Agritourism is a growing area of the tourism sector with many positive social and economic benefits for farmers, their communities, and for tourists. While researchers have been studying the phenomenon for several decades, factors that lead to profitable outcomes for agritourism operators are still not well understood, hindering the effectiveness of agritourism development and the systems of support available to farmers. Using a survey of 1834 farms and ranches open to visitors in the United States, the goal of this study is to identify the factors that influence the profitability of agritourism operations. This study shows that several factors have positive associations with increased agritourism profitability, such as the number of years of experience of the operator, farm scale (acreage and total farm revenue), providing on-farm product sales, and offering events and entertainment. Off-farm product sales and being a female operator have a negative association with profitability in agritourism. We discuss the implications of our findings on agritourism operators, suggest their utility for tourism planning and rural community development professionals, and offer suggestions for future research.
21 May 2020 in Journal of Agriculture, Food Systems, and Community Development
JAFSCD: Journal of Agriculture, Food Systems, and Community Development. Publication of the Thomas A. Lyson Center for Civic Agriculture and Food Systems
Hop production has expanded dramatically in recent years along with the number of local craft breweries, but to date the relationship between these two phenomena has not been explored systematically. Using a state-level pooled count data model with observations from 2007, 2012, and 2017, we examine the independent lagged effects of breweries on the number of hop farms and acres grown, holding constant fixed effects and key economic and geographic factors. Our results confirm that the number of breweries is associated with more hop production (farms and acres) five years later, while warmer temperatures and higher land prices discourage it. (JEL Classifications: L66, Q11, R30)
17 April 2023 in Agricultural and Resource Economics Review
Agritourism and direct-to-consumer sales are increasingly used as diversification strategies to generate additional farm revenue streams. Yet despite their growing importance, the impacts, interactions, and adoption of these strategies remain poorly understood. Here we use univariate and bivariate local Moran’s I statistics to identify agritourism and direct-to-consumer sales hotspots in the United States and a Seemingly-Unrelated-Regression Spatial Durbin Model to examine the association between agritourism and direct farm sales to consumers. We find that agritourism and direct sales reinforce each other within the same county but not consistently across neighboring counties.
16 January 2024 in Applied Economic Perspectives and Policy
We examine the association between woman farmers and community well‐being using U.S. county‐level data. We address modeling uncertainty around three measures of community well‐being by using a spatial Bayesian model averaging approach and find that a higher share of farms operated or owned by women in a county is associated with higher rates of new business formation, longer life expectancies, and lower poverty rates. The results are consistent with a growing literature that finds women business owners approach their businesses more holistically, with positive community spillovers.
21 May 2020 in Journal of Agriculture, Food Systems, and Community Development
First paragraph: The U.S. Department of Agriculture Economic Research Service’s Food Expenditures by Outlet data provide insight as to why the lockdowns related to COVID-19 have been so devastating for U.S. farmers. In 2018, American consumers bought a total of $628bn[1] worth of food, of which $460bn was spent at grocery stores and $168bn at warehouse clubs and supercenters (see Figure 1 and Table 1). But expenditures on food away from home exceeded that amount: $680bn was spent at restaurants, $337.8bn at full-service restaurants and $340.2bn at limited-service restaurants.[2] The social distancing and stay-at-home orders related to the COVID-19 pandemic have forced many restaurants to close and those remaining in business to switch to pick-up or delivery only options. Because restaurant supply chains are highly specialized and time sensitive, reallocation of these supply chains has not come quickly enough to accommodate the shifts in consumption toward at-home eating patterns. . . . [1] All amounts are in U.S. dollars. [2] Not all of this represents the value of agricultural products; a large share of this is value-added in the form of rents and wages.