Rural communities need help to change and adapt

The past two decades have been a period of great change for Oxfordshire’s farming businesses. For many farmers and land managers across the county, to avoid collapse it has been essential to do things a little differently.

Technological advances, the growth of online communications, changing social trends and pressures on farming have all contributed to a need – and new opportunities – for rural businesses to change and adapt. For many farms, diversification into new ventures on their land has been critical to keeping afloat.

By their very nature many rural businesses are land-based and this creates both challenges and opportunities when it comes to exploring new business ideas. Across Oxfordshire redundant buildings have been converted to workshops or offices, renewable energy has been generated and new or novel crops have been grown. There are fantastic examples in our county of farms holding music festivals, supplying wood for wood fuel, and creating successful micro-brewing businesses.

The rural tourism industry has inspired many exciting diversification projects and in turn these projects have helped to boost visits to, and spending in, Oxfordshire. Glamping sites, farm shops and country sports have become far more accessible for people from town and country to enjoy.

Diversifying has helped save many a farm business, but it often comes with considerable risk and requires a lot of very hard work. I speak from experience – at our Christmas tree farm near Watlington, we made the decision in the late 90s to diversify. In 2001, we opened a complementary farm shop to sell Christmas-related goods such as decorations and gifts. This was a large undertaking for a family-run business.

As the General Election approaches, the CLA is asking those hoping to lead our government for the next five years to commit to developing policies that support rural firms. Major barriers to business success in the countryside – such as unreliable broadband and mobile coverage – must be addressed for the survival of farms and the rural communities they underpin.

Farmers looking to diversify need decent internet access in order to get new ventures off the ground, from essential market research to setting up new supply chains. Once the new enterprise is underway good and reliable internet access is critical for marketing, administration, communicating with partners and customers, and selling products and services.

I know of a number of farmers who would be encouraged to enter into the renewable energy market if there were greater certainty of government policy and a reduction in red tape. Addressing these barriers would enable rural businesses to contribute to national efforts to increase renewable energy capacity as well boosting local employment and the region’s economy.

The CLA also supports the Cut Tourism VAT campaign, which calls for government to redress the fact that UK tourism businesses are currently at a disadvantage to their competitors in most other EU member states. In Oxfordshire, a cut in VAT on tourism accommodation and attractions would increase the competitiveness of the county’s tourism in town and countryside alike, boosting the local economy and supporting the creation of new jobs. It would also make the difference between success and failure for some farm diversification ventures.

It makes good economic sense for government to support farm diversification in these practical ways, and we hope this will be reflected over the coming months in the campaigns of candidates wishing to represent Oxfordshire constituencies.

Of course it is not unheard of for farmers or landowners to be talked into new ventures by salesmen that then go on to become costly mistakes. Those considering a new idea in the countryside must have a good understanding of the costs involved, what income could realistically be expected and the potential pitfalls to watch out for.

Serious thought also needs to be given to any business issues created by the proposed project – such as business rates, insurance, utility services, funding, health and safety, the effect on any existing business and potential tax implications. An unrealistic view of these expenses has led to the demise of many a promising new venture. I would advise seeking guidance from the rural business experts at the CLA.

Farm diversification can often have a positive impact on the local community, economy and environment – for example boosting the local economy, or increasing ecological diversity by bringing land or woodland into management. Farmers and rural landowners should plan to maximise these positive impacts and address any negative effects such as changes to access or traffic volume.

There is certainly a lot to think about when considering a new business idea, but the benefits in terms of business security and the sense of achievement in creating something new can be well worth the effort.