Glamping pod /shepherd hut

I was thinking about ROI in relation to farming and diversification while doing the stock this morning. my clamping site covers 7 acres and is tucked away behind my yard. do you include the current value of 7 acres, which would never have been sold, or do you just include the lost opportunity cost of the land? (ie what it would have earned doing something else, or which it could never do in future) realistically the glamping site could be shut and returned to its previous use in days. my site was arable land, which I converted to grazing for my livery yard, then dug a lake and landscaped for Glamping. the lake obviously can't be returned to grazing quickly!

if you just worked on ROI and included capital costs nobody would farm. with arable land at £10k/acre, I rent all mine out and get maybe £125-150/acre is a return of 1.2% I also farm poultry which is very capital cost heavy, each shed cost half a million and returns in about 8 years, I have three of those. but my fireball business has no assets, cost about 5k to set up and turns over 700-1million on an average year and runs a very healthy profit margin, I don't even know how to calculate that as its success is based on my artistic and more importantly marketing skills, and not a physical asset? is any business that does not get at least 50% ROI bad?

I think maybe a mixed portfolio of businesses with varying ROI and more importantly varying calls on your time as the person running the business. I do little in my arable, poultry, horses, storage and rented units businesses, but spend an extortionate amount of time on my Firepit business! is there a calculation that expresses time and investment?!

sorry for the ramble, but its made me think this morning!
 

Hooby Farmer

Member
Livestock Farmer
Location
roe valley
no, based on 80%, but that is optimistic, I know someone on 85% Occupancy But that’s with cabins. Even if 14 or even 18 month there is not much else going to beat it in agriculture?

85% is brilliant, i would base most of my figures on 60% occupation. Im not saying your wrong about the length of roi, there is a lot of different ways to do it and a lot of variables involved like location, marketing, if you're established or new, market saturation. I agree tourist farming has a better return its not exactly hard to beat ag, if you worked the same hours in tesco as you do on the farm you probably would be as well of financially. However a canvas based site has allowed us to grow fairly quickly and works for us. If cabins/pods fall out of fashion youre kind of stuck with them. Next season if tents are no longer popular I'll buy yurts, geo domes, teepees or whatever is fashionable. I would consider buying a couple of cabins to run through the winter for extra income and to make our site more diverse.
 

Hilly

Member
I was thinking about ROI in relation to farming and diversification while doing the stock this morning. my clamping site covers 7 acres and is tucked away behind my yard. do you include the current value of 7 acres, which would never have been sold, or do you just include the lost opportunity cost of the land? (ie what it would have earned doing something else, or which it could never do in future) realistically the glamping site could be shut and returned to its previous use in days. my site was arable land, which I converted to grazing for my livery yard, then dug a lake and landscaped for Glamping. the lake obviously can't be returned to grazing quickly!

if you just worked on ROI and included capital costs nobody would farm. with arable land at £10k/acre, I rent all mine out and get maybe £125-150/acre is a return of 1.2% I also farm poultry which is very capital cost heavy, each shed cost half a million and returns in about 8 years, I have three of those. but my fireball business has no assets, cost about 5k to set up and turns over 700-1million on an average year and runs a very healthy profit margin, I don't even know how to calculate that as its success is based on my artistic and more importantly marketing skills, and not a physical asset? is any business that does not get at least 50% ROI bad?

I think maybe a mixed portfolio of businesses with varying ROI and more importantly varying calls on your time as the person running the business. I do little in my arable, poultry, horses, storage and rented units businesses, but spend an extortionate amount of time on my Firepit business! is there a calculation that expresses time and investment?!

sorry for the ramble, but its made me think this morning!
Calculate the seven acres as seven acres rent , 700 a year say ? Or if it’s capable of potatoes 1400 year ?
 
The main expenses are a shower, WC and washing block (buy commercial washing machines/dryers) setting up a website, preparing an actual site, mowing it regularly (batwing owners for the win) and taking the money (credit card reader). You do not need to build pods, cabins or any of the above if you don't want to. Plenty of people will camp, van or caravan to the place and pay the pitch fee. Laying some hardcore/terram and moling electricity cables need not be stupid expensive.

You need a tidy farm and a partner who at least looks approachable [so that rules your DragonZord mother-in-law out], hopefully they have a nice telephone manner. A good proportion of farmers wives are actually nice salt of the Earth people who convert well to the hospitality trade. Tell them no stag parties or hen dos either. You can of course opt for the no-children at all route and just let adults go nuts and allowing them to swim in the slurry store but that's a different marketplace.

If you are a friendly farmer who isn't afraid of the public seeing their farm and you like the idea of selling your gospel to a captive audience you can encourage children calf feeding, farm tours, milking with audiences or what have you. Might even con them into doing some work. What you want are those I called 'repeat offenders': people who come back year after year with their extended families and spend money not just with you but the local region, too and who are no bother whatsoever. A selection of leaflets for local pubs, bars, restaurants and attractions in the hallway/porch is useful. Your fishing lakes will attract the out of season punters, some anglers will drive hundreds of miles to sit by a lake for a few days. Have a tea room with a wood burner on the end of the shower block, keep it under lock and key except for the anglers to use so they have somewhere warm and dry to get out of the weather once in a while.

My father would do all kinds of small things that went the extra mile for guests, it becomes quite addictive. Don't get frustrated at complaints or 'observations' except for the 1% of morons whose world-view is fudging weird.

Insist on taking bookings with a credit card number. Anyone disruptive or too noisy after dark- threaten to charge their credit cards for the nights paid by anyone who complains about them. They don't dare fudge about then.
 

Timbo

Member
Location
Gods County
To anyone considering such a diversification- Ask yourself the question - would you be happy using communal facilities that are likely cold, damp with a plug hole of someone else's hairs if you're paying upwards of £100 / night ??

PS - it is the Glamping Show at Stoneleigh Today & Tomorrow (thurs fri sat)
 

SFI - What % were you taking out of production?

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  • 100% I’ve had enough of farming!

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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