Glamping pod /shepherd hut

Location
UK
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!

Really interesting post. I think the capitalisation rate is key here, you have a cap rate of 12.5% on the poultry whereas the most recent cabins we've popped in the ground have a cap rate of 68%. Then I'd put the profit of each portfolio offering together to see the most profitable overall, also taking into account the reality that there's a limit to the scale of the hospitality side of your portfolio, it can only get so big before it's a bloody Centre Parcs etc (Same applies to poultry I'm sure). Then asses the time and the cost of your time. Ultimately EBITDA should give you a clear indicator on the most profitable, easiest way to make the cash, then net profit gives you an idea of what really pays the bills.

One point I'd stress is I feel there's more opportunity with the changing landscape for offerings that don't require a lake, full parking, plumbing, electric etc, the goalposts are changing, and with this brings dual use - Cabins + arable or pastoral = multi revenue opportunities. We're supporting a 4,000 acre estate in doing just that, basically building what is effectively a holiday park, but spread out across the full estate.
 
I don't agree that punters want the 'green sustainable' experience, people hate compost loos. they want to feel like its sustainable (pay lip service to it) but in reality is luxurious. to someone out of London just being in a green field feels 'back to nature' but they do want the luxury, they don't want shared loos and showers etc. its dangerous game to base your business plan on the publics moral fads and fashions. what people say they care about and what they spend there money on are two different things!
 

bobk

Member
Location
stafford
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Location
UK
I don't agree that punters want the 'green sustainable' experience, people hate compost loos. they want to feel like its sustainable (pay lip service to it) but in reality is luxurious. to someone out of London just being in a green field feels 'back to nature' but they do want the luxury, they don't want shared loos and showers etc. its dangerous game to base your business plan on the publics moral fads and fashions. what people say they care about and what they spend there money on are two different things!

I couldn't agree more, but let's not assume that sustainable results in a poor guest experience. Luxurious interior, solar electric, hot shower, good the compost loo's are not what they once were, and I am not talking about a long drop DIY toilet!

Screenshot 2021-06-05 at 00.22.28.png


As for fads, the sustainable tourist market has grown by £300bn since 2018, this isn't a fad.

I should also note that often the land and location dictates the build. We have a project launching soon in the middle of a 4,000 acre estate, we can only get water to the cabin, anything else would blow the budget, so a "sustainable" solution is actually the cheapest.
 
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lloyd

Member
Location
Herefordshire
Wooden, solar powered, soak away, compost toilet, highly efficient stove etc. There's a new movement for more isolated and sustainable retreats, which comes with much higher returns.

Happy to share more

Chap I know has built 2 high spec wooden cabins on the Hfds /Powys border .They look
very good but I wonder what the projected lifespan of these buildings are?
 
Location
UK
Chap I know has built 2 high spec wooden cabins on the Hfds /Powys border .They look
very good but I wonder what the projected lifespan of these buildings are?

Ours will be 20-50 years so if his are high spec they'll be up there.

He is doing pretty good looking at his bookings but next year
could be different if everyone goes abroad.

Definitely worth watching the market. I have worked in the rentals space since it began to really change, around 2010 when Airbnb really started to open the market up and since November I've been analysing the staycation market. It's only going in one direction, this change started back in 2018 and is growing like crazy and obviously booming due to covid. It's not stopping, this is a wave that's rolling on and on. What's great is if you do it right and can bring in the rates and occupancy, you can pay off the cabin quickly and then it's all profit, with our builds and management it takes 14-18 months and you're in the green.
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 77 43.5%
  • Up to 25%

    Votes: 62 35.0%
  • 25-50%

    Votes: 28 15.8%
  • 50-75%

    Votes: 3 1.7%
  • 75-100%

    Votes: 3 1.7%
  • 100% I’ve had enough of farming!

    Votes: 4 2.3%

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

  • 1,286
  • 1
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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