Professional Documents
Culture Documents
B E Y O N D T H E T H E TA B L E
Today’s agricultural production, marketing, and distri- with people to succeed at agritourism or other alternative
bution system can be described as an hourglass. We have enterprises. You are marketing directly to the consumer.
more than two million farmers/ranchers producing the You are producing memories, adventure, experiences, and
nation’s food who sell to a few firms that add value friendships.
through processing, packaging, and transporting, like the Thinking about the "customer" is probably more
neck of the hourglass, and then sell it to the 290 million important than thinking about "production" in this scenario.
domestic and foreign consumers. These firms incur the When you think about your customer, you must think
costs, risks, and management, add value, and store and about how you operate your business. When are you
transport these products before they are sold. going to be open? How many people will you hire? What
With alternative enterprises, the farmers "add value" type of facility will you need? How small can you be to
to their own products and realize a larger income by start? These are just a few of the questions you will need
performing marketing activities and incurring the risks to answer when developing an agritourism or other alter-
by processing, packaging, storing, transporting, and selling native enterprise.
directly to the consumer. The farmer becomes a competitor These farm or ranch income-producing opportunities
with agribusiness firms for a larger share of the consumer’s may be put into fourteen groups:
dollar. 1. Farm Markets and Specialty Products—These
In 1913, farmers received 46 percent of the consumer’s markets provide an excellent opportunity to sell all
dollar compared to less than 20 percent today. This types of value-added products from food to crafts,
occurred because many small farmers carried out the depending upon the rules of the farmers’ market.
marketing at the local level such as delivering milk, Specialty product markets exist everywhere. The
manning the butcher and bake shop, and selling "in-season Internet has made this a more easily accessible
produce," or consumers visited farms to buy directly from market. Also, many farmers are now marketing to
the farmer/rancher. In 1950, farmers received 50 to 80 restaurants, schools, and nursing homes. Many state
percent of the consumer’s dollar spent on fruits and government and local communities support this
vegetables. Today, the figure is less than 30 percent. type of activity. If they don’t, help them get started!
A farmer or rancher entrepreneur who diversifies into 2. Product Processing—These products include maple
value-added agriculture or agritourism has several market syrup, wood products, dairy products, and wine
opportunities. These can be categorized as: food (processing, production, to name a few. They can become an
packaging, branding, specialty markets, farmers’ markets), education activity as well as resulting in product
roots (heritage and culture), agrieducation (schools, sales. The ideas are almost limitless as to what you
retreats, conferences), experiences (farm stays, ranch can do with product processing and packaging.
stays, B&Bs pick-your-own), agritainment (petting farm, Customers like to shop, so you need to provide them
mazes, hayrides), and nature-based adventure (horseback with the opportunity to take something home for
riding, rock climbing, hunting, fishing). Most entrepreneurs themselves or for friends.
develop several of these activities as alternative enterprises 3. Fairs, Festivals, and Special Events–Farms hold
pay for fresh cut flowers. etables events for decades, and some have been renting
9. Education—Education can become a part of almost land to people who want to grow their own. A relatively
every agritourism and alternative enterprise. new enterprise is rent-a-tree, cow, or bush.
Education may even be the focus of the enterprise. Here the farmer still maintains complete control
Either approach provides for many income-producing in the production management aspects and the cus-
opportunities on the farm and ranch. Public and tomer pays the farmer for these services. For exam-
private education systems are looking for ways to ple, you can rent/lease an apple tree to a customer.
broaden students’ educational experiences. Most You still prune, spray, and perform the functions
schools are open to an invitation to visit your farm involved in production. The customer is invited to
once you explain your education program. Be sure watch the pruning, see the apple blossoms, and
to have different programs for the various age watch other production practices. When the apples
groups, from preschool to senior citizens. are ready to pick, the customer can bring friends and
10. Heritage and Culture—This is one of the fastest- pick whatever quantity they want from the tree they
growing tourism activities. American and foreign rented. The farmer then harvests the remainder for
86 visitors are very interested in the history of the himself.
This type of program allows the farmer to get the and other publications.
B E Y O N D T H E T H E TA B L E
customer to visit his farm several times a season, pro- • Go to the library and do some research. Use the
viding opportunities for sales of other value-added Internet to get the most up-to-date information.
items and development of a loyal relationship. If you don’t have an Internet connection at home,
We have just identified several agritourism and alter- one should be available to you at the library.
native enterprises possible on your farm or ranch. I suggest • Look through the resources listed in the NRCS
talking these ideas over with neighbors, your local exten- "Alternative Enterprises and Agritourism: Farming
sion agent, or other entrepreneurs. This is a difficult time for Profit and Sustainability" tool kit available at
for most farmers/ranchers; they are concerned their your area Resource Conservation & Development
neighbor will do the same thing if they talk to them about Office.
their ideas. This should not be a concern because research 3. Find out what other entrepreneurs are doing–
has proven that the more tourist attractions there are in • Talk to neighbors, friends, and strangers about
an area, the more people will come. Customers recognize their businesses.
they have an opportunity to pick and choose. Don’t be • Visit businesses in your surrounding area and in
afraid of getting your neighbor involved in an alternative neighboring counties and see what they are doing.
enterprise a little bit different than yours. This is where 4. Consult potential customers–
teamwork really pays off. • Ask your relatives, friends, and neighbors about
As you start to develop your business, you will need to the product(s) you are thinking of providing
consider the type of customer you want to attract or through your new enterprise. Are they interested?
serve. For example, do you want to lease your place to 5. Research the market for your products.
hunters who guide themselves and hunt whatever game 6. Network–
is in season for about $1,500 per week, raise and release • Join organizations or groups for people involved in
game, or manage your game so there are more trophy enterprises similar to the one you are interested in.
animals available and provide guided hunts for $12,000 • Join the chamber of commerce, rotary, and other
per week? These decisions need to be made when you are business and planning organizations or commit-
developing your business and marketing plan. tees in your community.
Some people get very nervous as they think about • See if other local entrepreneurs would like to join
these new and different enterprises. You need to look at you in your business venture or start their own
it the same as you do new farm and ranch production agritourism or alternative enterprise.
practices: Read about them, attend seminars, talk to peers, 7. Get help–
read research reports, and discuss with technical staff. • Visit resource people in your county, region, or
Finally, try to test your new business by selling your state. County agents, RC&D coordinators, state
services or products to family, friends, church groups, Extension staff, Department of Agriculture staff,
and other civic groups. Don’t make a big investment state tourism directors and staff, small business
immediately. Build and learn. development center staff, and other specialists
The NRCS has a put together a publication (see should all be willing to answer questions and help
B E Y O N D T H E T H E TA B L E
• Information Sheet AE-3, "Alternative Enterprises— 5. Sustainable Agriculture, Research, and Education (SARE)
Heritage Tourism" 6. "Using Free Money to Grow Your Agribusiness"
• Information Sheet AE-4, "Alternative Enterprises— Workshop, AZ
Value-added Agriculture" -Need one-on-one to see how you can make USDA
• WSSI Technical Note 1: Sustainable Agriculture programs work for you and tips on how to use them
• "Taking the First Step: Agritourism and Alternative -Grant-writing, proposal review, and competitiveness
Enterprise Opportunity Identification Guide (Making 7. Small Business Innovation Research Grants (CSREES)
the Right Decisions to Sustain Your Farm or Ranch -Community Food Program
and Natural Resources)–Draft -Value added
• Stories (17) in Agritourism and Nature-Based -Federal and State Market Improvement Program
Tourism and Alternative Enterprises -Initiative for future agricultural and food systems
• Press Release Drafts 8. Building Better Rural Places—More than fifty
• Alternative Enterprises and Agritourism programs are discussed. To obtain a copy, go to
Information—Talking Points, Definitions, Key Points www.attra.ncat.org or call (800) 346-9140
for Speeches, Media, and Workshops. 9. Business planning and marketing—Such as
NxLevel, Fasttrack, Chapters 12 and 15 of the
Funding Sources and Other Resource Considerations Resource Manual
1. Resource Manual Chapter 16 has a number of 10. Small Business Development Centers
websites for nonprofit groups and farmers 11. Chamber of Commerce
2. Rural Business Services (RBS)—multimillion— 12. County Extension Educator
value-added grants in the 2002 farm bill 13. Convention and Visitor’s Bureau
3. RBS loans and grants—B&I Guaranteed Loan Program, 14. RC&D Coordinator
Intermediary Relending Program, RBEG, RBOG, VT, 15. State Departments of—Tourism, Agriculture, and
IL, CA examples, recreation approval is pending. Natural Resources/Conservation
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