EXIT the pigs, enter the people: A family has transformed part of its farm near Malton into a picturesque caravan and camping site and the venture is set to generate up to six new jobs.

Carol and Derek Watson, who bought their West Knapton farm in 1989, have launched their 80-pitch Wolds Way Caravan and Camping with the help of a £200,000 funding package from Yorkshire Bank and a grant from a Department for Farming and Rural Affairs development scheme.

The couple who quickly built up a successful arable business, growing wheat, barley and rape seed also developed an extensive outdoor pig breeding unit, whose occupants have now been sold to make way for tourists.

What Carol and Derek call "growing legislative and EU-based challenges", forced them to think about diversifying and setting aside six pig-breeding acres for the venture.

Derek said: "We looked at our key strengths and it quickly became apparent that, with our fantastic hilltop location in the heart of the Wolds, an abundance of wildlife and a popular national trail snaking through our 200 acre farm, we could create a first-class tourist facility right on our doorstep."

After costing out the project his first port of call was Yorkshire Bank's dedicated relationship team. The result was the creation of the park, with space for up to 50 touring caravans and 30 tents, fully landscaped with water and electricity outlets at each pitch.

There is also a shower and toilet block and a shop stocking local produce from cheese and bacon to preserves and beer.

"Diversification of a traditional farming business isn't a quick fix," said Derek.

" It requires a lot of groundwork, temerity and confidence about what you will achieve in the long term.

"But if you stick with your dreams it really is worth it."

David Barnes, one of the bank's York-based agribusiness managers, said: "As well as supplying the finance requested by Derek and Carol, we were also able to provide interest rate protection by way of an interest rate cap, which is particularly relevant in a market of rising interest rates.

"I hope this venture blossoms over the summer months."

Updated: 10:44 Friday, July 09, 2004