Over 70% of farmers invest in diversification to bring in regular additional income
25th February 2026
Almost three-quarters of UK farms have now diversified into other revenue streams. The unpredictability of farming income – fluctuating market prices, extreme weather, rising costs – and the loss of basic payments have prompted 71% of British farmers to launch side ventures that ensure money consistently comes in.
Diversification can mean anything that brings additional revenue or cuts costs to boost profit. It could be farm-related – a new crop, a shop, a food-processing or packaging facility – or it could be a non-farming venture that maximises use of your site, such as a fishing lake, holiday lets, storage space to rent, or a renewable energy installation.
Some farmers diversify with completely new on-site businesses, for instance, wedding venues and on-farm ice rinks.
Diversification normally means investment – so whatever you do, planning how to fund it efficiently is vital. So what is the best way to plough money into your farm’s future but still keep cash back to cover those day-to-day unexpected costs every farmer faces?
Ben Wood, head of sales at specialist agri-lender Rural Asset Finance, said: “Thousands of farmers know that challenge. You need to invest in diversification to bring in a regular additional income to secure your farm’s future in the years and decades to come. But at the same time, you need to protect your cash flow for those everyday situations.”
‘We know first-hand exactly what farm life is like’
However, this is all possible with the right finance package from a lender who understands farming – and the team at Rural Asset Finance have all managed or grown up on farms.
Mr Wood added: “We know first-hand exactly what farm life is like. So we know that every farm is different, every situation is different and every project is different. We don’t do a one-size-fits-all solution.
“Instead, we can be flexible, structuring the most suitable secured loans in tandem with fixed-term, fixed-rate hire purchase or leasing facilities for the equipment, tailored to each individual customer according to the financial peaks and troughs of their business.”
You can safeguard your cashflow by securing finance against land or equipment assets you already own.
“We really get to know you and your business so we can work out a deal that suits your situation,” the expert added.
“Yours might be a small project – but you could also use government grants and initiatives to cover a proportion of the outlay and use finance for the rest – enabling you to launch even the most ambitious diversification or renewable energy projects, while barely touching a penny of your reserves.”
As Rural Asset Finance has its own expert in-house credit and legal teams working in sync with the sales team, it can make a decision quickly to get you the finance when you need it.
“We’ve financed diversifications including garden centres, glamping, barn renovations for letting out, lakes, and vineyards. For most diversifications, we’ve probably financed a similar project previously. But we’re always interested in innovation too – for instance, we are set to fund our first on-farm ice rink in 2026! So if you’ve got a novel idea for that extra revenue stream, let us know,” Mr Wood concluded.
Do you need help planning a new project? Visit www.ruralassetfinance.com, where you can access a finance calculator to work out how Rural Asset Finance can help you. Alternatively, call Mr Wood on 07483 947877 or northern region sales manager Adam Kershaw on 07507 123743 or email enquiries@ruralassetfinance.com
READ MORE: Rural Asset Finance proud to sponsor 2026 LAMMA Innovation Awards
Read more farm business news.
