*

Farmers turn to agritourism amid declining crop prices and

growing consumer interest

*

Agritourism revenue helps farmers endure volatile markets

*

Farmstays on rental platforms increased by 77% in five

years-AirDNA

By Heather Schlitz

BLANCHARDVILLE, Wisconsin, Feb 8 (Reuters) - A dead-end

dirt road cutting through rural Wisconsin leads to a pasture

dotted with shaggy-coated Highland cattle, fluffy Icelandic

sheep and a vintage Airstream trailer that farmer Brit Thompson

turned into an Airbnb ( ABNB ) to capitalize on an explosion of urbanites

looking to spend time in the countryside.

Her guests, mostly Chicago-area professionals, offer a

steady flow of income in an increasingly unstable agricultural

economy.

Thompson, who also raises animals for meat at her farm, Pink

River Ranch, is one of many farmers turning to the $4.5 billion

agricultural tourism industry, according to U.S. Department of

Agriculture (USDA) data, and offering activities and overnight

stays as consumer demand for rural experiences grows and farm

income declines.

Farmers whose crops are used to make food, feed livestock

and produce vegetable oils are struggling to turn a profit after

corn and soy prices sank to four-year lows in 2024.

Revenue from Thompson's Airbnb ( ABNB ) has helped her endure

volatile commodities markets and far outpaced what she made from

selling beef and lamb to restaurants and directly to consumers,

she said. Free-roaming tabby cats on her property are now

accustomed to the sound of guests' tires crunching on the gravel

driveway and come running toward those bringing in the extra

income - and the extra affection.

The guests arrive nearly every weekend during her peak

season, drawn by the area's spring-fed and trout-rich streams,

forested hiking trails and unpolluted night skies. Thompson's

bookings soared as nearby cities shut down during the pandemic.

Agritourism boomed during COVID as people chose to

vacation on farms and in rural areas, drawn by the promise of

socially distanced fun in the countryside. The industry has

continued to grow since, driven by increasing numbers of city

dwellers seeking peace and solitude and farmers seeking

additional ways to infuse their farms with much-needed cash.

"Now that we're back to normal, people are still remembering

those experiences and they've brought those activities into

their family traditions," said Suzi Spahr, director of the

International Agritourism Association.

Nationally, about 7% of farms offer agritourism opportunities,

which also includes sales of farm products to visitors, said

Lisa Chase, an extension professor at the University of Vermont.

Many increased their revenue by $25,000 to $100,000 per year

through agritourism enterprises, and some farms can make upwards

of $1 million a year from running bed-and-breakfasts,

pick-your-own apple orchards and other farm experiences, she

said.

The number of farmstays, an accommodation at a farm, listed

on short-term rental platforms in the U.S. increased by 77% over

the past five years, roughly twice the increase in overall

listings, data firm AirDNA said. Airbnb ( ABNB ), as well as popular

campsite booking websites HipCamp, Harvest Hosts and The Dyrt,

also said their platforms have seen substantial increases in

farmstay listings over the past few years.

LEAN TIMES

Agritourism dollars are a welcome boon in the face of low

crop prices, high interest rates, and steep costs for seeds,

fertilizer and labor, farmers and industry experts said. Farm

income has dropped 23% from 2022 in one of the biggest declines

in history, according to the USDA, and the American Farm Bureau

says the agricultural economy is in a recession.

While U.S. farm income is expected to improve this year, the

upturn is largely due to federal government aid. Income from

selling crops has continued to decline.

This year could bring further financial pain for farmers if

trade wars with Canada, Mexico and China are prolonged. U.S.

President Donald Trump announced tariffs on goods from the three

countries on Feb 1, but later offered a 30-day reprieve to

Canada and Mexico after those countries offered some

concessions.

"We're able to weather some of these tighter or negative

margin years because we've diversified the way we earn money,"

said Kaylee Heap, 35, co-manager of Heap's Giant Pumpkin Farm, a

sprawling corn and soybean farm in Illinois.

"It's the reason we diversified. If we just focused on row

crops, we'd be having a different conversation."

In the fall, Heap's customers can pick sunflowers, mums and

pumpkins; bump along on hayrides; and wander through a corn

maze. The farm also produces commodity corn and soy, often for

international export.

Not all farms are suited for tourism. Some have inaccessible

locations or owners who are unwilling to open their property to

strangers. Insurance and compliance with government regulations

can also be costly.

But income from recreation and tourism can help families

maintain ownership of their farms, pay off debt and provide jobs

to younger generations, who sometimes prefer curating Airbnbs

and building websites over monitoring soil moisture and grain

futures prices, farmers said.

"You cannot survive as a family farm only farming," said

Catherine Topel, 56, a North Carolina hog producer who hosts an

Airbnb ( ABNB ) cabin and campsites through HipCamp.

"The cabins, the camping - it makes you sustainable and

resilient in hard times, and it gives you flexibility to enter

into other enterprises instead of toeing the line of what your

dad did and what your dad's dad did."

The desire to raise children in a rural setting and share

their agricultural lifestyle with visitors also motivates

farmers to open their property to the public, farmers said.

Thompson, 33, says she enjoys teaching guests about

sustainable grazing, as well as fishing from her riverbank with

her five-year-old daughter, who reels in fat catfish with a

miniature hot-pink fishing rod.

"The younger generation finds the farm doesn't have to be

this long litany of depression and bad prices," said Ryan Pesch,

an extension educator at the University of Minnesota.

"They say: 'Why don't we do this other thing?' They see

opportunities and entrepreneurship," he said.