Developing an Agri-Tourism Operation
in Ontario
Table of Contents
- Introduction
- The Market
- Do You Have What It Takes?
- Strengths, Weaknesses, Opportunitites, and
Threats - The SWOT Analysis
- The Next Step - Marketing
- Risky Business
- Helpful Contacts/Resources
Introduction
Opening your farm gates to visitors involves shifting the focus of your
operation from production to people. This shift involves innovation, business
planning and, most of all, patience. Farm owners who have successfully
integrated agri-tourism into their operations report that the transition
has enhanced their lifestyle as well as their business.
Agri-tourism supports a growing desire by consumers to head outdoors
and to the country for more leisure opportunities. The University of California's
Small Farm Center defines Agricultural Tourism as "the act of visiting
a working farm or any agricultural, horticultural or agribusiness operation
for the purpose of enjoyment, education or personal involvement in the
activities of the farm or operation." Agri-tourism is a subset of
a larger recreational industry called rural tourism that includes visits
to rural settings or rural environments to participate in or experience
activities, events or attractions not readily available in urbanized areas.
The Market
Ranked by survey results, the major reasons to go on vacation include:
- To build and strengthen relationships - The number
one reason for going on vacation is to be together as a family. Agri-tourism
destinations are traditionally family-focused.
- To improve health and well-being - Travellers want
to refresh and renew themselves by actively participating in outdoor
activities. Agri-tourism venues promote authentic outdoor activities
and events.
- To rest and relax - Agri-tourism operations, particularly
farm vacations, offer an excellent non-urban, peaceful environment for
rest and relaxation.
- To have an adventure - Many look to vacations for
exciting experiences that stir emotions. Agri-tourism operations pride
themselves on adventure and fun. This may include activities as challenging
as running through intricate corn mazes to hiking through an on-farm
enchanted forest.
- To escape - Many people travel to take a break from
routines, worry and stress. They are looking for something different:
a better climate, natural scenery, a slower pace of life, cleaner air,
quieter surroundings and more.
- To learn - Learning and discovery are strong motivators
for many of today's travellers. People travel to learn or practise a
language, study a culture, explore gourmet foods or wines, investigate
spirituality, discover something about themselves. They want to touch,
feel or taste something unfamiliar and authentic. Agri-tourism is a
key segment of the tourism market that can offer a glimpse for the majority
of our urban population into the unfamiliar.
- To reminisce - Many people travel to relive fond
memories. In the case of agri-tourism, some vacationers, especially
older travellers, will visit a farm to rekindle memories of the simple,
rural lifestyle they remember from childhood. These vacationers pay
money for food, lodging, transportation and souvenirs, but they are
really buying a sentimental journey.
Do You Have What It Takes?
Developing a successful agri-tourism operation does not necessarily involve
a huge investment in infrastructure or capital expenditures. In fact,
many farm operators do not realize the agri-tourism potential their farm
property holds. The first step is to assess your assets.
Physical Resources
Land: List what you have, including pasturelands, wood
lots, crop land, wetlands, elevation, topography, etc.
Climate: Consider weather patterns (rain, snow, humidity,
wind) and temperature and how they may affect the types of activities
you might provide.
Infrastructure: List what structures you could use -
buildings, equipment, roads/trails, fences, etc.
Other attractions: List those things already on your
farm that might appeal to a visitor, such as wildlife, streams, ponds,
fishing, livestock, proximity to natural or manmade points of interest,
etc.
Operations and Management
Owner/manager strengths and goals: List the intangible
assets you have that can help you with a farm recreation operation, such
as people skills, marketing ability, knowledge or skill such as maze building,
livestock management, cooking, historical knowledge of the area, etc.
Family Strengths and Resources: List any skills and
strengths that family members could add.
Activities
List activities you already do on your operation that might appeal to
the public. Remember, what seems routine to you may be considered interesting
to the non-farm public. Some examples might include on-site food production,
machinery operations, including harvesting and planting, calving and/or
lambing, trail rides and crop picking.
An advantage of agri-tourism is that there are so many potential customers.
It is wise, however, to target the segments of the market that best suit
your business goals:
- What kind of visitors do you want to attract?
- What kind of guests can you attract to your farm with the operation
you have today?
- What kind of visitors will you be able to attract in the future?
- Identify your target market(s) by creating a profile of the customer
you want to attract to your farm for both cultural and financial benefit:
- Who would you consider to be the ideal customer? (families with young
children, schoolchildren, etc.).
- What characteristics do you want in your guests (independent types?
action-oriented people? people looking for entertainment and activities?
people seeking relaxation?)
- Where do your preferred customers come from? (Ontario, out of province,
out of Canada, urban, rural)
- What are your customers' age groups? (young? retired? variety?)
- Are they single? Married?
- What is their income level?
- What is their party made up of?
- Do your customers include children?
- What are the hobbies/interests of your preferred customers?
The types of activities you can offer at your farm are many - you just
have to use your imagination. Here are some suggestions:
- roadside stands and markets
- food activities: "Pick/Cut/Gather/Grow/Process Your Own"
- farm activities: haying, threshing, plowing, fencing, sheep shearing,
lambing, egg hatching
- bed and breakfast/farm vacations
- specialties: wine, cider, maple syrup, flowers, herbs
- animal feeding and petting areas
- seasonal festivals: Fall harvest, Hallowe'en, Christmas, Spring, strawberry,
corn
- hay and/or sleigh rides
- hiking/scavenger hunts, Easter egg hunts
- barn dances (square dancing)
- birthday and corporate parties
- weddings, family reunions
- horseback riding
- photography/painting
- school tours and summer day camps
- cross-country skiing/snow shoeing/snowmobiling
- historical interpretation and reenactments
- mazes, rock climbing
- wildlife viewing (birds, deer, etc.)
- scarecrow-making, pumpkin carving/painting
- theatrical or puppet shows and musical events
- community charity events
- movie shoots
Strengths, Weaknesses, Opportunities and Threats
- The SWOT Analysis
Like any new business venture, the development of a comprehensive business
plan is crucial. Conduct a "SWOT" analysis examining the Strengths,
Weaknesses, Opportunities and Threats such a venture might present at
your location. A priority, however, is to ask yourself: Do I want to have
the public on my farm? Do I like dealing directly with the consumer? Am
I prepared to spend every weekend during peak season tied to the farm?
Am I prepared to accept the liability of having traffic and people on
my farm? In other words, with an agri-tourism business, your farm will
no longer be your private sanctuary.
Here are some helpful tips if you are considering such a venture:
- Explore zoning bylaws in your municipality that may affect what you
can do on your farm.
- Find out the type and scope of liability insurance required for hosting
the public on your property.
- Inform your neighbours of potential changes to your farm operation,
discussing both impact and opportunities.
- Examine existing buildings and structures on your property to see
if they are suitably located and conducive to the types of products
and activities you will be offering to the public.
- Check to see what limitations there may be on posting signage attracting
customers to your property.
- Ensure safe and easy access to your property along with sufficient
off-road parking.
- If you plan on people staying for long periods of time, provide sufficient
and sanitary washroom facilities, including handwashing stations - particularly
when people, food and animals are involved.
- If you plan to prepare and serve food on your premises, contact your
local public health unit to ensure regulations are met.
- Provide safe and efficient on-farm transportation if required.
- Have friendly, outgoing, well-trained and customer-focused employees.
- Adhere to labour laws and regulations to meet employment standards
for staff.
The Next Step - Marketing
Now that you've done an assessment of your property, identified your
target market and potential activities, and conducted a SWOT analysis,
the next step is to ensure you properly market your agri-tourism enterprise.
It is not always a case of "if you build it, they will come"
- you have to have an effective marketing plan to attract customers and
keep them coming back. Marketing can be as simple as word-of-mouth referral,
or involve a regional, national or international media campaign. Direct
your marketing style and message to your identified audience. Anything
you print must reflect these selling points in a neat, high-quality, tasteful
presentation.
The Three Basics of Advertising
The Message: Focus on two or three strong selling points
and additional information about your products and services. You want
to tell the customer about the type of activity or enterprise you offer,
additional goods and services, directions to your location and costs of
the activities. Try to be original in your marketing. Keep your message
simple. You can refer people to a website or invite them to write or call
for a brochure with more details. Make certain the goods and services
advertised represent what you can deliver.
The Medium: Marketing includes a wide range of activities,
from public relations and advertising, to promotions and trade shows.
Advertising is the most expensive approach. Carefully consider all forms
of media and focus on those that fit your budget and reach your target
audience. They may include billboards/road signs, brochures, co-operative
ads, newsletters, magazines, newspaper, radio, website, television, trade
journals, visitors bureau or word-of-mouth referrals.
The Target Audience: Which market segment(s) you wish
to target will determine the type of advertising and the best media placement
(type of radio or magazine that targets that market segment).
How much you decide to spend on marketing will largely depend on the
size and type of your operation, the medium you select and the number
of times you repeat any advertisements. New operations typically spend
10%-25% of total operational costs on specific marketing efforts. Take
the opportunity to question and survey customers about how they found
out about your operation. With time and an established reputation, costs
for marketing are usually reduced to below 5% of gross income from an
agri-tourism enterprise.
The Importance of Public Relations
Public relations are defined as the creation and maintenance of a favourable
image. It is part of marketing and advertising, but it goes further. As
a landowner, you should always be concerned with your business image.
Your public relations goals can range from client's satisfaction with
their experience, to acceptance of your operation by neighbours, local
community leaders and the general public. It is also worth the effort
to foster the support of neighbours, provincial and federal agencies,
local police and law enforcement personnel, citizen groups and your local
Chamber of Commerce or Visitors Bureau.
In Ontario, the province's domestic market represents 80% of the overall
tourism market in 2007, up 5% from 2006 with an estimated 88.9 million
trips within the province. Many agri-tourism operations are within a two-hour
drive of large urban areas (Toronto and Ottawa), which together represent
about 75% of the province's population. This increased urbanization of
Ontario's domestic market has resulted in consumers wanting to "experience"
authentic outdoor farm activities.
The Importance of Relationship Marketing
Happy customers become loyal customers and become the key to
long-term success: They will return, and they will tell their
friends about your operation. Learn their names. Remember what they like
and have it ready for them. Always ask your customers what they liked
about their stay and what could be improved. The little touches make all
the difference.
Develop a mailing list: Get names and contact information
from ballots you've used for event draws, a guest book, etc. You can also
get names from organizational lists specific to your target market. Your
mailing list is your most important asset. Mail or e-mail your customers
at least twice a year. Be sure to have permission to use their e-mail
addresses.
Take care of details: Make sure that your telephone
is answered professionally, e-mails are responded to quickly, your website
is updated regularly and customer concerns or complaints dealt with efficiently
and effectively.
Tell the community about your business: Join the local
Chamber of Commerce and/or tourist association. Talk to neighbouring farms,
service stations, retail outlets, etc. Give other retailers your brochure
and make sure that people in your area know about you. Start close to
home at first and move out gradually. Remember, it is more important to
complement than to compete with other local businesses that are also looking
to attract visitors. It would be even better to promote together.
Send information about your company to related magazines and
newspapers: Send them news releases and story ideas. Invite them
for a free visit/tour or open house. Follow mailings with personal calls.
Think of things that would interest them (e.g., if you operate a Pick-Your-Own
strawberry farm, send the editor a basket of strawberries to promote that
you are open for business).
Risky Business
Agri-tourism involving farm visits implies risks and potential liability
to the farm owner should accidents occur. It is necessary, therefore,
to develop sensible risk management strategies to minimize your liability
exposure. Safety is your first priority when opening your farm gates to
visitors. Your visitor's safety is largely your responsibility. See the
OMAFRA Factsheet Managing Risk
on Farms Open to the Public, Order No. 06-087, available on the OMAFRA
website.
Helpful Contacts/Resources
Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
OMAFRA has created a number of Factsheets and related information dealing
with business planning and marketing. They are available from the OMAFRA
website at www.ontario.ca/agbusiness.
Agri-tourism adds value to your existing farm operation. For more information,
see the Beyond Production Agriculture Business Information Bundle at www.ontario.ca/agbusiness.
Ontario Farm Fresh Marketing Association (OFFMA)
If you want to learn from other farmers who have successfully opened
their gates to the public, the Ontario Farm Fresh Marketing Association
(OFFMA) has over 250 member farms ranging from modest Pick-Your-Own farms
to elaborate entertainment farms attracting thousands of visitors annually.
OFFMA offers its members training and resources to assist in their marketing
efforts. Workshops focus on current issues and opportunities within the
industry.
Tel: 905-841-9278
E-mail: info@ontariofarmfresh.com
Website: www.ontariofarmfresh.com
Ontario Farm and Country Accommodations (OFCA)
OFCA boasts over 70 farm and country families who open their homes to
visitors from around the world.
E-mail: info@countryhosts.ca
Website: www.countryhosts.com
Canadian Farm Business Management Council (CFBMC)
See the publication Cultivating Agri-Tourism - Tools and Techniques for
Building Success
Website: www.farmcentre.com (under
Resources and Publications)
North American Farmers' Direct Marketing Association (NAFDMA)
Conferences, international farm tours, workshops and related publications
offered through NAFDMA provide members with the opportunity to network
on the profitability of direct marketing.
Tel: 1-888-884-9270
Website: www.nafdma.com
