Agri-Tourism in Maine: Opportunities, Challenges and Linkages1 Thomas G. Allen Senior Research Analyst, Center for Tourism Research and Outreach University of Maine Todd M. Gabe Associate Professor of Resource Economics & Policy University of Maine James C. McConnon, Jr. Extension Business and Economics Specialist and Associate Professor of Resource Economics & Policy University of Maine
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Presented at the National Association for Community Development Professionals (NACDEP) Conference in Philadelphia on April 18, 2007.
Agri-Tourism in Maine: Opportunities, Challenges and Linkages Project overview Profile of agri-tourism farms Agri-tourism and farm profitability Opportunities and challenges Contribution to Maine’s economy Conclusions Acknowledgements
Project Goals Develop a profile of Maine farms engaged in Agri-tourism activities during 2005.
Assess the importance of agri-tourism activities to farm income. Identify key opportunities and challenges facing agri-tourism enterprises in Maine.
Estimate the contribution of agri-tourism to the Maine economy.
What is Agri-Tourism? There are many definitions. For this study, we surveyed farms in Maine that were engaged in direct-to-consumer farm activities. Some of these activities include: On-farm recreation and education On-farm lodging and accommodations Pick-your-own Community supported agriculture (CSA) On-farm retail store On-farm food processing Roadside stands
Why is Agri-Tourism Important?
Increases options for farm diversification Improves awareness of local agricultural production Helps develop new agricultural market niches Provides farm families with on-site employment Strengthens sustainability of small farms Viable community economic development strategy
Profile of Agri-Tourism Farms in Maine
Agri-Tourism Farms Surveyed
Number of surveys mailed*
766
Number of surveys received
456
Survey response rate
59.5%
*The survey was sent to farms that voluntarily included themselves in a database of agri-tourism farms maintained by the Maine Department of Agriculture. The total number of farms in Maine in 2005 was 7,100.
Location of Agri-Tourism Farms in Maine # #
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Maine County Population Less than 25,000 25,000 to 50,000 50,000 to 75,000 75,000 to 150,000 More than 150,000
Average Agri-Tourism Farm Size Type of Land
Average Number of Acres
Crop acres
55
Pasture acres
13
Woodland acres
72
Other uses
Total
8
153
Educational Level of Agri-Tourism Farm Operators Level of Education 18%
20%
62%
High School
College
More than College
Demographic Characteristics of Agri-Tourism Farm Operators
Are you the primary operator of the farm?
What is your gender?
4%
35%
Yes
Male
No
Female
65%
96%
Length of Time Operating Farm Time Operating Farm
Number of Farms
Percent of all Agri-Tourism Farms
Less than 5 years
46
10%
5 to 10 years
84
19%
11 to 20 years
130
29%
21 to 30 years
106
24%
Over 30 years
77
18%
TOTAL
443
100%
Average
20 years
Legal Form of Organization
Number of Farms
Percent of all Agri-Tourism Farms
Sole Proprietorship Partnership Corporation Limited Liability Company Other
322 41 60 14 10
72% 9% 14% 3% 2%
TOTAL
447
100%
Legal Form of Organization
Percent of Income from Off-Farm Sources
Percent of Household Income from Off-Farm Sources
Number of Farms
Percent of all Agri-Tourism Farms
Zero
86
19%
1% to 39%
96
22%
40% to 69%
73
17%
70% to 100%
185
42%
Total
440
100%
Plans for the Next Five Years
Future Farm Plans
Percent of all Agri-Tourism Farms
Continue to operate farm as it is
34%
Expand the farm operation
46%
Shrink operation
6%
Other (retirement, sell or transfer farm)
14%
Agri-Tourism and Farm Profitability
Gross Revenue of Agri-Tourism Farms Number of Farms
Percent of all Agri-Tourism Farms
Less than $2,499
65
15%
$2,500 to $9,999
113
27%
$10,000 to $24,999
76
18%
$25,000 to $99,999
98
23%
$100,000 to $249,999
40
9%
$250,000 or more
36
8%
Total
428
100%
Overall Gross Revenue
Types of Products Sold by Agri-Tourism Farms
Number of Farms
Percent of all Agri-Tourism Farms
Vegetables
219
48%
Fruits and berries
179
39%
Hay and silage
132
29%
Nursery, greenhouse, floriculture
126
28%
Poultry and eggs
93
20%
Maple syrup
92
20%
Other
54
12%
Type of Product
Distribution of Revenue Sources on the Average Agri-Tourism Farm Marketing Activity
Percent of Total Farm Revenue
Wholesale
26%
On-farm retail store
17%
Roadside stands
17%
Pick-your-own
12%
Farmers market
11%
Other non-recreation sales
7%
Lodging and accommodations
1%
On-farm recreation
1%
On-farm restaurant
1%
Importance of Agri-Tourism Activities to Total Farm Revenue, by Size of Farm
Number of Farms
Agri-Tourism Revenue as a Percent of Total Farm Revenue
Less than $5,000
115
64%
$5,000 to $49,999
192
62%
$50,000 to $499,999
103
52%
$500,000 to $1 million
10
49%
More than $1 million
8
13%
Farm Size
Employee Efforts Devoted to Agri-Tourism Activities*
Percent of Employee Effort
Number of Farms
Percent of all Agri-Tourism Farms
None
122
31%
1 to 10%
59
15%
11 to 25%
49
12%
26 to 50%
39
10%
51 to 75%
38
10%
76 to 100%
86
22%
Total
393
100%
*Based on hired employees, including paid family members.
Top 10 Agri-Tourism Farm Activities
Farm stand
39%
On-farm retail store
32%
Argricultural-related events
25%
Small group/ individual farm tours
23%
Pick-your-own
21%
On-farm food processing
19%
Educational activities
16%
Processing of non-food farm products
11%
Cut-your-own Christmas trees
9%
Community-supported agriculture (CSA)
9% 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Primary Reasons for Engaging in Agri-Tourism Activities Number of Farms
Percent of all Agri-Tourism Farms
To generate additional farm profits
230
55%
To respond to a need/opportunity in the market
172
41%
Primary source of income for the farm
170
40%
To increase and/or diversify my market
156
37%
To capitalize on a special interest or hobby
121
29%
To provide a new and interesting challenge
82
19%
To generate revenues during the off-season
63
15%
To provide employment for family members
58
14%
Primary Reason for Engaging in Agri-Tourism
Agri-Tourism Impacts on Farm Profitability
Number of Farms
Percent of all Agri-Tourism Farms
Increases profits significantly
128
32%
Increases profits slightly
124
31%
Sole source of farm income
100
25%
Has no effect on profitability
43
10%
Lowers profits slightly
4
1%
Lowers profits significantly
3
1%
402
100%
Impact on Profitability
Total
Do Farmers Plan to Expand Agri-Tourism Activities?
28% of farmers surveyed plan to initiate a new agritourism enterprise within the next 12 months 48% of farmers surveyed have a long-term interest in developing a new agri-tourism enterprise
Opportunities and Challenges
Top 10 Major Obstacles to the Start-up or Expansion of Agri-Tourism Activities Does Not Apply
No Difficulty
Challenging
Major Obstacle
Finding time
7%
26%
18%
49%
Insurance availability
12%
38%
21%
29%
Finding qualified workers
37%
22%
14%
27%
Taxes
12%
48%
18%
22%
Creating relationships with tourism businesses
50%
21%
13%
16%
Finding customers
4%
55%
25%
16%
Obtaining financing
47%
29%
9%
15%
Licenses and permitting
20%
51%
15%
14%
Promotion and advertising
9%
56%
24%
11%
Understanding liability issues
12%
58%
19%
11%
Major Obstacle
Top 10 Promotions for Agri-Tourism Activities Number of Farms
Percent of all Agri-Tourism Farms
Word of mouth
365
84%
Listing in printed directories
237
54%
Newspaper
233
53%
Listing on others’ web page
221
51%
Your own brochures distributed off the farm
167
38%
Through an association
143
33%
Your own web page
130
30%
Direct mail to current and potential customers
92
21%
E-mail to current and potential customers
92
21%
Consumer trade shows, special events
91
21%
Type of Promotional Activity
Top 10 Planned Agri-Tourism Activities
Planned Agri-Tourism Activity
Percent of all Agri-Tourism Farms
Agricultural-related special events (Open Farm Sunday, etc.)
18%
Educational activities
17%
On-farm retail store
16%
Farm stand
15%
Small group/individual farm tours
14%
On-farm food processing
13%
Outdoor recreation
12%
Community-supported agriculture (CSA)
10%
Pick-your-own fruits or vegetables
10%
Bed & breakfast or lodging
9%
Top 10 Workshops of Interest Number of Farms
Percent of all Agri-Tourism Farms
Pricing of on-farm products and activities
143
33%
Advertising and promotion
124
29%
Internet marketing
124
29%
Marketing your farm to tourists
92
22%
Web sites and search engines
92
22%
Creating a marketing plan
85
20%
Product development
82
19%
Media relations
67
16%
Accounting & bookkeeping
61
14%
Writing a business plan
56
13%
Workshop Topic
Membership in Agricultural Associations
Number of Farms
Percent of all Agri-Tourism Farms
None
68
15%
One
110
25%
2 to 3
188
42%
4 to 6
70
15%
7 to 10
8
2%
More than 10
3
1%
447
100%
Number of Agricultural Associations
Total
Membership in Local Tourism-Related Associations
Membership in Local or Regional Tourism Business Group
Mermbership in Local Chamber of Commerce
4%
15%
Yes No 96%
Yes No
85%
Frequency of Interaction with Nearby TourismRelated Businesses
Number of Farms
Percent of all Agri-Tourism Farms
Never
315
73%
Once a year
52
12%
Once a month
31
7%
Once a week
16
4%
Almost daily
17
4%
Total
431
100%
Frequency of Interaction
Contribution to Maine’s Economy
Contribution of Agri-Tourism Sales to Overall Farm Sales in Maine, 2005
Contribution of Agri-Tourism Sales to Overall Farm Sales in Maine, 2005*
$28,300,000, 43% $37,300,000, 57%
Agri-tourism activities sales
Other sales
* Estimated total sales for the 766 agri-tourism farms identified in the MDOA database.
Economic Contributions of Agri-Tourism in Maine, 2005
Economic Measure
Direct Agri-Tourism Activity
Indirect Economic Effects
Total Economic Contribution
Output
$28,282,175*
$12,561,409
$40,843,584
Employment
1,762
165
1,927
*This represents 5.1% of total sales on all farms in Maine.
Conclusions Agri-Tourism activities are found on all sizes and types of farms in Maine The importance of agri-tourism to farm revenue varies inversely to farm size Agri-Tourism activities generate $28.3 million in sales:
43.1% of agri-tourism farm sales and 5.1% of total farm sales 1,927 full-time and part-time jobs $12.5 million in indirect economic impact $40.8 million in total economic impact
Key obstacles to agri-tourism include: finding adequate time Insurance availability or cost Finding qualified workers
Conclusions Agri-tourism farmers are most interested in learning about: How to price their agri-tourism products and services Internet marketing Advertising and promotion
Agri-tourism farms may benefit from establishing strong connections and linkages with tourism-related businesses and organizations in their communities
Acknowledgements
The authors gratefully acknowledge the valuable assistance provided by Deanne Herman of the Maine Department of Agriculture, Food and Rural Resources. Funding for this research was provided by the Maine Agricultural Center at the University of Maine.
