Ag Tourism

A Growing Market With Unique Risks

By: Olivia Lang, Agricultural Risk Advisor, Hummel Group

If you have ever visited a local farm to take pictures in the pumpkin patch, navigate the corn maze, or have your children admire newborn animals, you’ve been an “agritourist.” AG tourism is a growing market, projected to increase by 13.4 percent between 2021 and 2027 (according to Allied Market Research), bolstered by the safety of the outdoors during the pandemic. It’s a way for farms and other agricultural businesses to expand their income potential and build relationships with their community while entertaining and educating visitors.

I first fell in love with AG tourism while working at Moreland Fruit Farm in Wooster when I was in high school. The farm’s tourism options included “pick-your-own” crops—apples, strawberries, blueberries, raspberries, you name it! I enjoyed seeing the smiles on people’s faces as they harvested fresh fruit and got a glimpse of farm life. I now have a “pick-your-own” strawberry patch on my parents’ farm, where we invite anyone to visit during certain times of the day to experience the farm and ask any questions they may have about agriculture.

THE BENEFITS OF AG TOURISM

Trending up since 2002, the AG tourism industry really jumped when the 2020 pandemic took hold. While movie theaters and malls had to close their doors, farms could stay open, as they were able to provide safe and healthy activities for individuals eager for any form of entertainment, particularly outside. Agribusinesses have realized the benefits of ag tourism:

• RELATIONSHIP BUILDING: AG tourism creates a relationship between the farm and the community by building trust and loyalty between the farm and customers.
• DIRECT SELLING: AG tourism cuts out the middleman when it comes to selling and can save a farm money by cutting down on transportation, marketing, and labor expenses. It also gives growers more control over pricing, as they can set the price rather than limiting themselves to whatever the market or a store will give them.
• INCOME DIVERSITY: A farm can diversify its income stream by adding events or activities for a small cost. For example, many pumpkin patches will have a general admission fee. In a world where commodity inputs are on the rise, this fee can help cover some growing expenses.

Plus, AG tourism provides many indirect benefits. Farms with AG tourism help to draw tourists to rural areas. This helps the rural community as a whole, as other businesses may benefit from the visitors as well.

THE RISKS INVOLVED AND HOW TO ADDRESS THEM

While encouraging visitors and providing memorable experiences to community members can be beneficial to farms, they are taking on a unique set of risks. Liability skyrockets when you assume the risk of strangers stepping foot on the property. The nature of the beast is that farms are bound to have equipment, animals, and other obstacles that increase the potential for problems.

To properly protect themselves, farm owners need to be aware of the extent of their insurance policies. Hummel helps agribusiness owners in this way through risk advising. We can start by reviewing your policy and making sure you have accurate and sufficient coverage. We can also go a step further with a risk assessment that explores the property and activities of the business and makes suggestions for lowering the risks of accidents on the site.

To learn more about how your farm or other agricultural business can benefit from a properly structured risk management program, reach out to me or one of the other AG insurance specialists here at Hummel!

Contact Olivia to learn more about how working with an agricultural risk advisor can help improve your AG business. She can be reached at 800-860-1060

‍

Read the full Summer 2024 newsletter here.

‍

‍