Farms do not only make money from agriculture
With the wave of people flocking to the city's resort countryside, Ms. Brit Thompson, 33 years old, a legitimate farmer, has seized the opportunity to use Airbnb - an online platform that connects those who need accommodation with those with rental facilities - to increase income.
More and more American farmers, including Ms. Thompson, are looking to the $4.5 billion agricultural tourism industry as a new direction. Thompson is the owner of Pink River Ranch, which specializes in raising cattle for meat, but also runs a tourism business. She welcomed many tourists, mostly from Chicago, neighboring Illinois. They bring the female farm owner a stable source of income in the context of an unstable agricultural economy.
This trend comes as demand for rural living experiences increases, while income from traditional agricultural activities decreases, according to information from the US Department of Agriculture (USDA).
In 2024, US corn and soy prices will witness a decline to a 4-year low, causing difficulties for farmers. They grow these plants to process food, animal feed or make vegetable oil ingredients, and are now facing the profit problem.
Ms. Thompson said that her revenue from travel business through Airbnb has helped her cope with fluctuations in the commodity market and far exceeded the income from selling beef and Lamb to restaurants and consumers directly.
The bamboo cats wandering around the yard are now all too familiar with the sound of tires traveling on the rocky road leading to the farm, and will immediately run out to welcome those who bring income to their owners and even the cheerful and petitioning gestures for them.
During peak season, Thompson's farm is packed with customers every weekend. They are attracted by the streams in the forest with boiling fish, the winding trails under the green forest canopy, and the clear night sky. In particular, when the COVID-19 pandemic broke out and neighboring cities had to close, the number of guests booking rooms increased significantly.
Agricultural tourism in the US witnessed an explosion during the COVID-19 period. The city's people come to farms and rural areas for vacations, hoping for safe and relaxing activities. After the pandemic, this industry continues to grow thanks to the need to seek a peaceful and quiet life of the city's people, and at the same time, farmers also need to have more revenue to maintain the farm.
Now that life is back to normal, people still remember those experiences and make it an indispensable family activity, said Suzi Spahr, director of the International Association for Agricultural Tourism.
About 7% of farms across the US provide agricultural tourism services, including selling farm products to tourists, according to the Prof. Lisa Chase at the University of Vermont. The professor also revealed that thanks to agricultural tourism, many farms have increased their revenue from 25,000 USD to 100,000 USD per year. Some farms can even earn more than 1 million USD per year from operating a model B&B motel - a small-scale motel with breakfast, a pick-up apple orchard and other farm experiences.
The number of farm hostels, or farm accommodation, listed on short-term rental platforms in the US, has increased by 77% over the past 5 years, nearly double the overall increase in listed quantity, data company AirDNA said. The Airbnb platform, as well as popular camping booking sites HipCamp, Harvest Hosts and The Dyrt, also said they have seen a significant increase in the list of farm hostels over the past few years.
Overcoming difficulties
Industry experts said that in the context of falling agricultural prices, high interest rates, skyrocketing costs of seeds, fertilizers and labor, the USD earned from tourism has become an important lifeline. According to the USDA, agricultural income has fallen 23% compared to 2022, one of the largest declines in history. The US Department of Agriculture Federation said the agricultural economy is in a recession.
Income from agriculture in the US is expected to increase this year, however, largely thanks to the support of the federal government. Meanwhile, income from selling agricultural products continues to decrease. The risk from trade wars will be a big challenge for farmers.
Kaylee Heap, 35, co-manager of Heap's Giant Pumpki farm, a large-scale corn and soybean growing facility in Illinois, shared: "Diversifying income has helped us cope with difficult years of business, even losses. That is the reason why we implement a diversification strategy. If we only rely on commodity crops, we will not have the results we have today
When autumn comes, Heap's Giant Pumpki farm becomes bustling with many attractive activities: Customers can pick brilliant sunflowers, pretty chrysanthemums and bulky pumpkins, enjoy the thrill on trips carrying dry grass and explore the challenging corn cage. The farm also produces corn and soybeans, mainly serving the international export market.
However, not all farms can develop tourism. Some farms have unfavorable geographical locations, or the owners do not want strangers to come. Insurance costs and compliance with government regulations are also a major obstacle.
According to farmers, revenue from tourism and entertainment activities can be the key to helping families maintain farm ownership, pay off debts and create jobs for the younger generation. The younger generation today has more options, and sometimes they prioritize jobs such as Airbnb management and website building rather than being attached to farming, monitoring soil moisture and agricultural product prices.
Ms. Catherine Topel, 56, a pig farmer in North Carolina, who rents a cabin over holiday homes across Airbnb and a camping area over HipCamp, asserted: A family farm cannot rely solely on agriculture for survival. Running a cabin or camping business not only makes you more stable during difficult times, but also brings flexibility to expand your business field instead of continuing the family's traditional work.
Farmers said that, in addition to economic benefits, wanting their children to grow up in nature, in a peaceful countryside and sharing the traditional values of agricultural life with tourists is also one of the motivations that motivate them to open their farms to the public.
According to Ms. Thompson, she likes to guide tourists about sustainable blankets, as well as the moment she likes to fish on the riverbank with her 5-year-old daughter. She often pulls the fatty catfish with a small, fresh pink fishing rod.
The younger generation no longer sees farms as just the presents and prices are unstable, said Ryan Pesch, an expandend bill in the University of Minnesota. They have a new look. They see opportunities and business spirit. They ask questions like: Why don't we try to do something different? ".