With agri-tourism contributing millions of pounds each year to the rural economy in the north of England Brian Richardson, Head of Agriculture for Virgin Money, says the sector is making a real difference to many farm businesses, “We continually see innovative and enterprising farm tourism initiatives making a considerable contribution to overall farm turnover and helping rural businesses thrive.”
Agri-tourism has long been part of the north of England’s farming landscape, but it is increasingly being viewed as more than just another crop or another harvest, providing significant jobs and income for the rural community. From farm shops and cafés to accommodation, distilleries, and visitor attractions, these ventures now complement core agricultural activities and are integral to the resilience of many farm businesses.
As businesses look to their futures, Brian highlights the practical steps farmers can take to secure investment and develop successful agri-tourism ventures. “The value and potential in these ideas are clear. But to secure funding and ensure long-term success, careful planning and preparation are key.”
The range of agri-tourism enterprises is broad, from B&Bs, glamping pods, and luxury lodges, to farm tours, adventure sports, wellness retreats, children’s experiences, and farm-to-table dining. Farms are also popular destinations for weddings, and festivals, while many operate shops selling their produce directly to the public. Each business has its own requirements, and success depends as much on the farmer’s skills and interest in hospitality as it does on the resources of the farm.
“Farmers should treat their tourism venture with the same care and attention as any crop,” Brian advises. “It requires consistent effort and investment to deliver a reliable return and provide a high-quality experience for visitors.” Early engagement with the bank can provide valuable guidance, drawing on experience with similar ventures and helping identify potential challenges before they arise.
Before starting, farmers must secure the necessary planning permissions and approvals and understand the costs of building work, conversions, or equipment. They should decide whether the venture will operate within the existing business or as a separate entity and ensure licensing, health and safety, and insurance requirements are met.
A well-prepared business plan is essential. From a lender’s perspective, it must demonstrate that every aspect of the venture has been thoroughly researched. It should explain what makes the enterprise unique, how it will stand out from competitors, and how it will attract and retain customers. Financial projections need to be realistic, covering cash flow, maintenance, and contingencies for challenges or seasonal fluctuations.
Virgin Money looks for a balanced approach to funding, with the farm business investing alongside the bank. Contingency plans, clear repayment strategies, and credible assumptions are all important. Challenging figures before presenting them to a lender helps ensure the business case is robust and sustainable.
Any Agri-Tourism Ventures need careful management to ensure they deliver a sustainable contribution to turnover and a return on investment. However, farmers should carefully consider whether they have the time, skills, and inclination to manage a tourism business successfully. Hospitality requires patience, an understanding of visitor expectations, and the ability to deal with challenges very different from day-to-day farming.
Regulation and administration are also key considerations. Farming already brings paperwork, but tourism ventures add further obligations. Planning, licences, health and safety compliance, and insurance all carry responsibilities. The Virgin Money team and peer to peer support available from tourism bodies and professional advisors such as solicitors, accountants, and land agents can provide valuable support to help navigate these requirements efficiently.
When well planned and executed, agri-tourism can offer much more than an extra source of income. With the right preparation, advice, and commitment, it can become a sustainable part of a farming business, strengthening financial stability while showcasing the north of England’s rural heritage.
Virgin Money has a long history of supporting farmers and encourages them to explore how best to use the assets and opportunities available. By engaging early with lenders and taking practical steps in planning, agri-tourism can deliver a valuable additional harvest – creating income, resilience, and opportunities for the future.
Brian’s ten key tips for farmers considering an agri-tourism venture are:
- Assess your skills and interests: Only consider ventures you are passionate about and enjoy. Hospitality requires patience, people skills, and dedication.
- Understand your market: Know who your visitors are, what they want, and how your farm can meet those expectations.
- Plan thoroughly: Develop a robust business plan with realistic financial projections, marketing plans, and risk assessments.
- Check regulations early: Ensure planning permissions, licences, and health and safety requirements are understood before starting.
- Consider your resources: Assess your land, buildings, and staff to see how they can support tourism ventures.
- Focus on quality: Whether accommodation, food, or activities, high standards will drive repeat visitors and positive reviews.
- Prepare for cash flow challenges: Understand that profits may take time, and cash is what sustains operations and repays loans.
- Think long-term: Tourism enterprises often require sustained investment and attention, not just a seasonal boost.
- Seek expert advice: Accountants, solicitors, and land agents can provide invaluable guidance when planning your venture.
- Engage early with lenders: Discuss your ideas with your bank to understand funding options and demonstrate a solid, realistic plan.