Farm Diversification and Innovation – What are your Options?

By Joanne Masterson, B&T Drystock Adviser, Teagasc Galway/Clare

Many farmers and rural dwellers are interested in enterprise diversification. There are countless possibilities when trying to identify a realistic option for generating additional household income. Farm diversification is an effort to boost income and establish a new enterprise on the farm. Many farmers choose to diversify their farms to create varied revenue streams through innovative ideas, however, there is a need for supports to help farmers get these ideas off the ground into something that will be a long term farm business. Small farms can support local businesses, create jobs for local people and strengthen the local economy.

There are numerous areas in which farms can diversify such as in: rural tourism, organic farming, food production, horticulture, forestry, energy, equine and the drinks industry.

Before progressing a diversification idea, rural families need to examine their existing business such as:

• What resources are available in relation to land, finances, labour, buildings and family skills?
• Is your farm suitable in terms of location, access, and distance to markets and broadband?
• Are there other locally based enterprises that you could work with? – Networking and collaboration.
• Is your idea seasonal? – E.g. tourism.
• Look at similar enterprises online and do your research, what competition is already out there?

The key is to think ahead and look at every aspect of the project before making a commitment – and seek advice

Teagasc run the Options Programme for Farm Families and it is designed to:

• Provide new thinking
• Generate new ideas
• Generate additional income on and off farm 

The Programme consists of a series of workshops covering a wide range of topics. Guest farmers who have successfully diversified speak at workshops. Teagasc specialists are also in attendance to answer questions. Visits to farms with successfully diversified farm enterprises are a vital aspect of the programme. Participants also have the opportunity to network with local development and training agencies.

The Programme also incorporates networking with local agencies such as: the Local Enterprise Office, Local Development Companies, Education and Training Boards, Intreo. Workshops are free of charge but prior booking is essential. Numbers permitting we hope to have a workshop in the autumn in Teagasc Athenry.

There are a variety of local farm businesses that have been set up in recent years in the Galway/Clare region. It is important that when thinking of diversifying that you visit or contact these farm businesses to get feedback & advice. One business in particular which I visited recently is Kylemore Farmhouse Cheese which is located in Kylemore Abbey, Loughrea. Co. Galway.

Teresa Roache started Kylemore Farmhouse Cheese in 2017 – It is a unique premium farmhouse cheese produced directly on the farm from a herd of grass fed pedigree dairy cows. On the farm Teresa produces a young smooth and creamy cheese and a long aging hard mountain cheese. The farm also offers educational farm and cheese tours and traditional afternoon tea in the 200 year old period farmhouse. The farm also has a farm shop which showcases products produced on the farm and also sells products from other Irish food and drink businesses. Having local farm businesses helps the local economy and also provides local jobs which is another positive to farm diversification. I asked Teresa for her feedback on a number of areas in relation to farm business and diversification.

What are the main challenges you see for women in agriculture and also challenges in setting up a rural business?

“Women are not recognised for their role in the farm family as paid workers, they contribute to the family farm and running of the business but it’s not financially viable to pay 2 people from the farm. Most women have to go out and work part time and raise children while contributing to working on the family farm. There is also lack of grant aid for women, only 2% of all EU grant aid goes to females, and there is poor access to finance for women in business and agriculture. It is also difficult to get low cost loans as women. There are also issues with population decline in rural areas and lack of a skilled workforce being available and lack of young farmers – succession can be an issue for farm families”. Costs of setting up are one of the main challenges when starting a business, it is therefore important to have financial supports easily accessible.

What supports did you avail of when starting the business?

“The local enterprise office in Galway were very supportive in getting a priming grant back in 2018 in my initial start-up year, since then I have availed of LEADER rural development funding”.

What is the most rewarding aspect of running your own business?

“Having a great cheese to sell to customers across the world and also having people come to visit us at our cheese shop. Also knowing the product is produced directly from the farm, our grass fed cows, using our summer milk and the product is fully traceable and sustainable from farm to fork”.

What are future plans for the business?

“Future plans are to develop more and target more customers and grow my business and manufacturing.  I will also continue to advocate for diversification on farms and keep people living and working in rural Ireland”.

Seeing how farm businesses like Kylemore Farmhouse Cheese have progressed from 2017 to now is a very positive story. Teresa and her family have put a lot of hard work and effort into promoting and diversifying the business to target the food and tourism markets. It is important that alternative farm businesses and start up’s are supported. You can find out more information on Kylemore Farmhouse Cheese on www.kylemorefarmhousecheese.com