Farm Diversification Why Diversify? – Mitch Portman ACII  Area Business Development Manager February 2010
Why Diversify <ul><li>Economic necessity  </li></ul><ul><ul><li>Farming is asset rich but cash poor </li></ul></ul><ul><ul...
Typical Types of Farm Diversification <ul><li>Cream Teas </li></ul><ul><li>Bed & Breakfast/holiday lets </li></ul><ul><li>...
Why do I need to speak to my insurers? <ul><li>Liability insurance  – does the business description on your policy match y...
Member case study – Mike & Claire Parnell invite you to Carruan Farm 4
Carruan Farm - History <ul><li>Farming in this location since 1958 – Polzeath </li></ul><ul><li>3 rd  generation now worki...
Combining Farming with Diversification 6
The Restaurant 7
Remember to consider Risk 8
Facilities – in a safe environment 9
A safe way to be shown around the estate 10
Education – Mike & Claire share their passion for farming with local schools 11
Lessons Learned <ul><li>Do Not overstretch </li></ul><ul><li>Ensure that the farm does not suffer  (it will) </li></ul><ul...
Lessoned Learned continued <ul><li>Be prepared for criticism  and try to accept this objectively </li></ul><ul><li>Learn q...
Lessons Learned - continued <ul><li>Do what you enjoy </li></ul><ul><li>Planning for the next generation  </li></ul><ul><l...
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Cornish Mutual Farm Diversification Presentation

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Cornish Mutual presentation delivered by Cornwall Area Business Development Manager Mitch Portman (ACII) at a Diversification Seminar held at the Royal Cornwall Showground on 25 February 2010, explaining why you should consult your insurer when embarking on a farm diversification project.

Published in: Economy & Finance, Business
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Cornish Mutual Farm Diversification Presentation

  1. 1. Farm Diversification Why Diversify? – Mitch Portman ACII Area Business Development Manager February 2010
  2. 2. Why Diversify <ul><li>Economic necessity </li></ul><ul><ul><li>Farming is asset rich but cash poor </li></ul></ul><ul><ul><li>Diversity supports cash flow </li></ul></ul><ul><li>Homogenous goods </li></ul><ul><ul><li>Barley from one field is identical to barley from another </li></ul></ul><ul><li>No one provider has the power to influence the market </li></ul><ul><li>Lack of stability in income </li></ul><ul><li>Dormant assets </li></ul><ul><ul><li>Buildings, land, amenities </li></ul></ul><ul><li>Balancing tradition with opportunity </li></ul>1
  3. 3. Typical Types of Farm Diversification <ul><li>Cream Teas </li></ul><ul><li>Bed & Breakfast/holiday lets </li></ul><ul><li>Farm shops </li></ul><ul><li>Cafe/restaurant </li></ul><ul><li>Education </li></ul><ul><li>Commercial use of buildings </li></ul>2
  4. 4. Why do I need to speak to my insurers? <ul><li>Liability insurance – does the business description on your policy match your activities? </li></ul><ul><li>Buildings & use – different activities have different risks your insurers need to consider whether they can provide insurance for that risk </li></ul><ul><li>Cost – insuring your diversification is a business expense which you must factor in when planning the business </li></ul><ul><li>Understand risk – balance risk against economic considerations </li></ul><ul><li>Cornish Mutual specialise in insurances for farmers and businesses in the rural community – however, whilst we may be able to offer advice, we may not always be able to insure your new venture </li></ul>3
  5. 5. Member case study – Mike & Claire Parnell invite you to Carruan Farm 4
  6. 6. Carruan Farm - History <ul><li>Farming in this location since 1958 – Polzeath </li></ul><ul><li>3 rd generation now working the farm </li></ul><ul><li>Originally a sheep farmer, adding a suckler herd, & then pigs </li></ul><ul><li>Started selling meat from home </li></ul><ul><li>Opened a cafe for teas & cake </li></ul><ul><li>Had a bullock killed – why don’t we try Sunday lunch in the cafe? </li></ul><ul><li>The rest is history, the first Sunday lunch was fully booked & the facility has now developed into a fully fledged restaurant </li></ul>5
  7. 7. Combining Farming with Diversification 6
  8. 8. The Restaurant 7
  9. 9. Remember to consider Risk 8
  10. 10. Facilities – in a safe environment 9
  11. 11. A safe way to be shown around the estate 10
  12. 12. Education – Mike & Claire share their passion for farming with local schools 11
  13. 13. Lessons Learned <ul><li>Do Not overstretch </li></ul><ul><li>Ensure that the farm does not suffer (it will) </li></ul><ul><li>Do Not be tempted to pull money from the business to support the farm </li></ul><ul><li>Learn to delegate – there are only 24 hours in a day </li></ul><ul><li>Be prepared to bring in expertise </li></ul><ul><li>Employ staff wisely – careless uncommitted staff can have a devastating affect on your business in a very short space of time </li></ul>12
  14. 14. Lessoned Learned continued <ul><li>Be prepared for criticism and try to accept this objectively </li></ul><ul><li>Learn quickly – trial & error </li></ul><ul><li>Change is ongoing – matters change on a weekly basis – be flexible </li></ul><ul><li>Value yourself – the business needs you </li></ul><ul><li>Stay focussed </li></ul><ul><li>Be passionate about your business – it’s infectious </li></ul><ul><li>Stay in touch with your insurers </li></ul>13
  15. 15. Lessons Learned - continued <ul><li>Do what you enjoy </li></ul><ul><li>Planning for the next generation </li></ul><ul><li>– do they want to carry on with the business </li></ul>14
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