Best Practices in Agritourism: Business Planning and Risk Management for Farmers
Authors: Stacey Stearns, Shuresh Ghimire, Evan Lentz
Contact Email: Stacey.Stearns@uconn.edu
Reviewers: Murray Gates, Connecticut Small Business Development Center
Publication EXT098 | May 2025
Introduction
Agritourism is defined as a commercial activity, conducted on a working farm, that is designed for visitor enjoyment and provides supplemental income for the farmer. It offers farms a valuable opportunity to diversify their income, by welcoming visitors for unique on-farm experiences. Agritourism merges agriculture with tourism—and sometimes entertainment—while showcasing the farm’s products, people, and purpose.
Before adding agritourism elements, farmers must consider two foundational components: business planning and insurance. This fact sheet is designed to guide farmers—whether exploring agritourism for the first time or refining an existing venture—through key business and insurance considerations that contribute to long-term success.
The first step is to check with your local municipality for zoning laws and regulations. In Connecticut, for example, agritourism is not currently included in the state’s definition of agriculture, leading to questions in some towns about what is allowed. Farmers in other states or countries should likewise confirm relevant local and state statutes. Proactive planning helps avoid regulatory hurdles, supporting smoother, more sustainable operations.
Business Planning Considerations
Start with a self-assessment to evaluate the farm’s values, skills, capacity, and readiness for hosting guests. Consider comfort levels with public interaction, if you have (or can develop) necessary infrastructure (such as parking and restrooms), and whether you’re prepared to meet local and state regulatory requirements. Agritourism may not be the right fit for every farm, and that’s okay.
If the self-assessment is positive, move into strategic planning. Define missions and visions, along with short- and long-term goals. Many farms begin with one agritourism activity—such as pick-your-own crops, a farm stand, hayrides, or educational tours—then expand based on visitor feedback and business growth. Common motivations for adding agritourism include diversifying income, creating year-round revenue, and sharing the agricultural lifestyle with the community.
Tools like the Lean Canvas Model (adapted for agritourism) help outline business concepts, customer segments, and value proposition. Local resources such as the Connecticut Small Business Development Center can also provide guidance in areas such as financing, marketing, and partnerships.
Formal Business Plan Components
- Executive summary
- Business description
- Operations plan
- Marketing strategy
- Management structure
- Financial projections
Use planning tools like AgPlan from the University of Missouri to guide this process. Ensure the plan includes space for future growth and scaling.
Apply the Four Ps of Marketing
- Product – Create authentic and engaging experiences;
- Price – Set fair pricing that reflects value and covers costs;
- Place – Ensure safe sites that are accessible and welcoming;
- Promotion – Use social media, local media, and community events to reach potential audiences.
Choose the appropriate legal structure for the business—LLC, sole proprietorship, cooperative, or corporation—and consult legal and financial professionals for advice.
Be sure to check zoning and accessibility. Engage early with local planning officials and neighbors. You may need to add ADA-compliant restrooms and parking. Requirements vary, so always confirm with local authorities.
As the agritourism venture expansion takes place, consider adding online reservation systems, collaborations with local vendors (like food trucks), and special events such as chef dinners, concerts, kids’ camps, or farm-to-table nights. Maintain a community focus and explore sustainability options like carbon tracking or climate-neutral certifications. Use consistent marketing strategies, including social media, newsletters, and influencer partnerships.
Insurance Considerations
Insurance is essential for protecting the farm and your future. In Connecticut, there is no statutory liability protection for agritourism, so coverage must be part of your risk management plan.
Work with an experienced insurance agent to ensure you have coverage that fits the farm’s specific activities. This may include:
- General liability
- Farm liability
- Agritainment-specific policies
- Off-premises event coverage
Agritainment—such as petting zoos, educational workshops, farm tours, and seasonal festivals—is increasingly popular but comes with risks. Clearly communicate all agritourism and agritainment activities to the insurance provider. Note that many insurers are shifting toward more commercial-style policies to better accommodate agritourism ventures.
Adopt a Safety-First Philosophy
- Maintain adequate staffing and training;
- Monitor alcohol-related risks (consider a separate entity if serving alcohol);
- How to communicate safety protocols to visitors’
- Ensure facilities meet safety and accessibility standards
Train your team on how to respond to incidents and report them promptly to the insurance provider for guidance on next steps.
Develop and use an incident reporting process. Keep forms on hand to record any accidents or issues, including:
- Time and location
- Weather conditions
- Guest behavior and attire
- Witness statements
Conclusion and Recommendations
Business planning and insurance considerations are essential components of any agritourism venture. Taking the time to evaluate zoning, conduct a self-assessment, build a strong business plan, and ensure comprehensive insurance coverage sets a solid foundation for success.
Agritourism offers more than just supplemental income—it’s a way for farms to connect with their communities, share their agricultural story, and contribute to local economies and education. By addressing legal, operational, and risk management needs early, farmers are better positioned to create engaging, safe, and sustainable experiences for visitors.
Farmers considering agritourism should start by identifying their goals, evaluating their capacity, and consulting with professionals such as business advisors, insurance agents, and legal counsel. For those already operating agritourism ventures, regular check-ins and updates to the business plan and insurance coverage are essential to adapt to changes and growth.
UConn Extension and other state and local organizations support farms at every step of the process, from planning to implementation. Agritourism can be a rewarding and resilient addition to the farm, when built on a thoughtful and well-informed foundation.
Resources
Khazami, N., & Lakner, Z. (2022). The development of social capital during the process of starting an agritourism business. Tourism and Hospitality, 3(1), 210-224.
Missouri Extension. (n.d.). Agritourism business development tool. University of Missouri Extension. https://extension.missouri.edu/media/wysiwyg/Extensiondata/Pro/AgBusinessPolicyExtension/Docs/Agritourism-Business-Development-Tool.pdf
Yusuf, E. S., & Wulandari, S. (2023). Agritourism development: Designing an effective model for sustainable growth. In BIO Web of Conferences (Vol. 69, p. 04023). EDP Sciences.
The information in this document is for educational purposes only. The recommendations contained are based on the best available knowledge at the time of publication. Any reference to commercial products, trade or brand names is for information only, and no endorsement or approval is intended. UConn Extension does not guarantee or warrant the standard of any product referenced or imply approval of the product to the exclusion of others which also may be available. The University of Connecticut, UConn Extension, College of Agriculture, Health and Natural Resources is an equal opportunity program provider and employer.