Is an Agritourism Venture Right

Fact Sheet FSllSli

Cooperotiwe Extemion Stephen Koniar, Agricultural & Resource Management Agent, Brian Schilling, Extension Specialist in Agricultural Poliq',

jenny Carleo, Agricultural & Resource Management Agent, Susan Colucci, Area Specialized Agent, Agriculture, North Carolina Cooperative, Extension Sewice, Saniantha Rozier Rich, Assistant Professor and Tourism Extension Specialist, North Carolina Slate

University, Staq' Tomas, Assistant Professor and Tourism Extension Specialist, North Carolina State University

Introduction Agritourism activities are becoming an i m p o r t a n t component of many agricultural operations. These activities iiave the potential to increase farm revenues and m a i n t a i n the sustainabiiity of the industry. According the U.S. Department of Agriculture, in 2007, 23,350 farms nat ionwide reported that they received farm income from agritourism activities. Agritourism is a new business paradigm for many farmers, requiring a shift from a production-centric focus to a focus on service and hospitality. .Although agritourism may offer an o p p o r t u n i t y for farmers to increase on-farm revenue, these activities are not well suited for every farm or farmer. Before start ing an agritourism operation, it is recommended that farmers spend some time assessing the potential that these activities may bring to their opaeration.

Assess Your Personality Agritourism activities are dramatically dif ferent than most traditional agricultural responsibilities. W h i l e most on-farm responsibilities are centered on producing a c o m m o d i t y such as a crop or animal product, agritourism fcrcuses on creating an enjoyable experience for your customer. This experience usually involves customers visit ing a farm to participate in various activities such as harvesting crops, sight-seeing, hay rides, corn mazes, and many others. These customers often do not come from a farming background and w i l l ask many questions that may seem tr iv ia l about dai ly farm activities.

A successful agritourism operator must be w i l l i n g to share information about their farm business and spend the titne to make customers feel vvelcome. The ideal agritourism host requires many o f the same personality traits that make a good host at any tourist attraction or service industry. Because the qualities that make a great farmer may not be the same as the qualities that make an effective agritourism host, it is important thai farmers critically evaluate their personality type before developing an agritourism operation. Some important questions that you should ask before starting an agritourism operation include: r- Do you enjoy entertaining guests? <=' Do you like crowds? ® W i l l you enjoy having people visit your farm? « Can you create a w a r m and i n v i t i n g atmosphere for

people visit ing your farm? « Can you manage the addit ional business responsibilities

associated w i t h an agritourism operation (including marketing, employee inanagement, and customer relations)?

" .Are you w i l l i n g to create the ideal "experience" for your customers?

f Are you w i l l i n g to work and "entertain" dientele on weekends, evenings and holidays, when they are most often available to come to your farm?

i f you answered "no" to many of these questions, perhaps an agritourism enterpri.se does not fit your personality type. I f you answered "yes" to many o f these questions, agritourism

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may be a viable option for your farm. It is i m p o r t a n t to remember that successful agritourism operations focus on creating an enjoyable experience for visitors. If your personality does not fit well , perhaps another family member or an employee maybe better suited for this role.

Assess Your Goals It is i m p o r t a n t to set realistic goals for your operation. Depending on your situation, these goals can vary greatly. Some examples include: • Earning additional farm revenue. • Mainta ining farmland tax assessment or s imilar tax

incentives from local or state governments. • Expanding your farming operation to include new

commodities, to diversity your operation or for season extension.

• Starting a new career. • Expanding opportunities for family members to work on

the farm. • Educating the community . Regardless of the motivat ion for starting an agritourism operation, it is important to develop both long-term goals and short-term objectives for your business venture. Setting realistic goals w i l l assist you i n making important decisions regarding your operation. As in any business, rliese goals may take a variety of forms. For example, one may have a goal to retire early, requiring an increase in farm sales by 50%. This long-term goal should help to establish short-term objectives, or plan small steps that may help to reach this goal. Setting attainable objectives w i l l help to establish a strategic d irect ion for your operation. Using the above example; you have a long-term goal to increase on-farm sales by 50%, but a short-term objective may be to incorporate a farm stand in order to enhance sales. However, this objective may not meet the goal o f 5 0 % , but may only enhance sales by 20%. Having mult ip le short-term objectives w i l l increase the l i k e l i h o o d of reaching your long-term goal and can serve as targets to track your progress.

Assess Your Resources and Resource Needs After you have determined that you want to develop an agritourism enterprise, the next step is to assess the current resources and resource needs o f the proposed enterprise. I m p o r t a n t resources to consider include the nature o f existing farming activities, land resources, labor, capital requirements and off- farm factors.

Current Farming Activities Many successful entrepreneurs have expanded their existing farm operation to include an agritourism enterprise. This strategy is often successful because it allows a farmer to b u i l d

on what is already being done as part of their fanning operation. This allows a producer to share knowledge and enthusiasm w i t h visitors, which can make for a more enjoyable and natural agritourism experience. Focusing on current production practices w i l l also ensure that the expertise and equipment exists to conduct the operation w i t h m i n i m a l additional costs.

Land Resources It is important to carefully assess your land to determine i f the proposed agritourism enterprise is feasible. Properly assessing a potential property w i l l help to determine the best potential endeavor. Some i m p o r t a n t questions to address include: • Do you rent or o w n the property? • Are your soils and climate adequate to produce the crops

you intend to produce as part of your agritourism operation?

o Does your property offer unique features or scenery? » Are there any potential hazards to visitors? Many of the

things that are on a farm may be potential hazards to visitors. Some examples include tractors, chemical sheds, irrigation ditches, etc.

0 D o you have adequate facilities including bathrooms and parking?

• Are there c o mpl i mentar y attractions nearby? Labor For many farms, agritourism w i l l represent a new business model and require h i r i n g , t r a i n i n g , and managing additional labor or acquiring new s k i l l sets. For example, success i n agritourism w i l l require all f a r m employees to be friendly, courteous, and knowledgeable about the farm and its products and production practices. Employees at a retail market w i l l need to possess basic customer service skills and be able to make proper change at the cash register. All employees w i l l play an important role in ensuring a safe, enjoyable, and memorable visit to your f a r m .

Financial Resources As i n any business, i t is i m p o r t a n t to determine how much money you are able and w i l l i n g to risk on the new enterprise. Determining the appropriate amount o f financial resources to c o m m i t to a new agritourism venture requires careful assessment, both o f the potential costs and benefits o f the proposed venture. A l t h o u g h every operation w i l l be different, some financial needs to consider include: • Addit ional labor costs. » Infrastructure costs. • Addit ional l iabi l i ty insurance coverage. • Amenities (e.g., addit ional bathroom facilities, handicap

access, parking etc.). e Marketing costs.

Off-Farm Factors Expanding from a tradi l ionai production agriculture business to one which invites the public onto the farm w i l l require compliance w i t h various state and local regulations. Local ordinances, in particular, may vary greatly depending upon where your farm is located. Key regulations to understand include: • Zoning regulations. • Fire and health regulations. • Building codes. • Insurance requirements. • Labor laws. • Signage on roads. • Traffic management. • Environmental regulations. • Farmland preservation or deed of easement restrictions. It is important to identify and research applicable laws and ordinances that may impact the success o f your agritourism operation. Potential resources to assist i n this effort may include your municipal zoning officer, local fire marshal!, inui i ic ipal bui lding inspector, farm insurance agent, state department of agriculture, state department o f labor, and state department of environmental protect ion.

Conclusion Developing an agritourism operation may be a viable way to increase farm income whi le s t i l l m a i n t a i n i n g n o r m a l farming activities. Although agritourism may provide addit ional income, it is not suited to every farm or farmer. Carefully assessing your farming operation as well as y o u r personality traits and goals, can help to determine i f an agritourism enterprise is the best o p t i o n . Before deciding to pursue the development of an agritourism enterprise, it is critical to develop sound business and marketing p l a n . There are many onl ine resources available to help develop a business and marketing plan for your farm.

References (2009) United States Department o f Agriculture, National Agricultural Statistics Service. 2007 Census of Agriculture: New Jersey State and County Data, Volume 1; Geographic Area Series, Washington, DC. Rhoades, S., and S. iVlcCullough. (2010) Assessing Your Resources. FSCEJOBOO, retrieved from www,,uaex.Mu/Other_ Areas/publications/PDF/FSC

Additional Resources Agritourism Your Way: A IIow-To-Guide for Successful Agritourism Enterprises. Prepared for the University of Georgia, Center for Agribusiness and Economic Development and N o r t h Carolina State Cooperative Extension Services' Business Side o f A g r i t o u r i s m . Program series developed by K. Wolfe and G. Builen; n c s m M u / t o u r l m e M m y l a n / ^ EnaMusineMidfiofAgrito^^ . Considering an Agri tourism Enterprise; www.caed.uga. cdu;Jnil)lie.Ui<His/.'\giit()tirism/pdf/Con.sidcring%20an%20 .Agritourism'; o20Entcri)risc.pdf. Agritourism in Focus: A Guide for Tennessee Farmers; Extension PB 1754; trace,te.nness,ee,M For additional i n f o r m a t i o n , or to view any of the East Coast Webinar Series recorded programs please visit: w r m n c s u ^ e d u / t o u r k a ^

This fact sheet is part of a series of fact sheets developed as a result of the East Coast Agritourism Webinar Series, a partnership effort between North Carolina Stale University and Rutgers University.

Pholo credits: Islock.com

© 2010 Riilgers, The Slate University of New .leisey. All l ights ie,ser\'ed. For a comprehensive list of our publications visit www.njaes.rutgers.edu September 2010 C o o p e r a t i n g .'tgencies; Rutgers, The Stale U n i v e r s i t y o f New Jersey. U.S. Department o f A g r i c u l t u r e , and County Boards o f C h o s e n I T e d i o l d e r s . Rutgers Cooperative E.xlension, a unit of the

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Rutgers, The State University of New Jersey 88 Lipman Drive, New Brunswick, NJ 08901-8525

Phone: 732.932.5000

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H a s the farm operator... Yes N o Priority Ranking! Comments

.. .clearly designated, separated & posted animal interaction areas from non-animal areas?

.. .ensured animals are appropriately contained (e.g., pens, fencing, etc.)?

.. .provided adequate care such as food, water and shelter during interaction w i t h the public?

.. .established a transition area that separates animal and non-animal areas?

.. .selected animals that are the appropriate size and/or age for visitor interactions?

...properly vaccinated animals and maintained appropriate records?

.. .implemented appropriate biosecunpf measures to ensure animal and visitor health?

.. .developed a plan for daily manure management in animal interaction areas?

. . . implemented procedures for screening animals (e.g., health, temperament, cleanliness) daily before allowing contact w i t h visitors?

. . . taken steps to minimize pests related to animal management?

...developed procedures for guests to feed the animals ( i f allowed)?

...posted adequate signage to delineate animal, ^transition, and non-animal areas?

..(posted rules for animal areas (e.g., regarding proper handling, feeding, etc.)?

.. .displayed appropriate warnings to in form visitors o f the potential hazards related to animal interaction (e.g., "animals may bite", "wash hands after touching animals", etc.)?

.. .prohibited food/dr ink witlr in animal areas (with appropriate signage)?

f H = High Priority, M = Medium priority, L = Low priority

H a s the farm operator... Yes N o Ranking!

Conunents

.. .posted rules requiring supervision of children around animals?

.. .appropriately staffed animal areas to manage visitor flow and visitor-animal interactions?

.. .trained employees to assess ammal behavior and to watch for stressed or agitated animals?

... trained employees how to react to and move any animals that may present a potential danger to visitors?

.. .trained employees regarding the rules and procedures for animal handling and related issues?

.. .developed procedures and trained employees to maintain the cleanliness of animal areas (e.g., removal of fecal matter, sanitization of surfaces visitors will contact, etc.)?

.. .placed trash receptacles in all areas related to 1 animal interaction?

.. .posted proper hand washing procedures at entrances and exits from animal handling areas?

.. .provided and maintained stocked hand washing stations in animal handling and transition areas?

.. .established an emergency response plan for animal related emergencies?

.. .trained farm employees to implement emergency response procedures in the event o f an emergency?

Other farm-specific considerations

' H = High Priority, M = Medium priority, L = Low priority

September 2013 Brian Scliitling, Assistant Extension Specialist, Rutgers NJAES Cooperative Extension, schilling@njaes.rutgers.edu

^Stephen Komar, Sussex County Agricultural and Resource Management Agent, Rutgers NJAES Cooperative Extension, skomar@njaes.rutgers.edu William Bamka, Burlington County Agricultural Agent, Rutgers NJAES Cooperative Extension, bamka@njaes.rutgers.edu

Michelle Infante-Casella, Gloucester County Agricultural Agent, Rutgers NJAES Cooperative Extension, minfante@njaes.rutgers.edu. Lucas Marxen, Assistant Director of Research Technology, Office of Research Analytics, Rutgers NJAES, marxen@njaes.rutgers.edu

Cooperative Extension Brian Schilling, Extension Specialist in Agricultural Policy

Stephen Komar, Agricultural and Resource Management: Agent, Sussex County Jenny Carleo, Agricultural and Resource Management Agent, Cape May County

Samantha Rozier Rich, Assistant Professor and Tourism Extension Specialist, North Carolina Stale University Stacy Tomas, Assistant Professor and Tourism Extension Specialist, North Carolina State University

Susan Colucci, Area Specialized Agent, North Carolina State University

This fact sheer is part of a series of fact sheets developed as a result of the East Coast Agritourism Webinar Series, a pannership between North Carolina State University and Rutgers Universit)'.

Agritourism is the business of establishing farms as travel destinations for educational and recreational purposes. It has been estimated thai 62 m i l l i o n American adults visited farms in 2000 (Barry and Hellerstein, 2004). Driven by this consumer interest,, growing numbers of farmers across the United States are embracing agritourism to improve their economic viabil i ty . Farm businesses are incorporating a wide range of innovative activities including on-farm direct marketing, entertainment, fttrm accommodations, outdoor recreation, and educational p rog rammin g (see Table. 1) to better manage financial risk by diversifying product lines and generating additional farm revenue. These activities can also

help bui ld a culture of understanding between farmers and non-farm neighbors and promote appreciation of agriculture w i t l i i n the coiTirniinity, For many Iradil ional agricultural producers, however, agritourism represents an entirely new business model . Transitioning fr om a wholesale business or an enterprise engaged i n only linaited direct marketing into a full-fledged hospitality and service business necessitates new approaches to marketing. This fact, slieet explains the fundamentals of sound marketing and offers marketing strategies for making your farm a more appealing, welcoming, and wel l -known visitor destination.

Table 1: Examples of Common Agritourism Activities.

On-farm direct-to-consumer sales of agricultural products (e.g., pick-your own produce, U-cut Christmas trees, on-farm markets). Educationaltourism (e.g., school tours,winery tours, farm work experiences). Entertainment (e.g., hay rides, corn mazes, petting zoos, haunted barns). Accommodations (e.g., birthday parties, picnicking, bed & breakfasts). Outdoor recreation (e.g., horseback riding, hunting, fishing, hiking, bird watching).

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The Marketing Mix - The Four Ps of Successful Marketing A c o m m o n misconception is that marketing is the same as advertising. In fact, advertising is only one component of successful marketing. W h i l e approaches to marketing vary, most experts agree that successful marketing is b u i l t around addressing the Four P's: product , price, placement, and promotion. Often known as the marketing m i x , these are four factors that an agritourism operator needs to manage i n order to successfully reach a target market and attract customers. Product Product refers to the product, service, or - relevant in the context o f agritourism - experience that y o u are providing for your customers. I n t h i n k i n g about your product, it is useful to keep two things in m i n d . First, be able to identify what a marketer w o u l d call your unique sell ing proposition, in the eyes of potential customers, what makes you different from similar businesses? W h y should someone visit your farm? Second, understand that your agritourism product is multifaceted. You may define the core elements of your business as pick-your-own apples, a farm market , or a corn maze. Indeed, these can be i m p o r t a n t aspects of your agritourism product, but view your operation from the eyes o f your customers. What experiences w i l l they encounter on your farm, either intent ional ly or unintentionally? For example: • W i l l they be greeted by courteous, fr iendly, and

informed employees? • Is your farm clean and visually appealing? • Is parking convenient? • Do you provide recipes or helpful hints o n h o w to select,

store, and prepare fresh products from y o u r farm? J* Do you have attractive and funct ional packaging for

products purchased or prepared at your farm? • Are you w i l l i n g to speak w i t h visitors, sharing stories

and experiences about the farm and f a r m i n g life? • H o w do you respond to customer concerns or

dissatisfaction? Also t h i n k about the entire range of services or amenities you offer. • D o you accept credit cards? » Do you have clean and easily accessible restroom

facilities? » H o w able are you to accommodate visitors w h o may

have special needs (for example, elderly individuals , persons w i t h disabilities, parents w i t h baby strollers)?

«= Do you have a play area for chi ldren or tables for picnicking?

The important role that you and your farm staff play i n providing a quality visitor experience cannot be overstated. Agritourism is a hospitality business and its success w i l l be based upon customer satisfaction. Here are some helpful hints on how your farm staff can create happy and satisfied visitors: » Ensure that your employees are readily visible and

identifiable. For example, consider apparel w i t h a farm name or logo and name badges.

• Instruct employees to approach and welcome customers i n a friendly and sincerely helpful manner.

=> Make sure employees are knowledgeable about all aspects o f the farm, its history, and its products. Have them become well-versed in a list of frequently-asked-questions (see Table 2).

An informed, knowledgeable employee w i l l enhance the visitor experience!

Table 2: Frequently Asked Questions to Expect from Farm Visitors.

Are there any other attractions 1 should visit while in this area? What accommodations are available nearby? Are there any good places to eat? Where is the nearest gas station? What is it like living in this community? Are there any special events happening In town? Are there any retail stores near here?

Adapted from Michigan State University Extension Bulletin, E-2064.

The bottom line is that you want to create a unique impression of your products, and of your entire agritourism operation, w i t h i n the minds of your customers. Some marketing professionals call this posit ioning. To best illustrate this idea, ask yourself: "How w i l l my customers describe my agritourism operation to their friends?" Or, even more importantly , "How do 1 want my customers to describe my farm?" Assume for a moment that you are Farmer Brown. How w o u l d you want your customers to complete the fo l lowing statements? Loyal Customer 1: "Oh! Farmer Brown? His farm is w o n d e r f u l ! They are really great at . . . " or...

Loyal Customer 2: "The Brown Farm is famous around here for i t s . . . " Good marketing provides you w i t h the o p p o r t u n i t y to create this unique identity for yourself.

Price Setting an appropriate price for each product or service is critical, although potentially challenging. As a farm entrepreneur, you w i l l want to offer a price that is competit ive i n the market for your product, acceptable to your customers, and able to generate sales consistent w i t h your financial goals. A common goal of pricing would be to generate revenues fro m product sales that allow for ful l cost recovery plus a pre-determined level of profit (a cost plus pr ic ing strategy). However, in some instances, an agritourism activity may be viewed as successful i f it were cost-neutral (revenues only cover costs) but attracted additional visitors to the profit center of your operation. For example, breaking even on a corn maze may be acceptable i f it increases business at your farm market. The first piece of advice for developing pr ic ing strategies is to know your market. What w i l l customers pay for your product? What comparable products do other farms offer i n your market area, and what do they charge? Vis i t ing other agri­tourism operations, reviewing trade publications, j o i n i n g direct tnarketing associations, and attending state or regional direct marketing conventions w i l l help you better understand your market and consumer trends. Another strategy is to ask existing or potential customers directly about their w i l l i n g ­ness to pay for your product(s). A simple postcard-sized survey provided to visitors at your farm is one alternative for gathering information on likely customer acceptance of various pricing options. Understanding your costs and expectations for financial returns on investments in new agritourism products is also v i t a l . Break-even analysis is a useful tool for determining the price point needed to cover ail fixed and variable costs , associated w i t h offering a product. Such analysis can be

based on detailed accounting o f expenses or, for prel iminary assessment purposes, "back o f the napkin" estimates. A break-even production point (how much would 1 need to sell?) is calculated as: Break-even Point = Total Fixed Costs/(Price - Variable Costs)

Alternatively, a break-even price can also be calculated for a specific number o f products sales as: Break-even Price = (Total Fixed Costs/Number of Units to be Sold) + Variable Costs

Consider the example in'J'able 3 of a farmer evaluating how many one-hour group farm tours would need to be hosted in order to break-even on investments in his farm infrastructure. In this example, the farmer w o u l d need to invest $4,000 in fixed costs (costs that do not vary w i t h the number of visitors participating in such tours) i n on-farm improvements. He estimates that each tour w i l l result in $80 i n variable costs (defined for simple i l lustration here as hourly wages, a desired return for his t ime, and give-aways for visitors). Based upon the break-even analysis, i f the farmer charges $100 for each tour, he would need to offer 200 tours to break-even on his investiuents in farm infrastructure. Based on this analysis, the farmer needs to ask himself, is 200 farm tours feasible? Is it consistent w i t h my expectations in terms o f time commitrnent? What i f the price per tour was raised to $1.50? (Answer: 58 tours w o u l d be required to break even.) Would this price be acceptable to consumers? Would it be competitive w i t h other farm tours offered i n my market area? Break-even analysis allows you to examine alternative "what i f " scenarios to determine tradeoffs between various price points and the number o f product units that need to be sold to achieve a desired financial return.

Table 3: How many 1-hour farm tours do I need to offer in order to break-even on my investments in farm infrastructure?

Total Fixed Coste (TFC): $4,000 Insurance-Sl,000 Improvements to parking area - $1,000 Improvements to farm market - $1,500 Child play area - $500

Total Variable CosU (VC): $80 Wages/hour (5 workers @ $7/hr) - $35 Desired proprietor income - $40 Give-aways - $5

Break-Even Point (BE) = TFC/(P - VC) BE = S4000/(S100-$00) BE = $4000/$20

BE = 200 farm tours

Cost charged per tour (P): $100

Equipped w i t h an understanding of your costs, market, competition, and personal financial goals, i t is t ime to develop a pricing strategy. As a broad rule o f t h u m b , when you begin an agritourism business or introduce a new agritourism activity, you w i l l need to increase customer awareness and excitement around the destination, w h i c h may mean higher advertising and p r o m o t i o n costs. You may offer lower introductory prices as a strategy to quickly attract new customers ( k n o w n as market penetration pricing) . While profit margins o n a per-unit basis may be lowered, higher sales volume w i l l help b u i l d market share. Conversely, i f you are offering an innovative new product i n a market w i t h l i m i t e d or no competit ion, perhaps you w i l l seek a higher price point i n order to recover i n i t i a l development expenses and generate higher profit margins ( k n o w n as skim pricing). As competition increases, perhaps a higher price point can be sustained i f your product remains differentiated by quality, reputation or strong customer loyalty. Or, perhaps the price w i l l need to be lowered to retain customers now faced w i t h more alternatives to your products. Creating an overall pricing strategy may also require you to t h i n k creatively about price discounts to introduce new products or re-energize sales o f an established product. Consider the fol lowing: • W i l l you offer b u l k purchase discounts (e.g., charge a

lower price per u n i t i f the customer buys a higher volume or offer a "buy 5, get 1 free" offer)?

" W i l l you offer seasonal discounts or special price promotions to draw visitors?

" W i l l you offer discounts to strategic partners (e.g., other businesses that can help expand your distr ibut ion network or assist w i t h p r o m o t i n g your brand name)?

Placement Placement refers to d i s t r i b u t i o n . How w i l l you provide access to your products? The goal of agritourism is to bring customers onto your farm. Your farm is therefore your p r i m a r y distr ibution channel and i t must be safe, clean, and i n v i t i n g to the public. Here are some tips to consider: » Make it easy for customers to find d r i v i n g directions to

your farm, days and hours of operatioir, and product availability for seasonal items. This i n f o r m a t i o n can be conveniently posted on a farm website or telephone recording, as w e l l as p r o m o t i o n a l materials.

* Ensure that risks of i n j u r y to farm visitors are m i n i m i z e d . Designate and secure areas that are not open to the public, such as pesticide or equipment storage areas and the farmhouse. Also consult w i t h an insurance provider to determine adjustments i n existing policies necessary to cover added l iabil i ty .

» Carefully plan and prepare for the safe movement o f all farm visitors. Most tradit ional farms have been organized for production efficiency, for example easy movement of farm equipment. As an agritourism destination, you w i l l need to consider the safe movement of visitors on the farm. Design paths and

other directional features that move visitors to where you want t h e m to go, w h i l e avoiding unsafe or non­public areas.

« M a i n t a i n a h igh level o f aesthetic appeal. Consider decorations and create an overall appearance that is welcoming to visitors and reflects seasonal or special events.

» Recognize that many visitors may not be familiar w i t h all products you offer. Clearly mark items in retail displays and offer tips for product selection (for example, what apples are best for cooking?) and preparation. I f you offer pick-your-own alternatives, identify and direct visitors to appropriate fields and provide signage identifying each crop. Also provide clear guidance on product quantity and pric ing . Visitors may not be able to readily translate a basket o f apples into pounds or cost.

Promotion John D. Rockefeller once said that "next to doing the right t h i n g , the most i m p o r t a n t t h i n g is to let people know you are d o i n g the r ight th ing ." These are wise words to live by as you attempt to make your farm an agritourism destination. To be successful, an agritourism operator needs to constantly t h i n k o f creative ideas for directing customer traffic to the farm and encouraging repeat visitation. The. challenge lies in finding the most effeaive and cost efficient strategies for reaching your desired market. • Developing the appropriate m i x of advertising and

promotion may require some degree of tr ial and error. Evaluate the effectiveness o f various advertising options (see Table 4) to see which w o r k best for your farm.

<J Strive to establish brand recognition o f your farm by displaying your farm name or logo on apparel, bags, give-aways (e.g., reusable bags, pens, refrigerator magnets, etc.). Have a presence in the communities from which y o u seek to draw customers. Strategically participate i n off-farm events to raise awareness o f your agritourism operation (for example, c o m m u n i t y farmers' markets, local festivals, county fairs, etc.).

e Get online! There is a well-placed belief in the conventional wisdom that word of m o u t h is the best form of advertising. W h i l e personal testimonies are invaluable for expanding awareness and appreciation o f your business, a study i n Pennsylvania found that word o f rnouth ranked only fifth among agritourism visitors i n terms of resources used in t r i p p lanning . Welcome to the new age o f marketing: websites were identified as the most frequently used resource for identi fying potential farm destinations. Consider using social media (examples include Facebook and Twitter) , w h i c h are increasingly popular tools being used effectively to promote agritourism. Also, maintain e-mail lists o f customers to inexpensively announce product availability or special events and promotions.

Table 4 ; Examples of Advertising and Promotion Options.

Print media (newspapers, magazines) Road signage and billboards Press releases Direct-to-consumer mailings Radio or television Brochures Yellow pages Hosting community events Farm website Travel and tourism sites State or county promotional websites Customer email lists Farm visits directories Participation in farmers markets and county fairs State Departments of Agriculture Cross promotions with other businesses State Farm Bureaus Social networking tools

Timing is Everything! All products have a product life cycle comprising five stages; development, introduction, g r o w t h , maturi ty , and decline. Your marketing success w i l l depend u p o n t a i l o r i n g your marketing m i x appropriately to the life stage of your product. Is it a new product? Is it well established w i t h i n your operation or the broader market? Is it an older product w i t h declining sales? As previously noted, when a product is first introduced you may choose a skim pricing strategy to q u i c k l y generate higher returns i f l itt le competit ion exists or, alternatively, adopt a market penetration strategy i f you believe the slow and steady development of a customer base is a more feasible o p t i o n . During the growth stage of your business, sales are rising. You may invest in refining existing products based upon customer feedback or changes you observe i n the market. Growth in the number of competitors seeking to share in your success may also encourage y o u to further differentiate your farm destination. Advertising may emphasize past successes and focus on b u i l d i n g expanded brand recognition. Product pric ing may be maintained or adjusted (up or down) based upon market demand and competit ion. w As your product reaches maturity, revenues w i l l eventually peak. It is likely that your successful ideas have drawn competitors, so protecting your market share may become a focal point for your marketing efforts. You may find it advantageous to lower advertising costs and focus on satisfying existing loyal customers. You may decide to make further product refinements (or develop new products) that differentiate you from competitors. Lowering prices to reflect costs savings arising from a mature market posit ion may also be a reasonable o p t i o n ; however, be m i n d f u l that no one wants to w i n the proverbial race to the b o t t o m .

Decline is generally an inevitable stage of any product life cycle. Sales may not abruptly end, but they w i l l tend to fall as more interesting alternatives draw customers' attention. You may begin reducing your advertising budget and coast along based upon existing customer volume. At a certain point , a product may become unprofitable and its planned withdrawal or replacement w i t h another product w i l l be your most economical choice.

Conclusion Agritourism is an expanding market o p p o r t u n i t y for agricultural entrepreneurs in many parts of the U.S. However, the development of a successful agritourism operation requires a keen focus on marketing the farm as a travel destination attractive to customers on the basis o f farm products and services, hospitality, and experiences. This fact sheet summarizes the basic principles of good marketing: the need to clearly understand and define the products being offered on your f a r m , approaches for developing appropriate pricing, the formulation of product placement strategies, and p r o m o t i o n .

References Barry ,) . , and D. Hellerstein (2004). Farm Recreation. I n : K. Cordell (ed.). Outdoor Recreation for 21st Centwy America. State College, Pennsylvania; Venture Press. Ryan, S., K. DeBord, and K. McClellan (2006). Agritourism i n Pennsylvania: A n industry assessment. Harrisburg, PA: The Center for Rural Pennsylvania. Schil l ing, B., K. Sullivan, and L. Marxen (2007) . The economic impact of agritourism in New lersey: A 2006 assessment. New Brunswick, N|: Rutgers, the State University o f New Jersey, Food Policy Institute. Schill ing, B., L. Marxen, H. Heinrich, and F. Brooks (2006). The opportunity for agritourism industry development in New Jersey. (Food Policy Institute Report No. RR-0706-010). New Brunswick, NJ: Rutgers, the State University of New Jersey, Food Policy Institute.

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