March 2023

T H E  •  W H I T E  •  P A P E R

Why are farmers having to diversify?

The need for farmers to explore alternative sources of income is largely driven by Brexit. Prior to leaving the European Union (EU), the UK previously part of the EU’s Common Agricultural Policy (CAP), which subsidised the agricultural industry. In 2019, the UK received £4.7 billion in CAP funding, with approximately 80% of this being paid directly to farmers based on the amount of land they farmed. However, the Agriculture Act 2020 has replaced this, and farmers argue this is not easily accessible and fails to address major issues.

In addition, a “No Deal Brexit” has resulted in increased bureaucracy, making the movement of goods across the EU more challenging due to additional certification and checks, leading to higher costs and delays. These delays have caused many food shipments to spoil, resulting in losses for farmers. The loss of free trade together with loss of free movement of labour through EU countries, which was a significant benefit that the agricultural industry relied on for labour. All these additional costs and delays have made the UK farming industry less competitive in the supply chain.

What does this mean for UK Farmers and their survival.

Farmers are now having to look to alternative ways to subsidise the shortfall to ensure their survival. Between 2021 – 2022, 68% of farms introduced some type of diversification to their farmland, generating an average of additional £24,000.

Figures from 2021/22 Farm Business Survey conducted by the Government’s Department for Environment Food & Rural Affairs (DEFRA) show the main diversified enterprise’s in the UK. These results show 47%, almost half, of farms in England are turning over buildings for non-agricultural use.

In second place with 22% of farms turning over land to generate solar energy, a massive increase from figures from 2011/12 where farmland producing solar energy was just 1%.

Love him or hate him, Jeremy Clarkson is a showing us all how hard farming life is and the struggles of keeping our farming communities alive.

With Season 2 of Clarkson’s farm, Jeremy Clarkson shows the reality of farming and the creative thinking that is needed to survive. Deciding to utilise an unused sheep shed and turn it into a restaurant, of which all the food sourced from his own and surrounding local farms, ‘the perfect business model’ says Clarkson.

Due to timescales the show depicts the planning and financial investment of around £250,000 required prior to the council’s decision. The planting of crops, raising of cattle and acquiring additional farm equipment all to ensure the produce they would serve was in time for the opening.

Clarkson’s planning application for ‘conversion of existing building to create a cafe/restaurant together with associated landscaping works and provision of parking. Creation of a new access; realignment of the existing access and new storage compound.’

The Diversification project would see as many as 50 new jobs created on the farm, support many local produce suppliers, together with a fresh new alternative to ‘the Local put’. A much-needed addition to the community and surrounding businesses attracting many new customers to the area.

However, the planning application faced some opposition from residents who raised concerns about increased traffic and potential noise pollution. Some also expressed worries about the impact on the local landscape and wildlife.

These objections are depicted to tip the balance, resulting in West Oxfordshire District Council unwelcomed decision of refusal of application.

The show highlights what could be classed as failures on both sides from the council and from Jeremy Clarkson who does not always follow the rules and stomps on the air of caution seeking the odd loopholes in the system to try and get his way. This however, as the council show’s Mr Clarkson when it comes to planning polices isn’t always the best way.

Are You in Clarkson’s Wellies?

If you find yourself ‘in Clarkson’s wellies’ and are considering applying for a change of use to diversify land or buildings, or if you have been refused and are wondering if this is dead-end.

We believe ‘REFUSAL IS NOT THE END’, We can help you decipher the decision, prepare a plan, implement a strategy, and get your project back on track.

Our team of experts offer honest and transparent advice, guidance and peace of mind that we are by your side every step of the way.

Simply get in touch with us today and we will be happy to discuss your options.