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Agri Tourism PPT

Agri Tourism PPT

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Published by Priyanka Rajani

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Published by: Priyanka Rajani on Oct 24, 2012
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Glenn Muske Rural and Agribusiness Enterprise Development Specialist Rural and Agribusiness Enterprise Development Specialist NDSU Extension Center for Community Vitality Glenn.Muske@ndsu.edu 701‐328‐9718 9/28/10

• Explore agri‐tourism/green‐tourism Explore agri tourism/green tourism  entrepreneurship as a means of increasing  economic well being economic 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 defined g
• Organizing a business focused on attracting  consumers to a farm, ranch, or any other  f h h agriculture, horticulture or agribusiness  enterprise  i
– Goal of agritourism: Provide an opportunity for  the customer to:  h
• enjoy & relax, be educated, purchase products and/or  be involved in activities of the agribusiness operation be involved in activities of the agribusiness operation

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

Merging 2 industries

Green tourism Green‐tourism
• Takes on multiple meanings – ecotourism bio‐ Takes on multiple meanings  ecotourism, bio tourism, nature tourism, geo‐tourism,  ecological tourism, and building design  ecological tourism and building design tourism or even environmental certification  programs • Typically involves travel to destinations where  flora, fauna, and cultural heritage are the  flora fauna and cultural heritage are the primary attractions

City Slickers City Slickers

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

What Do Rural Travelers Like T D Lik To Do
• • • • • • • • Dining‐70% g Shopping‐ 58% Water Activities‐ 44% Visit Historical Sites‐41% Fish/Hunt/Boat‐ 32% Attend Festival/Fair‐29% / Bike Riding/Hiking‐ 24% Religious Service‐ Religious Service 23% • Camping – 21% p g • Sporting Events – 18% • Visit Winery/ Visit  Farm/Orchard ‐ 15% • Gambling/Gaming – 12% • Visit Native American Visit Native American  Community‐ 11%

Source: TIAA, 2001 Rural Tourism Travel Poll

North Dakota Visitor Snapshot: North Dakota Visitor Snapshot: Reason for Travel Touring Outdoor Special Events

Visitor Spending Per Over‐Night Trip to  ND

Transportation Food Accommodations Retail Recreation Total

$338 $250 $241 $137 $ 82 $1,048

North Dakota Visitors North Dakota Visitors
• Who are they? Who are they?
– 64% are married – 54% female 54% female – 41.4 years (average age) – 52% i 52% income over $50,000 $50 000

North Dakota Visitors North 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 21% travel over 1,000 miles l 1 000 il

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 travel y

Endless Possibilities
Overnight Stays:
¤ Farm and ranch stays ¤ Rural b and b ¤ Youth camps ¤ Cabin rental

Recreational Activities and  Tours:
¤ Fee fishing and hunting ¤ F fi hi d h ti ¤ Wineries and vineyards ¤ Cattle drives ¤ Harvesting H ti ¤ Biking ¤ Horseback riding ¤ Hiking and Rock climbing k d k l b ¤ Barn tours ¤ Farm equipment  demonstrations d t ti ¤ Wagon rides ¤ Bird watching/Wildlife  watching

Special Holiday/Seasonal  Events:
¤ Haunted house ¤ Hay ride ¤ Corn maze ¤ Corn maze ¤ Pumpkin patch ¤ Harvest festivals ¤ Music and art festivals ¤ Music and art festivals

Endless Possibilities
Hospitality Services
¤ Meeting and conference 

facilities for business and  pleasure such as: l h
» Country weddings and receptions » Company retreats » Family reunions » Church groups » Church groups

Retail Sales: Local Produce and  Farm Products Sold at the  Farm Gate
¤ Jams and jellies ¤ Bread ¤ Homegrown beef/buffalo  meat ¤ Vegetables ¤ Pecans/peanuts and other  nuts ¤ Wine/juices ¤ Salsa ¤ Flowers ¤ Pick your own fruits and  vegetables ¤ Rent‐a‐tree, berry bush,  garden or flowerbed garden or flowerbed

Youth and/or Adult  Education
¤ Organized tours: school,  senior, church, tour groups ¤ Ag education programs: how  to grow _____, how to care  to grow , how to care for _____, training _____ ¤ Nature education programs:  wildlife, trees, plants, etc. ¤ Demonstrations: cheese  ¤D t ti h making, wine making, etc.

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

ND Activities
• • • • • • You Pick – Patries Raspberries p 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 Farm g p

Agri tourism Agri‐tourism
• It’s not new It s not new • Often been an income supplement
– A 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

Where to start?? Wh ??

Myth #1 You must be born an entrepreneur b b
• There is nothing totally genetic about being an There 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 Mentors Reading Hire an employee Take on a partner Use a consultant Networks

Business Skills Required Business Skills Required
Entrepreneurial Management Technical

#1 Key  #1 Key

#2 Key ‐ G tt h #2 K Gotta have

•Land use land features land location Land use, land features, land location •Farmstead features •Facilities – new/remodeled, ADA,  / restrooms, parking •Climate •Wildlife Wildlife

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 my How much time can I give to starting my  business? • How will the business fit in with my family?

Myth #2 Myth #2 Ideas = Opportunities pp
Build it and they will come  DOES NOT WORK DOES NOT WORK when developing your business.  when developing your business

The Question  Is there a Market? The Question – Is there a Market?
• Be realistic ‐ Get solid numbers Be realistic  Get solid numbers
– www.census.gov
• American Fact Finder American 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 maps g p

Marketing > Advertising + Sales Marketing > Advertising + Sales

Marketing is: Marketing is:
• • • • • • • • • Customer definition and location Product, price, production, packaging, etc P d i d i k i Place Promotion, PR, & advertising Making the sale Customer service!!!!!!!!!! After the sale Networks Brand

Marketing Issues Marketing Issues
Trends vs Trends vs Fads New product/service vs Knock‐off Size of the competition ‐ #s, resources Si f h ii New market vs Existing market Stage of the product/service Differentiation Competitive advantages E‐commerce/Social networking are tools!! E /S i l ki l !!

Getting the Word Out g
• #1 – Word of mouth
– Today’s social networks changing that whole area Today s social networks changing that whole area

• Traditional means
– Advertising – Promotion – Public Relations – often overlooked Public Relations – often overlooked

• Cooperative efforts
– Others like you complementary businesses trade Others like you, complementary businesses, trade  associations – In conjunction with local community efforts In conjunction with local community efforts – Suppliers, distributors, etc. 

Getting the Word Out g
#1 – Word of mouth
Today’s social  networking  networking changing  that whole  area What’s next?

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

Probably yes
Remember:  Have an objective j Design and development Up front costs Up‐front costs Maintenance Your audience Your audience

Getting the Word Out Getting the Word Out
• • • • • Must know your target audience Must know your target audience Must focus on that audience Must track to see what works k h k Must continually update Visual marketing

Myth #3 Myth #3 I want some free money
Reality There 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 Reality Funding Reality
• • • • You (get your personal finances in order) You (get your personal finances in order) Bootstrapping Family and friends il df i d Loans 
– Start with your local banker – SBA guaranteed

• Special programs (ND – APUC) • Angel investors or venture capitalists Angel investors or venture capitalists

Aim for Profitability Aim 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 Liabilities Legalities and Liabilities
• • • • • • Business name Business name Federal Tax ID  State Sales and Use Tax Permits S S l d i Licenses and other Permits Liability issues Protection of intellectual property Protection 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 Tips p
• Chose something you love to do • G t th h l f il i l d Get the whole family involved • Follow the demand – produce what the  customers want customers want • Create a high quality product • Keep informed and educated about: Keep informed and educated about:
– Product – Industry – Market

• Start small and grow naturally Start small and grow naturally

Communities Can Support Agritourism Through: i i h h
• • • • • • • • • Cooperation/coordination Inclusion Good infrastructure Good infrastructure Positive attitude towards visitors Clean environment Clean environment Good retail mix Local tourism organization Local tourism organization Coordinated activities Good hospitality G d h it lit

Tourism and Your Community



Gas, Food, Lodging, Amusement, Recreation
Local Goods Outside 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.


Iowa State Agricultural  Marketing Resource Center

“How to” How to
• • • • Oklahoma Agri tourism Handbook Oklahoma Agri‐tourism Handbook Is Agri‐tourism for You?  Entertainment Farming and Agri‐Tourism i i d i i Nature Tourism Business Plan Development
(Free course – need to register)

• Texas Nature Tourism • Promoting Tourism in Rural America

Glenn Muske Rural and Agribusiness Enterprise Development Specialist Rural and Agribusiness Enterprise Development Specialist NDSU Extension Center for Community Vitality Glenn.Muske@ndsu.edu 701‐328‐9718 9/28/10

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