Diversifying revenue streams on the farm is something those of us in agriculture hear a lot about today.
The old adage, “Don’t put all your eggs in one basket,” can be applied today for farmers being able to remain competitive and have fallback plans if they experience crop failures or a drop in market prices.
The financial stresses of farming is nothing new, and it is not uncommon for farmers to go through a few years of breaking even or barely coming out on top.
While largescale established farms that gross over $250,000 are probably better off continuing their current means of production, small farms and hobby farms do not have the ability to invest in resources such as intensive cultivation or diversifying their production of commodities.
So what is the solution? Is there a one-size-fits-all answer that can save any farm from continuing to drown in debt? Unfortunately no, but there are a few considerations that may help you get the most out of your land and increase revenue.
To remain profitable, small farm businesses must find multiple sources of income. These sources are typically found through off-farm jobs, value-added agriculture or agritourism.
One of the simplest ways to diversify farm income is to add an agritourism operation to your farm.
The local food movement and public interest in how food is produced creates an avenue for farmers to be able to educate the public and maximize revenue simultaneously.
There is no better way to build trust and create dialogue with consumers than to have them visit your farm.
For small farms, increasing direct-to-consumer sales is a quick way to boost revenue. Typically this is done by building farm stands or on-farm markets, but other ideas can also be pursued.
By opening your farm to tourists and visitors that can tour the farm, hunt, pick produce, learn recipes and even eat holiday dinners, you can earn additional income and increase rural tourism.
Agritourism provides many benefits to the farmer by generating publicity, attracting partnerships with locally-sourced restaurants, increasing agricultural education opportunities and boosting local economies.
In a county located near multiple colleges, agritourism can spike the interest of young people in pursuing a career in agriculture and provide opportunities for student workers and apprentices to gain invaluable hands-on work experience.
If you want to get started in agritourism, a few steps in the planning process need to be accomplished.
You must identify the goals you want to achieve and create a business plan of how you will go about executing your mission.
Once you have a plan and are ready to move forward, identify your market and how you will go about utilizing social media and other marketing channels to attract visitors.
Recent trends have shown an increase in demand for agritourism events like seasonal activities, school field trips, u-pick farms, and bed-and-breakfasts.
Establishing a distinctive experience for visitors will increase the success of an agritourism venture.
To learn more about the process of starting an agritourism operation, check out our Agritourism Toolbox or call us at 706-367-6344!
