On-Farm Diversification: Exploring the Opportunities

Making More Of Existing Farm Buildings

For farms with redundant or underutilised buildings, storage, workshops and rural offices can provide an opportunity to generate an additional rental income without necessarily introducing a completely new enterprise.

Container storage

Container storage is one of the lower-investment options. A good-condition shipping container may cost around £2,500, with potential rental income of approximately £120–£200 per month plus VAT, depending on location.

A secure yard with good road access is ideal. Management and maintenance requirements can be relatively low, although increased activity, loss of yard space and business rates should be considered.

Warehouses & workshops

Existing steel portal frame buildings could potentially be converted into warehouse or workshop accommodation.

Indicative conversion costs range from £100–£370/m², depending on specification, with potential rents of around £54–£129/m² per year. Good vehicle access and separation from day-to-day farming operations are important considerations.

Rural offices

Redundant farm buildings in accessible locations may also lend themselves to office conversion.

Conversion costs could range from around £500–£1,200/m², with potential rental values of £150–£250/m², depending on the location, finish and facilities provided. Parking, road connections and proximity to villages and other amenities can all influence the suitability of a site.

Diversifying Underutilised Farmland

Diversification can also provide new uses for areas of land that may otherwise contribute relatively little to the wider farming business.

Secure dog walking fields

Dog walking fields can make use of marginal land, particularly in locations close to residential areas.

Indicative investment of £8,000–£10,000 could cover fencing, gates, parking and marketing, excluding planning costs. An online booking system can make the enterprise relatively straightforward to manage, although mowing, maintenance and waste collection will still be required.

Camping and glamping

For farms in attractive rural locations, camping and glamping can provide another way to generate income from land.

A conventional campsite could require around £25,000–£27,000 of initial investment, while the indicative investment for a four-unit glamping operation is around £37,000–£51,000.

Location is key. Being within reach of amenities such as a village pub or shop can make a site more attractive to visitors, while sufficient separation from neighbouring properties can help minimise disturbance.

Both options also require a greater commitment to day-to-day management, particularly when guests are on site.

Leisure Diversification

Padel courts

The growth of leisure-based activities creates further opportunities for suitable farm buildings, with padel courts representing a higher-investment example.

Creating courts can involve significant upfront expenditure, with the presentation estimating £70,000–£100,000 per court, alongside potential building conversion, staffing, utility and maintenance costs. Alternatively, suitable space could be let to a third-party operator.

An existing barn would need to provide sufficient floor area and height, alongside parking, electricity and toilet facilities. Sites close to residential areas and complementary enterprises, such as a café or farm shop, may be particularly well placed.

Renewable Energy

Solar panels and battery storage

For businesses looking to diversify without introducing additional visitors to the farm, solar panels and battery storage provide a different opportunity.

A medium-sized 30–100kW solar installation is estimated at around £30,000–£100,000, with battery costs of a further £10,000–£40,000. Indicative annual returns are estimated at £5,000–£20,000, giving a potential payback period of around four to six years.

South-facing roofs with minimal shading are best suited, while battery storage can help farms make greater use of the electricity generated on site, including during evening and night-time demand.

Finding The Right Opportunity For Your Farm

While potential return on investment is important, financial performance should not be the only consideration when assessing diversification opportunities.

The amount of ongoing management required can differ significantly. Container storage may require relatively little day-to-day involvement, whereas camping, glamping or leisure enterprises can require much more active management.

Before progressing with a project, farming businesses should consider:

• Location and proximity to potential customers
• Existing land and buildings that could be repurposed
• Access, parking and infrastructure
• Initial investment and potential return
• Planning and change-of-use requirements
• Ongoing management and maintenance
• The skills and capacity within the existing team

Ultimately, successful farm diversification should work alongside the existing farming business rather than place unnecessary pressure on it. Taking the time to assess the available assets, local market and practical requirements can help identify which opportunities are most appropriate to explore further.

Get in Touch

Every farm and rural business is different, and the right diversification opportunity will depend on your individual circumstances. Our team can help you explore the options and understand what could work for your business. Get in touch to discuss your plans.