india agri tourism

1. Agri‐tourism/Green‐tourism
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
9/28/10

2. Objective
Objective
• 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

3. What does agri‐tourism/green‐
tourism mean to you?

4. Agri‐tourism defined
g
• Organizing a business focused on attracting
f h h
consumers to a farm, ranch, or any other
agriculture, horticulture or agribusiness
i
enterprise
– Goal of agritourism: Provide an opportunity for
h
the customer to:
• 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.

5. Agri‐Tourism
Merging 2 industries

7. 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
programs
• Typically involves travel to destinations where
flora fauna and cultural heritage are the
flora, fauna, and cultural heritage are the
primary attractions

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

9. What Do Rural Travelers
Lik T D
Like To Do
• Dining‐70% • Camping – 21%
g
• Shopping‐ 58%
• Water Activities‐ 44%
p g
• Sporting Events – 18%
• Visit Winery/ Visit
• Visit Historical Sites‐41%
• Fish/Hunt/Boat‐ 32%
/
Farm/Orchard ‐ 15%
• Gambling/Gaming – 12%
• Visit Native American
• Attend Festival/Fair‐29%
• Bike Riding/Hiking‐ 24%
• Religious Service 23%
• Visit Native American
Community‐ 11%
• Religious Service‐ 23%
Source: TIAA, 2001 Rural Tourism Travel Poll

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

12. Visitor Spending Per Over‐Night Trip to
ND
Transportation $338
Food $250
Accommodations $241
Retail $137
Recreation $ 82
Total $1,048

13. 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 $50 000
– 52% income over $50,000

14. 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 l 1 000 il
– 21% travel over 1,000 miles

15. 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

16. Endless Possibilities
Overnight Stays:
¤ Farm and ranch stays
Recreational Activities and
Tours:
¤ F fi hi d h ti
¤ Rural b and b
¤ Youth camps
¤ Cabin rental
¤ Fee fishing and hunting
¤ Wineries and vineyards
¤ Cattle drives
H ti
Special Holiday/Seasonal
Events:
¤ Harvesting
¤ Biking
¤ Horseback riding
k d k l b
¤ Haunted house
¤ Hay ride
¤ Corn maze
¤ Hiking and Rock climbing
¤ Barn tours
¤ Farm equipment
d t ti
¤ Corn maze
¤ Pumpkin patch
¤ Harvest festivals
¤ Music and art festivals
demonstrations
¤ Wagon rides
¤ Bird watching/Wildlife
watching
¤ Music and art festivals watching

17. Endless Possibilities
Hospitality Services
¤ Meeting and conference
facilities for business and
l h
Retail Sales: Local Produce and
Farm Products Sold at the
Farm Gate
pleasure such as:
» Country weddings and receptions
» Company retreats
» Family reunions
» Church groups
¤ Jams and jellies
¤ Bread
¤ Homegrown beef/buffalo
» Church groups
Youth and/or Adult
Education
meat
¤ Vegetables
¤ Pecans/peanuts and other
nuts
¤ Organized tours: school,
senior, church, tour groups
¤ Ag education programs: how
to grow , how to care
nuts
¤ Wine/juices
¤ Salsa
¤ Flowers
to grow _____, how to care
for _____, training _____
¤ Nature education programs:
wildlife, trees, plants, etc.
¤ D t ti h
¤ Pick your own fruits and
vegetables
¤ Rent‐a‐tree, berry bush,
garden or flowerbed
¤ Demonstrations: cheese
making, wine making, etc.
garden or flowerbed

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

23. 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

24. 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

25. Wh ??
Where to start??

27. Myth #1
b b
You must be born an entrepreneur
• 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
Mentors
• Reading
• Hire an employee
• Take on a partner
• Use a consultant
• Networks

28. Business Skills Required
Business Skills Required
Entrepreneurial
Management
Technical
Technical

29. #1 Key
#1 Key

30. #2 K G tt h
#2 Key ‐ Gotta have
R
Resources
•Land use land features land location
Land use, land features, land location
•Farmstead features
/
•Facilities – new/remodeled, ADA,
restrooms, parking
•Climate
•Wildlife
Wildlife

31. 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?

32. 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.

33. 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

34. Marketing > Advertising + Sales
Marketing > Advertising + Sales

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

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

37. 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
– 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.

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

39. 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

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

41. Myth #3
Myth #3
I want some free money
Reality
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

42. Funding Reality
Funding Reality
• You (get your personal finances in order)
You (get your personal finances in order)
• Bootstrapping
il d f i d
• Family and friends
• Loans
– Start with your local banker
– SBA guaranteed
• Special programs (ND – APUC)
• Angel investors or venture capitalists
• Angel investors or venture capitalists

43. 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

44. Legalities and Liabilities
Legalities and Liabilities
• Business name
Business name
• Federal Tax ID
S S l d i
• State Sales and Use Tax Permits
• Licenses and other Permits
• Liability issues
• Protection of intellectual property
Protection of intellectual property
– Patents, trademarks and copyright

45. How to get started?
• Think about partners (think package)
• Build onto an
event
• Reach out for
• Reach out for
marketing help

46. 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
Industry
– Market
• Start small and grow naturally
Start small and grow naturally

47. Communities Can Support
i i h h
Agritourism Through:
• Cooperation/coordination
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
G d h it lit
• Good hospitality

48. Tourism and Your Community
Tourists
$
Gas, Food, Lodging, Amusement, Recreation
Outside Goods
Local 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.

49. Resources
Resources

51. Iowa State Agricultural
Marketing Resource Center

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

53. Questions??
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