Farming

Farm diversification more difficult in Wales

Published

6 years ago

February 14, 2020

Diversification: Upland farming makes task difficult

ALMOST half of UK farmers are planning to pursue diversified income streams to support their agricultural businesses, according to new research from leading rural insurer NFU Mutual.
With changes to Government support and the way Britain trades with the rest of the world ahead, farmers are diversifying their businesses to boost profitability and fortify their farms for the future.
Forty-eight per cent of farmers are planning to set up or expand diversification businesses following Brexit, moving into new areas such as tourism, hospitality, retail and renewable energy.
This figure has doubled since NFU Mutual carried out similar research in 2018 and found 23 per cent of farmers were planning to expand or start diversification enterprises.
The sharp increase in diversification comes as agriculture undergoes the biggest change to funding in decades following the UK’s exit from the European Union.
In a report published on Friday (Feb 7) NFU Mutual provides advice on setting up new diversification businesses and looks at case studies of successful schemes from wedding venues and glamping to kefir dairy products and cosmetics.
“The next seven years will be crucial for the farming industry,” explained Chris Walsh, NFU Mutual’s Farm Specialist. “Because of this, many farmers are looking at new business opportunities to spread their risk.
“Farmers have always had to adapt to changing times, and a number have been diversifying for decades. But even more are now deciding to support their agricultural work with new ideas.
“Whether it’s building holiday cottages, launching a wedding venue, or opening a farm shop, not only can these new businesses supplement the existing farm, they often provide other members of the family with a crucial role in the business.
“Our research shows nearly half of UK farmers are either looking into setting up new businesses on their land or expanding existing diversification ideas, with a quarter planning to diversify to create business opportunities for family members.
“There is only room for a certain number of farm shops, holiday cottages and wedding venues so farmers planning to diversify need to do careful research and costings before they start converting cow sheds into cafes.
“Farmers and their families also need to have the right skills – particularly if they’re going to be working with the public. It’s a big change looking after a demanding wedding party if you’re used to being on a hillside with a flock of sheep all day.”
The report stresses the importance of detailed planning to minimise risks to the public and employees and make insurance of new diversification schemes straightforward. It also highlights the importance of looking at the financial implications of setting up non-farming activities to avoid higher Inheritance Tax Bills.
Looking ahead, the report suggests there may be new opportunities for farmers to access Government financial support for diversification schemes as changes to agricultural support are rolled out.
DEFRA statistics show that diversification activity brought in £740m of income in 2018/19 – up 6% on the previous year.
NFU Mutual’s report, together with a series of videos and podcasts produced to help farmers considering diversification, is now available to download at nfumutual.co.uk/diversification
NFU MUTUAL DIVERSIFICATION ADVICE
Diversification means using your farm’s assets, such as its land, buildings or machinery to develop a new business activity. Diversification ventures usually set out to provide additional revenue and can complement the agricultural activity or may even, over time, replace it.
Before you start, consider:
• Do you have the skills, resources and commitment to make it work or would it be a distraction from the core farm business?
• Have you fully reviewed your farm business and identified strengths and areas where you can add value to your existing model?
• What are your assets – from people, land, location, buildings, finance to skills – and have you realised their full potential?
• What market and demand is there for your diversification venture?
• What makes your farm unique and sets you apart from the competition?
• Have you asked the experts for advice? For example, speak to insurers at the planning stage to ensure you understand the risks and have the right level of cover to meet your needs.
DIVERSIFICATION TOUGHER IN WALES
Farming businesses in Wales face many hurdles, such as poor upland land quality, and remoteness from centres of population. These factors severely restrict business resilience and diversification.
Improving farm efficiency, developing non-food and non-crop revenues, participation in agri-environmental schemes, or access to rural development funding and business support, are more difficult in Wales than elsewhere.
When compared with England, Welsh farms are also smaller and less well resourced and receive an average of £3,300 less in funding.
Although diversification on Welsh farms has grown over the past decade, diversification revenues on Welsh farms represented on average only 3.4% of total farm revenues in 2017, compared to an average of 7.7% in England.
That suggests reliance on increased farm diversification to build resilience in Wales remains an optimistic strategy. In the worst-case post-Brexit scenario diversification revenues might need to increase up to tenfold to replace other lost revenues.
Farms in Wales depend on income streams separate from the main farming business.
A range of actions might support the continued growth in diversified income. However, although they could help deliver wider social and environmental public goods, they might not support farming, community identity or build economically sustainable farm businesses.
Welsh Government policy might want to pull in one direction but reality suggests that its goals will be far harder to achieve than sunny optimism and glib soundbites suggest.

Farming

‘Poor decision’ New Creamston housing condition overturned

Published

8 hours ago

December 4, 2025

Bruce Sinclair - Local Democracy Reporter

A “POOR DECISION” agricultural worker-only imposed nearly 40 years ago has been removed from a Pembrokeshire property by county planners.

In an application recommended to be approved at the December meeting of Pembrokeshire County council’s planning committee, Tim and Cathy Arthur sought permission for the removal of an agricultural worker-only condition at New Creamson, Creamston Road, near Haverfordwest.

An officer report for members said the agricultural condition was imposed when the dwelling was built in 1988/89, with a later certificate of lawful development granted this year after it was proven the site had been occupied for more than 10 years on breach of that condition.

An application for a certificate of lawfulness allows an applicant to stay at a development if they can provide proof of occupancy over a prolonged period.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd told members the original agriculture-only condition was a poor decision by planners back nearly four decades ago.

“When this application was made in 1988-89 we go back to the Preseli District Council – I was still in school – it was only a 50-acre farm, it should never have been approved as it shouldn’t have been viable.

“The current applicants have owned it for the last 20 years; they’ve tried to grow apples but couldn’t make a go of it and then went in to holiday lets. We can’t enforce redundant conditions from bad decisions made years ago.”

Approval was moved by Cllr Brian Hall and unanimously supported by committee members.

Business

Cwm Deri Vineyard Martletwy holiday lets plans deferred

Published

22 hours ago

December 4, 2025

Bruce Sinclair - Local Democracy Reporter

CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.

In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.

It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.

An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.

Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.

He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.

He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.

He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”

On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.

He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”

While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.

A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.

Farming

Farmers Union of Wales Warns: Labour’s 5G Expansion Risks Rural Blackspots

Published

2 days ago

December 3, 2025

Tom Sinclair

FUW Joins Landowners in Urgent Call to Pause Controversial Telecoms Reforms

THE FUW (Farmers’ Union of Wales) has warned that rural communities face worsening mobile blackspots and farmers risk losing essential income if the Labour Government expands a telecoms policy blamed for stalling Britain’s 5G rollout.

In a letter to Digital Economy Minister Liz Lloyd, the FUW aligns with landowners, investors, and property experts demanding a halt to Part 2 of the Product Security and Telecommunications Infrastructure (PSTI) Act 2022. Extending the 2017 Electronic Communications Code (ECC) would “entrench failure,” the group argues, sparking more stalled renewals, site losses, and legal battles just as Wales needs swifter rural connectivity.

The 2017 reforms empowered operators to cut mast rents—often by 90%—from hosts like farmers, councils, and NHS trusts. Far from boosting rollout, they’ve ignited over 1,000 tribunal cases since 2017, versus 33 in the prior three decades. Rural goodwill has eroded, with hosts now eyeing exits.

“Every lost mast isolates households, schools, and businesses,” the FUW states. “No public subsidy can fix this systemic damage.”

A survey of 559 hosts (via NFU, CLA, BPF) shows:

35% considering full withdrawal.
70% of expired lease holders facing operator legal threats.

Landowner Ted Hobbs in New Tredegar shares the pain: “My 1995 Vodafone lease was £3,500 yearly, renewed in 2010 at the same rate. It expired May 2025—now they demand a slash, backed by the Code. This is confiscation, not partnership.”

Labour’s push forward—despite earlier opposition and a critical consultation—ignores these red flags.

FUW President Ian Rickman adds: “Farmers hosted masts in good faith for rural connectivity. Punishing them with rent cuts sabotages Wales. Halt this now, restore trust, and incentivise real progress.”

The coalition urges ministers to reopen dialogue before deepening rural divides. Wales can’t afford more policy missteps.