California Agritourism Snapshot 2017

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1 California Agritourism Snapshot 2017 California Small Farm Conference October 30, 2017 Penny Leff, Agritourism Coordinator UC SAREP

2 Agritourism is: Any incomegenerating activity conducted on a working farm or ranch for the enjoyment and education of visitors.

3 Consider the Possibilities Guest Ranches Farm Stands Farm Dinners Tours Classes Festivals U-Pick Hunting Camping Tasting Corn Mazes Pumpkin Patches Baby goats Birds

4 Agritourism in California

5 Agritourism Gross Revenue % 21% 15% 15% 17% 15% 17% 15% 6% 10% 9% 9% 8% 8% 7% 4% 0% 1% LESS THAN $1000 $ $4,999 $ $24,999 $25,000 - $99,999 $100,000 - $249,000 $250,000 - $499,999 $500,000 - $999,999 $1M - $4,999,999 GREATER THAN $5M Colorado California

6 Number of Annual Visitors

7 Agritourism activities include On-farm Direct Sales (U-pick, farm stands, dairy, wine, beer, farm products, etc.). Accommodations/Lodging (farm stays, guest ranch, B&Bs, camping, cabins, etc.). Entertainment/Special Events (harvest festivals, corn mazes, farm dinners, weddings, parties, etc.). Outdoor Recreation (picnicking, swimming, hunting, fishing, photography, horseback riding, snowmobiling, biking, etc.) Educational Activities (farm or ranch work experience, camps, classes, tours, tastings, demonstrations, petting zoos, etc). From: Multi-institutional interdisciplinary research project survey of 288 western agritourism operators as part of 3 year USDA grant: Place-Based Innovation: An Integrated Look at Agritourism in the Western US

8 Main Sources of Agritourism Revenue California: Primary Activity - California Colorado: Primary Activity - Colorado Outdoor Recreation 4% Educational Activities 11% Diversified 10% Direct Sales 61% Educational Activities 10% Diversified 13% Direct Sales 33% Entertain., Special Events 8% Outdoor Recreation 14% Accommodations 6% Entertain./ Special Events 14% Accommodations 16%

9 Estimated Profit by Primary Activity (CA & CO combined) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 21% 18% 38% 22% Direct Sales (N=117) 11% 4% 43% 43% Accomodations/Outdoor recreation (N=28) 20% 20% 18% 41% Entertainment, Special Events, Educational Activities (N=44) 25% 25% 35% 15% Diversified (N=20) loss, no profit less than $2500 $2500 to $25,000 more than $25,000 California: N=141 Colorado: N=71

10 Agritourism Challenges: Percent of Respondents Rating Each Issue "Challenging" or "Very Challenging" Management time and expertise * Marketing (promotion & advertising * Availabilty of operating or investment capital * Family or business labor Cost and/or availability of insurance Other state or local regulations* City/County permitting & zoning * Local & state taxes Ensuring visitor safety and accessibility Competition from other local recreational options* Developing and implementing a business plan 0% 10% 20% 30% 40% 50% 60% 70% 80% California Colorado

11 Agritourism requirements Visitor/employee skill-building New regulations Additional risks New partners Community support

12 Helpfulness of Community Resources Percent of respondents rating each "helpful" or "very helpful" Farm or wine trail, agritourism association * Tourism bureau, Chamber of Commerce * Neighboring farms, adjacent landowners Other local tourism, recreation & retail businesses Local eating & dining places Local motels, hotels, B&Bs, campgrounds Small Business Development Center, University County/municipal planning & zoning dept. 0% 10% 20% 30% 40% 50% 60% 70% California Colorado * Difference significant at 90% confidence level

13 Butte County Case Study Butte County: Primarily rural Northern California County Population: 220,000 people Per capita income: 80% of state average Primary attractions natural beauty, outdoor recreation Primary economy: agriculture Walnuts, almonds, rice, prunes

14 Butte County Case Study December 2016 January 2017 Interviewed eight agritourism stakeholders 3 agritourism operators 5 support service providers Sierra Oro Farm Trails, Oroville Chamber, Butte Co. Farm Bureau, Butte Co. Planning, Butte Co. Econ. Development Online survey sent to 51 agritourism operators 12 responses received (24 percent response rate)

15 Butte County Case Study 11 of 12 survey responses stated that: Their agritourism business is less than 20 years old They earned less than $25,000 in agritourism revenue in percent or more of their agritourism revenue was from direct sale of agricultural products to consumers No respondents offered lodging or outdoor recreation activities They were open for agritourism activities 52 days or less in 2015

16 Butte County Case Study Butte County Assets: Unique Agricultural Overlay, Winery/brewery/micro-distillery Ordinances, Special events ordinance, free EDAC meeting Sierra Oro Farm Trails New Tourism Business Improvement District Outdoor recreation activities and events, arts and university draw visitors Chambers of Commerce, Farm Bureau are supportive Downtown businesses feature local growers, vintners

17 Butte County Case Study Some challenges to agritourism development: Need investment and operating capital for agritourism operations Need more agritourism operations to be open more regular hours Need more visitors to make it worth-while to stay open more Need better wayfaring signs, and improved roads to guide travelers Need more restaurants & lodging options in agricultural regions

18 Thank you! Questions? Contact: Penny Leff, Agritourism Coordinator UC Small Farm Program (530)

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