Masters Theses

Date of Award

5-2006

Degree Type

Thesis

Degree Name

Master of Science

Major

Agricultural Economics

Major Professor

Kimberly H. Jensen

Committee Members

Burton English, John B. Riley

Abstract

Agri-tourism provides means to enhance farm incomes, sustain farming operations, and add economic activity to rural areas. While agribusiness operations with agri-tourism activities have existed for many years, no formal accounting of these types of operations has been conducted prior to this project. The primary objective of this research was to develop an analysis of the Tennessee agri-tourism industry. The focus of this study was to develop an overview of a typical agri-tourism operation, evaluating marketing plans, operator experience, and assistance that might be required to ensure the continued success of these agri-tourism businesses. A secondary objective was to provide pertinent information for entrepreneurs to consider when using available resources to start an agri-tourism operation. Finally, the study examined the potential opportunity could be for these Tennessee operations.

The objectives of this study were accomplished through an agri-tourism survey of current and potential agri-tourism operations. A detailed inventory of the number and types of agri-tourism related businesses in Tennessee is compiled by updating and expanding a 2003 agri-tourism inventory conducted by the Center for Profitable Agriculture. This study examines current promotion methods used for agri-tourism, including how publicly provided promotion and assistance services may have impacted Tennessee agri-tourism, and determines the types of assistance used and needed by agri-tourism operators.

Forty-eight percent of those surveyed responded. Of those who responded, approximately 68 percent currently operate an agri-tourism related business, 16 percent plan to begin an agri-tourism related business in the future. Twenty-three percent of the respondents do not have future plans to operate an agri-tourism business.

The most common agri-tourism operation types were on-farm retail markets, on-farm tours, pick-your-own farms, farm festivals and fairs, pumpkin patches, cut your own Christmas trees, and on-farm petting zoos. While many of the operators offered more than one attraction, the majority of the operators offered three or less attractions and over 60 percent had annual gross sales of less than $25,000. Less than 15 percent had sales in excess of $100,000. For the firms responding to the 2003 inventory and this 2004 survey, a projected value for total revenues is over $21 million. The average number of full-time and part-time employees was 1.95 and 3.86, respectively. Median expenditures per visitor to agri-tourism attractions was $15.00, with the majority spent on purchasing the venue’s product and admission or user fees.

The most common types of advertisement used were word of mouth, business signs, www.picktnproducts.org website, and newspaper advertising. Respondents, who had used government sponsored promotional assistance, projected about 10 percent sales growth due to the positive effect of using these services. Among those attending agri-tourism workshops, the positive effect on sales was projected at over 14 percent.

Unrestricted and restricted logistic models were estimated to assess how agri-tourism businesses characteristics influence their needs for assistance services. The results can be useful in helping target services to businesses.

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