Agri‐tourism/Green‐tourism

Glenn MuskeRural and Agribusiness Enterprise Development SpecialistRural and Agribusiness Enterprise Development Specialist

NDSU Extension Center for Community VitalityGlenn.Muske@ndsu.edu

701‐328‐97189/28/109/28/10

ObjectiveObjective

• Explore agri‐tourism/green‐tourismExplore agri tourism/green tourism entrepreneurship as a means of increasing economic well‐beingeconomic well being

Of individuals and families– Of individuals and families

Of comm nities– Of communities

What does agri‐tourism/green‐tourism mean to you?

Agri‐tourism definedg

• Organizing a business focused on attracting f h hconsumers to a farm, ranch, or any other 

agriculture, horticulture or agribusiness ienterprise 

– Goal of agritourism: Provide an opportunity for hthe customer to: • enjoy & relax, be educated, purchase products and/or be involved in activities of the agribusiness operationbe involved in activities of the agribusiness operation

and for the owner to make a PROFIT from use of existing assets.existing assets. 

Agri‐TourismMerging 2 industries

Green‐tourismGreen tourism

• Takes on multiple meanings – ecotourism bio‐Takes on multiple meanings  ecotourism, biotourism, nature tourism, geo‐tourism, ecological tourism and building designecological tourism, and building design tourism or even environmental certification programsprograms

• Typically involves travel to destinations where flora fauna and cultural heritage are theflora, fauna, and cultural heritage are the primary attractions

City SlickersCity Slickers

http://www.youtube.com/watch?v=F‐L4L3mfU‐E&feature=related

What Do Rural Travelers Lik T DLike To Do

• Dining‐70% • Camping – 21%g

• Shopping‐ 58%

• Water Activities‐ 44%

p g

• Sporting Events – 18%

• Visit Winery/ Visit 

• Visit Historical Sites‐41%

• Fish/Hunt/Boat‐ 32%

/

Farm/Orchard ‐ 15%

• Gambling/Gaming – 12%

• Visit Native American• Attend Festival/Fair‐29%

• Bike Riding/Hiking‐ 24%

• Religious Service 23%

• Visit Native American Community‐ 11%

• Religious Service‐ 23%

Source: TIAA, 2001 Rural Tourism Travel Poll

North Dakota Visitor Snapshot:North Dakota Visitor Snapshot:Reason for Travel

TouringTouring

Outdoor

Special Events

Visitor Spending Per Over‐Night Trip to ND

Transportation $338

Food $250

Accommodations $241

Retail $137

Recreation $ 82

Total $1,048

North Dakota VisitorsNorth Dakota Visitors

• Who are they?Who are they?– 64% are married

54% female– 54% female

– 41.4 years (average age)

52% i $50 000– 52% income over $50,000

North Dakota VisitorsNorth Dakota Visitors

• Where do they come from?Where do they come from?– 37% come from a city over 250,000

MN MT CA CO and WI– MN, MT, CA, CO and WI

– 33% Travel 100‐299 miles

21% t l 1 000 il– 21% travel over 1,000 miles

Trends in Tourism (USTA)Trends in Tourism (USTA)

• Deal not Destination

• Closer to home

• Urban dwellers want out

• Shop travel on line• Shop travel on‐line

• Want to learn

• Want bragging rights

• Family travely

Endless PossibilitiesOvernight Stays:

¤ Farm and ranch stays

Recreational Activities and Tours:¤ F fi hi d h ti¤ Rural b and b

¤ Youth camps¤ Cabin rental

¤ Fee fishing and hunting¤ Wineries and vineyards¤ Cattle drivesH ti

Special Holiday/Seasonal Events:

¤ Harvesting¤ Biking¤ Horseback riding

k d k l b¤ Haunted house¤ Hay ride¤ Corn maze

¤ Hiking and Rock climbing¤ Barn tours¤ Farm equipment 

d t ti¤ Corn maze¤ Pumpkin patch¤ Harvest festivals¤ Music and art festivals

demonstrations¤ Wagon rides¤ Bird watching/Wildlife 

watching¤ Music and art festivals watching

Endless PossibilitiesHospitality Services

¤ Meeting and conference facilities for business and l h

Retail Sales: Local Produce and Farm Products Sold at the Farm Gate

pleasure such as:» Country weddings and receptions» Company retreats» Family reunions» Church groups

¤ Jams and jellies¤ Bread¤ Homegrown beef/buffalo 

» Church groups

Youth and/or Adult Education

meat¤ Vegetables¤ Pecans/peanuts and other 

nuts¤ Organized tours: school, 

senior, church, tour groups¤ Ag education programs: how 

to grow , how to care

nuts¤ Wine/juices¤ Salsa¤ Flowersto grow _____, how to care 

for _____, training _____¤ Nature education programs: 

wildlife, trees, plants, etc.¤ D t ti h

¤ Pick your own fruits and vegetables

¤ Rent‐a‐tree, berry bush, garden or flowerbed¤ Demonstrations: cheese 

making, wine making, etc.garden or flowerbed

http://wwwmulticentre org/Images%202009/http://www.multicentre.org/Images%202009/School%20Buttons/2009_city%20slickers.htm

ND Activities• You Pick – Patries Raspberriesp

• Working Cattle – Knife River Ranch

• Combining Wheat Neilson Farm• Combining Wheat – Neilson Farm

• Corn Maze – Amazing Maze

• Milk a Cow – Moo Acres

• Putting up the Harvest – Schill Farmg p

Agri‐tourismAgri tourism

• It’s not newIt s not new

• Often been an income supplementA d th t’ k– And that’s okay

• Shorter, closer to home vacations more common

• Getting back to nature growing– 66,000,000 wildlife watching participants in US

Wh ??Where to start??

Myth #1b bYou must be born an entrepreneur

• There is nothing totally genetic about being anThere is nothing totally genetic about being an entrepreneur– If you have a weak area solve it through:– If you have a weak area, solve it through:

• Classes

• MentorsMentors

• Reading

• Hire an employee

• Take on a partner

• Use a consultant

• Networks

Business Skills RequiredBusiness Skills Required

Entrepreneurial

Management

TechnicalTechnical

#1 Key#1 Key 

#2 K G tt h#2 Key ‐ Gotta have

RResources•Land use land features land locationLand use, land features, land location•Farmstead features

/•Facilities – new/remodeled, ADA, restrooms, parking•Climate•WildlifeWildlife

Questions to Ask• Do I like working with the public?

• What does my property have to offer?– What does my community have to support me?– What does my community have to support me?

• Do I have some $$$$$ available?Do I have some $$$$$ available?

• How much time can I give to starting myHow much time can I give to starting my business?

• How will the business fit in with my family?

Myth #2Myth #2Ideas = Opportunitiespp

Build it and they will come 

DOES NOT WORKDOES NOT WORK

when developing your businesswhen developing your business. 

The Question – Is there a Market?The Question  Is there a Market?

• Be realistic ‐ Get solid numbersBe realistic  Get solid numbers– www.census.gov

• American Fact FinderAmerican Fact Finder

• E‐Stats ‐http://www.census.gov/econ/estats/index.html

– USDA Ag Census ‐ http://www.agcensus.usda.gov/

– State data centers

– US Bureau of Economic Analysis – www.bea.gov

– Google mapsg p

Marketing > Advertising + SalesMarketing > Advertising + Sales

Marketing is:Marketing is:• Customer definition and locationP d i d i k i• Product, price, production, packaging, etc

• Place• Promotion, PR, & advertising• Making the sale• Customer service!!!!!!!!!!• After the sale• Networks• BrandBrand

Marketing IssuesMarketing Issues

Trends vs FadsTrends vs Fads

New product/service vs Knock‐off

Si f h i iSize of the competition ‐ #s, resources

New market vs Existing market

Stage of the product/service

DifferentiationDifferentiation

Competitive advantages

E /S i l ki l !!E‐commerce/Social networking are tools!!

Getting the Word Outg• #1 – Word of mouth

Today’s social networks changing that whole area– Today s social networks changing that whole area

• Traditional meansAdvertising– Advertising

– PromotionPublic Relations – often overlooked– Public Relations – often overlooked

• Cooperative effortsOthers like you complementary businesses trade– Others like you, complementary businesses, trade associations

– In conjunction with local community effortsIn conjunction with local community efforts– Suppliers, distributors, etc. 

Getting the Word Outg#1 – Word of mouth

Today’s social networkingnetworking changing that whole area

What’s next?

Do you need a website?Do you need a website?

Probably yes

Remember:  Have an objectivejDesign and developmentUp‐front costsUp front costsMaintenanceYour audienceYour audience

Getting the Word OutGetting the Word Out

• Must know your target audienceMust know your target audience

• Must focus on that audience

k h k• Must track to see what works

• Must continually update

• Visual marketing

Myth #3Myth #3I want some free money

RealityRealityThere is (or rarely is) any free grant 

funds for business start‐ups. 

Don't waste your time, Mark Henricks writes. Outright grants are so few and so highly targeted that "[t]he chances of a typical would‐be 

entrepreneur getting free government money to, say, start a p g g g y , y,landscaping business are nil," Henricks writes.

9/10/10 – CBS Business Network author

Funding RealityFunding Reality

• You (get your personal finances in order)You (get your personal finances in order)

• Bootstrapping

il d f i d• Family and friends

• Loans – Start with your local banker

– SBA guaranteed

• Special programs (ND – APUC)

• Angel investors or venture capitalists• Angel investors or venture capitalists

Aim for ProfitabilityAim for Profitability• If you can’t make money, don’t do it!!!!

• How determine?   Do a BUSINESS PLAN!!!!

• Profitability issues– Costs – direct and indirect– Costs – direct and indirect

– Your time

Profit margin– Profit margin

– Taxes

Product Pricing Service Pricing Pricing for a Profit

Legalities and LiabilitiesLegalities and Liabilities

• Business nameBusiness name

• Federal Tax ID 

S S l d i• State Sales and Use Tax Permits

• Licenses and other Permits

• Liability issues

• Protection of intellectual propertyProtection of intellectual property– Patents, trademarks and copyright

How to get started?

• Think about partners (think package)

• Build onto an 

event

• Reach out for• Reach out for 

marketing help

Other Tipsp• Chose something you love to doG t th h l f il i l d• Get the whole family involved

• Follow the demand – produce what the customers wantcustomers want

• Create a high quality product• Keep informed and educated about:• Keep informed and educated about:

– Product– IndustryIndustry– Market

• Start small and grow naturallyStart small and grow naturally

Communities Can Supporti i h hAgritourism Through:

• Cooperation/coordinationCooperation/coordination

• Inclusion

• Good infrastructureGood infrastructure

• Positive attitude towards visitors

• Clean environment• Clean environment

• Good retail mix

• Local tourism organization• Local tourism organization

• Coordinated activities

G d h it lit• Good hospitality

Tourism and Your Community

Tourists

$

Gas, Food, Lodging, Amusement, Recreation

Outside GoodsLocal Goods

Wages, Salaries, Profits, Taxes

$$

Source: Tourism USA, “Appraising Tourism Potential,” Volume I, United States Department of Commerce, U.S. Travel Service, p. 8, 1978.

ResourcesResources

Iowa State Agricultural Marketing Resource Center

“How to”How to

• Oklahoma Agri‐tourism HandbookOklahoma Agri tourism Handbook

• Is Agri‐tourism for You? 

i i d i i• Entertainment Farming and Agri‐Tourism

• Nature Tourism Business Plan Development(Free course – need to register)

• Texas Nature Tourism

• Promoting Tourism in Rural America

Questions??

Glenn MuskeRural and Agribusiness Enterprise Development SpecialistRural and Agribusiness Enterprise Development Specialist

NDSU Extension Center for Community VitalityGlenn.Muske@ndsu.edu

701‐328‐97189/28/10