According to Defra, even farms with an average income would have to cut costs by 10% just to break even without subsidy support. As inflation drives costs up and subsidies wind down, the case for rural diversification is stronger than ever.
Here are the top three takeaways from the 2023 Savills Spotlight on Rural Tourism and Leisure:
As BPS support fades, farm and estate diversification builds business resilience
Future-proof existing rural tourism and leisure businesses by expanding the offer with new events, experiences or attractions
Remain aware of macro themes that are driving consumer demand, such as sustainability, wellbeing and in-person experiences
The Spotlight also features new and unique insights from the Savills Rural Research team:
Four case studies of rural businesses that have strengthened their traditional farming business through enhancing their diversification.
The most prevalent features in farm shops. Why do 98% open at the weekends but only 14% in the evening?
The Savills Rural Vibrancy Index tracks how the rural sector has fared in recent years and what challenges the future could hold.
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