Grant for horse-related Bed & Breakfast enterprise
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The farm
The Grace family have been farming at Life Hill Farm since 1958 as tenants of the Sledmere Estate in the East Riding of Yorkshire. Andrew Grace succeeded his father as tenant in 1985. The 18th century farmhouse and associated buildings are listed as grade II. The farm comprises 205 hectares, the majority of which is managed on a conventional arable rotation of winter wheat, winter and spring barley, oil seed rape and vining peas. About 30ha of arable land is farmed organically under the Organic Farming Scheme (OFS). Further land is being converted to organic production (but not under any funding scheme). The business also finishes about 1500 pigs on contract each year. An area of 1.5ha is under strawberry production – the fruit is harvested using foreign students under the Harvesting Opportunities Scheme (HOPS - contact NFYFC)and sold both wholesale and through local outlets (eg. farm shops, teashops and local greengrocers). The business has also entered into a machinery sharing agreement with a neighbouring arable farm in order to reduce overheads. The farm was accepted into the Countryside Stewardship Scheme (CSS) in 2000 - the plan includes hedgerow restoration, 2m and 6m field margins, restoration work on 3 dew ponds and orchard management.
Why change?
The main reason for change was falling farm incomes and the need to secure a livelihood from the farm and meet business outgoings (eg. rent).
How did they decide what to do?
In 1998 the Graces drew up a five-year plan for the future of their business which resulted in a number of diversification options being implemented and the farm business reorganised. They had already identified a market opportunity for providing stabling for horses and then received inquiries from horse owners about overnight accommodation. Therefore, architects were instructed to draw up plans for the conversion of outbuildings connected to the farmhouse to provide new bedroom accommodation. Planning permission and Listed Building consent were granted in 2000. The project stalled then due to lack of finance.
However, in 2001 a firm of consultants were engaged to prepare a detailed business plan for an application for a Rural Enterprise Scheme grant to convert some of the buildings connected to the farmhouse, together with a suite of rooms in the farmhouse, into bed and breakfast accommodation with en-suite facilities and to refurbish an old stable block to provide stabling for guests who wish to bring their horses while on holiday. The RES application was submitted in March 2002 and approved within two months.
Where did they go for help?
The main sources of help were the consultants and architects who put together the project with the Graces. Some initial advice on the farm business was also received through the Defra-funded Farm Business Advice Service (FBAS), which helped to confirm that the project proposals were acceptable in the context of the farm business. As a result of the consultants input the project was presented in sufficient detail that allowed it to proceed through planning and RES application processes without too much trouble.
Problems?
Achieving all the project goals within the times set out in the RES offer letter. The amount of time required to manage the project effectively while trying to run the rest of the farm business at one of the busiest times of the farming year. Dealing with RES administrative processes for variations and claims when the project timetable and costings had to be changed due a delay in the start of the building works. Dealing with changes to agreed project costs as a result of changed specifications or unforeseen costs. Trying to get fully receipted invoices from contractors and having to settle contractors and suppliers invoices in full, without the opportunity to hold back retention sums to cover poor/faulty workmanship/goods.
What was easiest or most surprising?
No part of the project was particularly easy. However, the Graces were surprised at how closely their vision for the building conversions was realised and how they managed to achieve the overall quality of the facilities from the outset (the ETC has awarded Life Hill a 4 diamond rating).
Would they do anything differently?
With hindsight, the Graces would have included an element of in-kind costs in their application to cover the considerable work they put in during the construction phase of the project and the costs of using farm machinery (which was used instead of hiring in specialist equipment). Their advice for others is that it is important to assess the level of all costs likely to be associated with the project, try to identify hidden costs at the outset and make realistic assumptions about the time scale of the project.
What difference did the grant make?
The RES funding allowed the Graces to complete the project within a shorter timescale and to achieve the conversion of the outbuildings, the conversion of the suite of rooms in the farmhouse and the renovation of the stables all at the same time, rather than carrying out the work piecemeal over a period of years. It has also allowed them to achieve a higher quality and standard of facility.
How is the project going?
The first B & B suite opened for business in August 2002 and the remaining two annex rooms have been completed. Guests with their horses have been staying on the farm and already the Graces are getting referrals from other local businesses. The future? The facilities will be advertised through Stay on a Farm UK and the Yorkshire Tourist Board for the 2003 season and a website will be developed to promote the business. Overall, the Graces feel there is little scope for further expansion and will consolidate their business activities to ensure that they have sufficient time to manage all the various farm enterprises. However, they will look at ways to integrate the various activities and assets on the farm.
Page last modified:
5 February, 2007
Page published: 10 December, 2002