Northumberland boom in rural tourism ventures predicted as farmers tap into diversification

Northumberland has seen growth in farm diversification businesses such as glamping.Northumberland has seen growth in farm diversification businesses such as glamping.
Northumberland has seen growth in farm diversification businesses such as glamping.
An agricultural expert is predicting a surge in rural tourism ventures across Northumberland if farmers continue to embrace diversified business opportunities.

Latest figures reveal farmers across the North East earned more than a third (39 per cent) of their income from diversified business activities in 2020.

Total income for the region’s farmers stood at £102 million, according to the Department for Environment, Food and Rural Affairs, with £40 million coming from diversified business activities.

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With farmers now facing the loss of direct payment subsidies – as the tourism sector accelerates its recovery from Covid – Rupert Wailes-Fairbairn of rural insurance broker Lycetts believes 2022 will be year that many more reinvent their businesses.

Rupert Wailes-Fairbairn of rural insurance broker Lycetts.Rupert Wailes-Fairbairn of rural insurance broker Lycetts.
Rupert Wailes-Fairbairn of rural insurance broker Lycetts.

“Although the region’s farmers are beginning to embrace diversification, the vast untapped business opportunities for the sector are clear,” he said.

“As farmers face burgeoning financial challenges and a period of unprecedented industry change, many will be planning now to protect their financial futures over the next 12 months.

“To help them achieve this, a range of new business activities are likely to be embarked upon, from the hosting of experience days to putting non-productive land to revenue-generating use with the introduction of glamping pods, tent pitches, shepherd huts or yurts.

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“Renewable energy projects also promise lucrative opportunities, with operators paying farmers and landowners rents of up to £1,000 per acre.”

Although rural diversification can open the door to profitable revenue streams, Wailes-Fairbairn has warned of the risks of launching new business ventures in markets where farmers’ experience and expertise can often be limited.

“Due diligence and prudent steps should be taken to avoid falling foul of unexpected financial pitfalls,” he said.

“Tourism-related projects will invariably involve members of the public setting foot on farmland. Health and safety risk assessments, along with measures and procedures to ensure a safe environment, are therefore essential considerations at the design stage.

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“Public liability insurance is a must – and insurers may request site inspections to ensure quality standards and requirements are being met. In some cases, new holiday projects may also see farmers employing staff for the very first time, resulting in a new requirement for employers’ liability cover.”

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