In today’s uncertain economic climate, many UK farmers are choosing to diversify their businessto boost their income.
Government figures show that 62% of UK farmers are now diversifying into other business opportunities to top up the income they make from traditional farming.
According to Farming UK, of the 62% of farmers that have diversified, 94% of the schemes have been financially successful.
So, if you’re not yet diversifying, it may be worth doing some research and speaking with an expert about rural finance to find out if you can get some help with financing your diversification scheme.
With over half of those farmers diversifying reporting that the income from their alternative business has become ‘vital’ or ‘significant’ to their farm, can farmers afford not to diversify?
Key factors that are pushing farmers in the UK to diversify include:
- Disease in farm animals.
- Increased competition.
- Falling price of milk.
- Subsidies falling away.
- Brexit uncertainty.
As with any business, it makes sense for farmers to avoid putting all their eggs in one basket (excuse the pun).
With many farmers owning a substantial amount of land, it makes good business sense that they use all land and buildings owned to their full advantage. Diversifying into alternative markets like leisure and tourism and renewable energy allows farmers to boost their income.
Rural finance to aid diversification
To find out if you can apply for rural finance to help with your diversification scheme, get in touch with our team here at Richmond Asset Finance to discuss your plan in more detail.