Government consultation on proposals to make it easier to transform farm buildings into farm shops will be welcome news for some rural businesses.

But is retail necessarily a good move for farmers looking to diversify? As ever, it depends. Knowing your market and having the right skills are essential in what is a highly competitive – and potentially investment-heavy – sector.

Here are five key points to consider before opening up shop:

1. There’s no doubt that farm shops are popular with customers (and TV audiences), but how many outlets can one area support, especially if they are offering a very similar proposition? If it becomes easier to do, is there a risk of saturation?
2. Location of farm or estate. Delve as deeply as you can into your potential market (who are you targeting/where do your customers live/how far are they likely to travel/where else could they shop?). Research your competitors, pricing, and retail in general to understand what success looks like and how to make your offering stand out.
3. Realistically, how much time can you dedicate to the venture on top of your other farming commitments? Will you be managing the business on a day-today basis, or will you need to employ someone? A successful shop delivers great produce, great customer service and a great overall experience, all of which require focus and the right people.
4. What about product lines? Locally-produced, seasonal fare is likely to be the aim and indeed may be your intended USP but supplying everything from your own farm, or from neighbouring enterprises, may prove difficult. Supply will need careful thought to avoid shortages and disappointed customers.
5. Think about branding and marketing. Again, do you have the necessary expertise within the existing business, or will you need external support, especially in areas like social media?

Done well, a farm shop can be, if not a day out, then a destination and a chance to connect and engage with the community. But even if the planning system does eventually become easier to navigate, setting up shop will still come with its fair share of challenges.

Further information

Contact Ashley Lilley