11 June 2025

Unlocking Ireland’s rural income potential

With tourism and leisure becoming increasingly important sources of alternative income for Irish farms, Barry Caslin details some recent trends, changing consumer preferences and his keys to making diversification a success.

As traditional farming faces price pressures and market uncertainties, many farmers or family members are turning to diversification to boost profitability and gain more control over their revenue. Diversification allows farmers to move beyond the constraints of farmgate prices by offering goods and services directly to consumers, particularly through rural tourism and leisure activities.

Farm income from diversification in Ireland is steadily growing. This rise is linked to expanding rural tourism and leisure sectors, which have seen shifting consumer preferences - especially after the pandemic accelerated digital engagement. Farmers who adapt their offerings to meet these evolving demands are better positioned to capture new markets and sustain their businesses.

Trends in rural tourism interest

Data from Fáilte Ireland highlights a significant increase in online searches related to rural tourism activities. Farm shops have experienced a surge in interest, fuelled by growing consumer appetite for local and authentic food experiences. Many Irish consumers have increased their preference for local products since the pandemic, a trend that supports farm diversification into visitor destinations.

Responding to changing consumer preferences

To thrive, rural tourism businesses must expand beyond traditional models. Themes of sustainable living, wellbeing and experiential consumption are shaping the tourism landscape. As Fáilte Ireland emphasises, transforming a farm shop into a dynamic visitor attraction - by adding new products, seasonal events or novel experiences - can engage a broader audience and encourage repeat visits.

A hill sheep in a scenic setting

Strategic approaches to market expansion

Exploring alternative marketing channels is key. Farmers can connect with customers at local festivals, markets and events to broaden their reach. Practical strategies include:

Building a strong digital presence to engage and learn from customers,
Offering delivery services to widen accessibility,
Tailoring opening hours to accommodate diverse visitor schedules and reduce costs.

These steps help farms break away from conventional patterns and tap into emerging consumer behaviours.

Keys to successful diversification

Success hinges on thorough research and planning. Understanding the target market, analysing competitors and carving out a unique selling proposition are essential.

Farmers can boost visitor appeal through various initiatives:

Collaboration - Partner with local businesses, such as offering milkshakes made from nearby dairy farms via vending machines, to create distinctive experiences.
Seasonal attractions - Introduce activities like pumpkin picking, guided nature walks, or Christmas tree sales to increase seasonal income.
Visitor amenities - Adding dog-walking areas, picnic spots, or electric vehicle charging stations encourages longer stays and greater footfall.
Unique experiences - Cookery classes, farm tours and other interactive offerings enhance visitor engagement.
Heritage storytelling - Sharing the farm’s cultural history builds brand loyalty and deepens visitor connection.
Differentiation - Quirky accommodations or unusual activities can set a farm apart in a competitive market.

Funding and financial planning

Navigating grants, funding and tax implications is crucial for diversification projects. Aligning new ventures with local development plans and incorporating sustainable infrastructure such as renewable energy solutions can improve efficiency and appeal to eco-conscious visitors.

Barriers to domestic tourism

Cost remains a significant factor for Irish tourists. Fáilte Ireland reports that 45% of potential domestic tourists view accommodation expenses as the main barrier to booking staycations. About one-third seek more affordable lodging options, signalling the need for flexible pricing and diverse accommodation types within rural tourism.

Farm shops and delivery services in Ireland

Many Irish farm shops are expanding their offerings by integrating additional activities and attractions, encouraging repeat visits and attracting new customers. Some have introduced delivery services, reflecting a growing emphasis on convenience and customer service.

Embracing digital and economic trends

The self-catering sector is rapidly evolving with digital transformation. Social media marketing, AI integration for personalised experiences, virtual tours and live streaming are becoming standard tools for attracting visitors. Amid tightening household budgets, competitive pricing and value-added services are more important than ever.

Industry bodies such as Fáilte Ireland, the Irish Tourism Industry Confederation and Tourism Ireland continuously monitor trends to help businesses adapt and innovate.

Looking ahead

Ireland’s rural tourism and farm diversification sector has strong growth potential but must remain agile. Embracing digital marketing, responding to consumer preferences for sustainability and experiences, and offering diverse accommodations and activities will be key. Strategic focus on regions like the Wild Atlantic Way, Ireland’s Ancient East and Ireland’s Hidden Heartlands will support balanced growth, ensuring rural tourism remains a vibrant contributor to Ireland’s economy.

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