Running a farm stay can be a highly rewarding venture for the right person or family. Farm stays are not something to venture into with the sole motivation to make money. In fact there are many other benefits of farm stays you need to consider.
Benefits for the farmer
- Opportunities for social interaction
- Educates tourists about the rural heritage of the region and the need to protect the natural resources and amenities
- Supplements and diversifies income.
Benefits for the visitor
- Provides a way to experience rural or ‘farm’ life
- Offers unique accommodation and experiences
- Provides convenient stopovers for the drive tourism market.
Benefits for the region
- Reconnects people with farming and strengthens relationships between primary producers and the end consumer
- Supports the local economy by attracting visitors to spend more time and money in the region
- Provides additional employment opportunities for the community, especially larger establishments
Establishing a farm stay
The guide will support you to work through steps for establishing a farm stay and to find relevant external information.
ACTION: Review the Regulatory Considerations in section 4 of the guide to know what’s involved.
Establishing your farm stay checklist
- Accommodation and experiences suitable for your farm
- Pastoral lease opportunities (or restrictions)
- Native Title and Indigenous Land Use Agreements requirements
- Cultural heritage implications
- Planning scheme requirements
- Setting up a new business structure
- Licences or development approvals
- Food or alcohol offerings and licences
- Insurance needs
The guide references important materials, including local and state-specific planning schemes and planning policies, and building codes and regulations that are specific to each Local Government Area. It’s important to contact your local Council for region specific advice before making any decisions.
What visitors are looking for
When choosing a farm stay visitors often seek authentic and immersive farm experiences. They look for opportunities to connect with nature, enjoy fresh air, and escape the hustle and bustle of city life. Being able to experience a slower pace of life and engage in hands-on activities is a significant drawcard for families, couples, and solo travellers.
ACTION: Referring to the points below, write a sentence on what you think visitors might look for in a farm stay on your farm.
Farm stays are valued by visitors who seek out an authentic retreat in regional Australia. They are distinctive by nature, providing opportunities for people – particularly city dwellers – to experience rural life and the country atmosphere.
Deliver an experience that is authentic to you, your lifestyle and your work, with a focus on what your visitor market is looking for. Speak to your local tourism organisation to better understand what this might be.
Farm stays are flexible in their scale, configuration and style. Visitors are attracted to different farm stays based on the type of activity or experience on offer. These may be farm-related, including feeding stock, mustering and treating cattle for injuries. Or they may be more recreation-based activities including 4WD tracks, walking tours, star-gazing, camping and wildlife spotting.
When it comes to planning out your business, remember that visitors who seek out farm stay experiences generally expect the farm to be the focal point of their experience. The key is to develop an offering that is authentic to the farm and is unique from what can be experienced in city life. You might for example invite visitors to take
There are also many successful operators who choose to provide accommodation-only. Visitors may seek out these farm stays because of convenience (e.g. close to a nearby attraction), cost (e.g. cheap campsites enabling travellers on a budget to prolong their stay in the region), or relaxation (e.g. a place to unwind with very few distractions). You may therefore focus on making the accommodation the focal point for your farm stay.
Benefits to you
To better understand whether farm stay tourism is the right fit for you:
- Stay in a farm stay yourself to gain useful ideas and insights from the owners (who will more than likely be happy to share)
- Reflect on your motivation, commitment and suitability. Assess your current business and honestly evaluate your own circumstances
ACTION: Ask yourself the following questions to work out if a farm stay is right for you.
- Personality fit – Am I comfortable being around other people and opening my property and life to visitors?
- Lifestyle fit – Do I have the time and desire to devote towards accommodating guests?
- Suitability of property – Will I need to clear land? Will I need to build anything?
Regulations – Does my land tenure allow for a farm stay business?
Commercial – Can I afford the start-up and ongoing costs? What do I already own or have access to that can be used in the farm stay business?
Potential costs
Starting a farm stay business can mean funding startup costs before you even begin. These costs depend largely on the size and scale of your farm stay as well as how creative you are with start-up expenses. For example you could make use of current assets or resources on your farm such as existing dwellings or accounting systems you already have in place.
Startup costs may include:
- Equipment and supplies such as tools, or technology needed to run your business
- New development costs
- Incorporation fees to register your business
- Legal and accounting fees
- Furniture and supplies you need to set up your accommodation
- Marketing
- Website development
- Utilities such as power and water expenses
ACTION: Write down what your likely start-up costs might be, and what existing assets or resources you could use.
Financing your start up
If you plan a small business with minimal requirements for renovation, development or site preparation, then it may be possible to use equity finance (i.e. your own money or that of friends and family) to fund the farm stay. For larger operations, you may require funding through debt finance (i.e. borrowing money that you pay back with interest) from a financial institution.
You will need to strike a careful balance between ensuring that you don’t over or undercapitalise. You should also factor in the amount of money to be kept in reserve to keep operating the business until you begin to break even or turn a profit.
ACTION: Think about your current finances and whether you might need to speak to a financial consultant, bank or financial institute to borrow money.
Suitability of your property
Every property is different, and the suitability to host visitors or provide activities will vary from farm to farm. You may for example want to build cabins or camping style accommodation, but will need sufficient land to do this, and may need to clear vegetation. You may start with a simple accommodation in your homestead and work up to building new accommodation.
Assess if your property has other features that will attract visitors such as proximity to other towns or attractions, or remoteness (which some visitors look for). Think about whether you have natural assets visitors can enjoy like bushwalks, birds, fishing, and swimming.
ACTION: Write down what makes your property suitable for a farm stay
Legislative and other considerations
There are many rules and regulations that you will need to review and understand when starting your farm stay, from local Council laws right up to State administered legislation. This can be a complex process which will likely require professional support. This is covered in Section 6 below in more detail.
ACTION: Review the Regulatory Considerations in section 6 of the guide to know what’s involved.