Diversifying Farming Businesses for Growth and Revenue Streams
13th November 2023
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The Importance of Farming in the UK
Farming is a crucial industry in the UK, with approximately 149,000 farm businesses driving the economy. Despite its vital role, farming has encountered several challenges over the years, leading to farmers and farm owners seeking innovative ideas to spread risks, create revenue streams, and improve their business.
Diversifying Farming
One solution for increasing revenue and expanding into new markets is diversification. Farming businesses have the advantage of having existing space and resources that can be repurposed for new ventures. Diversification can take many forms, such as farm shops, wedding venues, B&Bs, breweries, and green energy projects. In fact, up to 65% of all farm businesses in England run other operations.
While diversification can be a lucrative venture, it may be challenging to know where to start and how to add a new service to your business. Various factors may affect your decision, depending on the size, type, and geographical location of your farm business. But no matter which option you choose, you will likely need to fund the cost of any potential new project. Anglo Scottish Asset Finance can help in this regard.
Funding Diversification
Traditional lenders like banks and building societies may not be comfortable funding farm diversification projects, especially those involving new and innovative technologies. That’s where Anglo Scottish comes in. As a specialist broker, we have relationships with many funders and can find the best deals to suit your requirements. Our asset finance professionals can advise which option is best for your business and find the best deal from our panel of lenders.
One of the benefits of diversifying your farming business is spreading risks. If you rely on one source of revenue, such as crop sales, a natural disaster or market fluctuation can have a significant impact on your finances. By diversifying, your business has alternative income streams that can help mitigate the effects of any unforeseen events.
Another advantage of diversification is the opportunity to tap into new markets. For example, a farm shop can attract local residents looking for fresh produce, while a wedding venue can appeal to couples seeking a rustic or outdoor setting. By adding new services, your business can attract a broader customer base and increase revenue.
However, it’s essential to carefully consider your options and ensure that any new venture aligns with your existing business model and values. For example, a brewery may not be suitable for a farm that prioritizes sustainable practices and animal welfare. Additionally, it’s crucial to assess the potential demand for your new venture and whether it’s financially viable.
How Anglo Scottish can help
At Anglo Scottish, we offer bespoke farm loans, commercial mortgages, asset finance, and business credit cards, and can also refinance existing assets to free up cash tied within them. We can help your farming business access finance to fund your diversification projects.
Overall, diversification can be an effective strategy for growing your farming business and creating new revenue streams. If you’re considering diversification but need financing, Anglo Scottish Asset Finance can help you find the best deals to suit your needs. Visit our stand at the Farm Business Innovation show to learn more. Visit us on stand FM874.
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