Farm diversification: building resilient rural businesses

As the industry continues to face changing market conditions, more farmers are looking at new ways to grow alongside their core farming operations.

According to a recent NFU Mutual survey, around one-third of UK farmers (34%) run a diversified business, with diversification income accounting for around 13% of turnover on average for those businesses. In England, Defra's Farm Business Survey shows that 72% of farm businesses had some form of diversified activity in 2024/25, up 10% since 2015/16.

Why are more farmers diversifying?

The agricultural industry has always had to adapt to changing conditions, but the current situation in the UK presents a unique set of challenges. Rising input costs, fluctuations in commodity prices and evolving market conditions are encouraging farming businesses to delve into additional revenue streams. Diversification can help reduce reliance on a single source of income while, in many cases, making better use of existing assets and creating new opportunities for future generations.

For some businesses, this provides greater financial stability throughout the year. For others, it offers a way to unlock the potential of land, buildings or resources. Whatever the motivation, a well-planned diversification project can complement existing farming operations and support long-term business growth.

According to Close Brothers’ own research 82%* of small businesses involved in the Agricultural sector plan to seek funding for business investment in the next 12 months, indicating a strong appetite for finding new revenue opportunities.

And, while 52% of those polled don’t expect their business to experience growth, a large minority - 45% - anticipate their business will expand. Only 3% say they’ll contract or close down.

Turning ideas into income

Opportunities come in many forms, from holiday accommodation and farm shops to renewable energy projects, hospitality ventures and visitor attractions. Whatever the route, the aim is often the same: creating additional income while making the most of the land, buildings and expertise already in place.

Those in the sector understand clearly the importance of adapting - our research tells us 70%* know their business needs to find new ways to serve customers and keep them coming back.

This is well ahead of other industries – the overall UK figures stands at just 55%.

We work with farming businesses across the UK to help fund growth plans and support new opportunities. Whether it's investing in equipment, developing facilities or launching a new venture, access to the right finance can help turn ideas into reality.

We've seen first-hand the difference this can make. One farming business we supported alongside its 600 acre sheep farming operation expanded into rural tourism, opening a tearoom and glamping facilities. The impact was remarkable, with the new venture generating income in just a few months that was comparable to what the farm had previously produced over an entire year.

We understand that each project is unique, requiring careful planning, realistic budgeting and a clear understanding of how a new venture will fit alongside the existing business. But, with the right support and investment, these opportunities can provide valuable extra income and help strengthen the farm’s long-term future.

For more information visit our Agriculture page

All lending is subject to status and eligibility. Terms & Conditions apply.  

*All data is taken from a survey conducted in August 2026 on behalf of Close Brothers by third part research specialist, Censuswide, canvassing the opinion of 900 UK and Ireland SME business owners on a range of topics.