Are you interested in adding an agritourism enterprise to your farm business? The Adding Agritourism series shares careful thought and best practices. Agritourism is a type of farm-direct marketing that allows for generating increased income by providing visitors with education, direct sales of products, entertainment, lodging and recreational activities. Agritourism is a place-based form of marketing, but it may also occur off-site where farmers sell their products and interact with customers, such as farmers markets.
Some forms of on-farm agritourism are:
- Farm stands and on-farm sales.
- U-pick and U-cut.
- Farm-to-Table meals.
- Experiential educational classes or programs.
- Farm tours.
- On-farm lodging.
- Promotional activities, such as pumpkin patches, hayrides and corn mazes.
- Recreation, such as horse riding, bird watching, fishing and hunting.
Why agritourism?
There are many advantages to adding agritourism to your farm business.
- Diversify farm income strategies.
- Develop a new aspect of the farm business, allowing interested family members or farm partners to stay working on the farm.
- Educate the public about local agricultural practices.
- Provide your local community access to fresh food.
- Create new and unique marketing opportunities for your product.
First and foremost, you must have a viable farm business
It may seem obvious, but expanding your farm business to include agritourism means you must first grow, raise or process farm products to sell and promote. These products may include produce, plants and flowers, live animals, animal products such as meat and fiber, and value-added goods made from these products.
Many rural properties are in settings that seem like perfect venues for events like a wedding, retreat or festival. But, unless these events directly relate to the sale and promotion of your farm products, you will not be able to get a permit.
Learn your property’s zoning
When you work with your county to establish an agritourism opportunity, the most critical variable to research is your property’s zoning. Agritourism is typically an acceptable use on land zoned as Exclusive Farm Use, Rural Service and Rural Residential. Zoning determines the permitting process, since specific rules pertain to each zone. Zoning also affects the type and cost of required permits.
Oregon’s land use laws are protective of properties in Exclusive Farm Use (EFU) zones with goals of maintaining land for agriculture and reducing impact of other uses. Many agritourism activities are allowed on EFU land but these activities are expected to be directly related to and supportive of agriculture production.
In most cases, businesses such as event venues, restaurants, and bakeries are not allowed in EFU zones. Legislation passed in 2011 created opportunity for a limited number of events if the proper permits are granted. Again, you will need to consult with your county planning department to find out what codes are in place that address the allowable activities included in the laws (ORS 215.213 & ORS 215.283).
If you are a new or beginning farmer planning to add agritourism to your business model and do not have land yet, take the time to identify properties that have zoning that will allow for the agritourism activities you are thinking about.
Develop a working relationship with your county planning department
Developing a working relationship with your county’s land use and planning department may seem intimidating, but it is necessary. To start, learn how your county processes planning requests and what kinds of information you will need to prepare before you meet with them.
Some county planners prefer to talk by phone before meeting in person; others have a staffed planner on call each day. Depending on their workloads and schedules, meeting with the planning department may take a lot longer than you expect. Be patient with the county staff and plan ahead. Allow at least six months of lead time for this permitting process — anticipating quick approval is unrealistic and is bound to cause frustration for all parties involved. Also, remember that there are fees associated with permitting. Fees are different for each county and depend on many variables. A list of county planning departments is available through Oregon Association of Counties.
Since agritourism offers diverse opportunities and farmers are natural innovators, you may have an idea that hasn’t been permitted in your county yet. Be prepared to answer questions about how the activity promotes the agriculture production on your farm and how it may potentially impact neighboring farms and land uses. If possible, find and visit another farm in Oregon that is legally offering a similar activity and learn as much as you can about what does and doesn’t work well.
Learn about permits and licenses you may need
Building permits
If your agritourism business includes the use of a building structure, you need to know that most existing buildings on farms were built for agriculture or residential use, not commercial use. If you intend to have the public inside a building, it may need to be built or remodeled to meet commercial-use building code requirements for safety and liability purposes or to limit the number of people inside the building at any given time. Contact your local Building Division to confirm the specific requirements. For example, under Oregon law, farm stands can only be used for the sale of farm crops or livestock. Farm stands may not be used to host indoor public events or offer overnight accommodations.
Other permits may include:
- Floodplain.
- Electrical.
- Plumbing.
- Mechanical.
- Septic.
- Road approach.
You will also need to develop a site plan to share with your county. Site plans often include:
- Existing landscaping.
- Access (commercial road approach).
- The size and location of your farm-stand structure.
- The size and location of parking area.
- Proposed Americans with Disabilities Act Title III, if required.
- The size and location of any signs.
Food safety
The Oregon Department of Agriculture’s Food Safety program will work with you to decide whether your agritourism activity requires a food license. There are license exemptions if you are selling only fruit, vegetables, eggs and honey produced on your farm. If you are selling products from other farmers, or meat or milk products, check with your local food inspector to determine license and labeling requirements. If you plan to sell food for immediate consumption, such as smoothies that incorporate your farm produce, or special events like a farm-to-table dinner, you will need proper permits from your county health department.
Selling or serving alcohol
If the activities you propose include selling or serving alcohol, you will need to contact the Oregon Liquor Control Commission (OLCC) to get permits.
Public safety
Inviting visitors from the public onto your farm increases your liability for their safety. We recommend that you consult with your insurance company to confirm that your policies are adequate to cover the agritourism activities you are considering.
You will need to consider whether or not your driveway approach is appropriate for increased vehicle traffic. Blind corners, narrow driveways, inability for vehicles to pass and sign placements are a few factors to take into account and work with your county to resolve, if possible.
The physical safety of your customers on your farm property is also critical. Oregon’s agritourism limited liability law helps reduce the liability risk for farm owners and operators if proper signs are visible at the farm’s entrance. These signs inform visitors that they are entering an agritourism farm and participating in farm activities at their own risk. You can make a sign using the requirements available online, or buy a ready-made sign.
Also be sure to look over your farm for potential hazards, such as nearness to farm equipment and animals. Uneven ground and hoses or ladders can be tripping or falling hazards. Consider creating friendly signs that help keep customers in areas that you consider less risky.
Add agritourism to your farm business plan
Every farm business should have a documented business plan. If you are planning to add agritourism, write a section specifically about these activities and how they directly relate to the promotion and/or sale of your farm products. For example, make sure to explicitly state that the reason you want a permit for a farm stand is to sell your produce direct to the customer. This way, no matter what agritourism activity you wish to implement, a direct tie to your farm products is documented. A business plan can also be helpful when requesting permits, as it shows your commitment to making agritourism a viable part of your overall farm business.
You may also want to consider if your agritourism activities can grow incrementally over time. For example, a blueberry farm’s first step into agritourism may start with inviting the public on the farm to pick their own fruit. Next, the farm may open a farm stand to sell picked fruit and value-added blueberry products. As their farm stand develops, they may have interest in hosting a harvest celebration event and guided tours to promote the sale of blueberries. In this scenario, the blueberry farmer will need to consult their county planning department to implement each phase.
Start planning and ask lots of questions
There are many details to consider as you start planning how or if agritourism fits into your overall farm business. We recommend you start the planning process early and learn as much as you can about what specifically is allowable on your land based on its zoning. Don’t hesitate to ask questions of your county; OSU Extension’s Agricultural Tourism team (Melissa Fery, Pami Monnette, and Audrey Comerford); your insurance agent; other farmers; and potential marketing partners like Travel Oregon and local destination marketing organizations.
