Driven by rising demand for experience-based travel, farmers are exploring ways to diversify their operations and tap into this lucrative niche of the agriculture sector.
Jeff Huber, a professor of agribusiness management at Conestoga College, has seen firsthand how the agritourism sector is transforming farming in Ontario. Huber said the pandemic has been one of the main drivers behind the surge in popularity.
WHY IT MATTERS: Agritourism is a growing business in Ontario, generating about $633 million annually, which means there are opportunities.
He added that agritourism can help farmers diversify on-farm revenue streams amid volatile markets and rising input costs.
Where to start?
Huber said farmers considering agritourism should consult Growing Agritourism: A Toolkit for Planning and Developing Your Agritourism Business (Simcoe County), a free resource that maps out a path to success. The toolkit provides planning tools for various stages, including preparing, planning, launching and evaluating success.
“I would also recommend connecting with Agritourism Ontario to learn more about becoming a member and accessing additional support, including professional development opportunities,” he said.
Huber recommended farmers begin with a basic feasibility study (BFS) to gain preliminary insight into whether agritourism would fit their operation.
“If your BFS shows promise, proceed to a comprehensive business plan to refine your assumptions and next steps,” he said.
Without these steps, many agritourism startups fall victim to mistakes related to land-use planning policies and zoning considerations.
Huber pointed to the agritourism survey conducted by the Ontario Federation of Agriculture in fall 2022, which suggested the most promising types of agritourism include farm stays, farm tours, workshops, events, seasonal farm stands and on-farm retail markets. He is also particularly interested in the growing potential of farm camping (a subsection of farm stays) and farm-to-table dining experiences.
“Depending on the type of agritourism experiences you plan to offer, you may need to apply for rezoning, site-plan approval, an official plan amendment, a building permit or a special-event licence,” he said, reminding farmers to contact their local planning department for guidance.
In addition, Huber recommends consulting Bill 186, the Growing Agritourism Act of 2024, which he said adds a new layer of protection related to liabilities.
Making a connection
The overall goal, he said, is to develop an extension of the seasonal farm stand with year-round on-farm activities. He added that recent “shop local” efforts spurred by the “elbows up” movement have increased consumer interest in local farming practices, presenting an opportunity to diversify farm revenue and improve margins.
“Farmers can capture more value, improve margins and build lasting customer relationships,” Huber said, adding there are many low-effort opportunities that can be expanded with the right planning.
He said it also creates an opportunity to build connections between farmers and consumers through what he calls a cultural exchange.
“Our visitors gain a deeper appreciation of the challenges farmers face,” Huber said.
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