Agritourism

Agricultural tourism has increased significantly in popularity and demand over the past decade and is anticipated to continue growing as a reliable and thriving industry. Starting an agritourism business comes with many benefits but should be carefully considered and planned. This fact sheet addresses the basics of planning and operating an agritourism business and provides resources for further study and support. 

Agritourism serves as a bridge between consumers and agricultural producers. Growing interests in local, specialized agricultural products and experiences, has created a thriving agritourism market which has significant room to grow. Agritourist interests offer benefits for both the farmer and consumers in a variety of ways and can take many shapes depending on what makes sense for your farm. In general, welcoming the public onto your farm property provides economic opportunities through income and product diversification by establishing new revenue streams through product sales, activity fees, rentals, lodging, and/or food and beverage sales. 

Often agritourism events have a strong draw for people because they provide an opportunity to connect with one’s local foodshed in an entertaining and educational atmosphere. Many people have fallen out of touch with their food, and are curious to learn about the farm-to-table process. Through agritourism, farms can strengthen their ties to the community and collaborators, and build an engaged and invested customer base. 

Source: extension.umn.edu

Making a realistic and thorough business plan and managing your business soundly is the most important and effective way to ensure your agritourism operation succeeds. Here are some things to consider: 

Implementation

There are a  wide variety of possibilities for farmers to create agritourism experiences including U-picks, farm demonstrations, festivals, hayrides, restaurants, food or beverage tastings, weddings, farm stays, and many more. There is no set definition of agritourism and regulations may change depending on locality. Generally, any activity that welcomes members of the public into agricultural operations for educational, entertainment, or recreational purposes is considered agritourism. 

Before introducing agritourist practices onto your farm or ranch, it is best to take an assessment of your capabilities and financial standing. While expanding your business can be an excellent way to bring in additional income, often there are high initial costs and investments to be made that need to be considered. To best move forward, it is a good idea to develop a detailed plan with specific goals and metrics by which to measure your success. 

• Update your farm business plan. Each agritourism line of business is highly specific to the individual farm, so be sure to consider what experiences are best suited to your land, existing operations, and geographic location. The individuality and unique environment on your farm can greatly enhance opportunities for agritourism and might allow you to offer something distinctly unique.
• Develop a marketing plan, which will include identifying your target audience and how to attract them. 
• Insurance coverage for farms may not include agritourism activities, you will need to discuss with your insurance provider what inviting the public into your business means for your farm operation to ensure you are secure. 
• Be sure to run trials on family, friends, or colleagues to test ideas and gather feedback. 
• Begin implementing any new ventures on a small scale, to allow for adaptation and the preservation of existing farm operations. 
• Introducing the public and a level of hospitality into your farm can require some reworking and redesigning of standard farm conduct to accommodate new bodies and eyes. 
• Consider your workforce. It may be necessary to train existing staff in hospitality work or to hire new employees to accommodate business changes. 

Taxes

Introducing agritourism into your farm or ranch will change how business and bookkeeping is done. Agritourist activities are handled differently than agricultural production in terms of tax filing and classification. Farm production falls under Schedule F, whereas agritourism activities are under Schedule C. 

Marketing

Effectively spreading the word about your agricultural experience is vital to the success of any agritourism endeavor. Building up strong communication strategies, relying on existing networks and community ties, bolstering your social media presence and activity, ensuring you have an up-to-date and informative website, and investing in building a brand image are all steps that can make an enormous difference when increasing your farm’s attraction. 

Requirements and Regulations

Agritourism businesses can take many forms which may include on-farm wine and other farm-related tours, educational opportunities, corn mazes, barn dances and suppers, and other outdoor recreation activities. Because of this variability, different regulations may need to be considered when beginning an agritourism business. 

• Local zoning laws may allow farming activities but not agritourism. Check your local zoning regulations to ensure agritourism is permitted in your area, and be prepared to go through any necessary permitting processes. 

• Compensation of employees may alter depending on your locality. For example; small farms are exempt from minimum wage requirements, however, agritourism is not included in this exemption. 
• When your farming operation is open to the public American Disability Act (ADA) compliance requirements must be met to ensure the space is accessible to all. Many farms are not set up for visitors, so be prepared to adjust driveways, parking areas, paths, and buildings to accommodate the general public. 

Resources

Cornell Cooperative Extension has an expansive collection of materials, information, and resources covering the many aspects of agritourism. Provided are guides, factsheets, and helpful material further detailing the topics covered on this sheet as well as much additional information. If you have a question about running or are looking to begin an agritourism endeavor this would be a good place to start: 

• Visit the Cornell Cooperative Extension (CCE) homepage featuring agritourism, and navigate to the ‘Resources’ section to access informational videos, fact sheets, regulations overviews, and more. 
• CCE Tioga and Onondaga Counties provide many resources, guides, and support materials. 
• The Agricultural Marketing Resource Center has compiled a list of state-supported agritourism organizations available to support and guide your business. 

Funding

For information on grants and financial opportunities for your farming operation, visit the ‘Grant Opportunities for Farmers’ fact sheet.