Developing Rural Economic Opportunities Through Agritourism

Over the span of two centuries, the economic structure of the United States has evolved from a predominantly agrarian base to an industrial and, more recently, a service-oriented economy. As these transitions happened, many urban and suburban residents in the U.S. became increasingly disconnected from agriculture, as employment in the agricultural sector declined from approximately 8 million in 1950 to about 2.3 million at the end of 2024 (U.S. Bureau of Labor Statistics, 2025). According to the 2020 census, about 80% of the U.S. population live in urban areas, a slight decrease from 2010. Yet, despite this urban shift, the public’s interest in understanding where food comes from remains strong given the growth in farm participation in agritourism over the years and the revenue generated from these activities. The development and expansion of agritourism, creates opportunities for individuals to engage with farms and experience agriculture firsthand. Agritourism encompasses a range of farm-based activities, including educational tours, U-pick operations, farm-to-table events, and guided visits to crop and livestock farms, such as petting zoos. 

Agritourism has been an important segment of the agricultural economy in the U.S., contributing $1.26 billion in agricultural revenues in 2022, and is expected to grow in the coming years (USDA NASS, 2025). This growth, while expected nationwide, is also evident in southern United States, where agritourism is gaining traction. The southern region contributed about 35% of the total U.S. agritourism and recreational services income (Table 1). Moreover, over 40% of the farms indicate this level of income activity is from the southern region. To emphasize the importance of agritourism on the economy, recent studies have undertaken economic impact assessments for states like Tennessee and Georgia. In Tennessee, Dhungana and Khanal (2023) estimated a total industry output of approximately $119 million, driven by $65 million in direct spending on agritourism farms. Georgia’s agritourism-related activities were estimated to have generated a total economic impact of $109.8 million in 2022, increasing from $88.2 million in 2021 (Kane, 2024). 

Most southern states experienced an increase in agritourism and recreational income and farm participation between 2017 and 2022 (Table 1). Louisiana and Tennessee had the highest increases in farm participation of 23.3% and 11.0%, respectively. Unsurprisingly, the bulk of farm participation occurred in Texas with 4,816 farms in 2022, down from 5,723 in 2017. Despite this decline in farm participation in Texas, the state saw an 18% increase in revenue to about $192 million in 2022. All states, except Kentucky, recognized increases in income, with South Carolina (125.6%), Mississippi (99.6%), Oklahoma (70.7%), and Tennessee (68.4%) showing increases above sixty percent. Despite a 9.2% increase in farm participation in Kentucky, its income decreased by 15.5% to $14.4 million.

Beyond its broader economic contributions, agritourism serves as a critical farm diversification strategy, allowing producers to generate additional revenue streams while mitigating enterprise risks associated with a non-diversified income stream, such as market price fluctuations. As consumer demand for local foods continues to rise, the willingness to pay price premiums for these products will create ongoing opportunities for farms engaged in direct sales. Agritourism also fosters economic development through indirect channels, including job creation in hospitality and food retail sectors that support local foods and agricultural sectors. Additionally, visitor spending in agricultural communities bolsters rural economies, enhancing their economic resilience. Beyond economic impacts, agritourism strengthens cultural heritage and reinforces rural identities. Educational components of agritourism facilitate partnerships between farmers, local organizations, and schools, fostering deeper community engagement. As agritourism continues to expand, its role in supporting both agricultural viability and rural economic development will remain significant.

Table 1. Agritourism and Recreational Income for Southern U.S.

References

Dhungana, P., and A. Khanal. 2023. “Spending on farms ripples into the region: agritourism impacts.” Frontiers in Environmental Economics 2. https://doi.org/10.3389/frevc.2023.1219245.

Kane, S. 2024. “2024 Ag Snapshot.” Center for Agribusiness and Economic Development, University of Georgia Extension. https://extension.uga.edu/publications/detail.html?number=AP129-2&title=2024-ag-snapshots.

U.S. Bureau of Labor Statistics. 2025. https://www.bls.gov/ (Accessed March 17, 2025).

USDA, National Agricultural Statistics Service (NASS). 2025. “2022 Census of Agriculture.” https://www.nass.usda.gov/Publications/AgCensus/2022/.

Britwum, Kofi, and Chrystol Thomas. “Developing Rural Economic Opportunities Through Agritourism.” Southern Ag Today 5(12.5). March 21, 2025. Permalink