Diversification: Is storage an option?
Possible future reductions in subsidy payments and pressures on farm net margins are making it increasingly important for farm businesses to diversify their income streams. One diversification option available to businesses who have redundant buildings or yard space is the provision of self-service storage. In-between 2016 and 2017 the use of self-storage sites increased by almost 9%, indicating the demand from small businesses and home-owners for this type of service. The use of containers on farm for storage is a simple solution with built in flexibility that offers relatively quick ‘pay back’ periods.
It is always important however to consider the downsides to offering storage on farm. The higher the number of small storage units on farm, the more business transactions will take place and the more monitoring will be needed, incurring the need for extra administration time. The movement of people onto farm can itself have its own drawbacks. The separation of the public from farm traffic is important from a health and safety point of view, whilst on farms with livestock biosecurity may also be an issue.
It is always crucial to seek further advice prior to embarking on a diversification project, with particular regard to planning, taxation and legal issues.
Wilson Wraight have a track record of assisting clients with a variety of on farm diversification projects, get in touch with one of our team today to find out how we can assist you.