Sheep, pigs and ducks will be on show and a model cow will enable children to learn about milking.
Ewe to You spinners will show how wool goes from the back of a sheep to the back of a human and there will be demonstrations of pasta and sausage-making and composting.
The festival is being run in Market Place from 9am to 3pm by Hinckley and Bosworth Borough Council, Leicestershire Food Links and Hinckley Town Centre Partnership.