The ‘West Virginia Agritourism Initiative’ – Business Planning and Risk Management Education for Stakeholders in the Agritourism Supply Chain Doolarie Singh-Knights 1, B. Brabham 2, D. Bailey 2, and J. Richmond 2, 1 Extension Specialist, 2 Extension Agent, West Virginia University WV farmers are exploring agritourism as an emerging agribusiness opportunity because of its flexibility, and income-diversification and cash-flow potential for small operations. WV is uniquely positioned to capitalize on this opportunity having the highest family farms/capita in the nation and >20,000 small/part-time operations. State-wide needs assessments suggest a risk-management and business planning approach is needed to help agritourism operators evaluate and manage the potential risks and returns associated with their enterprises. The ‘WV Agritourism Initiative,’ an agritourism short-course designed to enhance enterprise viability and profitability, provided education, planning tools, and supplemental resources to encourage and develop agritourism and farm-based education enterprises for 85 existing and new agritourism operators. Five business risk-management functions (production, marketing, financial, legal and human) were comprehensively addressed. Four short-courses (3 face-to-face sites each with 4 modules - 20 contact-hours; 1 online – 6 weeks), provided tools and coursework leading towards an agritourism specific five-page business plan with supplemental risk management tools (eg. farm/food safety plan) upon completion.  Agritourism development is consistent with WV’s policies to support the farming industry - vehicle for increased farm income, increased visitor spending, local revitalization, job creation, farmland preservation.  Agritourism is recognized as a strategy for bolstering the viability of WV agriculture - Estimated Economic Contribution (Direct Effects only) from visitor expenditures at WV agritourism sites in 2014 was $8,370,403.  Future public and private investment in agritourism development hinges on helping agritourism operators to improve the business of agritourism – helping operations be profitable with significant returns on investments. This is the overall goal of the WV Agritourism Initiative. INTRODUCTION RESULTS  100% of participants increased their knowledge, skills and confidence to start or expand their agritourism enterprise.  Six months post-workshop, 85 participants have implemented at least two risk management strategies and 32 have launched a new/improved enterprise.  Project materials can be adapted for use by other educators in designing their educational activities, including but not limited to agritourism programming, leading to risk mitigation and sound enterprise decision-making, using a whole- farm risk management approach. CONCLUSION/IMPLICATIONS OF THIS STUDY METHODOLOGY – STRENGTHENING THE FOUNDATION FOR AGRITOURISM DEVELOPMENT This poster illustrates 4 main aspects of ‘The WV Agritourism Initiative,’ that laid a solid foundation to help agritourism operators move from a ‘production-oriented’ to a ‘customer-oriented and business- oriented mindset,’ thereby increasing sustainability of their operations.  Motivations that drive agritourism operators, and the priority areas affecting the start-up or operation of their agritourism venture that would help them achieve their strategic objectives;  ‘Best practices for sustained adult learning’ that were incorporated throughout the short-course, that helped uncover learners mental models, allowed learners to contribute to content and outcomes, linked content to learner’s prior experiences, and provided a safe environment for learning;  Key partnerships that made this project successful as a ‘one-stop-shop’ for agritourism resources; and  The notable project outcomes and impacts that were uncovered from post-evaluation surveys. RATIONALE This material is based upon work completed with the WV Agritourism Initiative, supported by USDA/NIFA under Award Number This material is based upon work completed with the WV Agritourism Initiative, supported by USDA/NIFA under Award Number Why is Agritourism Important to WV and WV Farms Demand MotivationSupply Motivation More visitors travelling by car, shorter trips Diversify the income stream and improve cash flow Diverse activities combining educational and recreational experiences Diversify product lines & markets, and get feedback from customers Growing interest in experiential travelEducating visitors Growing interest by the public to support local farmers, rural landscapes and environmental stewardship Improve community development and appreciation for the role of agriculture Agritourism Benefits Socio- Cultural Environmental Economic COURSE OVERVIEW: Growing Agritourism and Farm-Based Education in West Virginia - Managing Risks for Improved Income DiversificationMODULETOPIC Resource Developed 1Assessing Your Potential: Emerging Opportunities In Agritourism ‘Assessing the Agritourism Potential of your Region and your Farm Enterprise’ 2Marketing and Financial Planning for Agritourism Enterprises ‘Building a Viable Agritourism Enterprise – The 5 Page Business Plan’ ‘Partial Budgeting – A Key Tool in Agribusiness Financial Management’ 3 Managing Risk In Agritourism: Farm Safety, Food Safety and Emergency Planning Procedures ‘Legal Guide to Managing Legal Risks Associated with Direct Markets for Local Foods in WV’ (In Progress) 4Tools and Resources for Integrated Agritourism Marketing Success ‘Understanding the Big (Regional) Picture – Where Does my Agritourism Operation Fit in?’ ‘Co-opetition’ – The Art of Cooperative Competition in Agritourism’ Capstone TripBest Practices in Agritourism Operation and Management ‘Collaboration and Innovation in the Agritourism Supply Chain – Keys to a Successful Agritourism Enterprise’ Cluster Development Clusters of SMEs to provide model of cooperation and competitiveness (COOPETITION) to build regional viability WV Food Trail; WV Maple Days; other smaller ‘clusters’ All materials and presentations archived on WVUES Community Online Learning System website - WVU Extension (ANR and CEWD) WVDA Div. of Tourism CVBs, Farm Family Insurance Operators (WV, VT, NC) Advisors (VT Ext., Rutgers Ext.) WVSU and OSU WVU Law School The WV Agritourism Initiative – Key Partners Notable Project Outcomes and Impacts Risk AreaSelected Risk Management Strategy % of Participants PrePost Production Participants complete resource assessment guide to evaluate their potential, and consider changes needed, to successfully pursue various agritourism/farm-based education enterprise alternatives as possible diversification strategies Financial Participants use enterprise/partial budgets, and financial statements to make changes to their existing/proposed enterprise to improve profitability, cash flow and efficiency Marketing Participants evaluate innovative collaborations/partnerships and marketing opportunities to market the 'region/destination,’ and form and maintain mutually-beneficial alliances. 672 Legal Participants prepare applicable farm/food safety plans and emergency procedures, utilizing industry best management practices to reduce liability/risk concerns Human Resource Participants prepare events management checklist (e.g. 'conducting a farm tour' checklist, 'codes of standards for tour guides'), considering hospitality and labor needs. 1782