In May, several changes to permitted development rights influenced by hit series Clarkson’s Farm came into effect: Aaron & Partners’ Mark Turner delves into what it means, the sector’s reaction – and what impact the changes will have on diversification in farming.

Few could have predicted that Jeremy Clarkson’s unexpected venture into farming, as seen in his popular series Clarkson’s Farm, would so effectively shine a light on the challenges and opportunities faced by farmers – especially when it comes to diversification.

With fluctuating crop prices and ever-changing agricultural policies, many farmers are turning to diversification, creating additional revenue streams by converting barns into holiday rentals or opening farm shops. This strategy is becoming increasingly vital for ensuring financial stability in an unpredictable farming landscape.

While Clarkson’s experience has undoubtedly entertained audiences, it has also highlighted the very real obstacles farmers face when attempting to diversify, from navigating legal red tape and planning permissions to overcoming local opposition. Below, we’ll explore how the concept of ‘Clarkson’s Clause,’ loosely inspired by his journey, could impact the future of diversification efforts for UK farmers.

Understanding ‘Clarkson’s Clause’

Clarkson’s show on Amazon Prime has done well to highlight the bureaucratic red tape that often complicates diversification efforts, and his struggles with local planning authorities over projects like opening a farm shop underscore a broader issue: while the government encourages diversification, the reality can be a maze of regulations, and difficulties in obtaining permission where required.

In recent years, the UK Government has recognised the need to support rural economies through diversification. Various grants and schemes are available, aimed at helping farmers explore new business opportunities. However, accessing these resources requires navigating complex regulations, including obtaining planning permissions, which can be time-consuming and uncertain.

Planning challenges

A major barrier to diversification is the planning system. Farmers often need to change the use of their land or buildings, which requires planning permission. Local Councils have significant discretion in granting these permissions, leading to inconsistent outcomes. What might be approved in one area could be rejected in another, depending on local policies and public opinion.

In the most recent season, we saw Clarkson’s battle to convert his lambing shed into a restaurant, which is a case in point here. Despite the economic benefits and job creation potential, his application faced significant opposition from the local Council and residents. This reflects a common scenario where the benefits of diversification are weighed against concerns like increased traffic, noise, and changes to the rural landscape. Farmers need to present strong business cases and often engage in lengthy appeals if their initial applications are rejected. This process can be costly and discouraging, particularly for smaller farms without the resources to navigate legal battles.

Recent changes to the legislation which sets out what can be done without the need for a planning application (referred to as the ‘permitted development order’), aim to make diversification easier. Some think that the changes (which apply only to the English version of the order - a different version applies in Wales) were triggered by Mr Clarkson’s struggles.

One of the changes is an expansion of the number of uses to which agricultural buildings can be put, including general industrial, storage or distribution, hotels, commercial, business or service, and outdoor sport or recreation. Other changes include an increase in the size of new buildings or extensions on farms over 5 hectares from 1,000 square metres to 1,500 square metres, and an increase in the number of homes that can be delivered through Class Q barn conversions from five to 10.

However, there are a number of caveats and provisos, including that in certain circumstances applications must be made to the local planning authority for a determination as to whether prior approval is required in respect of highways, noise, contamination, flood risk and more.

Reactions from the sector

Since the introduction of the amended legislation, there has been a mixed reaction from the farming community. While there is some optimism about the ability to diversify using permitted development rights, many farmers have been surprised by the number of caveats and conditions attached. The permitted development order is complex, and the requirement in some instances to obtain prior approval from the council which many see as a quasi-planning application giving Local Councils significant control over farmers’ decisions.

Despite these challenges, many in the sector view the changes as a positive move. Clarkson has brought to light the difficulties faced by farmers, including the complexity of even small-scale projects. The recent changes have increased the options available under permitted development rights, with many farmers feeling more confident to pursue new ventures that they might not have considered before.

Diversification trends and future prospects

Looking ahead, a wider variety of diversified uses is expected. Many farmers are likely to be inspired by Clarkson's example and consider opening farm shops selling produce grown on their farms. The increased flexibility and certainty under Class R, which allows land or buildings that have changed use under this class to shift to another use within the flexible use classes, is expected to encourage further diversification.

Support for Diversification

Despite these challenges, there are avenues of support for farmers looking to diversify. Government initiatives, such as rural development programmes, provide funding and advice to farmers exploring new ventures. These aim to stimulate rural economies by encouraging innovative uses of land and resources. Additionally, the National Farmers Union (NFU) offers guidance on diversification, helping farmers understand the legal and financial implications of branching out.

Practical implications for farmers

For farmers considering diversification, understanding local planning policies is crucial. Engaging with the local community early in the process can also help mitigate opposition. Farmers should be prepared to demonstrate the economic benefits of their projects, such as job creation and contributions to the local economy. Legal advice is often essential to navigate the complexities of planning law. Specialist solicitors can help farmers build strong cases and, if necessary, represent them in appeals. It's also important for farmers to stay informed about government schemes and how they might be eligible for financial support.

A path to sustainability and growth

Clarkson’s experience has shed light on the challenges of farm diversification, particularly the legal and planning hurdles that can make it difficult. While the government encourages diversification as a means to boost rural economies, the reality on the ground can be daunting. Farmers need to be well-prepared, both legally and financially, to pursue diversification successfully. That means engaging with local communities, understanding planning laws, and seeking professional advice are key steps in overcoming the obstacles. With the right support and determination, diversification can offer farmers a viable path to sustainability and growth in an increasingly uncertain agricultural landscape.

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