Farm business diversification

Diversification, when done well, can make your business more resilient. It needs to be properly planned, and you need to ensure it is not a distraction from your core business. 

Agricultural contracting can be a good way to bring in more income. For example, you may have machinery or other resources that you can contract out to other farmers. However, you must go in with your eyes open, do the research, and ensure there is a market for the services you can offer.

When is the right time for diversification? What should you consider, and what tools are available to plan a farm diversification? Watch this webinar to find answers, and to hear the real-life story of a successful diversification.

You should ensure your existing enterprises are running smoothly, meet the objectives set out in their business plans, and are on target for the projections set out in their respective profit and loss accounts. Any issues in your current business could be magnified if you diversified.

If you decide to diversify, you need to produce a business plan. For diversification, you should also research your competition, consider product and pricing, and work out how to market your product or services to potential customers. These aspects should be included as sections in your business plan.

It is always important to get advice and guidance when considering the future of your business and any potential diversification, and communicate with anyone involved.  

Visit our business changes and succession page

See resources to help write a business plan

Get advice for seeking funding from the bank

Find out what financing options are available

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