DIVERSIFYING FARM INCOME

Diversifying into different areas of business can be a way for agricultural businesses and farms to protect against the current economic climate. Across the world, agritourism is becoming increasingly economically important as farmers seek to increase their income in different ways. We see agritourism initiatives in America, Australia, India, Israel, Italy, Pakistan, the UK and other areas of the world.

Let’s look at some examples.

🔹 Agritourism: The word is made up of agriculture and tourism. It refers to tourist activities that can be carried out in farms. 

🔹 Offering overnight stays on farms. Some farms will convert their barns or farm buildings. Other will offer pods or allow camping in their fields.

🔹 Agricultural education – offering the opportunity for students to visit the farm and learn more about what they do.

🔹 Establishing an online or blended learning business in education eg. online courses in farm related subjects (ask us about partnering to sell our courses), or blended learning combining on farm workshops together with online studies.

🔹 School or college trips for students (eg. to learn more about caring for different animals).

🔹 WWOOF'íng - Willing Workers on Organic Farms is a long established global system that provides accommodation on farms in exchange for free accommodation to travellers.

🔹 Entertainment, such as meals like harvest time.

🔹 Offering people the opportunity to come and pick produce, such as strawberries, pumpkins at Halloween etc.

🔹 Weddings – Weddings in barns, for example, are increasingly popular. People are looking for something different.

🔹 Value adding to produce by processing it to create something that can be sold at a higher price.

🔹 Selling produce at farmer’s market stand.

🔹 Selling produce through an on site or online farm shop, selling produce at local shops. For example, jams, honey, meat, ciders, cheese, selling produce online.

🔹 Some farms also develop their own wines. Setting up a winery, selling the wine, offering wine tastings, selling wine locally.

🔹 Involve visitors in farm activities such as fruit picking, collecting eggs, grape stomping or olive pressing.

🔹 Walking with the animals opportunities. Walks with llamas, for example, are really popular.

🔹 Horseback riding.

🔹 Corn mazes.

🔹 Farm festivals: Music and other festivals such as Christmas or festival trips on the farm. For example, a hayride with Santa.

🔹 Historic tours and displays (eg. showing off old farm equipment, for example, offering an exhibition of old tools or antique tractors).

🔹 Spending time “living” on the farm for a short period. This can involve helping out on the farm or ranch, taking on agricultural tours.

🔹 Fishing if the farm has a pond or river.

🔹 Play areas based on the farm.

🔹 Activities for children and families to attend. For example, coming to see the animals.

🔹 Different areas can offer different types of farming experiences. For example, viewing terraced farming and ancient irrigation techniques in Israel. Seeing desert farming techniques in Binyamina and Ein Gedi.

Renewable Energy

Another way for farmers to increase their income is to install wind turbines and solar panels. These can generate energy for the farm’s own use, so reducing energy bills. But they can also sell the excess energy.

Forestry and Agroforestry

Farmers can expand and diversify into wood products. For example –

🔹 Applying for government grants to plant and manage trees.

🔹 Selling other products, such as nuts and fruits.

🔹 Selling wood-based products.

🔹 Timber

🔹 Christmas trees.

🔹 Energy crops

Expansion

Farmers can also expand by producing different crops or alternative livestock. For example –

🔹 Dairy goats

🔹 Sheep

🔹 Growing Christmas trees

🔹 Energy Crops

Changing their production strategies to be organic or regenerative.

🔹  Leasing out Land. Farmers might also lease out land to other businesses.  For example, a smallholder might want more room to grow their crops.

What are the benefits of diversifying?

🔹 Creating new income streams.

🔹 Increasing profitability.

🔹 Reducing their reliance on one product.

🔹 Better managing risk. For example, if a farmer grows only wheat, then there is a poor harvest or other problem, this can seriously affect their income.

🔹 Become more sustainable.

🔹 Improve the use of the resources. For example, using the barn to offer weddings or events.

🔹 Increase employment by offering other employment opportunities.

Farms don't need to restrict income generation to only selling the raw produce they produce. They can also generate income from providing services and experiences which they are in a unique position to supply; or by adding value to the produce they grow.

In the current economic climate, diversification offers farms and agricultural businesses a range of new ways to increase their income.

If you would like to learn more about different ways to increase your income, learn how! We've courses to help you gain knowledge and skills to grow your business! 

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