Farm diversification: equipment choices beyond the crop

How common diversification has become

In England, diversification is now the norm rather than the exception. Defra's Farm Accounts in England statistics, based on the Farm Business Survey, report that 72% of farm businesses had some diversified activity in 2024/25. The most common was letting out buildings, carried out by 50% of farms, followed by solar energy generation at 27%. Farms with diversified activity averaged £31,100 of enterprise income from it, and for 26% of diversified farms it made up at least half of farm business income.

In the US, the USDA Economic Research Service reports that the 2022 Census of Agriculture recorded $1.26 billion of income from agritourism and on-farm recreation, a 12.4% rise on 2017 after adjusting for inflation, with about 57% of counties reporting some agritourism income.

These figures tell you what farms are doing, not what will work on yours. The useful question for machinery is narrower: which of these enterprises changes the jobs your equipment has to do each week?

Letting buildings: often the least machinery, but it changes the yard

Converting a spare shed to storage or workshop lets can remove a machinery job rather than add one, because the building no longer holds kit or crops. The hidden cost is displacement. If the let building used to house the telehandler, bedding or a trailer fleet, those items now need space elsewhere, and outdoor storage shortens the life of electrics, hydraulic hoses and tyres.

Tenants also bring their own vehicles into the yard. Before signing a lease, map where tenant vans and customers will drive and park, and where your loader, tractors and livestock move. A yard that worked for family and staff can become dangerous once strangers use it daily, particularly with reversing telehandlers that have limited rear visibility.

Solar and other energy projects

Ground-mounted solar typically leaves grass under and between the panel rows that must be managed. The two usual routes are sheep grazing or mowing. If you plan to mow, check the row spacing and the clearance under the lowest panel edge before choosing a mower: many sites need a compact tractor with a narrow offset or flail mower, or a ride-on, rather than a standard farm mower. Ask the developer what the lease requires for vegetation height and who is liable for damage to panels or cabling.

Rooftop solar on farm buildings changes little in the field, but it can change what you run in the yard. If you are considering battery-electric loaders or utility vehicles, daytime generation can offset charging costs; our guide to electric and hybrid farm machines covers where that makes sense.

Farm shops, events and visitor attractions

Public-facing enterprises bring the biggest change in how machines are used. Car parks, footpaths, event fields and pick-your-own plots all need regular mowing, surface maintenance and sometimes towing assistance. A compact tractor with a front loader and a range of small implements (topper, rotary brush, box scraper, pallet forks) often earns more hours on a visitor site than a large field tractor. Utility vehicles are useful for staff moving around the site, but they should not share visitor walkways during opening hours.

HSE guidance for farms that open to visitors focuses on control measures for infections such as E. coli O157 and Cryptosporidium. It says washing facilities should include running water (preferably warm), soap and paper towels, that alcohol gels and wipes are not a substitute, and that eating should not be allowed where animals can be touched. HSE also points operators to an industry code of practice for open farms. None of this is machinery in the narrow sense, but it shapes the layout: hand-wash stations, fencing and separate routes all need planning before the first visitor arrives.

• Separate visitor routes from farm vehicle routes, with physical barriers where possible.
• Schedule loader, slurry and livestock movements outside opening hours.
• Lock tractors and utility vehicles and remove keys whenever the public are on site.
• Plan hand-washing facilities with running water, soap and paper towels near animal areas.
• Keep machinery storage behind a closed gate, not in view of or reach of children.

Contracting and custom work

Selling your machinery's spare capacity to neighbours is a form of diversification that uses kit you already own. It can improve the economics of a drill, baler or hedge cutter that would otherwise sit idle. The trade-off is timing: your own crops and the customer's usually need the same machine in the same weather window.

Before taking on contract work, check that your insurance covers work on third-party land and hire and reward use on the road, that operators hold the right licence category for the tractor and trailer combination, and that you have a clear way to record hours, areas and rates. Our guide to machinery sharing and rental covers how to price and agree terms.

Choosing machines that work all year

Diversified farms often get the best value from versatile, mid-sized machines rather than specialists. A compact or utility tractor with a quick-attach loader can cut grass on a solar site in summer, clear a car park in winter and move pallets for the farm shop in between. When comparing models on FarmFleets search or the utility vehicle category, focus on the specifications that decide versatility: rear linkage category and lift capacity, PTO speeds, hydraulic flow and number of spool valves, turf or all-purpose tyre options, overall width for gateways and paths, and cab or ROPS options for all-weather work.

Ask dealers these questions before buying for a new enterprise: What implements can the machine run without extra hydraulic kits? Can it be fitted with turf tyres for grass areas without losing too much traction on the farm? Is there a local service agent who can attend quickly during an event or opening season? What is the resale value for this size of machine, in case the enterprise does not last?

A simple test before committing

Write down each weekly job the new enterprise creates, how long it takes and which machine would do it. Then check whether an existing machine can cover it with a new implement, whether hiring for peak weeks is cheaper than buying, and whether the enterprise's income covers the extra insurance, fuel and maintenance. If a new machine is only justified by the diversification, the business plan for that enterprise should carry its cost, including depreciation. Our guide to farm input costs and machinery decisions sets out a framework for that calculation.

Sources

Sources checked 2026-09-25

• Defra: Farm accounts in England, chapter 5 diversification — checked 2026-09-25
• USDA ERS: 2022 Census of Agriculture, the majority of US counties generate some agritourism income — checked 2026-09-25
• HSE: Agriculture visitor attractions — checked 2026-09-25

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