Farm Diversification: How to fund a farm shop

Farm shops are a hugely popular farm diversification option that has only grown in popularity during the pandemic. But funding this type of farm diversification often requires outside finance of some form whether this be a bank loan, investment funding or other finance options. Making a success of your farm shop is even more important when we consider the finance required, and a large part of this success relies on effective farm marketing. Having a well prepared and detailed farm marketing strategy included in your business plan can help you to more easily access finance options for your farm diversification.

Check out our farm marketing strategy guide here.

After being rejected for a loan from high street banks, a Northamptonshire farming family turned to FOLK2FOLK to fund their new farm shop.

The family at Barnowl Jerseys were seeking a loan to fund their farm diversification project: the creation of a farm shop. Their vision included in-house pasteurisation, the development of a range of homemade ice creams and a completely fitted out butchery and retail farm shop.

After being rejected for a loan from high street banks, a financial broker recommended FOLK2FOLK and they were able to successfully obtain the loan they required.

Barnowl Farm Shop is now a family-run farm shop located on a Jersey dairy farm in Northamptonshire and sells raw (unpasteurised) and pasteurised jersey milk, Jersey cream and ice cream made on-farm, seasonal fresh produce, locally made food products.

The wider local impact of the loan can be seen in the employment of local tradesmen and suppliers, as well as four new members of staff with further employment opportunities once the butchery is open.

Heidi Reader, of Barnowl Jerseys, explains that securing the loan has helped ensure the herd remains milking and enabled the first stage of their family’s succession plan: “Without this opportunity, there is a high chance that this would not be the case,” she says. “Our neighbours and local community are as excited by our farm shop development as we are.”

Barnowl Farm Shop, complete with ice cream and butchers, is now open! www.barnowlfarmshop.co.uk

Article taken from FOLK2FOLK