ALSEA — When Scottie Jones started on-farm lodging at her property in 2007, the concept was an oddity.

Leaping Lamb Farm & Farm Stay offers urban residents a chance to unwind, help with chores and participate in country life.

“They’re here to see a baby goat being born. Those are the kinds of experiences you get,” said Jones, who founded the organization and website Farmstay in 2010.

She and her husband, Greg Jones, sell pasture-raised meat and seasonal produce, but without lodging, their farm would have failed, Jones said.

“Family farms don’t make enough money to survive in many instances without diversification,” she said.

A business boost

On-farm lodging has surged in recent years, in part due to the rise of vacation rental platforms such as Airbnb.

In 2012, Farmstay listed 900 operations. Jones estimated there are now 5,000 to 7,500 working farms with rental units across the U.S.

Those are joined by Harvest Hosts, which offers RV owners a night’s stay at 5,200 farms, wineries and other spots. That’s up from 600 about five years ago.

Experts said farmers are increasingly diversifying incomes with agritourism — such as farm stands with value-added products, U-pick operations, special events, tours and on-farm lodging — to protect against drops in wholesale prices or damaging weather.

Agritourism practices also help offset increased costs for labor, fuel, feed, equipment and loans.

“It’s not getting any easier to farm,” said Audrey Comerford, Oregon State University Extension Service agritourism coordinator.

Oregon lost 2,100 farms in five years, according to the USDA’s 2022 Census of Agriculture.

The growing importance of agritourism as a survival strategy, however, raises questions about how farmland should be used and if regulations need updating.

Agritourism study

An OSU Extension study released in February, co-authored by Comerford, pegged agritourism’s impact at nearly $1 billion annually in nine Willamette Valley counties.

Agritourism in that area supported 9,000 full- and part-time farm jobs.

The research didn’t include wineries, where agritourism activities are well established and governed by different state and county rules.

About 22% of nearly 18,700 Willamette Valley farms, most of them smaller than 500 acres, practiced agritourism.

In a survey, nearly half of respondents said they had started agritourism efforts in the past decade.

The most popular method was farm stands, which were the primary agritourism service at 29% of businesses, followed by U-pick or U-cut operations at 14%.

Agritourism attracted between 3.7 million and 13.7 million visits per year, with roughly 66% of customers living within 50 miles of the farms. Of those from outside the area, 15% were on overnight visits.

Comerford said the analysis was the first of its kind in the Northwest.

Bruce Sorte, an OSU Extension Service economist and study author, said more research on agritourism is needed to understand its importance.

“What surprised me when I decided to help out with this was how weak the data is,” Sorte said. The USDA Ag Census, for example, asks questions that are too narrow to be useful.

He wasn’t comfortable extrapolating figures to other regions, partly due to the Willamette Valley’s temperate climate.

Oregon’s land use laws

Oregon’s land use laws, designed to protect farm and natural resource land, are more restrictive than other states, also making extrapolations difficult.

Those laws have worked well, though.

“There’s a reason why we still have so much farm and forest land in production,” Comerford said.

But Oregon often doesn’t offer an easy path for agritourism.

“It’s great that farmland is being protected, but people wish they would also protect the farmers,” Comerford said.

Farmers can find it frustrating or confusing to obtain permits because of restrictions and government bodies’ interpretation of rules so “they just go for it,” Comerford said.

A desire for local control makes things tricky, said Hilary Foote, Oregon Department of Land Conservation and Development farm and forest land specialist.

“I think a lot of people would like a simple and standardized program across the state, but counties have their own vision,” added Foote, who is also a north Tillamook County farmer.

What gets approved in one county isn’t allowed in another, resulting in a patchwork quilt of rules that can frustrate farmers.

Percentage of farm profits

The study showed farmers may earn 50% of their gross revenues and profits from agritourism, which could be problematic.

“Technically, the 50-50 split is illegal,” Comerford said.

In general, Oregon agritourism on land zoned exclusive farm use falls under a 25-75 rule, she added.

Sales of incidental items — products not produced by the farm, such as coffee or baseball caps — and fees from promotional activities are generally limited to 25% of profits, though the amount can vary based on the county, as well.

It also can be confusing to determine what an incidental item is.

“Some folks reported they are making 10 times more from agritourism than on farm income,” Comerford said.

Tail wagging the dog

Foote said agritourism can become the focus of operations. “It’s the tail wagging the dog,” she said.

Foote said concerns about agritourism “voiced over and over” include an increase of traffic and litter, trespassing by guests who don’t respect boundaries, and objections against lawful activities such as spreading manure and spraying chemicals.

For her, the bottom line is a do-no-harm philosophy.

“Is what you’re doing going to harm farm operations in the surrounding area?” Foote asked.

Having a regulatory framework that allows agritourism while ensuring that doesn’t become the purpose of farmland is challenging, Foote said.

Lack of definition

There’s no concrete definition of agritourism, complicating matters, as people mean widely different things.

1000 Friends of Oregon, which seeks to preserve natural resource land, has urged the Oregon Legislature to create a clear definition of agritourism and related terms instead of vague catch-all categories.

“This creates loopholes, imprecise standards for permit applications and uncertainty for farmers and decision-makers alike,” states a report from the conservation group, which has fought numerous legal battles.

About a year ago, 1000 Friends prevailed in overturning a state Land Use Board of Appeals ruling from Yamhill County that would have allowed an ag operator to build a small inn on farmland.

The case centered on a statute allowing Oregon farm houses to operate as a bed and breakfast with five guest rooms. Freestanding guest dwellings also may be allowed, depending on the county.

Educating people about farms

The OSU study said agritourism can protect farmland by reducing reliance on off-farm work. It also could increase the likelihood of a succession plan and agricultural land being retained in its current use.

The study documented farmers’ motivations for agritourism, as well. “It’s not just about dollars, dollars, dollars,” Comerford said.

Farmers loved educating guests and were surprised how much people appreciated visiting.

Sorte said those connections are powerful.

“If you bring these people to the country and you show them what you’re struggling with to make ends meet, you show them what you’re challenged with to bring them safe food. … I think it will pay big dividends,” Sorte said.

Directly selling goods to farm visitors is how agriculture traditionally functioned.

With technological advancements, consolidation and economy of scale, direct sales became the exception and visiting a farm has become a special experience, according to the study.

Expanding agritourism

Oregon wineries, breweries and cideries can offer more activities than farms.

Years ago, the wine industry pursued specific regulations, and they can hold tours and tastings, luncheons and dinners, open houses, fee-based outdoor concerts, facility rentals, celebratory gatherings and charitable activities.

Most of those activities are prohibited at farms or require permits where farms could need to show that agritourism is necessary to sustain operations.

The winery model is good for farmers to consider, but changes would need to be industry-led, Comerford said.

In the meantime, a few farmers are adding vines or orchards to be classified differently.

The OSU report suggests expanding agritourism via on-farm lodging.

If farm stays were standardized to allow up to 100 rented days per year for one or a few units, many farms would add the practice.

The model would limit the number of visitors and minimize disruption to neighbors. With an average nightly price of $250, farmers could raise an additional $25,000 with one unit.

Harvest Host campgrounds

Harvest Hosts can be an appealing agritourism model because there’s less red tape and expense. All that’s needed is an RV parking spot.

Foote said Harvest Hosts are campgrounds in Oregon and require a county review to ensure they won’t impact surrounding farms.

Hosts should check regarding other potential pitfalls, such as wetlands and proper driveways, Foote said.

About 40% of Harvest Host locations are farms or wineries, said Ashley Fox, director of marketing and host relations.

“(Members) don’t always get exposure to farming and they love all the experiences the farms have to offer,” Fox said.

The company has about 250,000 members with self-contained RVs who pay to access a map of hosts where they can stay at for free.

After purchasing a Harvest Hosts plan, guests stay for free but they are supposed to support the hosts, buying fruit at orchards or bottles at wineries.

The average host gets an extra $13,000 to $15,000 per year, Fox said.

Harvest Hosts currently has 150 locations in Oregon, 280 in California, 180 in Washington and 70 in Idaho.

Making the farm viable

Michelle Miller owns La Chouette Vineyard near Jefferson, Ore., and became a Harvest Host in 2020 during the pandemic.

“We became pretty busy pretty quickly,” she said.

Her property, which doesn’t have a tasting room, now gets about 150 stays per year.

“They park right in front of our vineyard. We have a beautiful view and we’re right across from the Ankeny bird refuge,” Miller said.

Harvest Host guests buy $15,000 to $20,000 of wine annually, and many join La Chouette’s wine club, further bolstering earnings.

Miller and her husband, Ben Miller, bought their 80-acre property in 2004 and started planting vines in 2007.

The vineyard is part of a larger ag operation, as the couple farm hay and raise angus cattle, sheep, goats and chickens.

Both work off-farm, too. Miller is an interior designer with a downtown Salem store, The Arbor, while her husband is an anesthesiologist.

“We have our hands in so many things,” Miller said.

The couple plans to open a tasting room in 2025 and double wine production to 1,500 cases.

“There are lots of regulations and tricky things. There are challenges. But you have to figure out how to make your farm viable,” she said.

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