell some land to fund it and are now heavily geared on the rest of the farm. I honestly wish we had never started it.

Tell us more, sounds like one too maybe not do?

 

[ollie989898]

If you get involved with the general public, you will find it is exactly like livestock farming. You get up, tidy up their sh1t and get ready for the next batch. 2-5% are going to complain, don't take it personally. You can of course tell them where to go, it's a free country but remember there is such things as trip advisor out there.

From personal experience any of you in/near Lake district/Peak district or similar tourist areas you need to be tapping into caravans and camping, it literally money for nothing. You could build the mona lisa of shower and loo blocks for 20K, dig a fishing lake and lay some hardcore tracks and you are there already, all you have to do is take the money, dispose of their waste and mow the grass a bit. You have a working farm? Ideal, there is a tourist attraction right there then.

If it gets that big you need to think about organising a receptionist or housekeeping advertise for Polish ladies with good English and you will soon have a good team set up to do all that. Pay them well and factor it into the cost.

Currently trying to convince my buddy to do log cabins. You could not pick a more perfect location, either.

 

[DaveJ]

If you get involved with the general public, you will find it is exactly like livestock farming. You get up, tidy up their sh1t and get ready for the next batch. 2-5% are going to complain, don't take it personally. You can of course tell them where to go, it's a free country but remember there is such things as trip advisor out there.

From personal experience any of you in/near Lake district/Peak district or similar tourist areas you need to be tapping into caravans and camping, it literally money for nothing. You could build the mona lisa of shower and loo blocks for 20K, dig a fishing lake and lay some hardcore tracks and you are there already, all you have to do is take the money, dispose of their waste and mow the grass a bit. You have a working farm? Ideal, there is a tourist attraction right there then.

If it gets that big you need to think about organising a receptionist or housekeeping advertise for Polish ladies with good English and you will soon have a good team set up to do all that. Pay them well and factor it into the cost.

Currently trying to convince my buddy to do log cabins. You could not pick a more perfect location, either.

The biggest problem with log cabins, yurts or tongue and groove dog kennels (sorry, "glamping pods") is absolutely everyone in the prettier bits of the UK agrees with you. We've had the conversation here and planning consultant has said the number of people considering putting in applications locally is enormous.
Add to that climate (both meteorological and financial): IE: Great idea on the back of a glorious summer with a weak Pound making foreign holidays dearer. Not so rosy on a more normal Welsh summer, with the strong possibility of a strengthening Pound making it more tempting to take the kids on a cheap all inclusive to Tenerife.

Caravans and camping now, I agree with you. There is apparently a website called "Pitch Up" which appears to be the equivalent of AirBnB for those who prefer sh1tting in a bucket. One of No2 Sister's mates has a site registered with them and is consistently full. Low setup costs, limited upkeep apart from a mower and discovering how revolting some humans' toilet habits can be. We're seriously considering it.

But that whining Brummie accent...

 

[willy]

I am going to be totally out there and do something most farms haven’t thought of (tongue in cheek) I’m going to farm and produce food. The public will go mad for such a modern idea and will want to
Pay to see me in action.

In about 25 years this may become reality.

 

[Mow]

I started with caravan storage and went the next step and built a caravan site,wasn't cheap but depends how much you want to offer,also do pods and a shepherds hut,have a look at my website welltroughcaravansite.co.uk ,hardest part has been dealing with the caravan public,can be a different breed!!

 

[Phil P]

The biggest problem with log cabins, yurts or tongue and groove dog kennels (sorry, "glamping pods") is absolutely everyone in the prettier bits of the UK agrees with you. We've had the conversation here and planning consultant has said the number of people considering putting in applications locally is enormous.
Add to that climate (both meteorological and financial): IE: Great idea on the back of a glorious summer with a weak Pound making foreign holidays dearer. Not so rosy on a more normal Welsh summer, with the strong possibility of a strengthening Pound making it more tempting to take the kids on a cheap all inclusive to Tenerife.

Caravans and camping now, I agree with you. There is apparently a website called "Pitch Up" which appears to be the equivalent of AirBnB for those who prefer sh1tting in a bucket. One of No2 Sister's mates has a site registered with them and is consistently full. Low setup costs, limited upkeep apart from a mower and discovering how revolting some humans' toilet habits can be. We're seriously considering it.

But that whining Brummie accent...

I must admit after walking round the show on Wednesday, I’d say 60-70% of the stands in the ag part where pushing glamping or a related product. This kind of makes me think it won’t be long before the market is saturated with log cabins and bell tents! Admittedly location plays a big part in this and you need something different to offer your guests, it’s finding that niche market idea that pulls in the punters.
I have considered various self catering ideas such as a -
caravan site - may work in well with our storage facility
tents - not really got the weather!
log/wood cabins - we own around 8ac of woodland so could do a small centre parks thing maybe?

There’s just something about holiday let’s that doesn’t seem to float my boat, however if the Mrs was on board it would be something I’d consider.

 

[Phil P]

I started with caravan storage and went the next step and built a caravan site,wasn't cheap but depends how much you want to offer,also do pods and a shepherds hut,have a look at my website welltroughcaravansite.co.uk ,hardest part has been dealing with the caravan public,can be a different breed!!

Very nice job there I’m almost tempted to get a caravan .
Now as your up and running how much time does it take out of your day to keep it ticking over?

 

[Mow]

Very nice job there I’m almost tempted to get a caravan .
Now as your up and running how much time does it take out of your day to keep it ticking over?

The most time is going round saying hello and collecting the money,I started with 5 pitches (cl) 2.5 years ago,expanded to 18 now,takes about 4 hrs a week mowing site but I do have a 3km mown farm walk!!

 

[Mow]

Work on an average of 5mins/van roughly!

 

[ollie989898]

The most time is going round saying hello and collecting the money,I started with 5 pitches (cl) 2.5 years ago,expanded to 18 now,takes about 4 hrs a week mowing site but I do have a 3km mown farm walk!!

Buy a gator with a huge bag marked 'swag' in the load bay.

 

[solo]

As this will be aimed at the wife to manage. What are her skills and aims? Maybe flower arranging for weddings, birthdays and funerals. My wife is looking into growing and arranging this next year as a project for her, but she also enjoys doing it too. Massage and aromatherapy could work well from home if your location is right from what i have seen. Physiotherapy is an occupation that seems to be in demand. There are lots of options out there but it really depends on what floats your boat in the end. By working from home you can control the bookings to suit, with some enterprises, more than others.

 

[ollie989898]

Physiotherapy is popular but it requires a 3 year degree and is over-subscribed. I would not advise anyone to study as a sports physiotherapist, you will not earn a lot of money doing that, it is a hugely oversubscribed profession. Medical orientated physiotherapists are much more sought after but it is no small feat. Many of these have the same level of medical knowledge as nurses.

 

[Rowland]

As this will be aimed at the wife to manage. What are her skills and aims? Maybe flower arranging for weddings, birthdays and funerals. My wife is looking into growing and arranging this next year as a project for her, but she also enjoys doing it too. Massage and aromatherapy could work well from home if your location is right from what i have seen. Physiotherapy is an occupation that seems to be in demand. There are lots of options out there but it really depends on what floats your boat in the end. By working from home you can control the bookings to suit, with some enterprises, more than others.

Set up an establishment where you rent rooms to various therapists .
Many hair dresses do this they rent a chair out in a salon.
Just make sure the massages are legitimate

 

[Doing it for the kids]

We converted a lot of old farm buildings into light industrial, old cart sheds/Dutch barns etc, we did most of the conversion work ourselves during the winter months when not busy on the farm. I would think we have circa 20 units now of varying sizes, upkeep of which is very low, rent paid quarterly, tenant turnover very low, actually makes more profit than a 550 acre all arable farm. Been going for 30 odd years now.

I think it depends on how you go about it and what sort of diversification it is, after all it's not often you get something for nothing!!
We had countless people asking for storage or a shed to do "work on the side" whilst they were employed, after a few months of doing "work on the side" most actually packed in their day job to concentrate full time on their own business. So a form of start up sheds if you like. As some businesses expanded they have needed bigger sheds/units and so on it goes. Longest serving tenant has been with us circa 40 years.
I think if you start fairly small and build it up over time the financial risk isnt so great, we look to recoup all expenditure on any buildings converted within 1-2yrs max. We are fully occupied and I could build more sheds and fill them with ease.
I think you need to explore the potential market, road links/network, type of businesses locally looking etc etc but it is "doable"

This, if you have the infrastructure and demand.

Diversifying is all about working out what you have for the local area and how you want to interact with them, using how much cash and resotuces.

We bit the bullet 5 yrs ago and converted every building we had that wasn’t essential for ag. Been lucky with several renewable projects too, now that combined income dwarfs the farm, pay back is very sensible but there is a privacy loss associated with it.

Speak to local commercial agents and ask them what they can easily let. It may be the demand for child nurseries is huge so convert a building and find a company to rent it. You don’t have to do it yourself just pave the way for others.