Farm diversification ideas

Are you wondering if now is the right time to diversify your farm and how exactly to do it?

As supporters of the farming industry for 110 years, we’re here to help you plan your farm diversification and figure out which steps are right for you.

What is farm diversification?

In a nutshell, farm diversification is an effort to boost income and ensure farms are functioning sustainably. Many farmers are choosing to diversify their farm to spread risks and create diverse revenue streams through innovative and somewhat creative ideas. And over time, these diversifications are becoming more and more popular.

Why are farmers having to diversify?

So why exactly are farms diversifying? As financial pressures and uncertainty grows for farmers, there’s never been a more important time to explore options and opportunities to future proof your farming business. Whether that’s growing existing products or cultivating new strategies, there are many farm diversification ideas being uncovered. 
As well as benefiting their own businesses and families, farm diversification can also play a part in helping communities and local people. As some farmers are expanding out into non-agricultural sectors, doors are opening for extra staff and workers with specialities and skills that farmers and their families don’t possess.

However, as every farm and business is different, there are a few things to consider before diversifying your farm.

5 farm diversification ideas

From agricultural to non-agricultural farm diversification ideas, there are many farm diversification examples. As part of our 'Voice of the Farmer 2025' research, we interviewed 1,667 farmers across the UK and 32% of those said they had already diversified their farms. 

With this in mind, we’ve put together farm diversification ideas for farmers sharing the same school of thought. Make sure to involve your insurance Agent early on in planning, to help ensure the diversification you’re thinking of for your farm will be covered by insurance.

1. Set up a local farm shop 

One of the simplest, most common ways to diversify your farm is by setting up a farm shop selling your local produce.
Most farms already possess all the ingredients to run a successful farm shop - fresh produce on tap, authenticity, and often well-established within the community. Not only can this increase revenue and make more out of your existing products, butit can also create jobs within the local community, as well as cross-selling opportunities with other businesses and charities. 

Read about the Summers Family journey into farm retail here.

2. Adding value to your products

Could you be adding value to the products you grown on the farm to sell direct to consumers, increasing your profit margins? Think milk into ice-cream; potatoes into crisps; wheat into gin!

By creating value- added products from your produce and selling direct consumers, you could be multiplying your margins by ten-fold.  

Make sure to research restrictions and requirements, such as food standards and alcohol licensing, to ensure you’re creating and selling your product within legal requirements.

Read about The Cravens story of crafting wheat into gin.

3. Offer an events space

Potentially one of the most financially impactful farm diversification ideas, renting out accommodation on your farm can be a great source of income.

It isn’t always necessary to build new spaces, as existing barns on your farm can suffice if in good condition, or even fields for marquees. 

However, this farm diversification idea can depend on how much money you’re willing to invest before diversifying. If your building needs work and repairing, this may not be the best route to take. But there is a lot of income to be made from this idea, which can make it worth the while. 

For those hoping to step into the events space, this can also be a great opportunity to boost the local economy by sending tourists to other local businesses such as bed and breakfasts and creating relationships with them.

Read about Aswanley Farms transformation from cattle shed to wedding venue here.

4. Experiment with new crops, varieties or breeds

If there are some spaces within livestock and crops that you haven’t ventured into, this could be the perfect opportunity to do so.  

By keeping up with customer demand and broadening your offering, you’ll not only retain existing custom but gain fresh, new custom too. Future-proofing your business is just the kind of farm diversification that works.

Read about the Buisman Family’s offshoot growing a vineyard here.

5. Glamping and camping

For farmers with land and space, offering glamping and camping to the general public is a great way to diversify your farm.

Adding facilities for glamping like shower blocks, electricity, and drinking water will enable you to charge more for guests looking to stay on your land, as well as offering a longer-term diversification solution. For those considering camping and glamping, be sure to contact your local authority to check planning permission and licenses.

Read about Wells Shepherds Huts here.

So, thinking of diversifying your farm?

Get in touch with our team if you want to know more about diversifying your farm. And read how to avoid common diversification pitfalls.