Are you willing to paint the walls/ ceiling?- its so dark in there! I would at least paint the ceiling. What about a new sofa?- I would suggest a new lighter colored sofa Window treatments? - I would suggest some panels

Do you need the blinds for privacy? I have a rustic home and use a roller type shade to keep the hot sun out otherwise they are open all the way as not to obstruct the view. If you installed panels they could be fully open. I too have a wood ceiling but light colored walls-are you opposed to painting the wood? At least some of it? I would also change out the overhead lights for larger fixtures and hang a bit lower. They seem too high.

As far as hanging artwork-the middle of the piece should be approximately 57-60 inches from the floor.

And add some pops of color. Shades of orange work well with wood and leather.

I would love to paint the walls, but my husband loves the wood (knotty pine) and have agreed not to paint them for now. I have blinds with a custom valance so it does not block our view of the country/ meadow. I may have to convince my husband to paint the ceiling though. Thanks for the suggestion of pops of color. I will definitely incorporate some orange.

My recommendation is to take down the swag curtains. Somehow cow art and floral swags just don't work;)

While the ceilings remain wood, I would paint the air vents brown to help them disappear.

The kitchen cabinets look a bit fancy for the rustic appearance of the room. I would at least create a contrasting island color.

I would replace the swags at the windows with a less fussy windows treatment.

Replace your lamp shades to update the appearance of the table lamps.

I live in a house very much like this - wooden ceilings and walls. When I bought the house I had plans to paint the lot to brighten the space up. But after a year of living there, I found the warmth of the wood to be so calming. It's cosy in the winters, and easy on the eyes in the summer.

Personally, I'd get rid of the curtains. If you must have any, may just plain, summery white cotton (cheap, easy to wash, and really lightens up the room).

I put vivid colored rugs on my floors - rich greens and reds and blues, and I got them second hand for a bargain price. I also hung vivid colored art on my walls - vibrant colored that really stand out against the wood. You could put a slipcover over the sofa - richly colored or a cream, and use bright cushions as suggested by another poster. A brightly colored or lovely white with lace trim dining table runner would look great.

Otherwise, the only other thing, would be to put a different ceiling light fitting in the lounge - the other ceiling light fittings are fabulous, but something similarly rustic, or even a chandelier or one of those big ball Chinese paper lanterns might update the lounge space more than the 80's style light shades?

Personally, I don't see the need for you to splash out with paint or to take on the cost of replacing furniture - it looks like a lovely and homey room with the things you have!

Thanks everyone for the great suggestions!