The farm destination

From corn mazes and pumpkin patches to on-farm stores and tours, many possibilities exist for dairy farmers to tap into new revenue streams through agricultural tourism.

“We’re seeing more and more dairy farmers looking for the opportunity to bring guests onto their farm for several reasons,” said Sheila Everhart, executive director of Wisconsin Agricultural Tourism Association. “Mostly, it is to educate — how their milk, cheese, ice cream is made. People really want to know where their food comes from. Dairy prices fluctuate so much, and farmers are also looking for that value-added product to bring in an additional revenue stream.”

The top five revenue streams for agricultural tourism are direct-to-consumer sales such as on-farm markets and pick-your-own operations; accommodations and farm stays that may include overnight stays in farmhouses, cabins or glamping tents; entertainment and seasonal events like corn mazes, hayrides and harvest festivals as well as hosting private events like weddings; educational tourism including workshops and guided tours; and outdoor recreation that provides access to land for fishing, birdwatching or pasture walks.

“Today, people really want direct-to-consumer sales,” Everhart said. “They want those immersive experiences where you use all five senses. They want to experience life on a farm. They want to befriend a farmer. They also want to learn how dairy farms are using technology to make their jobs easier and more efficient. They’re really intrigued with that.”

Making ice cream or cheese to sell onsite, offering farm camps, goat yoga or hug-a-cow experiences are other ways a farm can profit by sharing their farm with the public.

“The public wants unique experiences — authenticity that links to environmentalism, food, health and wellness,” Everhart said. “Wellness is really important and hot right now.”

People want to learn how to make sourdough bread, can food and make jams and jellies. They also want to bike, snowshoe and cross-country ski on a farm and have family celebrations.

“They want to stargaze and will pay to sit out in a pasture with a bonfire because you can’t see that in the cities,” Everhart said.

When done correctly, agricultural tourism can be a profitable enterprise. Everhart said that according to the 2022 census, the average agricultural tourism-related income was $31,187 per farm.

“I know a lot of farms doing a lot more revenue than that,” Everhart said.

Many farms already feature what people are seeking and are willing to pay for. Scaled to meet the farm as it currently operates, agricultural tourism builds on available resources. It connects farmers with consumers and allows farmers to set their own prices while reducing reliance on fluctuating markets.

“It’s all about looking at your passion, your assets and what kind of return on investment you’re going to want,” Everhart said. “If you’re going to have people come for a farm tour, and there are four people and it’s going to take an hour of your time, what are you going to need to charge to make your ROI? What are people willing to pay?”

Selling products for people to purchase after the tour is another way to make this type of venture even more profitable.

“If farmers want to share their lifestyle with people and they have extra rooms in their house, the easiest and most economical way to get started might be to offer a farm stay,” Everhart said.

She said a farm could likely start this type of bed and breakfast concept with an investment of $3,000.

“You would make your ROI because an average farm stay with a tour could be $100-$130 per night for two people,” Everhart said. “People are willing to pay money and come out and experience what a farmer does every day, but you have to have the right environment and the right personality. Use your current assets, and don’t go into debt. The idea is to bring in additional revenue to make your farm viable at all times.”

A farm should begin by taking an inventory of its resources. The amount of land available to devote to the venture is a good place to start, along with assessing its suitability for parking and specific activities.

Next to consider are buildings and which existing structures, such as barns, sheds, silos and homes could be designated for visitor experiences. Building code requirements and possible renovations should be factored in along with obtaining necessary permits.

Labor is another resource to think about. Hiring seasonal staff may be required if family labor cannot meet the venture’s needs. Existing products grown or produced on the farm can form the basis for retail and value-added offerings.

Farms should identify potential hazards across the property, including parking areas, walkways, restrooms, animals, equipment and activity zones. Clear signage, defined visitor areas, and physical barriers help keep guests out of unsafe spaces. Emergency preparedness should also be a priority, with clear plans for medical incidents, severe weather, lost children and animal-related accidents.

Ensuring a farm is covered by insurance is a must.

“Check with your insurance provider to make sure you have agriculture tourism included in your policy or you have a rider,” Everhart said.

WATA has a partnership with Rural Mutual Insurance Company, which has a specific agricultural tourism rider on its farm policy.

“It doesn’t cost that much, and for what it covers, it’s well worth it,” Everhart said.

Farms offering agricultural tourism must also have a Wisconsin’s Limited Liability Law sign posted on the property, which, according to Wisconsin Act 269, provides immunity from liability for agricultural tourism.

Farms should pay attention to how their property is zoned and the related ordinances of that zoning. If the activity a farm plans to offer is not a permitted use within their local municipality, the farm will need to acquire a conditional use permit. 

Learning from others who are already engaged in agricultural tourism can reduce the burden on a farm starting out. WATA’s peer-to-peer mentoring program connects farmers who are interested in starting an agricultural tourism venture with another farmer who is already doing something similar.

“That experience will save a lot of time, headache and money and prevent mistakes from being made,” Everhart said. “Learn what others have experienced so you can avoid nightmares.”

WATA also assists farms in states outside of Wisconsin.

In addition to the monetary benefits of incorporating agricultural tourism, this effort can also help preserve family farms and revitalize rural communities.

“Agricultural tourism is growing  because that’s what people want,” Everhart said. “They want to be outside and have fresh air, lots of space, green grass and green pasture...Agricultural tourism is a revenue stream that can help preserve our state’s farmland.”