Farms of up to 150 acres shape the landscape of the UK – with many now looking for ways to broaden their income stream. Meanwhile, new non-farming buyers are typically interested in environmental projects, establishing a line of artisanal produce or building on farm tourism opportunities.

For those thinking of diversifying, here are some potential avenues to explore:

Amenity woodland creation

This has been driven by a desire to reduce carbon emissions and improve biodiversity. For farms with a limited area to dedicate to tree planting, a good choice is to establish a small firewood plantation. Logs can be sold locally – or provided for any holiday accommodation on the farm, if relevant.

What you plant depends on where you are, but birch and sycamore are usually good firewood crops and are fast-growing. You may also be eligible for grants such as the Forestry Commission’s England Woodland Creation Offer and the Woodland Carbon Fund.

Food and farming

The key here is to add value to produce and find innovative ways to sell it. Success comes from being adept at marketing and social media; expertise that hasn’t previously been central to traditional farming.

Perhaps also consider on-farm vending machines. As capital costs are relatively low, they are a good route to market and don’t necessarily have to be confined to the farm – think pub car parks, farm shops and even railway stations.

Renewables

There are increasingly attractive reasons to generate clean energy on farms. Options are dictated by geography, policy and size, and the few grants available are targeted at bigger schemes. Smaller, self-funded schemes are most likely to suit farms that use a high amount of electricity (such as cold stores).

Generally, if the power generated is used on site, it is economically viable to install renewables. Solar PV is most common.

Building development

Redundant farm buildings can be converted for holiday lets, wedding venues and offices for small start-ups. However, there are potential barriers in the form of planning restraints and access. Chief among them are whether the building is protected from a heritage point of view, or if there’s an ecological impact both on the building and the surrounding area. Buildings also need to be structurally safe to convert.

Leisure

One venture that doesn’t require too much capital investment is a campsite. Demand soared during the pandemic, and it’s often a good way to test the water for a larger project, such as glamping or tree houses.

Other businesses are taking advantage of the increased interest in nature to offer experiences such as bat or badger watching, food foraging or night-sky gazing.

Consider what the opportunities might be, what you have on site and what you could develop. Rules around health and safety and welfare will apply, so speak to your insurance provider about public liability cover and keep in mind any change-of-use implications for tax planning.

For advice on the rural sector in Suffolk contact William Hargreaves at Savills on 01473 234802 or WHargreaves@savills.com