Shropshire Farming Talk: Insuring your farm enterprise

This is up 6 per cent since 2018, with income from diversification rising to 13 per cent of turnover.

This trend highlights the need for farmers to adapt and explore alternative revenue sources, particularly with the phasing out of the Basic Payment Scheme (BPS).

Diversification has become a key strategy for enhancing financial resilience in the agricultural sector.

Recent surveys indicate that around 70 per cent of UK farmers believe diversifying their income streams is essential for financial viability, reflecting the increasing pressures on traditional farming practices.

Currently, UK farmers are exploring various types of diversifications to bolster their income.

Popular options include agri-tourism, which accounts for about 18 per cent of diversification efforts, and renewable energy projects, making up approximately 15 per cent.

Other notable areas include food processing and direct sales, contributing around 12 per cent, while leisure activities like camping and holiday rentals represent about 10 per cent.

It's crucial for anyone diversifying their farming enterprise to ensure they are properly insured.

A new business brings new risks, so having the correct coverage is essential.

At KLF Insurance Brokers, we conduct a full review at each annual insurance renewal. However, if you're making changes during the year, such as launching a new project, it’s important to check with your broker about any additional coverage you may need.

by Keith Fowles is the owner of KLF Insurance Brokers.