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COLBURN
5 & 6 BAILEY COURT
COLBURN BUSINESS PARK
RICHMOND
NORTH YORKSHIRE
DL9 4QL
Estate Agency Offices are located in
BARNARD CASTLE, BOROUGHBRIDGE & RICHMOND
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In today’s challenging agricultural landscape, growth is no longer guaranteed by simply buying more land.
With rising land prices and shrinking margins, farmers are increasingly exploring alternative strategies to secure profitability and resilience. One approach gaining traction is investing in on-farm infrastructure to support enterprise diversification. Rather than expanding acreage, forward-thinking arable businesses are adding complementary enterprises—such as poultry or beef finishing—to spread risk, improve returns, and strengthen long-term sustainability.
For generations, land ownership has been seen as one of the ultimate markers of success in farming and a natural route to scale a farm business. However, at current prices, purchasing arable land at £12k per acre could cost £2.4m for a modest expansion. Financing that at 6% interest equates to £144k annually—before factoring in operating costs. With a gross margin of £400 per acre, the numbers do not stack up. In short, borrowing to buy land seldom delivers a viable return unless it’s part of a much larger, long-term strategy.
While land ownership does offer balance sheet value and future security, its short and medium-term contribution to business profit can be limited unless it is fully optimised with high yielding crops, reliable market access and operational efficiency. For businesses seeking growth and profitability, investing in other productive infrastructure for enterprise diversification often makes more financial sense.
Diversification within farming—not into tourism or retail, but into complementary agricultural enterprises—can transform a business.
Current market dynamics favour poultry enterprises. Stocking rate changes mean additional capacity is needed for broilers, creating openings for new entrants. Free-range egg production also offers potential, with several million bird places required to meet welfare commitments. However, timing is critical: opportunities may narrow as capacity catches up with demand, so businesses considering investment should act decisively and quickly.
Other sectors, such as pigs and beef finishing, increasingly operate on contract systems, reducing the risk for farmers while providing steady income. These models allow producers to benefit from diversification without bearing the full burden of feed costs or market volatility.
Infrastructure investment is not without challenges.
For those willing to navigate these hurdles, the rewards can be substantial.
Now Basic Payments are essentially removed and pressure mounts on traditional arable margins, the case for investing in on-farm infrastructure has never been stronger. Diversifying through complementary enterprises offers farmers a route to growth that is both profitable and resilient. While buying land may still have a place in long-term strategies, it rarely delivers immediate returns. For businesses prepared to embrace change, the future lies not in more acres, but in well-planned infrastructure investment that unlocks new income streams, spreads risk and create synergies that strengthen the entire farming system.