How to Diversify – From Concept to Completion
)
Sponsored by Dudley Peverill - Diversification often begins with a simple question: What can we do with that redundant building?
But as visitors to Farm Business Innovation 2025 discovered, the most successful rural development projects start with a strategy.
In a dynamic panel session chaired by Anthony Pearce of Dudley Peverill Associates, experts from planning, design, finance and rural enterprise unpacked how landowners can unlock sustainable new income streams through thoughtful, phased development. Using a real-life case study of a redundant barn in Cambridgeshire, the panel demonstrated how a single building query can evolve into a long-term masterplan for growth.
Joining Anthony were Dawn Woollam (DPA Consultant), Ed Daniell (Rural Space), Iain Hawthorne (Aravis UK) and Simon Kinvig (Pegasus Group), each bringing a specialist lens to the diversification journey, from concept to completion.
Start with strategy, not structure
A consistent theme throughout the session was the importance of stepping back before stepping forward.
Dawn Woollam explained that too many projects begin with a building rather than a vision: “Our starting point is to take a step back, look at the wider asset, what is going on in the market and what does that demand. What’s going to be there in five years, or what’s going to be there in five years that you might regret… there is a layering of opportunities, and you have to be quite strategic.”
Rather than asking, What can this barn become? the better question is, How does this site fit into a broader estate strategy?
Access, neighbouring activity, infrastructure and long-term estate objectives must all inform early decisions. Diversification is rarely about a single unit; it is about creating a cohesive ecosystem.
Market reality matters
Understanding the wider economic landscape is critical. Anthony Pearce noted: “There is a significant move in the industry over the last 16 months where residential properties are really struggling.”
Permitted development under Class Q (residential) may appear attractive on paper, but market appetite and viability must be tested carefully. In some areas, commercial or mixed-use development under Class R may present a more sustainable route.
Location is equally important. Ed Daniell urged landowners to conduct detailed local research before committing to a particular use: “You really need to look at where you are located in terms of the wider area. There is a demand for rural office space, but it is location specific. I urge you to do your research, talk to local agents and open the farm gates to see what people are looking for in your local area.”
What works in one county may fail in another. Data, not assumption, should guide development.
Layering opportunities for resilience
One of the most powerful concepts discussed was “layering.” Rather than relying on a single income stream, successful projects combine complementary uses, such as workspace, café, retail, leisure or light industrial, creating synergy and resilience.
A café supports footfall for workspace tenants. Leisure uses drive weekend traffic. Office occupiers provide weekday consistency. Together, they form a destination rather than a standalone building. This layered approach strengthens both commercial viability and community value.
Finance: clarity, credibility and phasing
Funding is often where projects stall. Iain Hawthorne of Aravis UK provided clear insight into how banks assess diversification proposals: “The first thing the banks will look at is how the business makes money and how the project will affect the money coming in and the business in the future but be prepared to explain it and understand it in some detail.”
Lenders favour phased development backed by:
- Robust business plans
- Credible professional teams
- Clear repayment strategies
- Realistic projections
Patient capital and a five-year masterplan allow flexibility as markets evolve. Proving demand early, through low-cost pilots such as pop-up food and beverage alongside leisure uses, can strengthen both planning and funding applications.
Planning and design: flexibility is key
Permitted development rights under Class Q and Class R can reduce planning risk but require expert input and site-specific analysis.
The panel stressed the importance of designing for flexibility, zoning residential, commercial and leisure areas carefully to manage noise, access and operational considerations. Thoughtful design today prevents costly complications tomorrow. Futureproofing is not optional, it is essential.
Balancing emotion and economics
Diversification is not purely financial; it is often deeply personal. Family dynamics, legacy considerations and long-term aspirations all play a role.
Clear communication between family stakeholders and professional advisors is vital to prevent misunderstanding and conflict. As with any major farm decision, transparency and shared vision underpin success.
10 key takeaways for landowners
Attendees left with practical guidance for moving projects forward:
- Start with estate-wide strategy, not a single building.
- Layer complementary uses to create multiple income streams.
- Plan with a five-year horizon and patient capital.
- Understand permitted development routes and site-specific planning constraints.
- Design flexibly to future-proof development.
- Phase finance strategically with strong business planning.
- Test concepts early to validate demand.
- Use local data and market insight to guide decisions.
- Create an ecosystem, not just a development.
- Balance commercial logic with family communication.
From idea to implementation
The session demonstrated that successful diversification is rarely accidental. It requires strategic thinking, professional collaboration and disciplined execution. What begins as a redundant barn can become a thriving rural enterprise, but only when ambition is matched with realism, research and structured planning.
At Farm Business Innovation, sessions like this underline a core message: diversification is not just about generating additional income. It is about building resilient, adaptable rural businesses designed for long-term success.