Eco-Tourism & BNG: Income from Farm Diversification
The farming landscape in the UK is shifting - fast. With the Basic Payment Scheme (BPS) being phased out, the Government’s Sustainable Farming Incentive (SFI) now on pause, and uncertainty around Agricultural Property Relief (APR), many farmers are asking: What’s next?
In this demanding environment, eco-tourism and natural capital income - especially from Biodiversity Net Gain (BNG) - can offer a way forward with more stable, future-focused opportunities to protect livelihoods.
The Suspension of the SFI – What It Means
In early 2025, the Government unexpectedly suspended new SFI agreements. Farmers who had planned to earn payments for improving soil health, hedgerows, and wildlife habitats are now facing a shortfall.
Many had:
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Altered land management practices
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Forgone productive cropping
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Budgeted for SFI income in 2025/26
This sudden halt has created financial and strategic uncertainty, especially for smaller farms and those in mid-transition.
That’s where alternative, regenerative models step in. For landowners already focused on environmental improvements, the integration of Tree Tents structures offers a way to monetise these efforts without needing to scale back sustainability goals.
Tax Changes: Why Act Now: The Case for Eco-Tourism + BNG
Starting 6 April 2026, a combined cap of £1 million will apply to 100% relief on qualifying agricultural and business assets. Assets exceeding this threshold will receive relief at 50%, potentially increasing inheritance tax liabilities for larger farms.
Also effective from 6 April 2025, APR will include land managed under environmental agreements with governmental or approved bodies. This expansion encourages landowners to engage in conservation and regenerative agriculture without jeopardising inheritance tax relief.
These changes have significant implications for landowners:
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Environmental Agreements and APR Eligibility: Participating in approved environmental schemes can now enhance conservation efforts while retaining APR benefits.
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Eco-Tourism and Tax Relief: Eco-tourism ventures, being active commercial enterprises, may qualify for BPR. However, with the new £1 million cap affecting combined APR and BPR claims, strategic planning is essential to optimize tax relief benefits.
With subsidies paused and tax rules shifting, these models provide a way to build financial resilience:
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BNG gives upfront or annual income for nature restoration.
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Eco-tourism creates recurring, experience-driven revenue.
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Combined they support landscape stewardship and brand value.
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Less reliance on Government policy = more control for landowners.
This is where Tree Tents structures offer unique value. With our lightweight, off-grid designs - from customisable, en-suite Birdhouses to suspended Tree Tents - you can create low-impact hospitality offerings that dovetail with rewilding and BNG goals. Our builds are specifically designed to complement and protect natural habitats, making them ideal for areas involved in ecological restoration.
Rethinking the Rural Business Model
Many successful examples (like the Strawberry Lane Tree Tent on Little Thakeham Farm) show that a mixed model of farming, nature-based enterprise, and tourism can deliver:
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Financial sustainability (£8K income in first 6 months of operation, continuing to grow)
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Environmental improvement (embracing, rather than flattening, diverse terrains)
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Local employment
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Resilience through policy change
Tree Tents installations are proving to be more than just beautiful places to stay. They act as catalysts for land-based experiences, educational eco-retreats, and regenerative tourism. Because they’re modular, low-footprint and don’t require foundations, they work seamlessly in protected or rewilding areas - without compromising on comfort or design.
For farmers facing financial uncertainty from recent tax and policy changes, the combination of unlocking natural capital and diversifying into eco-tourism could present the best way forward. Nature and hospitality can pay - ethically, reliably, and regeneratively.
Tree Tents structures make it possible. Whether it’s one off-grid Birdhouse, or a multi-unit woodland retreat, we help landowners build eco-tourism experiences that fit naturally into the land and support long-term stewardship goals.
Ready to diversify? Let’s talk about your land.
Book in a free consultation with our friendly, knowledgeable team: Talk to Jazz
