WHAT started as an extra service for visitors staying on her father's farm has turned into a highly profitable business with an enviable reputation for Karen Scott.

Low Way Farm, at Holwick in Teesdale, has operated three holiday cottages for a number of years and was one of the first to offer bunkhouse accommodation.

The farm stands on its own outside the village and Miss Scott saw an opportunity to offer traditional farmhouse fare to the guests and local poeple.

Spurred on by its popularity, she launched The Farmhouse Kitchen four years ago in a beautifully-converted stone hay barn and cow sheds, but had been established only a few months when the foot-and-mouth crisis struck and the caf and the holiday side of the business closed.

"We did not have foot-and-mouth but did not want to risk anything being brought on to the farm," she said. "It couldn't have happened at a worse time. I had just got a regular base of customers for Sunday lunches and other bookings."

It was not until the September, after the epidemic, that she could re-open. By then the main holiday season was over and she had virtually to start from scratch again.

"But customers were very loyal, a lot of them were Dales people anyway who immediately came back and business has just grown from there," said Miss Scott.

Her reputation has spread so far that several coach firms visiting High Force, Raby Castle and other attractions have made it a regular stop .

"This year there is even a coach firm from Essex which is going to call regularly," she said. "It turned out that one of the visitors who stayed on the farm was one of their drivers. He regularly brought parties to the Yorkshire Dales but had never been to the North Pennines.

"He liked his stay on the farm, and the area, so much that he told his company and they are coming to the North Pennines this year."

The business, which catered for 40 diners, was so popular that Miss Scott successfully applied for a Defra's rural enterprise scheme grant to extend the dining area to 60 seats and to build a new entrance hall.

"There just wasn't enough room to seat everyone comfortably in the existing building, which used to be a redundant hay barn and cow byre before we converted it," said Miss Scott, whose mother, Glennis, sisters, Tracey and Lisa, and son, Matthew, all help with the caf.

"The extra seats mean we can welcome more coach parties and, when we have evening parties for groups, they can all sit together in the dining area.

"I would not have been able to expand now had I not received the support of RES. I'd have had to wait another few years to save the money needed; now the business is able to grow much faster."

Visitors can enjoy home-made meat and vegetarian meals or a drink and a slice of home-made cake.

The enterprise has not only created work and extra income for the family, but also part-time jobs with the holiday cottage enterprise.

The conversion work and extension all went to local contractors and many of the fittings were from local sources.

Miss Scott's father, Brian, supplies the meat for the caf from his sheep and beef enterprise. He was one of the first to offer farm holiday cottages and was a pioneer of bunkhouse accommodation - his two converted stone barns cater for 28 people.

He also joined the North Pennines Environmentally Sensitive Area scheme more than ten years ago.

Karen Purvis, a Defra rural development service adviser in the North-East, said: "The Scotts have already seen the benefits of diversifying to enhance their farm business and ensure its long-term viability, both through the holiday accommodation and the cafe itself.

"We are delighted for Karen and the rest of the family that the business is going so well and that we have been able to support them in their expansion."

The Farmhouse Kitchen is open each Friday, Saturday and Sunday 10am-5pm from Easter to October but can be booked for other times. Sunday lunches must be booked in advance. Parties, weddings and anniversaries can also be catered for. Telephone: 01833 640506.