Agriculture is one of the largest and oldest industries in the world. In the United States and many other countries, farmers often struggle to turn a profit given the variabilities of weather and commodity prices. Some working farms are turning to tourism as an additional and complementary revenue source. A study from the U.S. Census of Agriculture in 2012 found over 13,000 farms generated $674 million in revenues from tourist and recreational activities. This is a 23 percent jump over revenues in the prior agricultural census in 2007. In 2014, in response to rapid growth, the National Agritourism Professionals Association was formed to help farmers learn how to add this aspect of business to their traditional farms and ranches. One of the most successful large companies leading this marriage of industries is a dairy farm in Indiana: Fair Oaks Farms (www.fofarms.com) is home to 37,000 cows and produces enough milk to feed over 8 million people. Fair Oaks is also participating in the education market as a popular destination for school field trips. Other attractions include the Birthing Barn, where calf births can be viewed live; the Cheese Factory; and Moville, a themed outdoor play area. Fair Oaks grew beyond the dairy and added a Pig Adventure in 2014 and a Crop Adventure in 2016. Each year, Fair Oaks Farms hosts more than 600,000 visitors including 50,000 kids on school field trips A video of the operation by the CEO is available at https://www.youtube.com/watch?v=Dz_gE4887 so. Such ingenious business diversification can offer many benefits to the agriculture industry.
1. What other industrial or commercial industries could benefit from such potential tourist or recreational revenues? Discuss what new and complementary capabilities would need to be developed in order to succeed.
2. In your group, list other industry combinations you have seen be successful. Consider why you think the combination has been a success.