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The economics of many farm businesses have over recent times encouraged many diversifications. At Robinson & Hall, our team of surveyors and planners has seen a vast array of diversification, but all have required careful coordination and planning.

There are prior approval processes for reuse of agricultural buildings which ought to allow a simple approval process for certain categories of development, but there are conditions and hoops to jump through. The small print can make or break a viable diversification, so we advise taking professional advice.

A planning feasibility study is always a good starting point to ensure site constraints and planning policies are fully understood before starting out on the development process and committing time, energy and funds to a scheme.

Where a full planning application is required, it is often imperative to consult the local authority via a pre-application enquiry as whilst the policy is written in black and white, it is for the local authority officers to interpret their policies, and we often see that diversification schemes do not fit neatly into every policy. One such example and contradiction could be:

Policies directing employment growth to be sited within defined employment areas.With other policies encouraging reuse of redundant buildings and/or employment opportunities in the rural economy, it is imperative to get officer opinion (as far as is feasible) to verify our interpretation of the multitude of national and local policies and importantly how the officers weigh up any conflicting or judgemental policies.

As there are many considerations when selecting your diversification project, it is important not to rush this decision and ensure you have considered a number of the below key factors:

Firstly, why?

Whether you wish to improve the tax efficiency of the business, explore a specific new interest or simply generate potential additional income streams, it is important that the decision is made for the right reason. This new venture will sit alongside your established farm enterprise, however it cannot compensate for an under-performing core business.

High level considerations

Once the decision is made to diversify, choosing the asset is important, i.e. the vacant/ redundant building, where it is situated and how it will impact on the current farming operation. Does the barn/ land have suitable access and services and what type of planning will be required?

Depending on the diversification, consideration may need to be given to market demand and competition, funding availability, the target audience, and the availability of workforce.

Financial aspects

Now the asset has been identified, what will it cost to change the use, whether that be conversion to an office/dwelling, servicing the glamping pods, or setting up the wedding venue?

Consideration will also need to be given to tax implications, cost of marketing, insurance, and other matters such as planning and professional services.

The green light

The once pipe dream is now inching towards reality. It is important to focus the attention on ensuring this new business venture succeeds, whilst the core business operations do not suffer.

If you require advice or are considering a diversification then please get in touch.