Farm Diversification Loan for a Glamping Business in Wales
£285,000 · 10 years · 6.50% fixed. A hill farmer in Powys wanted to diversify his income by converting a redundant stone barn and installing six glamping pods on his farmland.
The Client
Hill farmer in Powys
The Challenge
A hill farmer in Powys wanted to diversify his income by converting a redundant stone barn and installing six glamping pods on his farmland. Planning consent was obtained. The construction cost was £260,000 and working capital for the first season was £25,000. Agricultural diversification lending requires lenders comfortable with both farm and hospitality income.
Our Solution
Doulton arranged an agricultural diversification loan assessed on the farm's existing income, the projected glamping revenue (supported by comparable businesses in the region), and the strong security of the underlying farmland. A specialist agricultural lender with a diversification appetite was selected.
The Outcome
Barn conversion and glamping pods completed on budget. Occupancy in the first full season: 71%. Revenue: £94,000. The diversification income has materially reduced the farm's dependence on agricultural subsidies and commodity prices. Key highlights: Agricultural diversification accepted - farm and hospitality income; Regional glamping comparables supported revenue projections; 71% occupancy in first season - £94k revenue, subsidy dependence.