Is agritourism the right diversification option for my farm?
Learn about the costs and benefits of agritourism to determine if it is the right opportunity for your farm
Learn from
Regional tourism development consultancy Tilma Group - What is agritourism and who buys it?
Regional tourism organisation Destination Central West NSW - The value of agritourism for farmers, and the process of development
Agritourism business RedGround Australia truffle farm - How leveraging support from the tourism industry can support rapid growth
Planning consultant Burns Planning & Development - On how a planning consultant can support your development (+ the trend of weddings on farms and how complex such a development can be!)
Insurance broker Nutrien Ag Solutions - Tips for how to secure affordable insurance for agritourism
This article is a summarised transcript of the following webinar.
What is agritourism and who buys it?
Linda Tillman of regional tourism consultancy Tilma Group
Is agritourism the right diversification option for your farm? That's essentially the purpose of this webinar. It's really about helping farmers like yourself make an informed decision about diversifying into agritourism.
We look at agritourism as an opportunity to support farm and business resilience. Agritourism is a hot topic for a lot of states and territories across the country at the moment.
We're very big fans of tourism in regional communities, so we're fans of agritourism. What we want to do is make sure that everybody is aware of the opportunity, but also the costs of agritourism.
First of all, I'm Linda Tillman. My colleague Kushla is also here with me this evening. We're from Tilma Group, and we are regional tourism specialists based in southern Queensland in Toowoomba. We work on a lot of different tourism development projects across regional and rural Australia.
We also have Sean here from Destination Central West NSW; Jill from RedGround Australia, a fabulous agritourism operator; Jaclyn from Burns Planning and Development, who’ll talk to us tonight about the planning processes; and Kate from Nutrient Ag Solutions, who will share some insights around insurance considerations for those looking to diversify into agritourism.
I’ll kick off by sharing a little about what agritourism is and get you thinking about the opportunities in agritourism.
What is agritourism?
Agritourism is an on-farm tourism experience. It’s any experience on a farm that connects guests to farmers and their produce and farming activities.
One thing I want to make clear: the purpose of agritourism is not to replace agriculture. It’s about supplementing income on your farm, supporting farm viability and resilience, and looking at opportunities to extend agricultural operations to provide immersive experiences for guests.
These experiences can include providing a pathway to market or value-adding to your produce. Agritourism always has a connection to your farming operations, produce, and farm activities.
We tend to look at three key elements of agritourism: Firstly, it’s an experience delivered on a farm, including engagement with both the people – interaction with yourselves as farmers – and the product or produce.
When I say this on a commercial farm, we often get questions like: “What about farmers’ markets or restaurants in regional towns that sell local produce?” Those are definitely agritourism experiences and part of the broader agritourism ecosystem. But in terms of a formal definition, the elements of agritourism are about guests connecting with the farm, the farmer, and the produce.
There are all different types of agritourism experiences, and this is where it gets really exciting. Remember, you don’t have to focus on just one type. Successful agritourism operators often start small, maybe with a tour, and then gradually add more experiences as they become comfortable.
It’s important to consider not just whether agritourism is right for your farm, but also your assets, location, and landscape. Some things will work better in certain environments than others. You need to find what’s a good fit for your farm.
Some examples of agritourism include:
Farm stays: cabins, camping, glamping
Produce experiences: pick-your-own, tastings, cooking classes, cellar doors
Farm experiences: tours, animal interactions, horse riding
Events: open days, meals, workshops, harvest celebrations
Often, a mix of experiences adds the most value to both your farm and the guest experience. Start small and build over time.
Who buys agritourism?
Agritourism is a hot topic, and there’s growing interest. Tourism Research Australia recently released a report highlighting the value and importance of this sector in both tourism and agriculture. Some insights include:
Agritourism travellers are high-value, spending more per trip and staying longer in regional Australia.
Visitors are active, curious, and want to connect with farmers and sustainability initiatives.
Non-negotiables for visitors include safety, connection to nature, and authenticity. Most farmers naturally provide this authenticity, which guests value highly. Guests often ask many questions, so being a bit social and open is important.
I want to share a recent example from a cattle farmer I worked with. Initially, he wanted to build accommodation and a wedding venue. After discussing his core purpose – connecting consumers with his beef – we shifted the focus to farm tours. This allowed him to start small, build a loyal customer base, and share his story.
The takeaway: Start small, focus on your core purpose, and leverage storytelling. Price your experiences to reflect the value of your time and knowledge, collaborate where possible, and build an authentic brand.
The value of agritourism for farmers and the process of developing agritourism
Sean Halen of regional tourism organisation Destination Central West
My name is Sean Halen. I’m the General Manager of Destination Central West. We’re a regional tourism organisation based in Orange, NSW, which is a strong agritourism area, particularly for food and wine.
We work closely with local governments and tourism organisations. These connections are invaluable if you’re starting in agritourism. Your Council planning team, economic development manager, tourism manager, and visitor centres are all useful resources.
Destination NSW and Tourism Australia are also key points of contact, especially for introducing international tourists.
The value of agritourism
Some numbers to consider:
Agritourism is a growing sector of the tourism industry, contributing $20.3 billion in 2024, accounting for 14% of tourism spend across Australia.
6% of trips in Australia include some form of agritourism experience.
In NSW, tourism is ranked 6 of 9 key sectors, ahead of education, mining, and even agriculture, forestry, and fishing.
In the Central West of NSW, tourism is growing at around 9% per year, provides 7% of jobs, and there are over 2,000 tourism businesses in the region.
Agritourism provides income, productivity, and jobs:
Income: a new revenue stream that can help with cash flow during quieter periods.
Productivity: maximises assets, such as disused buildings or sheds, without large capital investment.
Jobs: opportunities for family members, returning adult children, or employees to contribute.
Social benefits include reduced isolation for farmers, pride in sharing your product, and educating visitors about agriculture, conservation, and sustainability.
The process of developing agritourism
Before diving in, a viability assessment is crucial. Consider:
Can you make money? What’s the cost-benefit analysis?
Who will interact with visitors?
Visitor access, biosecurity, and safety.
Price points: Farm produce experiences can be around $20–$80, tours can be $30–$200+, and accommodation from $150–$600+.
Seasonality and family buy-in are key considerations.
There are processes and planning pathways to follow, particularly in NSW, to ensure compliance and manage risk. Start with existing infrastructure, test your product with family or locals, and develop marketing and booking systems. Gradually scale up over 18+ months based on demand and capacity.
If you are in the Central West of NSW, Destination Central West can support your agritourism development.
Agritourism business growth
Jill O’Grady – RedGround Truffles, Oberon NSW
I own and run a truffle farm in Oberon, New South Wales. We’ve been producing truffles for four years, growing four varieties so we can offer truffle hunts almost year-round, with only a short break for orchard maintenance.
I began my agritourism journey about two years ago. Our first truffle hunt was very modest—I sold just one ticket, and only one person turned up. But from those humble beginnings, the business has grown significantly. Now, we have bookings lined up well into next year, including 24 group bookings from the UK. Our growth has been steep, and along the way, we’ve expanded our product offerings and actively sought visitor feedback to improve our experiences.
In 2022, we experienced negative truffle production due to wet weather causing our truffles to rot. This highlighted the need for alternative income streams. Fortunately, the NSW state government relaxed agritourism development rules, allowing farmers to welcome visitors onto their properties. Many of our guests had never visited a farm before, which makes the experience exciting for both them and us.
Income streams and farm experiences
Our primary income still comes from commercial truffle production. We export fresh truffles overseas and distribute them to high-end restaurants in Sydney through distributors.
The truffle farm experiences are designed to be immersive. Our main experience is a three-hour truffle hunt and tasting session. Visitors learn about orchard establishment, farm biosecurity, and dog training for truffle hunting. Guests also dig for their own truffles, which is a very hands-on and memorable experience.
We’ve built a bespoke truffle hunting lodge on the farm in a distinctly Australian style—industrial country rather than mimicking French or Italian truffle traditions. All tastings are made on-site, and I teach visitors how to cook with truffles. We also run a truffle grading workshop so guests can identify high-quality truffles for future purchases.
The experience is luxurious: we serve truffle panna cotta, truffle ice cream, and even pair tastings with champagne. Initially, we welcomed all kinds of visitors, but we’ve now honed in on high-end, small-group travellers who value a unique and intimate experience.
In addition to the hunts, we offer on-farm accommodation for guests wanting a private truffle hunt or exclusive access to the farm. We also developed truffle-based products such as truffle aioli, mustards, and balsamic vinegars, which are produced commercially to ensure safety and shelf stability. These products are now available in local stores, further extending our brand presence.
We’re currently experimenting with a twilight truffle hunt and a cellar-door-style truffle tasting for more flexible, drop-in experiences.
Learning and support
To scale from selling a single ticket to being internationally ready, I participated in workshops such as the Agritourism Accelerator Program run by Destination Central West. These workshops helped me understand agritourism rules, network with other operators, and develop collaborative packages. For example, we partner with local accommodation providers and cooking workshops, which encourages visitors to stay longer and experience more.
Free business support through Service NSW and Destination NSW has been invaluable. I undertook webinars on websites, digital marketing, and tools like Google Analytics, Canva, CapCut, and email marketing automation. All these tools now help me manage bookings, communicate with guests, and market the farm efficiently.
Destination NSW also helped make our business “international ready,” providing coaching on commissionable products, trade packs, and exposure to inbound tour operators. We’ve had influencers visit from China, India, and Australia, helping raise our profile.
Sustainability
I completed the EarthCheck sustainability course, which helped me analyze all aspects of the business to reduce environmental impact. We’ve implemented a gravity-fed irrigation system and ensure all truffle waste is returned to the soil, creating a circular system. Visitors love learning about these sustainability initiatives.
We also obtained ecotourism certification to highlight our conservation efforts, particularly restoring critically endangered ecological communities on the farm. This gives visitors a richer story about our farm beyond just producing truffles.
Going global
Our export program includes both fresh truffles and the RedGround truffle product line, promoting our brand internationally. Early this year, I attended the Australian Tourism Exchange, where I had 187 speed meetings over four days. This led directly to the 24 UK group bookings mentioned earlier.
Final thoughts
For anyone looking to start agritourism, I encourage you to leverage networking opportunities, government support, workshops, and digital tools.
Be open to experimentation, actively seek feedback, and ensure sustainability is a core part of your operation.
Collaboration with other operators and being “international ready” can open huge opportunities.
Planning considerations for agritourism developments
Jaclyn Burns of Burns Planning and Development, Oberon, NSW
I’m a consultant town planner based in NSW. I also run a flower farm with agritourism flower picking experiences with my family on a 300-acre property in the Central West, not far from Jill’s farm. My experience in both planning and agritourism has given me insights into navigating the planning system for rural tourism projects.
What is a town planning consultant?
Essentially, a planning consultant is someone—often ex-Council staff—who now operates privately to help individuals, businesses, and developers lodge applications with Council. We act as interpreters, translating Council requirements into a format that is acceptable, and mediating between your goals and the council’s expectations.
Council’s main goal is to tick boxes—to ensure compliance and achieve environmental outcomes. A planning consultant helps make that happen efficiently and correctly.
Do you need a planning consultant?
You don’t have to hire one, just like you don’t have to hire an accountant for a simple tax return. But when things get complex, a consultant can save you time, money, and stress. Councils may even recommend using a consultant when your project is complex, such as developing an event space or wedding venue on your property.
We can sit down with you to discuss your goals, budget, and vision, and then map out what’s achievable within the planning system. We also have connections with other consultants, like engineers and acoustic experts, who provide value and understand local council expectations. This is invaluable because not all consultants are the same.
Planning approval pathways for agritourism development in NSW
There are three main pathways for agritourism development in NSW:
Exempt Development – Minor work with minimal environmental impact, often not requiring Council consent so long as the development meets all of certain conditions. This is ideal for small, low-risk projects.
Complying Development – A fast-track approval process for slightly larger developments that still have minimal environmental impact.
Development Application (DA) – While more involved, this is the most flexible option, allowing for extended hours, larger numbers of guests, and complex projects like weddings or large events.
Why can’t I just get Council to help me?
While it might seem easier to avoid Council, there are conflicts of interest. Some Councils provide lists of recommended consultants, some don’t. Having a consultant ensures you understand what Council responses mean and how to proceed safely.
Weddings, event venues, and agritourism
Requests often come in to convert shearing sheds or other outbuildings into event spaces. While weddings are profitable, they are also complex developments, requiring multiple consultant reports on wastewater, bushfire safety, noise, water quality, access, building compliance, traffic, and waste management. These costs can add up quickly.
A planning consultant helps you assess whether to “dip your toe in the water” with small-scale development or invest in larger projects. Exempt or minor developments allow you to test demand without a large upfront financial commitment. Micro-weddings and garden events are popular examples of starting small.
Key takeaways
Avoiding Council isn’t a shortcut; it’s risky.
Prepare before meeting with Council’s planning officer: define your goals, expected numbers, hours, and budget.
Start small if possible; scale up as you learn.
Town planning consultants are your mediator—they help you navigate complex rules and ensure compliance.
If you live in the greater Bathurst region, Jaclyn may be able to support your agritourism development.
Insurance for agritourism
Kate Heydon of Nutrien Ag Solutions
Hi everyone, I’m the East Region Insurance Manager for Nutrient AG Solutions. I look after insurance from the top of Queensland to the bottom of Tasmania. I know insurance can seem like a dry topic, but it’s critical—especially in agritourism, where your livelihood and your visitors’ safety are at stake.
Important note: Anything I discuss today is general advice and doesn’t take into account your individual circumstances. Always check your own situation with a qualified insurance broker.
Why insurance is critical in agritourism
Agritourism is growing rapidly, offering farmers new income streams and visitors unique experiences. But inviting people onto your farm comes with risks—accidents, property damage, and injuries can happen. Even if nothing happens, someone could claim it did. This is where public liability insurance is crucial: it protects you against claims, including defending claims that may not be legitimate.
Standard farm insurance policies are designed for traditional farming (cattle, sheep, cropping, etc.) and may not cover agritourism activities. That’s why it’s essential to be upfront with your broker about what you actually do—disclosure is key.
Cookie-cutter insurance policies won’t work because each farm and each agritourism operation is unique. Your policy needs to reflect the specific risks of your farm, the types of activities you offer, and the scale of your operation.
What insurers look for
Insurance providers will often ask detailed questions about your farm and activities. Common questions include:
Turnover and number of guests – Higher income and more visitors can increase risk.
Activities offered – Standard farm insurance may exclude guest participation in farming activities.
Food and alcohol – Serving alcohol or preparing food adds risk, requiring additional coverage.
Events and accommodation – Frequency, size, and type of events matter.
Safety measures – Insurers want to see risk management in place.
The more questions they ask, the more they are helping to reduce your insurance cost, by checking how much risk there is instead of assuming the worse!
Photos and detailed information about your operation are very useful—they help insurers understand your real risk, rather than assuming worst-case scenarios.
Choosing the right insurer
Different insurers have different risk appetites. For example, one insurer may cap agritourism income at $50,000, another may allow it as long as it’s less than 10% of total farm income.
It’s crucial to match your insurer to your specific business model. Where guest accommodation is offered, most insurers will require Council approval. Low-risk agritourism activities are usually covered, but what counts as “low risk” can vary by insurer.
Managing risk
Insurance should be part of your overall risk management strategy, not a replacement for it. Some tips include:
Integrate insurance into your wider risk management plan.
Have a written risk management plan. Templates are available online or through your broker.
Make sure your coverage fits your specific vision - don’t rely on generic policies. Cookie-cutter insurance won’t protect you; a customized policy is best.
Ensure your broker is independent, not tied to one insurer—they can find the best coverage for your needs. Ensure your broker understands agritourism.
Full disclosure is essential—don’t hide activities or income.
Review your policy and farm operation annually to ensure it remains up to date.