Rural estates are now more diversified than ever before by developing alternative income streams alongside, and complementing, their core rural business.  Some 30% of estates have holiday accommodation, such as camping and caravans, while 25% host weddings and receptions.  Renewable energy has seen an extraordinary boom in the last 5 years, and the recent ‘Farm Business Innovation’ show highlighted converting redundant barns to commercial enterprises such as farm shops and now even ‘The Archers’ is busy setting up a niche gin distillery business!

  Hapesford Hall converted into commercial business

We could be forgiven for thinking the rural economic heartbeat was strong and stable.  But if 2017 saw Brexit discussions unresolved, continued uncertainty over a CAP replacement and the rise of interest rates, what will the next few years mean for land agents and landowners?  

Arguably estate diversification is a response to economic pressures and the need to spread risk, but surely the real risk is not having an overall plan.

As we enter 2018, here are four suggestions for a New Year resolution.

Estate Strategy: codify formally what strategy underpins the estate as a whole for the long term; periodically review with professional advisors.

Tactical Objectives: priortitise inward investments; manage cash flows; engage with the planners; have a marketing plan.

Establish a Risk Register: IHT Planning; risk of losing a business partner or key tenant; HSE cover - “you think HSE is expensive, you should try an accident!”; the impact of aggressive interest rates increases; end of farm subsidies.

Benchmarking: comparative analysis tools offer vital insights for gauging independent evidence based performance. ‘Fail to measure, fail to manage’.