As farmers across the UK look for new ways to build sustainable and resilient businesses, farm diversification has become an essential part of the rural economy. From tourism and retail to renewable energy and light industrial uses, the opportunities to unlock additional income from farmland are broad, but so too are the planning challenges.
Planning law is often the most significant hurdle landowners face when looking to diversify. Even well-conceived projects can be delayed or refused if planning policies do not favour the proposal, or the implications are not properly thought out or evidenced.
In this article, Planning Law Partner, Mark Turner, who has a great deal of experience supporting farmers, landowners and estates, explains the most common planning barriers to diversification and how they can be overcome.
What is farm diversification and why is planning law so important?
Farm diversification generally involves changing the use of agricultural land or buildings to create another income stream. This can include developing holiday accommodation, hosting events, opening a farm shop or café, creating a glamping site, installing renewable energy, or leasing space for storage and logistics.
In almost all cases, these new uses will require some form of planning permission. This is particularly true where there's a material change of use of the land, construction of buildings, or modifications to access.
Even modest developments can trigger planning issues, especially in protected areas like the Green Belt or National Landscapes (formerly Areas of Outstanding Natural Beauty (AONB)). For landowners, navigating planning law is not just a formality, it’s fundamental to success.
Do I need planning permission to diversify my farm business?
In most scenarios, yes. Planning permission is typically required where the proposed diversification alters how land or buildings are used, particularly if there’s a shift from agricultural to commercial, residential, or tourism use.
Even if there’s no new building involved, material changes in use such as; operating a café out of an existing barn, setting up a campsite, or leasing a farm building for storage, fall under the remit of planning control.
Some projects may fall under permitted development rights, such as those covered by Class Q, (which permits changes of use of agricultural buildings to dwellings, or Class R - a change in use of agricultural buildings for a flexible commercial use), of the General Permitted Development Order 2015, which applies in England.
However, these rights are heavily caveated, and difficult to interpret.
Many permitted development rights still require prior approval from the local authority. Attempting to rely on them without advice can be risky and expose landowners to enforcement and unnecessary delays.
What policies might restrict rural development?
National planning policy, particularly the National Planning Policy Framework (NPPF), which applies in England, and Planning Policy Wales (PPW), which applies in Wales, generally supports the principle of rural diversification.
However, this support is subject to a broad range of policy constraints.
Developments located in National Parks, the Green Belt, within National Landscapes, or near heritage assets, must meet stricter tests. Even in less sensitive areas, local plans often impose limits on development in open countryside or on the loss of good quality agricultural land.
The result is a planning environment where each proposal must be considered on its merits and in context. What might be acceptable in one local authority could be refused in another. Understanding both national policy and the fine print of the local authority specific development plan is critical, especially when seeking to maximise land value or develop long-term strategies.
How can access issues impact planning applications?
Access is a frequent stumbling block in rural planning and can affect farm diversification. Local authorities will assess whether proposed developments can be safely and sustainably accessed by vehicles, whether the existing road network can accommodate any increase in traffic, and whether visibility splays and turning space are adequate.
If the proposal involves visitors, customers or heavy goods vehicles, these issues become even more pronounced.
Can I convert redundant agricultural buildings without planning consent?
It’s a common misconception that redundant barns or outbuildings can be converted freely under permitted development rights.
While Class Q permitted development rights allow for the conversion of some agricultural buildings into residential dwellings, these rights come with strict conditions, including that the building must be structurally capable of conversion without substantial rebuilding.
Furthermore, Class Q cannot be used in certain designated areas such as conservation areas or National Parks, nor does it apply to listed buildings. Even where these rights do apply, landowners must still apply for prior approval.
This process can result in refusals on issues such as transport, flooding, noise, contamination or design. Without careful preparation, what seems like a shortcut can quickly become a legal and financial risk.
Are renewable energy projects easier to secure planning permission for?
Renewable energy is often seen as a straightforward route to agricultural diversification, and planning policy does tend to favour low-carbon projects. But ease of permission varies by technology and location.
Solar projects, for example, are often more readily supported than wind turbines, and smaller schemes tend to face fewer objections than larger installations.
However, planning officers still assess landscape sensitivity, land quality, visual impact, grid connection feasibility and any potential environmental concerns.
In some areas, even modest proposals can generate strong local opposition. Success depends on the quality of the planning submission, the choice of site, and early engagement with the relevant stakeholders. For landowners, energy projects can be valuable, but they are not guaranteed to sail through the system.
How can you maximise land value through strategic planning?
Planning isn’t just a regulatory hurdle, it’s a tool to increase land value when approached strategically. Landowners who consider planning early, and in the context of long-term goals, often unlock more value than those who submit one-off applications in isolation.
A strategic approach might involve phasing developments to spread cost and risk, using pre-application advice to smooth the path for larger proposals, or promoting land for allocation for housing through the Local Plan process.
This kind of forward planning also helps manage financial exposure. The best outcomes are typically achieved when planning consultants and legal advisers work together from the outset, aligning land use ambitions with what planning law will support.
How do I navigate multiple applications across a farm estate?
For larger estates, farm diversification is rarely limited to a single project. It may involve a combination of holiday lets, event venues, storage uses, renewable energy installations and more, often across different parts of the holding. Managing these projects collectively brings complexity but also opportunity.
A coordinated strategy is vital. This might take the form of a masterplan or estate-wide framework that maps out development potential in stages.
Doing so allows for a more persuasive case when engaging with the local authority, and it reduces the risk of cumulative impact objections or internal conflicts between schemes. Estate-wide planning also enables better coordination around access, services and tenant agreements.
How our planning solicitors help rural businesses succeed
We understand the challenges landowners face when looking to make the most of their land. Our planning team regularly advises clients in the rural and agricultural sectors, working on projects involving change of use, development consent and long-term land strategy.
We don’t just advise on your proposals, we help you unlock value, navigate policy, and build strong cases that align with your business goals. Whether you’re exploring your first diversification project or managing a complex estate with multiple interests, our team is here to guide you through the planning landscape with clarity and confidence.
Key Contact
Mark Turner
Planning, Environmental, Energy and Regulatory Partner
Mark advises clients on a wide range of planning matters including applications and appeals, Certificates of Lawfulness, High Court challenges and Judicial Reviews, and enforcement.
