Factors Associated with the Profitability of Agritourism Operations in Maryland, USA

Abstract

Small and medium farmers across the USA face multifarious challenges for survival. Agritourism has been an alternative to diversify their income streams. Researchers have examined various factors determining the profitability of agritourism operations that range from the operators’ socio-demographic and firmographic to geographic characteristics. However, the understanding of the extent to which the number of visitors and other factors influence the profitability of agritourism operators in Maryland, USA, is limited. This paper examines various factors associated with (a) the profitability of and (b) the number of visitors to agritourism operations. Using data collected from Maryland in 2022, the multivariate results reveal that the number of visitors to the farm increases the odds of profitability. However, the relationship was mediated by the number of employees, which influenced the number of attractions and visitors. Moreover, the number of employees independently and significantly affected the profitability. Further results reveal that the length of operation, the number of employees, and operating during the fall season significantly influence the number of visitors. These findings imply that policies should consider ways to facilitate labor hiring as well as other factors to attract farm visitors and increase farm profitability.