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18

Aspects of Land

Spring / Summer 2019

DIVERSIFICATION

selling, marketing, even the design

ourselves.” The product is now sold in

large supermarkets and health food stores

as well as independent retailers.

For many farmers, however,

diversification is primarily about adding

an income stream that can be managed

without too much distraction from the

core business.

When David Williamson-Jones and

his brother inherited the family chicken

farm in Hazelbury Bryan, Dorset, and the

existing tenant handed back the tenancy

due to ill health, the decision was taken

to convert one of the three chicken sheds

into workshop rental units.

“I live an hour away from the farm, so it

was important to choose a diversification

that didn’t need hands-on daily

management. Planning permission was

granted in 2017 for change of use and the

1,000 square metre shed was divided into

17 units,” says Williamson-Jones.

A range of local businesses now rent the

workshops, including carpenters, plumbers

and a classic car restorer. The capital

investment of £140,000 yields a return of

£45,000 a year, and they have started on

the conversion of a second chicken shed.

While gaining permission for change of

use was straightforward in this scenario,

that is not always the case, says Ashley.

“One of the common pitfalls for

diversification is underestimating the

potential complexities and costs of

the planning process, and the capital

outlay required for the new business.

Time spent in assessing and planning

the project is critical; professional input

is often very helpful, as is looking at a

phased development rather than plunging

straight in.”

Choosing the right diversification

is about more than just location and

funding, however. A new venture often

means new skills and potentially a more

public-facing role.

“It’s important to consider existing

skills and where they would need to be

added to. Similarly, not everyone is cut

out to deal face-to-face with customers

and the people management side of a

diversification can sometimes be the most

challenging aspect,” Ashley warns.

For Williamson-Jones, a key part of the

success of the workshop rentals has been

taking care to choose the right tenants

and then managing expectations.

“We interview everyone who applies to

rent a unit and make sure they feel right

for us. We’ve found that, as we don’t live

on site, there’s the potential for issues

with tidiness, and people parking cars

where they shouldn’t, so being clear about

what is allowed is important.”

n

To discuss diversification, contact Ashley Lilley,

Cheltenham, 01242 548 012,

alilley@savills.com

RENEWABLES: WE’LL

ALWAYS NEED ENERGY

Renewables now supply one

third of the UK’s energy (more

than 50% in Scotland in 2017-18),

and often only need a relatively

small land area. With the closure

of the Feed-in Tariff earlier this

year, some landowners have put

green energy diversification,

projects on hold. However, there

are still opportunities.

Large-scale solar development

has seen a resurgence in interest

after the removal of subsidies

three years ago stalled the

market. These days however,

units are cheaper and more

efficient, meaning projects can

be financially viable without

subsidy, and developers are

actively looking for sites for new

projects upwards of 50 acres.

Capacity systems, such as

battery storage or gas-peaking

stations, however, typically

need less than two acres of

land. These are the technologies

that help grid networks to

balance their flow of supply

and demand. Landowners with

existing substations or overhead

lines could be well placed to

branch out into the capacity

market.

n

For more information on

renewable opportunities,

contact David Grindley,

Norwich, 01603 229 234,

dgrindley@savills.com

CREATIVE THINKING:

IDEAS BEYOND B&B

CRAFTS

Whether it is producing wool

knitwear for sale or running

courses on felting, spinning

and crocheting, craft-based

diversifications offer the

opportunity to add value.

Other opportunities include

demonstration days and

workshops on crafts such as

dry-stone walling and hedge

laying. Key considerations

include a suitable workspace

(and potentially accommodation

provision) for those attending

on-farm courses, and the

amount of labour time diverted

away from the core business.

MICROBREWERIES

Farms already growing top

quality malting barley have a

head start for this added-value

option, but there are some

key considerations before

deciding to brew and sell your

own beer. While the interest

in craft beers has increased

greatly in recent times, the

Society of Independent Brewers

(SIBA) warns that the overall

UK beer market is in long-term

decline, so any new business

will be heading into a highly

competitive sector with large

and small brewers fighting

for market share. Marketing

the product is a critical part

of success, which may mean

investing in new skills.

DOGGY DAYCARE

Kennels and catteries have

long been a popular option

for farm diversification, but

fitting pets around modern

working lifestyles has created

opportunities for a more flexible

offering, including day care

and securely fenced dog parks

for off-lead exercise. Farms

can be ideal for this, but there

are considerations such as

waste disposal, proximity to

other dwellings (barking dogs)

and the specialist knowledge

required to care for a variety of

breeds safely.

WORKING FARM HOLIDAYS

Working farm holidays offer

those looking to bridge the

urban/rural divide a chance to

experience life on a farm. This

can include feeding animals,

trying rural crafts such as

hedge laying and helping

out with conservation work.

Accommodation is usually

provided so there may be

investment required in tents,

glamping pods or similar, and

there are insurance and health

and safety considerations to be

taken into account.

Set up your own microbrewery

Farm holidays for paying guests

SHUTTERSTOCK, iSTOCK