IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i23p13334-d693244.html
   My bibliography  Save this article

Factors Related to Profitability of Agritourism in the United States: Results from a National Survey of Operators

Author

Listed:
  • Chadley R. Hollas

    (UVM Extension, University of Vermont, Brattleboro, VT 05301, USA)

  • Lisa Chase

    (UVM Extension, University of Vermont, Brattleboro, VT 05301, USA)

  • David Conner

    (Center for Rural Studies, University of Vermont, Burlington, VT 05405, USA)

  • Lori Dickes

    (College of Behavioral, Social and Health Sciences, Clemson University, Clemson, SC 29634, USA)

  • R. David Lamie

    (College of Agriculture, Forestry and Life Sciences, Clemson University, Clemson, SC 29634, USA)

  • Claudia Schmidt

    (Department of Agricultural Economics, Sociology, and Education, Pennsylvania State University, State College, PA 16801, USA)

  • Doolarie Singh-Knights

    (Davis College of Agriculture, Natural Resources and Design, West Virginia University, Morgantown, WV 26506, USA)

  • Lindsay Quella

    (Center for Rural Studies, University of Vermont, Burlington, VT 05405, USA)

Abstract

Agritourism is a growing area of the tourism sector with many positive social and economic benefits for farmers, their communities, and for tourists. While researchers have been studying the phenomenon for several decades, factors that lead to profitable outcomes for agritourism operators are still not well understood, hindering the effectiveness of agritourism development and the systems of support available to farmers. Using a survey of 1834 farms and ranches open to visitors in the United States, the goal of this study is to identify the factors that influence the profitability of agritourism operations. This study shows that several factors have positive associations with increased agritourism profitability, such as the number of years of experience of the operator, farm scale (acreage and total farm revenue), providing on-farm product sales, and offering events and entertainment. Off-farm product sales and being a female operator have a negative association with profitability in agritourism. We discuss the implications of our findings on agritourism operators, suggest their utility for tourism planning and rural community development professionals, and offer suggestions for future research.

Suggested Citation

  • Chadley R. Hollas & Lisa Chase & David Conner & Lori Dickes & R. David Lamie & Claudia Schmidt & Doolarie Singh-Knights & Lindsay Quella, 2021. "Factors Related to Profitability of Agritourism in the United States: Results from a National Survey of Operators," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13334-:d:693244
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/23/13334/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/23/13334/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schmidt, Claudia & Goetz, Stephan J. & Tian, Zheng, 2021. "Female farmers in the United States: Research needs and policy questions," Food Policy, Elsevier, vol. 101(C).
    2. Schilling, Brian J. & Marxen, Lucas J. & Heinrich, Helen H. & Brooks, Fran J. A., 2006. "The Opportunity for Agritourism Development in New Jersey," Research Reports 310301, Rutgers University, Food Policy Institute.
    3. Van Sandt, Anders & Low, Sarah A. & Thilmany, Dawn, 2018. "Exploring Regional Patterns of Agritourism in the U.S.: What's Driving Clusters of Enterprises?," Agricultural and Resource Economics Review, Cambridge University Press, vol. 47(3), pages 592-609, December.
    4. Amanor-Boadu, Vincent, 2013. "Diversification Decisions in Agriculture: The Case of Agritourism in Kansas," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(2), pages 1-17, May.
    5. Tew, Christine & Barbieri, Carla, 2012. "The perceived benefits of agritourism: The provider’s perspective," Tourism Management, Elsevier, vol. 33(1), pages 215-224.
    6. Nusair, Khaldoon & Hua, Nan, 2010. "Comparative assessment of structural equation modeling and multiple regression research methodologies: E-commerce context," Tourism Management, Elsevier, vol. 31(3), pages 314-324.
    7. Phillip, Sharon & Hunter, Colin & Blackstock, Kirsty, 2010. "A typology for defining agritourism," Tourism Management, Elsevier, vol. 31(6), pages 754-758.
    8. Unger, Jens M. & Rauch, Andreas & Frese, Michael & Rosenbusch, Nina, 2011. "Human capital and entrepreneurial success: A meta-analytical review," Journal of Business Venturing, Elsevier, vol. 26(3), pages 341-358, May.
    9. Gartner, William C., 2005. "A Perspective on Rural Tourism Development," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 35(1), pages 1-10.
    10. de Mel, Suresh & McKenzie, David J. & Woodruff, Christopher, 2009. "Measuring microenterprise profits: Must we ask how the sausage is made?," Journal of Development Economics, Elsevier, vol. 88(1), pages 19-31, January.
    11. Schilling, Brian J. & Attavanich, Witsanu & Jin, Yanhong, 2014. "Does Agritourism Enhance Farm Profitability?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-28, April.
    12. Strzelecka, Marianna & Boley, Bynum B. & Woosnam, Kyle M., 2017. "Place attachment and empowerment: Do residents need to be attached to be empowered?," Annals of Tourism Research, Elsevier, vol. 66(C), pages 61-73.
    13. Zhao, Hao & O'Connor, Gina & Wu, Jihong & Lumpkin, G.T., 2021. "Age and entrepreneurial career success: A review and a meta-analysis," Journal of Business Venturing, Elsevier, vol. 36(1).
    14. Choo, Hyungsuk & Petrick, James F., 2014. "Social interactions and intentions to revisit for agritourism service encounters," Tourism Management, Elsevier, vol. 40(C), pages 372-381.
    15. Sexton, Donald L. & Bowman-Upton, Nancy, 1990. "Female and male entrepreneurs: Psychological characteristics and their role in gender-related discrimination," Journal of Business Venturing, Elsevier, vol. 5(1), pages 29-36, January.
    16. M. Farzana Halim & Carla Barbieri & Duarte B. Morais & Susan Jakes & Erin Seekamp, 2020. "Beyond Economic Earnings: The Holistic Meaning of Success for Women in Agritourism," Sustainability, MDPI, vol. 12(12), pages 1-16, June.
    17. Aditya R. Khanal & Ashok K. Mishra, 2014. "Agritourism and off-farm work: survival strategies for small farms," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 65-76, November.
    18. Rosa, Peter & Carter, Sara & Hamilton, Daphne, 1996. "Gender as a Determinant of Small Business Performance: Insights from a British Study," Small Business Economics, Springer, vol. 8(6), pages 463-478, December.
    19. Martinez, Stephen W., 2010. "Varied Interests Drive Growing Popularity of Local Foods," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-8.
    20. Lucha, Christopher & Ferreira, Gustavo & Walker, Martha & Groover, Gordon, 2016. "Profitability of Virginia's Agritourism Industry: A Regression Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 45(1), pages 173-207, April.
    21. Khanal, Aditya R. & Honey, Ummey & Omobitan, Omobolaji, 2020. "Diversification through ‘fun in the farm’: analyzing structural factors affecting agritourism in Tennessee," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(1).
    22. Schilling, Brian J. & Marxen, Lucas J. & Heinrich, Helen H. & Brooks, Fran J. A., 2006. "The Opportunity for Agritourism Development in New Jersey," Extension Publications 151894, Rutgers University, Department of Agricultural, Food and Resource Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Péter Szálteleki & Gabriella Bánhegyi & Zsuzsanna Bacsi, 2024. "The Impacts of CAP Subsidies on the Financial Risk and Resilience of Hungarian Farms, 2014–2021," Risks, MDPI, vol. 12(2), pages 1-36, February.
    2. Yuyu Wu & Jia Chen, 2023. "Spatial Distribution Heterogeneity and Influencing Factors of Different Leisure Agriculture Types in the City," Agriculture, MDPI, vol. 13(9), pages 1-20, August.
    3. Schmidt, Claudia & Chase, Lisa & Barbieri, Carla & Rilla, Ellie & Knights, Doolarie Singh & Thilmany, Dawn & Tomas, Stacy & Dickes, Lori & Cornelisse, Sarah & Lamie, R. David & Callahan, Rachael & Geo, 2022. "Linking Research and Practice: The Role of Extension on Agritourism Development in the United States," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 4(3), August.
    4. Schmidt, Claudia & Han, Luyi & Khaleghi Moghadam, Arian & Goetz, Stephan J., 2023. "Impact of Broadband Adoption on Agritourism Operations in the United States," 2023 Annual Meeting, July 23-25, Washington D.C. 335731, Agricultural and Applied Economics Association.
    5. Kenneth T. Benignos & Kristin Iris G. Estores, 2022. "Viability of an Integrated Farm as an Agritourism Site in Toboso, Negros Occidental inthe New Normal," Technium Social Sciences Journal, Technium Science, vol. 34(1), pages 483-502, August.
    6. repec:thr:techub:10034:y:2022:i:1:p:483-502 is not listed on IDEAS
    7. Schmidt, Claudia & Tian, Zheng & Goetz, Stephan J. & Chase, Lisa, 2022. "Drivers of Agritourism and Direct Sales Clusters in the United States," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322207, Agricultural and Applied Economics Association.
    8. Ibrahim A. Elshaer & Ahmad M. AboAlkhair & Sameh Fayyad & Alaa M. S. Azazz, 2023. "Post-COVID-19 Family Micro-Business Resources and Agritourism Performance: A Two-Mediated Moderated Quantitative-Based Model with a PLS-SEM Data Analysis Method," Mathematics, MDPI, vol. 11(2), pages 1-15, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michał Roman & Piotr Grudzień, 2021. "The Essence of Agritourism and Its Profitability during the Coronavirus (COVID-19) Pandemic," Agriculture, MDPI, vol. 11(5), pages 1-25, May.
    2. Khairabadi, Omid & Sajadzadeh, Hassan & Mohammadianmansoor, Saheb, 2020. "Assessment and evaluation of tourism activities with emphasis on agritourism: The case of simin region in Hamedan City," Land Use Policy, Elsevier, vol. 99(C).
    3. Schilling, Brian J. & Sullivan, Kevin P., 2014. "Characteristics of New Jersey Agritourism Farms," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-13, July.
    4. Gil Arroyo, Claudia & Barbieri, Carla & Rozier Rich, Samantha, 2013. "Defining agritourism: A comparative study of stakeholders' perceptions in Missouri and North Carolina," Tourism Management, Elsevier, vol. 37(C), pages 39-47.
    5. Alieh Abadi & Mehdi Khakzand, 2022. "Extracting the qualitative dimensions of agritourism for the sustainable development of Charqoli village in Iran: the promotion of vernacular entrepreneurship and environment-oriented preservation per," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 12609-12671, November.
    6. Anna Tafidou & Evgenia Lialia & Angelos Prentzas & Asimina Kouriati & Eleni Dimitriadou & Christina Moulogianni & Thomas Bournaris, 2023. "Land Diversification and Its Contribution to Farms’ Income," Land, MDPI, vol. 12(4), pages 1-12, April.
    7. Dubois, Charline & Cawley, Mary & Schmitz, Serge, 2017. "The tourist on the farm: A ‘muddled’ image," Tourism Management, Elsevier, vol. 59(C), pages 298-311.
    8. Salvatore Ammirato & Alberto Michele Felicetti & Cinzia Raso & Bruno Antonio Pansera & Antonio Violi, 2020. "Agritourism and Sustainability: What We Can Learn from a Systematic Literature Review," Sustainability, MDPI, vol. 12(22), pages 1-18, November.
    9. Reginald Holland & Aditya R. Khanal & Purushottam Dhungana, 2022. "Agritourism as an Alternative On-Farm Enterprise for Small U.S. Farms: Examining Factors Influencing the Agritourism Decisions of Small Farms," Sustainability, MDPI, vol. 14(7), pages 1-12, March.
    10. Brunella Arru & Roberto Furesi & Fabio A. Madau & Pietro Pulina, 2021. "Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    11. Xiaowen Jin & Hao Wu & Jing Zhang & Guangming He, 2021. "Agritourism Development in the USA: The Strategy of the State of Michigan," Sustainability, MDPI, vol. 13(20), pages 1-14, October.
    12. Andrzej Tucki & Korneliusz Pylak, 2021. "Collective or Individual? What Types of Tourism Reduce Economic Inequality in Peripheral Regions?," Sustainability, MDPI, vol. 13(9), pages 1-16, April.
    13. Ming-Lang Tseng & Chia-Hao Chang & Kuo-Jui Wu & Chun-Wei Remen Lin & Bhuripan Kalnaovkul & Raymond R. Tan, 2019. "Sustainable Agritourism in Thailand: Modeling Business Performance and Environmental Sustainability under Uncertainty," Sustainability, MDPI, vol. 11(15), pages 1-20, July.
    14. Shingo Yoshida & Hironori Yagi & Akira Kiminami & Guy Garrod, 2019. "Farm Diversification and Sustainability of Multifunctional Peri-Urban Agriculture: Entrepreneurial Attributes of Advanced Diversification in Japan," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    15. Eshun Gabriel & Tettey Christopher, 2014. "Agrotourism development in Ghana: A study of its prospects and challenges at Adjeikrom Cocoa Tour Facility," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 25(25), pages 1-19, September.
    16. Michał Roman & Monika Roman & Piotr Prus, 2020. "Innovations in Agritourism: Evidence from a Region in Poland," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    17. Liang, Austin Rong-Da, 2017. "Considering the role of agritourism co-creation from a service-dominant logic perspective," Tourism Management, Elsevier, vol. 61(C), pages 354-367.
    18. Boncinelli, Fabio & Bartolini, Fabio & Casini, Leonardo, 2018. "Structural factors of labour allocation for farm diversification activities," Land Use Policy, Elsevier, vol. 71(C), pages 204-212.
    19. Justo, Rachida & DeTienne, Dawn R. & Sieger, Philipp, 2015. "Failure or voluntary exit? Reassessing the female underperformance hypothesis," Journal of Business Venturing, Elsevier, vol. 30(6), pages 775-792.
    20. Tong Wu & Shida Rastegari Henneberry & John N. Ng’ombe & Richard T. Melstrom, 2020. "Chinese Demand for Agritourism in Rural America," Sustainability, MDPI, vol. 12(7), pages 1-11, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13334-:d:693244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.