The farming business growth in the UK reveals mixed results. The venture has revealed strong growth lately, driven by strong commodity rates and quite decline in 2023 due to a rise in the cost of fertilisers. However, the farming business improved in 2024 with higher livestock prices.
It offsets a poor crop year, leading to a real-terms increase in total income from farming (TIFF). The key challenges include reducing subsidies, increasing costs and weather events. However, you can still invest in profitable farm ventures to ensure a great return on investment.
How much profit do farmers make in the UK?
Average farm business income varies greatly between farms. In 2023,17% of Great Britain had a negative profit, while 41% had an income of 50000 pounds. Alternatively, factors like market prices, costs, diversification, and farm gate prices affect the profits and income. Low farm gate prices may be the primary reason for low profits. Moreover, high land prices may discourage new farm owners.
What are some profitable agriculture ventures?
Traditional agriculture or farming practices may not always generate enough income or provide a comfortable lifestyle. Coming up with some small-scale business ideas that are attainable for farm owners to put into action can be a great thing for small farm owners to generate additional income.
- Fish farming
Fish farming is an ideal business idea for investors with available land. It does not require a large body of water. You can start by either creating a fish pond or investing in fish tanks. It is indeed a highly scalable business idea.
Once you have the proper knowledge of fish raising, you can easily decide the type of fish you want to raise in farming. You may get returns of up to 15%-40% annually. Popular fish varieties include- Yellow Perch, Eel, Grass Carp, Tuna, etc. Aqua culture has been here for a thousand years now. However, the expansion in the past 30 years has been phenomenal.
You generally need £10000-£12000/acre to start a fish farming business. It could prove costly if just starting. You can secure business funding for agricultural and farming businesses to start timely. It helps you finance the heavy investment purpose without worries. You may get a good amount if you can afford the loan repayments.
- Farm Shops
Setting up a farm shop allows you to sell products directly to consumers, giving you greater control over the profits. Launching a farm shop requires careful planning. You’ll need to secure planning permission and develop a robust business plan.
It helps cover the marketing and other operations. Consider whether your location attracts enough customers. Otherwise, the venture would not be very profitable. Establishing a shop farm can be a rewarding way to community while boosting the farm’s profits.
- Farm Restaurants
Starting a farm restaurant can create a unique farm-to-table dining experience. It is ideal for those with the knack for cooking and who share the related skills. This venture serves as a great outlet for promoting your products, especially if you specialise in high-quality or rare-breed meats. You can also consider the practical aspects. It could be obtaining planning commissions from local councils, which can be a hurdle. Also, check for the staffing needs and operational hours. It could perhaps start with an exclusive tasting of the menus or supper clubs to manage the complexity.
- Dual Crop farming
It is about mixing two or more crops, or mixed cropping. It increases the probability of getting at least one crop if the other one fails for some reason. Here are the different types of cropping to understand :
- Mixed cropping: it implies raising two or more crops in the same area at the same time.
- Inter-cropping: It implies raising two or more crops in the same area but in different patterns. It should be in a sequence. It helps you maximise yield or productivity.
Dual Crop farming is very popular among farmers. It is because it maximises the use of soil, equipment, water and farming supplies. Moreover, such equipment reduces the damage from floods, risk of calamities, drought, diseases and pests. Some of the best examples of double-crop farming include strawberries and watermelons.
The initial investment for dual crop farming may vary significantly. However, it ranges from £50000-£250,000 or more. It could be high for agroecological farms. It is excluded from the land costs.
- Rabbit farming
If you don’t have much space to work with but would still like to try animal farming, check out rabbit farming. It helps you raise healthy rabbit meat, fur and manure. However, you will need to choose the breed by improvising on the output. For example, Angora rabbits are good for wool. The best part is rabbits breed quickly; the gestation period can be 27-45 days.
The age of sexual maturity, which you will need to consider when planning your farm’s timeline and animal population. It ranges from 3 months to 8 months, depending on size and species. However, you would need sufficient space to keep rabbits healthy. Also, take care of their diet and provide the best hay, grass, leafy greens and pellets to eat.
It only takes a few pounds to start rabbit farming. It is ideal for businesses with low capital. The key costs include purchasing rabbit food, buying appropriate cages and houses.
- Grow elderberries
Elderberries are one of the most popular fruits to be seen in the UK and the USA. You can decide the type of form you want to sell it in. For example, you can manufacture elderberry juice, candies, syrup makers, or supply frozen one to wineries.
Always check the food safety labels and the expiry conditions. You can see fully grown elderberries within 2-3 years of plantation. You would need to prepare for the best environment. Invest in bird nets, annual pruning, and quick harvest handling.
The advantage is that it is a perennial hedge-growing crop with strong value points. Moreover, it is cold-hardy and fits agro-forestry borders.
The most expensive part of growing elderberries is establishing a farm. It includes land and initial planting costs. It is followed by processing and value-added production. Thus, the initial investment is significant. If you don’t have much savings, don’t worry.
Consult the best business loan broker for your requirements. Contacting one will help you find the right direct lender for the loan. It helps you save time and money, which you may spend by contacting the wrong one. Brokers receive their free in the form of compensation from the respective direct lender.
- Herb gardening
One small backyard of growing a bed with 100 square feet of growing space will hold 400 potted herbs. It holds a high retail value. While choosing the garden, focus on variety and pick local herbs. Grow only those which are in high demand. You can also start a herb business with farmers’ market sales from your backyard. It helps you sell herbs, cut plants, seeds and check with the local restaurants.
Bottom line
These are some of the profitable farm ventures to start in 2025. However, identify the expertise, interest, demand, profit margin, etc. If the initial investment is high, check business loans from brokers online. It may help you save time and get the best deals on the platter.