What is Agritourism?
This is a comprehensive overview of the agritourism industry. Many of you are already immersed in this industry and others are asking “what is it and why would I want to do it? Or why would I want to expand my business into other operations?”
We encourage you to visit the sections most relevant to you using the hyperlinks below.
Key Take Aways
- There is no official definition for agritourism but basically, it is where farms and visitors intersect, the place for interaction. Michigan’s top industries are agriculture and tourism, making agritourism a perfect combination.
- Based on data from the USDA’s 2022 Census of Agriculture, the agritourism industry continues to be strong at the national, state, and local levels, and is expected to grow. The Census has reported significant growth in the agritourism industry for the past 30 years. In Michigan, the number of farms and the dollars generated by agritourism have significantly increased since 2017.
- Agritourism benefits farm producers, consumers, and state and local economies. The main benefit stated by producers is sustaining the financial viability of the farm – additional income opportunities that can be a lifeline for many farms.
- Agriculture is a costly business and sometimes yields are low. Diversifying the business and exploring agritourism as another revenue source may be worth doing.
- There is no “one look” for agritourism. It is a multi-faceted industry with a wide variety of unique offerings – limited only by your imagination.
- Like in any industry, agritourism has its own challenges, rewards, and risks. Some of these challenges are natural (weather, pests), costs to farm and capital, labor, marketing and competition, regulatory (taxes, insurance, licenses, compliance), time management, relationships with others, zoning, and technology.
- The industry is expected to continue to grow driven by desire for authentic experiences, eco-tourism trends, food tourism, and educational and recreational offerings.
AGRITOURISM DEFINED
In the state of Michigan, agritourism is defined as “the practice of visiting an agribusiness, horticultural, or agricultural operation, including, but not limited to, a farm, orchard, or winery or a companion animal or livestock show, for the purpose of recreation, education, or active involvement in the operation, other than as a contractor or employee of the operation.” Essentially, it involves engaging with agricultural activities for leisure, education, or hands-on participation. Whether you’re exploring a vineyard, picking apples at an orchard, or learning about farming practices, agritourism offers a delightful blend of rural experiences.
Agritourism, simply stated, are the places where agriculture and tourism connect. Anytime an agricultural-based operation opens its doors to the public and invites visitors to come and enjoy their products and services – that’s agritourism.
Agritourism as defined by the U.S. Department of Agriculture is a practice that “combines the essential elements of the tourism and agriculture industries” and invites the public to use farms as recreation, entertainment or educational experiences.
“Anybody that’s producing food and making the production of that food something people can come and see and experience, that all qualifies as agritourism,” said David Skeval, the executive director of Cornell Cooperative Extension of Onondaga County, NY. That includes everything from wine tasting, pumpkin patches, and apple picking to tractor rides, petting zoos, and expensive farm retreats.
The National Agricultural Law Center defines agritourism as the “crossroads” of agriculture and tourism; it draws visitors to farms for educational, entertainment or recreational purposes, and it is intended to increase farm income.
An even simpler definition from The Centre County (PA) Comprehensive Plan defines agritourism as: “any activity that takes place on a working farm that can be experienced by visitors for a profit to the farmer.”
The Cambridge Dictionary offers us a rather idyllic definition (and sub definitions): “the business (the activity of selling goods and services) of providing (to give someone something that they need) vacations (a time when someone does not go to work or school but is free to do what they want, such as travel or relax) for people (men, women, and children) on farms (an area of land, together with a house and buildings, used for growing crops and/or keeping animals as a business)or in the countryside (land not in towns, cities, or industrial areas, that is either used for farming or left in its natural condition).
It is important to know that agritourism has no national or official definition. Suzi Spahr, executive director for the International Agritourism Association (NAFDMA) says there is significant diversity in what is considered agritourism. Consequently, NAFDMA has created its own definition of agritourism: “Agritourism is an agricultural enterprise attracting visitors to a farm or ranch to experience a connection with agriculture production and/or processing through entertainment, education, and/or the purchase of farm products.” We are starting to use that as sort of the basis by which we ensure that the focus remains on agriculture as the main guiding force, the main purpose behind what’s occurring,” says Spahr.
Though the exact definition of agritourism may vary from state to state, the intersection where tourism and agriculture meet remains constant.
A SHORT HISTORY OF AGRITOURISM
The Start of Agritourism Globally
Agritourism has a rich history that varies across different regions. Agritourism’s roots can be traced back to traditional agrarian societies where visitors often engaged with local farming activities. Historically, this was more about necessity than leisure, as travelers would stay and work on farms in exchange for lodging and food.
The first instances of agritourism in the U.S. can be traced back to the late 1800s when city dwellers visited farming relatives to escape the summer heat. The automobile in the 1920s also made visits to the countryside more popular. The Great Depression and World War II saw a renewed interest in rural escapes, leading to activities like horseback riding and farm petting zoos which became popular in the 1960s and 1970s. The automobile had an exceptional impact in Michigan, allowing residents of the city of Detroit to explore and make purchases from the multitude of farms that stretched out across the region.
The pandemic in the 2020s boosted agritourism when lockdowns pushed people to do outdoor activities and when people chose small, local businesses out of empathy or necessity.
Agritourism has deep roots in Europe, particularly in Italy, where in the 1950s to 1970s small-scale farming became less profitable, leading many farmers to abandon their farms and head to the cities for work. To combat this, Italy passed an “agriturismo law” in 1985 to regulate and encourage farm stays. Today, Italy, the UK, and other countries offer thousands of locations offering meals, lodging, and various farm activities.
Today, agritourism in the U.S. includes a wide range of activities such as farm stands, u-pick operations, educational tours, and farm stays.
Agritourism continues to evolve across the globe, providing a vital source of income for farmers and enriching the experiences of visitors by connecting them with agricultural practices and rural life.
The Start of Agritourism in Michigan
In 2021, a case study was conducted on the processes and strategies of agritourism development in the State of Michigan (Jin, Wu, Zhang, 2021). As part of their research, they constructed a timeline of key events contributing to the growth of agritourism in Michigan.
1979: Directory of statewide agricultural markets and U-pick products published by MDARD.
1997: Consumer research by U.S. Department of Agriculture.
2001: Auto industry declines due to foreign manufacturing, small to medium sized farms urgently seek more sources of income.
2002-2005: Various agritourism research by Michigan State University, Western Michigan University, and U.S. Department of Agriculture.
2005: Michigan legislature defines “Agricultural Tourism” and establishes the nine-member Michigan Agricultural Tourism Advisory Commission.
2006: Michigan Farm Marketing and Agri-Tourism Association established; By-laws were formalized and founding board members were elected.
2007: Report of Recommendations by the Michigan Agricultural Tourism Advisory Commission released.
2007: National Census of Agriculture adds “inclusion of income from agritourism”.
2009: Generally Accepted Agricultural and Management Practices issued.
2012: Michigan Farm Marketing and Agri-Tourism Association renamed the Michigan Agri-Tourism Association
2014: Michigan Agri-Tourism Association becomes Michigan Agritourism
2019: Governor of Michigan proclaims October as Michigan Agritourism Month
The study discussed how agritourism in Michigan accelerated around 2014 as evidenced by an increase in gross revenue from agritourism, of which farm markets, orchards, and vineyards/wineries accounted for 64%. Taxes paid to the State by agritourism operations also increased. Across the year, the agritourism industry created 4,000 full-time jobs and provided work for 28,000 part-time employees. Overall, there was an increase of agritourism types and tourists, improved legislation, and establishment of industry associations.
As the industry emerged, the State of Michigan took the lead in understanding the industry and the needs of consumers. It created commissions to study, recommend, and report on existing operations and practices. The State also developed strategies, guidance, and regulations. Today, the State continues to work closely with research institutions and to develop programs and guidance and has been instrumental in promoting agritourism to consumers.
Higher education, namely Michigan State University, MSU Extension, and Western Michigan University, has also contributed much to the continued growth and strategy of agritourism through agricultural and agritourism research.
Agritourism continues to evolve, providing a vital source of income for farmers and enriching the experiences of visitors by connecting them with agricultural practices and rural life.
AGRITOURISM STATS
The Start of Agritourism Globally
The agritourism industry in the U.S. and Michigan is doing very well, especially when it comes to growing farm income according to the U.S. Department of Agriculture’s 2022 Census of Agriculture (released February 2024). The Census is conducted every five years and represents one of the most comprehensive sources of information on the U.S. agricultural industry, much of which is available on the national, regional, state, and county levels.
Agritourism in the U.S.
Nationwide, 28,617 agricultural businesses earned an income from agritourism or recreational services in 2022, according to the latest census by the U.S. Department of Agriculture. While the number is little changed from 28,575 in 2017, the average gross income per farm from those activities went up 32% from $33,222 in 2017 to $44,004 in 2022.
Looking at income from all farm related sources, it too, is up 32% from 2017 even though the number of farms reporting has dropped 11% since then.
- Number of farms participating in agritourism U.S.: 28,617 (nearly the same as 2017)
- Dollars generated from agritourism U.S.: $1,259,261 (up 32% from 2017)
- Avg dollars generated from agritourism, U.S., per farm.: $44,04
- Total income from farm related sources, number of farms, U.S.: 697,103 (down 11% from 2017)
- Total income from farm related sources, U.S.: $22,257,550,000 (up 32% from 2017)
- Total income from farm related sources, avg per farm, U.S.: $31,929 (up 49% from 2017)
Agritourism in Michigan
Data according to the 2022 Census of Agriculture (Knudson & U.S. Department of Agriculture, 2024; 2024 Census of Ag Infographic, 2024).
The farmers:
- Average age of farmers: 56.5
- Michigan farmers: 65% male, 35% female
- Farmers by race, American Indian, 341; Asian, 206; Black, 354,
- Hispanic, 1110; White, 79,005
- Average years on present farm: 21.4
- Farmers with a primary occupation other than farming: 57%
The farms:
- Number of farms: 45,581 (decline of 2060 in 2017)
- Average farm size in acres: 208
- Number of individual, family-owned farms: 85%
- Connectivity: Internet, 36,127; Dial-up, 976; Broadband, 18,317;
- Cellular data, 22,890; Satellite, 6,425
- Farms with LLC organization: 7,554
Agritourism (a combination of Michigan’s second and third top industries):
- Number of farms participating in agritourism: 836 (up 11% from 2017)
- Dollars generated from agritourism: $56,567 million (up 170% from 2017)
- Number of farms selling direct to consumer: 5,295 (down 6.5%, 5669 in 2017)
- Dollars generated selling direct to consumer: $132,787 million (up 46% from 2017)
- Number of farms selling processed or value added: 1,525 (up 5%, 1,450 in 2017)
- Dollars generated selling processed or value added: $133,578 million (up 179% from 2017)
Income from Agriculture:
- Michigan market value of livestock: $5.2 billion
- Michigan market value of crops: $7 billion
- Michigan market value of agriculture total: $12.2 billion (up 48.5% from 2017)
- Michigan farm production expenses total: $9.79 billion (up 35.8% from 2017)
- Michigan net farm income: $2.98 billion, avg $65,422 per farm (up nearly 50% from 2017)
- Total income from farm related sources, number of farms: 17,548
- Total income from farm related sources: $418,571,000 (up 32% from 2017)
- Total income from farm related sources, avg per farm: $23,853 (up 49% from 2017)
Agritourism in the Upper Midwest
Investigate Midwest (2024) compiled data over the past 20 years and found that the number of farms that receive income from agritourism has steadily grown in the Upper Midwest, and the agritourism industry has grown exponentially for farmers across most of the region, based on agriculture census data.
In Ohio, the number of farms that receive income from agritourism nearly doubled from 2002 to 2022, the most of any Midwestern state. Indiana saw the largest growth in agritourism income from 2002 to 2022 – a 1,300% increase. Alongside Indiana, farmers in Michigan, Ohio, Iowa and Wisconsin each saw exponential growth of more than 1,000%.
Midwest agritourism yearly income by state, 2002 – 2022
- Michigan $3,295,000 in 2002, $56,567,000 in 2022
- Increase of 53,272 equals 1,617%
Midwest agritourism operations per year, 2002 – 2022
- Michigan 615 in 2002, 836 in 2022
- Increase 221 equals 36%
The Data Behind the Numbers
It is important to know that crops and animal products count towards farm-related income sources according to the USDA. That number also includes alternative sources such as rental payments, forest products, custom work and services, and income from agritourism and farm-based recreation.
The USDA defines agritourism and recreational-service income as “income from recreational services such as hunting, fishing, farm or wine tours, hayrides, etc.”. This excludes things that many would consider to be agritourism, such as event hosting (like harvest festivals and farm-to-table dinners), on-farm lodging, and u-pick operations. All of these seem like they could potentially count under the USDA’s definition, but without making them explicit, it is hard to say how producers would interpret whether their activities count as agritourism. While the ambiguity in the USDA’s definition is a notable downside of using the Census data for this purpose, there are few other sources for agritourism (Bigelow, 2024).
Michigan’s Agricultural Diversity
Michigan is the second most agriculturally diverse state behind California. Michigan produces more than 300 agricultural products which had a market value of $12.2 billion in 2022 (2024, Pure Michigan). According to data from the Michigan Agriculture Council, below are Michigan’s top crops (2022); many of these are integral to agritourism operations.
Top Crops:
- Apples, 35,500 acres harvested, 825 farms, #3 nationally
- Asparagus, 9500 acres harvested, #1 nationally
- Beans, dry, 21,150 acres harvested, #2 nationally
- Blueberries, 20,000 acres harvested, 500 farms, #3 nationally
- Carrots, #4 nationally
- Celery, #2 nationally
- Cherries, tart, #1 nationally
- Christmas trees, 37,000 acres harvested, 596 farms, #3 nationally
- Cucumbers, pickling, #1 nationally
- Dairy, 1481 dairy farms, #1 nationally for milk produced per cow
- Floriculture, 569 producers, #3 nationally
- Potatoes, 569 producers, second-most grown produce commodity in MI, #1 nationally for chip potatoes
- Pumpkins, #4 nationally
- Squash, #2 nationally
THE BENEFITS OF AGRITOURISM
In January 2022, legislation was introduced in the U.S. House to create a Department of Agritourism. This bill, also known as the “Agritourism Act” named some of the benefits that agritourism operations offer, including “educational opportunities for children and families”; “supplemental income for owners of agricultural enterprises, which are often small or family-run businesses”; “economic development in rural communities”; “preserve agricultural heritage”; and “help farms diversify” (Jiao, 2022).
How Farmers Benefit from Agritourism
Agritourism provides a way for farmers to diversify their offerings and create a diversification strategy that can be a financial lifeline for smaller farms. By diversifying their business operations to include agritourism activities that can occur during times of the year when crops may not be in season, operators can ensure a more stable income throughout the year and into the off-season and generate a separate stream of income. There are many motivations to adopt agritourism, but generating more revenue overall seems to be the most common reason noted.
“Over the past few decades, an increasing number of farms are realizing that by opening their doors to the public, they have new opportunities for growth, new sources of revenue on the same land and a chance for a direct connection with their customers,” says Janice Benson, Michigan Agritourism Association executive director.
In a recent survey of Michigan Agritourism members, a notable percentage indicated plans for growth. “Consumer demand and the economic value of agritourism are driving that growth,” Benson says. (Michigan Agriculture, 2023).
Many farmers are looking for ways to buffer the volatility of traditional farming such as unusual or challenging weather conditions that could wipe out most of a crop or fluctuating market prices.
By offering value-added products and activities, growing different crops, and marketing direct to consumers, farmers are better positioned to add revenue streams that complement their regular agricultural operations.
There are many benefits to producers.
- Keeping a farm financially viable through new revenue beyond traditional crop sales.
- Keeping the family farm in the family. Being able to farm the land through multiple generations and providing employment opportunities for family members.
- Allowing for continued farming and increasing the visibility around the farm and its operations.
- Capitalizing on a hobby or special interest. This can lead to new areas of self-satisfaction and profitability.
- Increasing and diversifying a market, typically by getting products into the market through direct sales. Consumers are looking for fresh, local produce and desire to purchase it locally.
- Responding to a need or opportunity in the market (like adding a specialty product).
- Creating on-site shops to sell produce, value-added products like jams and jellies or handcrafted goods inspired by their farm.
- Opening their farms to the public. Creating unique experiences that boost tourism and create additional revenue streams.
- Interacting with and educating customers and visitors about farming. There is an increased interest in how food is grown and adding u-pick experiences allows them to experience agriculture firsthand.
- Building connections with the community by supporting and participating in local events. Sharing your time, knowledge, or surplus produce items with those in need. Being an active member of the community.
How Consumers Benefit from Agritourism
Agritourism offers the opportunity for the public to connect with local agriculture and meet the farmers that grow the food while learning about farm life and food production. Most of the U.S. population is disconnected from their agrarian roots by 4-5 generations. Agritourism provides an opportunity to increase the “agricultural literacy” of the non-farming public (Agritourism survey results, 2021).
Why do people enjoy going to the farms? Because farmers open their gates to visitors, inviting them to immerse themselves in the agricultural lifestyle and enjoy farm-fresh produce, scenic backdrops and genuine hospitality. They are drawn by the type of setting, the type of activity, the type of interaction, and the means of presenting or experiencing the agricultural reality (Jiao, 2022).
“When you step onto a local farm, you make a connection with the farmer, you learn something new, you gain an appreciation for farming because you’re getting a closer look at how food is grown, how farm animals are raised, how apples become cider, how flavorful produce is when it’s freshly picked,” says Janice Benson, executive director for Michigan Agritourism. “When you make a purchase at a farm, you play a part in directly supporting a small family business.”
How the State of Michigan and Local Communities Benefit from Agritourism
Agritourism is considered increasingly important to Michigan’s economic health and diversification. Preserving and enhancing the value of agricultural lands and active agricultural production has the potential to increase state and local funds. According to the USDA, agritourism generates an estimated $56,567 million in sales per year in Michigan.
Agritourism also can help revitalize rural economies. It draws visitors to areas they might not otherwise explore, thereby supporting local businesses and communities. Local businesses like bed and breakfasts, local eateries, and craft breweries often experience a boost as visitors explore the surrounding areas, as do nearby gas stations, hotels, gift shops and other local businesses. The economic boost caused by the increase in traffic can be beneficial to rural areas in need of diversified streams of income.
Agritourism also benefits the community by providing recreational and educational experiences and creating jobs. Agritourism farms provide labor opportunities for local residents through agricultural or agritourism-related activities such as harvesting or packaging produce, creating value-added products, farm tours, farm markets, on-farm entertainment, farm-to table dinners, animal care, and much more.
Environmental Stewardship
In addition to the widely recognized economic benefits agritourism operations bring farmers and surrounding communities, recent research highlights the environmental and cultural resiliency aspects, like wildlife habitat improvement, water conservation, preservation of rural heritage, and reconnection with agrarian culture (Jiao, 2022).
Having visitors to the farm presents a unique opportunity to promote and demonstrate sustainability. Many agritourism farms are embracing organic farming methods, renewable energy sources like solar power, and water conservation practices. Some farms demonstrate how to grow food sustainably and how these practices benefit the environment.
This educational platform works well with younger generations, too. They learn where their food comes from, the importance of sustainable agriculture, and the delicate balance of our ecosystems.
Visitors of all ages can leave with a deeper appreciation for the environment and the hard work that goes into producing our food.
WHAT DOES AGRITOURISM LOOK LIKE?
The Agritourism Act
The House bill, “Accelerating the Growth of Rural Innovation and Tourism Opportunities to Uphold Rural Industries and Sustainable Marketplaces Act” or the “Agritourism Act” https://www.congress.gov/bill/117th-congress/house-bill/6408 was introduced in 2022 to establish an office within the Department of Agriculture to promote agritourism activities and businesses. Even though the bill did not pass during its initial introduction, it is still relevant for the agritourism industry. The interest in devoting an entire department to the promotion and regulation of agritourism indicates its rising importance and forms the basis for shaping future legislation.
Since there is no clear definition for agritourism, there is also no clear-cut vision of what agritourism “looks like”. Agritourism operations take on varying forms of activities and experiences. Agritourism lies in the eyes of the beholder as most of us “know agritourism when we see it”, but we may not see it the same way. Luckily, a framework for examining agritourism was included in the Agritourism Act.
Five Main Categories
The Agritourism Act defines agritourism into five main categories by type of experience:
- Education, such as school tours, garden and nursery tours, winery tours, historical agricultural exhibits, and hops and micro-brewery tours;
- Outdoor recreation, such as river activities, mountain biking, horseback riding, wildlife viewing and photography, fee fishing and hunting, wagon and sleigh rides, cross-country skiing, game preserves, and clay bird shooting;
- Entertainment, such as concerts and special events, culinary experiences, festivals, fairs, interaction with farm animals, and weddings;
- Direct sales, such as on-farm sales, farm stands, agriculture-related crafts and gifts, u-pick operations, u-cut tree farms, wineries, breweries, cideries, distilleries, and cut flowers;
- Hospitality, such as bed-and-breakfast inns, farms and ranch vacations, yurts, sheep wagons, guest ranches; and dining on a farm.
The graphic here from researchers from the Global Agritourism Network (Laime, 2021) illustrates these categories with some operational possibilities within each category. There are many, many creative ways to offer these types of experience to the public. Farm operators (and their families) often come up with unique offerings that the public enjoys.
Common Types of Experiences
What are the most common types of experiences being offered by agritourism farms? The Vermont Tourism Research Center (Agritourism Survey, 2021) conducted a survey of agritourism operators to identify the types of farm experiences being offered and found:
- 77% farm direct sales
- 55% education
- 48% entertainment and events
- 27% outdoor recreation
- 19% lodging
The Penn State Extension in collaboration with several other universities recently collected data on types of experiences offered by agritourism operators (National Agritourism Support System Survey, 2024). Based on their data collection (the survey results are not yet available), experiences could include:
- Pick-your-own (u-pick fruit, u-pick Christmas trees or flowers)
- On-farm direct sales (farm stand/store, CSA)
- Accommodations and lodging (glamping, bed and breakfasts, farm stays, camping sites)
- Education (farm tours, workshops, classes)
- Entertainment (mazes, hayrides, petting areas)
- Events (farm to table dinners, weddings, venue rentals, festivals)
- Outdoor recreation (horseback riding, fishing, hiking trails, photography)
- Hunting
- Sales of prepared food (snack bar, restaurant, café)
- Off-farm direct sales (farmers’ markets, CSA subscriptions, online sales)
WHY IMPLEMENT AN AGRITOURISM OPERATION?
So, why do it? Why look beyond simply farming your land?
According to the 2022 Census of Agriculture, the U.S. has lost both farms and farmland. The U.S. is now home to about 880 million acres of farmland, down from the 900 million reported at the 2017 census. When announcing the current census results, Secretary of Agriculture Tom Vilsack said this trend was worrisome. He also noted that many farmers rely on off-farm income to supplement their farming income. Though he did not mention agritourism specifically, Vilsack supports diversifying farmers’ income streams to create a “different model” of farming and help prevent the loss of more farmland.
For most, it is a financial decision. To compete on a regular commodity market, you need a lot of acreage and become a high-volume, low-margin business. This eliminates most of America’s small and medium-sized farms.
The Need for Diversification
The relationship between the farm and the greater community, and the bringing of visitors to the farm, has been critical to some farms’ survival over the past few years. To remain in business and to keep farming, farms need diverse revenue sources, like the type agritourism can offer.
The expenses associated with farming continue to increase – seeds, pesticides, fertilizer, labor – and are unlikely to decrease. Producers are tasked with running as lean as an operation financially as possible.
If “all your eggs are in one basket” or you’ve witnessed several years of crop failures due to challenging weather, it may be time to rethink your operation and look for ways to diversify.
Ease of Modifying Operations
Smaller and medium-sized farms have the advantage of being able to add direct to consumer sales and on-farm activities more easily than larger operations. This helps them to remain viable and competitive.
Large commodity producers may also consider implementing agritourism. Many of them are already using regenerative agriculture practices with cover crops and crop rotation. Dividing some of these fields into smaller tracts can be ideal for planting specialty fruit and vegetables that are more likely to draw consumers. This also provides the producer with another income stream to buffer against potential farm losses and drops in corn and soybean prices.
What Does it Take to Get Started?
It doesn’t take much to get started in agritourism. Often, you’re just inviting people to take part in what you’re already doing – farming. You don’t need a party barn, hayride, petting animals, bounce pads, a u-pick strawberry field, fishing ponds, or restaurants, to get started. Simple things like tours of your operation, allowing photographers in for photo shoots, opening a small stand to sell excess produce, meats, or products you produce like jams or soaps, are all ways to make extra cash. Just showing people how food – plant or animal based – gets to the table is what most people are looking for and is educational to the community. People want to see and experience how food is grown and harvested, how animals are cared for, and how value-added products are created.
Educational activities can play a crucial role in the survival of local farms. Educating the public is invaluable and necessary for sustainability of our food systems – through guided farm tours, demonstrations, or just talking with a customer at your farmstand about what you do. It’s an important step in feeding the population as well as keeping food on the farmer’s table.
Once a farm chooses to embrace agritourism, one of the most important things the farmer can do is to continually grow the farm’s brand. It’s essential for success.
COMMON CHALLENGES IN AGRITOURISM
What are some of the greater challenges to agritourism operations? Here is how farmers and ranchers responded when asked by the Vermont Tourism Research Center (Agritourism Survey, 2021).
- 90% time management
- 89% labor, including family
- 81% liability and insurance
- 81% marketing
Like in any industry, agritourism has its own challenges, rewards, and risks. Current challenges to the industry are often found in newsletters, news sources, websites, trade publications, studies, and more. Keep in mind that what may be a challenge for some may not be for others. Below are some of the common challenges at the time of this writing.
Natural Challenges
Weather. We seem to be in an era of extreme weather patterns with unusual wind, hail, heat and cold temperatures, and drought or excessive rainfall. It increases the risk in crop production more than in years past. And emerging weather patterns are affecting the growth and production of crops. Many agritourism operations are outdoor based and can be impacted by weather such as a corn maze during an exceptionally rainy October.
Pests. Unusual heat and humidity can accelerate growth of weeds, insects, mold, and other conditions impacting growth. Deer in Michigan are causing more destruction.
Development Challenges
Financial capital. Getting the funding to purchase and maintain equipment, buildings, vehicles, and property infrastructure can be a challenge when margins are tight. Something is always breaking down or falling apart or would simply be nice to have. Significant capital and resources may be needed to build or renovate before bringing in visitors to agritourism operations.
Costs of farming. It’s no secret that it is more expensive to grow crops and raise animals than ever before. The 2022 Census of Agriculture notes that, in the last 10 years, expenses for farms of all types grew by 29% while fruit tree and nut farm expenses grew by 49%, primarily driven by increased costs in labor and chemicals.
Operating Challenges
Labor. This is one of the top challenges for producers. It requires finding individuals with the right skill set to work for your operation, taking the time to train them, supervising, keeping them satisfied with the job and company, paying them competitive wages, matching their availability and schedules within your seasonality, being your own human resources department or director (unless you are fortunate enough to have one), complying with employment laws and taxes, payroll – overall it is a lot of responsibility.
Target audience. Finding the right niche to attract regional customers and knowing the trends of what consumers are looking for can be a challenge. And knowing the demographics of your community and your specific customer base.
Seasonality. Many agritourism farms categorize their operation by “season” such as Spring, Summer, Fall, and Winter, and offer unique activities during those times. Seasonality of visitors to the farm impacts labor needs and cash flow. There may be times of the year when the operation is slow or closed for the season.
Competition. There may be too many agritourism offerings in your area, and/or they are too similar in scope – all competing for the same regional audience.
Marketing. Marketing can be a full-time job as there are multiple media outlets for your messaging including social media, printed ads, digital ads, broadcast ads, flyers, business cards, general signage on and off-property. All of which needs to follow your branding.
Business analysis. To be successful, you’ll need to track business performance data. It’s a challenge identifying what you need to track and consistently record it over time so you can look for trends. Plus having time to track, record, analyze, and manipulate data for current snapshots as well as projections.
Professional team. Business owners need a team of professionals to provide legal and professional advice as needed. This includes having a farm attorney, family or estate attorney, certified professional accountant, financial advisor, local banker, human resources professional, bookkeeper, and others depending on the type of operation. Chose advisors who can provide meaningful insight and guidance on how to make your business plans a reality. Do they have industry experience and familiarity with the unique needs of farmers?
Regulatory Challenges
Taxes. There are many types – payroll, property, state and local, federal, sales, value-added, personal income, and more. They require funds and paperwork to be remitted and need to be paid or filed on time to avoid penalties and non-compliance.
Insurance. It is a challenge to make sure you have the right insurance and the right levels of insurance for your operation(s). Some are required to be able to operate, and some are voluntary. Examples are liability coverage, event, vehicle, workman’s comp, accident and injury, health and medical, key partners/owners’ insurance, property, crop, and livestock.
Food Safety. Most agritourism operations will need to comply with the food safety laws and regulations whether growing and selling produce and creating or selling food products.
Local government. Whether you are building, making renovations or property improvements, create/sell value added products, or more you may need permits or inspections through your township, municipality, fire marshal, health department, or other jurisdiction. It is essential to research and know the requirements of what you can or cannot do before you embark on an agritourism operation. Complying with regulations usually costs a fee and paperwork. Knowing what to do, how to do it, and when to do it to stay in compliance is a challenge. Farm trends and market opportunities sometimes evolve faster than the regulatory offices can keep up.
Licenses. If your agritourism operation has any type of specialty niche, it may require a special license in addition to any commonly required licenses. Examples: vehicle operation (various classes), food safety, alcohol (to sell and serve), spraying and pesticide applications, and more. These can be state or federal. Some require individuals to complete training or pass an assessment.
Personal Challenges
Time management. There are not enough hours in the day to complete all the tasks that should be done. Agritourism operators often work long hours, especially during the height of the season. This can be tiring, and delegation of tasks to others is not always possible. Operators may take on too much, often without realizing it, or feel they have no other option.
Relationships with others. Developing quality and beneficial relationships with neighbors, peer producers, suppliers, community and civic organizations – takes time and energy. And many producers have the extra challenge of running a business with family members.
Several “Hot Button” Issues
Zoning. Agricultural zoning laws were created to protect valuable farmland against development and other land conversion. However, the underlying question is – how do you preserve the integrity of the country’s best farmland without sacrificing the livelihood of the farmer in the process?
Agritourism is commonly defined as the “crossroads” of agriculture and tourism, and it draws visitors to farms for educational, entertainment or recreational purposes. It is primarily done to increase farm income. Small- and medium-sized farms are diversifying their business models, aiming to share the rural experience with locals which can result in using their land in new ways, some of which may yet to be defined by local zoning rules.
Zoning and agritourism laws define what type of agritourism operation(s) can or cannot be practiced, and the percentage of these operations allowed to the whole of the farm. These laws vary widely from state to state, from county to county, and from township to township. Farmers must comply with the rules or be prepared to fight them.
Rising Costs. Farmers have watched their input costs rise substantially over the past several years as reported by news sources including the 2022 Census of Agriculture. The cost of fuel, fertilizer, seed, and other input items cost more now than four years ago. Anything farm-related has increased, like the cost of packaging. It is difficult to justify raising customer prices enough to cover these costs and still compete with big box stores who purchase and ship in bulk.
Technology. The 2022 Census reports that 79% of farms have internet access, which is up from 75% in 2017. Access to the web is important for farmers to stay competitive and have up-to-date technology. This is especially true as precision agriculture technology continues to find its place on farms, including drones.
According to a study led by Penn State researchers, the availability and adoption of high-speed broadband appears to boost the number of farms offering agritourism activities (Telecompetitor, 2024). Their findings support the argument for expanding broadband availability in support of farm operators who want to benefit from the growing consumer interest in on-farm experiences.
However, broadband access has been widely found to lag in rural areas. Farms lacking in quality broadband access are not as easily able to attract visitors to their farms or benefit from using technology-based tools in their operations.
THE FUTURE OF AGRITOURISM
Growth Trends in Agritourism
What does the future hold for the agritourism industry? It appears bright!
The agritourism market size was valued at $33.8 billion in 2022, and is estimated to reach $111.1 billion by 2032, growing at a compound annual growth rate of 12.5% from 2023 to 2032, according to a report by Allied Market Research (Correa, 2024) and Skyquest Technology Group (2025).
The report cites several key industry trends and growth drivers.
- Desire for authentic experiences – travelers seeking hands-on, farm-to-table encounters, engage with local farmers, staying in rural accommodations.
- Sustainability, local produce, and eco-tourism trends – offering environmentally responsible farming practices, further attracting conscientious tourists.
- Rise of food tourism – allow visitors to engage in culinary experiences, such as wine-tasting in vineyards or cheese-making on dairy farms.
- Educational and recreational offerings – appeals to a diverse array of tourists, from families to retirees, fostering a deeper appreciation for agriculture.
- Government support and incentives – governments recognizing the value of agritourism as a tool for rural development, job creation, and promoting cultural heritage, and creating policies to support it.
- Shift in tourism – preferences increasing to outdoor and nature-based tourism where visitors can interact with nature in a safe and socially responsible way.
According to the report, the agritourism market is divided into various activities: on-farm sales, outdoor recreation, agritainment, educational tourism, and accommodations. The on-farm sales activity accounted for the major market share of agritourism in 2022 and is expected to grow at a significant rate. The sales channel for agritourism is the growing use of internet, smartphones, and online platforms for information and booking facilities.
Indiana’s Success Story
The 2022 Census of Agriculture revealed a sharp increase in agritourism dollars in Indiana even though the number of agritourism destinations in the state decreased from 393 to 382 farms. A similar story holds true for Michigan, with an increase in dollars of 170%, done through a modest increase of 11% in farms. Several Indiana agritourism operators shared their insights on how the industry is evolving and how this may have contributed to the industry’s growth (Lund, 2024).
Tuttle Orchards has been offering agritourism activities since the 1950s, but notes recent demand revolves around enjoying foods on the farm where they are grown. Ruth Ann Roney says, the current generation is much more like, ‘We want to pick some apples for the experience, and then we also want to experience apple products while we’re at the farm’ compared to just purchasing or picking apples. She feels people are curious to learn about both where their food comes from and how agriculture works in general. They’re also just looking to experience it.
Dana Dull of Dull’s Tree Farm understands that hosting guests on their farm is all about connecting those visitors to the farm through experiences. People are disconnected from their roots, so one of the farm’s big things is education. Dull explains that their mission is to cultivate memories for their farm visitors.
Providing hands-on experiences appears to be another driving force behind agritourism success in the state. Classes tailored to different skills and areas of agriculture have proven to be an attraction for many operations.
Future Trends Globally and in North America
According to a report by Coherent Market Insights, global agritourism is estimated at $8.23 billion in 2024, the global agritourism market is expected to top $17.51 billion by 2031 – reflecting growing interest in farm-based recreation activities.
North America is projected to lead the global agritourism industry through 2030 because of strong branding of destinations, robust farm infrastructure and rising demand for niche travel experiences in the U.S. and Canada, according to the report.
“By activity, the outdoor recreation segment is expected to dominate the market owing to growing preference for active entertainment options during vacations,” the report stated. “Within outdoor recreation, entertainment activities like zip lining, horseback riding and hunting tours are gaining popularity.”
Rise in Health and Wellness Operations
Post-pandemic, one major area is the increased concern for health and wellness. Agritourism venues have significantly benefitted in this aspect as they have been perceived by the public as safer options by their very nature of being outdoors. Agritourism venues can take advantage of this increased interest in holistic health and wellness by including wellness-focused activities in their programming.
Here are a couple of ideas.
- Yoga (with or without goats). The experience of practicing yoga in the fresh air, feeling the earth beneath your feet, and listening to the sounds of nature adds depth to the practice that many willingly pay for. Finish off the session with fresh produce, slushies, or homemade baked goods from your farm. You don’t have to “do” yoga, just reach out to a local studio and find an instructor to team up with you.
- Sound Bathing. Being in a rural setting easily lends itself to this practice of healing with sound (a type of meditation using chimes and gongs).
Wellness-focused programming could also include:
- Cooking classes with an emphasis on healthy, fresh foods.
Medicinal herbs classes to identify herbs and their health benefits. - Guided hikes – Take it slow with stops to appreciate the natural beauty or be more vigorous for a healthy workout.
- Farm to table dinners – What is better for your physical and mental health than a nutritious meal in the fresh air?
- For farms offering overnight stays, consider offering options like cooking, hiking, yoga, and “farm work”.
Keep in mind that almost any farm activity you are currently doing could be considered and promoted as a wellness experience.
The Future of ‘Agrihoods’
As planned developments continue to grow, some are looking at including agricultural aspects as a “nature inspired amenity”, sometimes funded by homeowner dues. Mini-farms included as part of the residential community can include walking trails, farm stands, goat pens, chicken coops, beehives, vineyards, orchards, flower fields, and CSA subscriptions. They can bring financial, health, social, emotional, educational, and environmental benefits to a community. To be successful, they require planning and care.
Future Research is Needed
Future research could help identify agritourism best practices, keys to success, or barriers to growth. Tracking agritourism operations over time would help researchers better understand the characteristics of successful operations and why some enterprises have chosen to participate in agritourism.
MUST READ ARTICLES
Before venturing into agritourism, we recommend you read the following articles. There are some excellent stories of how other farms made the decision along with their successes and challenges. Learning from those who have been down that path is priceless.
How Small Farms in Metro Detroit are Finding Solutions
https://www.secondwavemedia.com/metromode/features/AgrotourismMetroDetroit.aspx
Small farmers within the metro Detroit area have found that implementing agritourism is giving them a viable means of overcoming recent financial losses. Farmers are encouraged to look beyond just growing produce to opening their farms to the public for “experiences” and farm-based activities. This article explores how several farms adopted agritourism and their successes and challenges.
From corn mazes to ‘u-pick’ farms, agritourism is a big deal in Michigan. Why do we love it so much?
https://www.audacy.com/wwjnewsradio/news/local/agritourism-growing-in-michigan-why-do-we-love-it-so-much
A brief interview with Wendy Wieland of the innovation department at the MSU Extension. Wieland describes “agritourism” and the importance of it to Michigan.
Charms of the farm: From goat hikes to flower festivals, Maine agritourism is thriving
https://www.mainebiz.biz/article/charms-of-the-farm-from-goat-hikes-to-flower-festivals-maine-agritourism-is-thriving
Interesting stories on how several farms got their start in agritourism. Even though it is set in Maine, the goats, cherries, flowers, and camping could just as easily be in Michigan.
Radish Sandwich Recipe: A Family Tradition at Bangerter Farms
https://utahstories.com/2024/06/from-farm-to-table-the-bangerter-familys-122-year-journey-in-utah-agriculture/
Though not in Michigan, this is an interesting story of how a 122-year-old family farm evolved through the generations.
From you-pick berries to hayrides, agritourism is booming in Ohio
https://www.statenews.org/section/the-ohio-newsroom/2024-08-27/from-you-pick-berries-to-hay-rides-agritourism-is-booming-in-ohio
This article looks at three farms in Ohio and their reasons for implementing agritourism. It also describes how agritourism has become a fast-growing industry in Ohio as well as surrounding Midwest states.
Craving More Meaningful Experiences, Invites Visitors to Slow Down
https://www.prnewswire.com/news-releases/top-travel-brand-pure-michigan-says-people-are-craving-more-meaningful-experiences-invites-visitors-to-slow-down-302350887.html
Statewide travel brand, Pure Michigan, predicts that the trend for “slow travel” is increasing, and Michigan is the perfect destination. Slow travel, inspired by slow food and slow living movements, encourages travel at a more natural pace to discover deeper connections to the environment and community for richer, more fulfilling experiences. Michigan’s outdoor, cultural, and agricultural resources make it a prime destination for slow travel experiences that visitors can see, hear, taste, touch, and feel.
20 Best Agritourism Destinations in the USA 2025
https://editorialge.com/best-agritourism-destinations-in-the-usa/
This article highlights 20 of the best agritourism spots in the USA, each offering unique activities, picturesque settings, and farm experiences. One of their top attractions is the Leelanau Peninsula in northern Michigan, known for vineyard tours, the cherry festival, and farm stays.
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Telecompetitor. (2024, July 5). Report: High-Speed internet linked to more farms offering agritourism. Telecompetitor. https://www.telecompetitor.com/report-high-speed-internet-linked-to-more-farms-offering-agritourism/.
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