Delivering multiple income streams
Visiting an entrepreneurial client who is maximising the returns from his Somerset farm while benefiting nature
2 minutes to read
As a former agricultural bank manager and now broker for Knight Frank Finance, I always enjoy working with rural businesses that think outside the box and really make the most out of their assets.
One such client exemplifies this approach, having created multiple income streams, and has helped de-risk his family’s 600-acre Somerset farming business while making it more profitable and environmentally friendly.
If you’ve been to Glastonbury, Notting Hill Carnival or any number of other music festivals recently and taken a comfort break, there’s a good chance that you’ve come into close contact with one of George Portch’s business diversification projects.
Using a livestock yard surplus to agricultural requirements on one of the family’s three farms, George has built what he believes to be the UK’s largest composting toilet business virtually from scratch.
He now has 1,400 custom-designed and built units on standby for events looking for an environmentally and user-friendly option for visitors needing to relieve themselves. The waste, which George’s team also collects during the festivals, is turned into compost on the farm. “It’s a virtuous circle,” he laughs.
Festivals across the UK continue to grow in popularity and their compost toilets are now in high demand.
As well as the composting toilet business, a well-stocked farm shop and butchery sells a wide range of products, many of which are created using meat from the farm’s 250 head of cattle. There is also a mobile hog roast and catering business for local shows.
George says farmers today need to “constantly innovate and look to maximise their margins to create a sustainable business.”
That’s why he’s installed a robotic milking parlour to service his 160 crossbred cows and has just switched to an organic milk contract that pays a decent premium. But the latest new income stream that George is nurturing, which promises to be his most lucrative yet, is something entirely new.
George with his organic dairy herd in Somerset.
Proving that it is possible to produce food, benefit the environment and boost the bottom line, 160 acres of the farm are being entered into a Biodiversity Net Gain scheme.
This could potentially generate several million pounds of revenue over its lifetime, as well as facilitating the construction of much-needed new homes in the area.
The scheme, which will revolve around the restoration of species-rich grassland, works well with George’s organic livestock business, and means one block of land will be delivering multiple income streams. “With a bit of creative thinking, it’s amazing how many different activities you can combine in a relatively small space,” he says.
Banks and other lending institutions are under increasing pressure to “green” and “decarbonise” their loan books, so are always keen to work with farmers like George who are delivering measurable environmental benefits.
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