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Farm Diversification: Have You Considered These Key Issues?

11 September 2025 10:38

Diversifying your farm business can offer valuable opportunities to increase income, improve cashflow, and reduce reliance on traditional farming. However, diversification projects often require different skills, resources, and careful planning.

While a well-thought-out diversification can complement your existing enterprise, poorly planned schemes can divert time and money away from core farming operations.

The key is to plan ahead, evaluate every aspect of the project, and seek professional advice before making any commitments.

  1. Planning Permission

Most diversification projects involving existing farm buildings will require full planning permission for a change of use.

Some developments may fall under Permitted Development Rights (PDR), allowing conversion of agricultural buildings to commercial/leisure uses without a full application.

Despite this, there are important restrictions:

Development must not begin until the local authority confirms if prior approval is required.

Even if change of use is allowed under PDR, alterations that affect the building’s external appearance are likely to require full planning permission.

  1. Site Constraints

If your project does not qualify for PDR, consider:

  • Can the site accommodate the proposed development?
  • Are there planning constraints like Areas of Outstanding Natural Beauty, Green Belt, or other protected designations?
  • Will the project increase traffic? A traffic survey may be required to support your application.

Other Key Considerations

It may take several months to prepare the necessary documentation. Submitted  planning  applications typically take  6-8 weeks for a decision.

Additional surveys and reports may be needed, such as:

  • Structural
  • Protected species
  • Ecological
  • Contamination
  • Flood risk
  • Air quality and noise

Timing is critical: For example, bat surveys must be conducted between April and September.

Planning fees can be substantial – for example, around £385 per 75 sq. m for non-agricultural buildings.

Do bear in mind also a commercial/leisure use will attract a Rateable Value assessment, and  Business Rates charge.

Get Expert Advice

Farm diversification can unlock new income streams, but planning is complex. Get it right from the start.

For expert, tailored advice, contact:

Barry Davies BSc (Agric), MRICS, FAAV, IRRV
Davies & Co., Chartered Surveyors
📞 01536 524808
📧 info@daviesandco.co.uk
🌐 www.daviesandco.co.uk