More and more farmers are now choosing to diversify their farmland. This strategy not only helps protect farm owners' incomes, but it also provides another route to profitability. With 62% of UK farms now reporting to have some form of diversification in place, here’s our guide on why and how to diversify your farm and how we can help you achieve your goals.
What is diversification?
Diversification is a risk management strategy, where a business has a mix of investment in various industries or areas to minimise risk against market volatility. It not only leads to less risk but also the chance of higher income. For farmers, there is a lot of opportunity for diversification due to the potential uses of their land.
Benefits of Diversification
- Increased revenue - More than half of all UK farms have used some form of diversification in their farm business, bringing in an average of £10,400 extra revenue per farm. This money could make a huge difference to your business
- Minimise risk - Minimise your risk of being reliant on farming as your sole income, especially when this can be affected by factors that are out of your control, such as extreme weather, Brexit and now the COVID-19 impacts
- Use your skills - Find new uses for your existing skills, such as farming in new areas.
- Use your resources - Make better use of your farm’s resources and characteristics, optimise your land, use unused land which could be generating income
- Integrate your farm - Farm diversification can help integrate you within the rural economy and create jobs for the area
Examples of Diversification
- Retail outlets e.g. opening a farm shop or a florist on your land which can really boost your income
- Offices e.g. turning unused farm buildings into offices you can rent out or use for the expansion of your own business
- Wedding venues e.g. whether it be picturesque fields or an unused barn, your farm could be the perfect place for people to tie the knot
- Aquaculture e.g. farming salmon in large galvanised steel tanks is one of the biggest aquaculture activities in the UK and you could tap into that growing market
- Livestock e.g. producing sheep cheese or having llamas as an attraction on the farm
- Crop products e.g. growing speciality flowers or harvesting crops for energy and then either using it or selling it back to the grid.
- Tourism e.g. using unused land for camping, or turning farm buildings into holiday cottages - a profitable business venture especially as more people are choosing to ‘staycation’
- Leisure activities e.g. use your land for obstacle courses, company training days, or using a lake for water sports, all lucrative business options
How can we help you?
Whether you’re erecting a new building or transforming an old one, or even using your land for camping, sewage treatment is essential when access to the mains isn’t possible. Here at Cotterill Civils we install both small and large-scale sewage treatment solutions, such as sewage treatment plants, septic tanks, pumping stations and cesspools.
If you’re thinking about entering the aquaculture market, or camping, or even growing new crops, a water tank might be the perfect purchase for you. Whether it is to store fish, store fertiliser or store water through rainwater harvesting, we’ve an option for you. Galvanised steel, as well as plastic tanks, have a long-life span and can hold vast quantities of water.
Our sister company, Cotterill Contractors, specialise in groundworks and farm building construction. Whether it be a concrete yard, a steel framed building or installing large-scale sewage, drainage and stormwater solutions, they’re the perfect people for the job. Contact them on 0121 461 5311.
Whatever your diversification project requires we can offer you a tailor-made solution, give us a call on 0121 351 3230 to speak to one of our experts today.