Why Let Others Profit from Your Produce? Farm Diversification Explained 

You’ve done the hard work growing your raw produce—and then you watch your buyers process it to sell on at a higher price. Ever considered keeping that extra profit for yourself? 

That’s exactly what thousands of farmers are doing through farm diversification—adding value to their produce on the farm, then selling it direct to customers. And support is available to help you do the same. 

After all, why let someone else turn your wheat into flour, your grapes into wine, your potatoes into crisps, your fruit into preserves and juices, your milk into cheese, yoghurt or ice cream—when you can make more money doing it yourself? 

You can then sell your own beef, pork, poultry meat, eggs, fruit and vegetables on your premises with a shop, café or even a restaurant. 

All these agricultural diversification strategies maximise your profits—which is more vital than ever for farmers needing new revenue streams. Good news is, even the biggest projects are achievable with the right help. 

The Growing Opportunity for Agricultural Diversification 

“More and more farms are seeing the benefits of processing food products and retailing them directly, which keeps more profit on the farm,” says Ben Wood, sales director at agri-lending specialists Rural Asset Finance. “Even just washing and packaging your products before sale can add value—but you can do so much more.” 

Rural Asset Finance gives farmers access to funds for a range of added-value farm diversification projects—and has financed some impressive innovations. Its recent projects include the UK’s first batch milking system and it is currently funding a wheat farmer to build their own flour mill. 

“There are so many opportunities to maximise the value of what you produce,” adds Ben. “Consumers are more conscious than ever before of the need to eat healthily but also sustainably—and there’s no better way to do that than buying fresh food and drink that’s produced locally. This is a fantastic market for farmers who can add value to their produce. And it doesn’t just keep more of your profit within the farm itself—it can open up whole new revenue streams.” 

Market Trends Supporting Farm Diversification 

Smart farmers are following the market to maximise that value. Of the 1,500 farm shops in the UK, a third opened within the last 10 years, attracting thousands of customers wanting to reduce their carbon footprint and generating a huge total annual revenue of £1.4 billion. 

An upsurge of 70% in British wine sales over the past five years has prompted hundreds of farmers into viticulture, including bottling wine on site. Increasing numbers of farmers are now making their own cider to serve a UK population that drinks more of the stuff than any other country on Earth. 

Creative Agricultural Diversification Ideas 

These are all excellent and relatively straightforward ways to add value, but farm diversification doesn’t have to be food-based. Some farmers have been especially inventive—one in south-west England uses the heat from an on-site anaerobic digestion plant to dry and produce straw pellets for sale as cat litter. A wool farmer in the south-east uses lanolin from wool to make toiletries and soaps. 

“You just need an idea!” says Ben. “Farmers are fantastically resourceful people who are brilliant at thinking outside the box. 

“It requires investment, but as we all know, many lenders don’t really understand day-to-day farming. Farmers need specialist finance partners who ‘get’ what your business is about.” 

Finding the Right Financial Support 

Rural Asset Finance’s core team grew up on farms and know first-hand the challenges farmers face. “I think our customers appreciate that we speak their language, we know one end of a combine from the other, and that we have lived everyday farm life,” says Ben. 

“Crucially, we understand every farm is different. We listen and work with farmers to get an individual deal that suits them and their cash flow.” 

Rural Asset Finance can help add value by offering fixed-term, fixed-rate finance for machinery, fixed equipment, land and buildings. This can work alongside government grants including the Farming Investment Fund, the Farming Equipment and Technology Fund and the Farming Transformation Fund, which can provide up to £500,000 towards equipment or building projects. 

Taking the Next Step 

“Grants complemented with the right credit agreements make even the largest projects more achievable than ever. And it’s easy to start—there’s never been a better opportunity to make your farm the business you want. Whatever your idea, we’ll listen to it.” 

To find out how to add value to your farm, contact us here or call Ben on 07483 947 877