There are currently over 200,000 farms in the UK, using 17 million hectares of land. Many of these farms have extra land and buildings available that can be diversified for farmers to create an additional income stream.
One of the best ways to diversify your farm is to invest in a self storage business. Entering into the self storage industry offers sustainable revenue, low startup costs, and increased property value.
However, starting a self storage facility on your farm can be challenging and complex, especially if this is an entirely new venture for you. This is why we’ve put together this guide.
In this article, we’ll discuss why diversifying into self storage is an excellent option, how to get it right and the key considerations you need to take into account before you start your business.
What Is Farm Diversification?
Farm diversification is when you expand your farm’s operations into new areas beyond traditional crop or livestock production.
It involves introducing new income-generating activities that complement your primary agricultural business.
The goal is to create a more resilient operation that can withstand the fluctuating cycles of agriculture, such as seasonal shifts, market price changes and weather conditions.
Self storage is an excellent option for diversifying your farm. Farmers can use unused land or buildings to offer self storage solutions to individuals or businesses in their community.
The Benefits of Converting Extra Farm Space Into a Self Storage Business
Now that you know more about farm diversification, let’s look at the benefits of starting a self storage business on your extra land:
Minimal startup and operational costs
Starting a self storage facility on your farm requires a relatively low initial investment compared to other business ventures. Our investment calculator can help you determine your return on investment (ROI) for your self storage facility.
If existing structures can be repurposed, you can avoid the high costs of new construction.
Additionally, self storage businesses have minimal operational expenses since they don’t require full-time staff, expensive equipment or perishable inventory. In fact, many facilities operate with self-service and minimal maintenance.
Steady and predictable income
Farming income is often seasonal and highly dependent on factors like weather, market fluctuations and production costs.
By converting part of your farm into a self storage facility, you create a steady and predictable revenue stream.
Storage rental fees are typically collected monthly, providing consistent cash flow throughout the year.
This can help stabilise farm finances and reduce the stress of uncertain harvest yields.
Maximising underutilised land and buildings
Many farms have unused or underutilised buildings such as barns, sheds, or silos. Instead of letting these structures sit idle or deteriorate, you can convert them into storage units with minimal investment.
Likewise, vacant land that isn’t suitable for farming due to soil conditions, drainage issues, or other limitations can be repurposed into outdoor or container storage.
Increased property value
Adding self storage units or containers to your farm can significantly increase your property’s overall value.
The additional income stream, improved infrastructure and commercial potential make your farm more attractive to potential buyers and investors if you ever choose to sell your property.
Even if you don’t plan to sell, the increased valuation can be beneficial when securing loans or refinancing.
Protection against agricultural market volatility
As mentioned earlier, the agricultural industry is notoriously volatile, with fluctuating crop prices, unpredictable weather patterns, and changing government regulations.
Diversifying into self storage provides financial stability and reduces your dependence on farm-related income.
If crop yields are lower in a given year, storage rental income can help offset potential losses.
How to Start Your Farm Self Storage Business
To ensure the long-term success of your new self storage business, it’s important to approach the process strategically. Here are the main steps you need to take to start your farm self storage business:
1. Conduct market research
Before investing time and money into building a self storage facility, it’s essential to conduct thorough market research.
Nearly 80% of companies conduct market research, and 91% of businesses say using this data increased their sales.
Understanding the demand for self storage in your area will help you determine whether your business is likely to succeed.
Start by assessing the local population and their storage needs. If your farm is located near a growing residential area, homeowners may need convenient storage solutions for their seasonal belongings, furniture, or vehicles.
If your farm is in a more rural setting, potential self storage customers could include other farmers, tradespeople and businesses that require secure storage for equipment, inventory, or tools.
Competitor analysis is another crucial aspect of market research. You need to identify existing self storage facilities nearby and evaluate their pricing, unit sizes and occupancy rates.
If storage businesses in your area are fully booked or charge high rates, it indicates strong demand and presents an opportunity for you to enter the market successfully.
2. Choose your storage type
Once you’ve confirmed demand, the next step is deciding on the type of storage units you will offer.
There are two main options: shipping containers or converting an existing or newly constructed building into storage units. Each option has its own set of advantages and disadvantages.
➡️ Indoor storage
If you opt for a physical building, you can create a more premium storage facility with climate-controlled units, customised layouts, and insulation to protect your storage space from extreme temperatures.
This option is particularly appealing if you plan to target customers who need to store sensitive items such as furniture, electronics, or important documents.
However, constructing or converting a building can be more expensive and time-consuming, as it requires permits, materials and skilled labour.
It may also require ongoing maintenance, like roofing repairs and insulation upkeep.
➡️ Shipping containers
Container storage, on the other hand, is a cost-effective and flexible alternative. Shipping containers are durable and weatherproof and require minimal modification before they’re ready to rent.
They can be placed directly on leveled ground with minimal construction work, making them a quicker and more affordable investment option.
Containers are ideal for customers looking for secure, non-climate-controlled storage for tools, vehicles, or general belongings.
However, they may not appeal to customers seeking a premium storage experience, and they can become very hot or cold depending on the climate you operate in.
If you choose this option, consider adding insulation or ventilation systems to improve conditions inside the containers.
3. Prepare your site
Once you’ve decided on your storage type, it’s time to prepare your site. Site preparation is a critical step that ensures your storage units are secure, accessible, and well-maintained.
Clear your land
Start by clearing the land where you intend to place or build your storage units. Remove any debris, overgrown vegetation or obstacles that could interfere with construction.
Level the ground
Next, level the ground to create a stable foundation. Uneven ground can cause structural problems and make it difficult for customers to access their units.
Install drainage
If your farm is in an area prone to heavy rainfall, installing a proper drainage system is essential to prevent flooding and water damage.
Create your foundations
If you’re using shipping containers, you may need to create a gravel or concrete foundation to keep them stable and prevent them from sinking over time.
Should you be constructing a physical building, ensure that you lay a strong foundation to support the structure.
Access roads and pathways should also be prepared to accommodate vehicles, including large trucks and trailers.
Now, it’s time to either place your containers on their foundations or construct your building. You can learn more about construction costs by reading our guide to the expenses involved in building a self storage facility.
4. Consider security
Self storage security is one of the most critical factors in running a successful facility. Customers need to feel confident that their belongings are safe, so investing in security measures is essential.
Start by securing the perimeter of your facility with fencing or a gated entry system. This will help deter unauthorised access and ensure only paying customers can enter your property.
Installing surveillance cameras around the property is another effective way to enhance security. CCTV systems can provide 24/7 monitoring and can be accessed remotely via your smartphone or computer.
Motion-sensor lighting is also a valuable addition, as it can deter potential intruders while improving visibility for customers.
Additionally, consider implementing secure locking systems for each storage unit. Heavy-duty padlocks, keyless entry systems or smart locks provide an added layer of security.
5. Start marketing
Once your storage facility is set up, the next step is attracting customers. A strong self storage marketing strategy will ensure that people know about your business and are encouraged to rent units.
➡️ Create a website
Start by creating a professional website that provides detailed information about your storage facility, including unit sizes, pricing, and availability.
A website with an online booking feature makes it easier for customers to reserve units without needing to visit your farm in person.
Businesses with websites that engage customers typically see a 15% to 50% increase in revenue growth.
When you invest in Stora, you get a fully optimised self storage website designed to turn potential customers into paying tenants. You’ll get online bookings, automatic secure payments and user-friendly forms to capture leads.
➡️ Try local advertising
A Google Business Profile (GBP) is a free tool from Google that helps businesses like yours appear in search results and on Google Maps. It’s like an online business card that displays important details like your business name, address, phone number, website, operating hours, and customer reviews.
Local advertising is crucial, so you should a create a GBP so potential customers can find you when searching for nearby storage options.
To optimize your GBP, claim and verify the listing. Ensure you complete all the details, upload high-quality photos and use the Q&A section to answer common customer questions.
Below is a good example of a Google Business Profile for a farm with self storage. It is complete with all the necessary business information and engaging photos:
To reach customers in your area, consider placing ads in local newspapers, on radio stations or on community bulletin boards.
➡️ Use social media
Social media marketing can also be highly effective, especially if you post engaging content such as customer testimonials, facility updates, and special promotions.
Here’s a great example of an engaging social media post from a farm that offers self storage:
➡️ Encourage word-of-mouth and referrals
Word-of-mouth marketing is another powerful tool, especially because this drives 13% of consumer sales.
Encourage satisfied customers to leave positive reviews online and refer friends or family members to your business. You can even offer referral discounts or promotions to incentivise word-of-mouth recommendations.
6. Choose a self storage management system
To ensure smooth operations, you’ll need a reliable self storage management system to handle reservations, payments, customer communications, and access control.
Stora is the perfect solution for farm-based self storage businesses. It provides an all-in-one platform for effortlessly managing your facility.
With Stora, customers can book units online, make payments automatically, and even gain access to their storage space without requiring on-site staff.
This self storage automation reduces administrative work, allowing you to focus on running your farm while your business operates efficiently in the background.
Our software also offers robust reporting tools, helping you track occupancy rates, revenue and customer trends to make informed business decisions.
By using Stora, you can provide a seamless experience for your customers while maximising the profitability of your self storage business.
Whether you’re running a smaller container storage operation or a larger facility, we give you the tools you need to grow your business easily.
Key Considerations for Building Self Storage on Your Farm in the UK
Setting up a self storage business on your farm requires careful planning and compliance with relevant laws and regulations. Here’s what you need to consider:
Planning permission
In the UK, planning permission is required when changing the use of land or buildings for commercial purposes, including self storage.
Farms are typically classified as agricultural land, and converting part of your property into a self storage facility will require a change of use application filed with your local planning authority.
Tax
Tax considerations are an important aspect of running a self storage business on a farm. One key point to understand is Business Rates, which apply to non-agricultural business activities, including self storage.
If you convert farm buildings into storage units, you will likely be liable to pay Business Rates on those buildings.
You can check your property's rateable value with the Valuation Office Agency (VOA) to determine how much you may need to pay.
However, if your self storage facility is small, you may be eligible for Small Business Rate Relief, which can significantly reduce your tax liability.
Legal obligations
Operating a self storage business on your farm means complying with various legal responsibilities.
For example, you must ensure your facility meets health and safety regulations to protect your customers and employees. This includes maintaining a safe environment, providing adequate lighting and installing secure access controls.
You must also comply with consumer protection laws, such as the Consumer Rights Act 2015, which governs contracts between businesses and customers. Your storage agreements should clearly outline rental terms, payment schedules, security deposits, and policies on liability for stored goods.
Insurance
Insurance is another crucial part of running a self storage business on a farm. Many standard farm insurance policies cover only agricultural activities, meaning your self storage business may not be protected unless you obtain specialist commercial insurance.
The first step is to inform your current insurer about your new business venture. Failing to disclose this change could invalidate your existing policy.
You’ll likely need to take out commercial property insurance to cover risks such as fire, theft, vandalism, and damage caused by extreme weather.
If you’re using shipping containers, you also need to ensure they’re covered under your policy, as some insurers classify them as temporary structures with different risk assessments.
The Best Way to Start Your Farm Self Storage Business
Starting a self storage business on your farm is an excellent way to generate additional income, make better use of your land, and create a sustainable revenue stream.
With increasing demands for storage solutions across the UK, farmers have a unique opportunity to diversify into a profitable and relatively low-maintenance business.
Running a self storage business on your farm doesn’t have to be complicated. With the right facility management software, you can automate everything from online bookings and payments to customer access and facility management.
If you’re ready to diversify your farm with self storage, Stora is the perfect solution to help you get started. Book a demo today to see how Stora can simplify your business and help you maximise your farm’s earning potential.
