Word of warning from fifth-generation farmer who turned family farm into £7.4m business

The survey also revealed that 40 per cent of farmers already running diversification enterprises plan to further develop them over the next five years – up three per cent on last year’s figure.

UK farmers’ income from diversification enterprises on average accounted for 13 per cent of farm turnover in 2024, the same figure as in 2023.

Renewable energy remains the most popular form of diversification among UK farmers, with eight per cent operating schemes such as solar power, wind turbines or anaerobic digesters, up from six per cent last year.

Chris Walsh, NFU Mutual Farm Specialist, said: “Farmers are hardworking and innovative by their nature, and this is helping to create diversifications which complement their farming activities and make their businesses stronger.

“From vineyards and wedding venues to solar farms and wind turbines, farmers are making the most of the resources available on their land to make their businesses more sustainable. In many cases, they are also providing career opportunities for farmers’ families, while creating rural jobs and boosting local economies.”

However, he warned diversification is rarely a way of making a quick buck and that successful schemes required careful planning, good management and long-term commitment.

Ms Makin-Jones, who was at university when she decided to launch a strawberry enterprise, a decade later founded the Annabel’s Deliciously British food brand and in 2019 created Tame and Wild sparkling drinks using wonky fruit, was awarded Diversification Farmer of the Year by Farmers Weekly last week.

Nevertheless, she questioned the wisdom of investing in a new business at a time of such uncertainty.

She said the situation had got more difficult in the last three months because it was unclear which direction the government was going to take on key issues.

Ms Makin-Jones said: “The hardest thing in the environment we find ourselves now is borrowing money. There’s such a massive amount of uncertainty, not knowing where business rates or National Insurance is going to go.

"The labour market is poor. We find ourselves in a very difficult situation because there isn’t the labour out there and that drives the market. If the government makes it any harder to employ people and find good people the costs are going to go through the roof. It’s incredibly difficult to diversify at the minute because there are so many uncertainties. If I was giving someone device it would be to look at what they’ve got which isn’t working at full capacity and say how can you make it more economical or do things better?”