The Experience Premium: How to Price Your Farm for Profit, Not Just Cost

1. Introduction

The Farmer’s Dilemma: Commodities vs. Memories

Imagine two scenarios. In the first, a farmer takes a large pumpkin, puts it in a bin by the road, and sells it for $5. In the second scenario, that same farmer puts the pumpkin in a field. He charges a family $10 for entry, $5 for a hayride to get to the field, and then sells them the pumpkin for $5.

The pumpkin hasn't changed. The taste hasn't changed. Yet, the family in the second scenario happily paid four times more than the customer in the first scenario.

Why Pricing is Hard for Farmers

This is the core struggle for many agritourism operators. You are used to the "commodity" world—where the market dictates that corn is worth a specific price per bushel, or milk is worth a set price per liter. But in agritourism, you are no longer just selling crops; you are selling experiences.

Many farmers underprice their tours and activities because they calculate the price based on cost (what it cost to grow the crop) rather than value (what the memory is worth to the guest).

The Solution: Willingness to Pay

To price correctly, you must stop thinking about the cost of seeds and fertilizer and start thinking about the psychology of your customer. This article explores "Willingness to Pay" (WTP)—the maximum amount a tourist will pay for the feeling of connection, fun, and escape that your farm provides.

2. The Psychology of Value: What Are They Actually Buying?

When a tourist hands over their credit card at your farm gate, they aren't really buying a basket of strawberries or a look at a cow. They are buying something intangible. Understanding these psychological triggers will help you price your experience higher.

A. The "Authenticity" Premium

In a world full of screens, office cubicles, and frozen food, people are desperate for something "real." They want to see dirt on boots, smell fresh rain, and meet the person who grew their dinner.

• Real-Life Example (The Durian Orchard):

  Consider a durian farm in Southeast Asia. At a roadside stall, a kilo of Musang King has a fixed market price that everyone knows. However, an orchard that offers a "Durian Discovery Tour" operates differently.

  
  

  • The Experience: Guests ride a 4x4 jeep up a steep hill, learn from the owner how to identify a ripe fruit by the sound of its thorns, and eat the fruit fresh under the tree.

  • The Price: Guests often pay a premium ticket price that is double or triple the cost of the fruit itself because they are paying for the story and the access to the farmer.

B. The Educational Component (Edutainment)

Parents feel guilty about how much time their kids spend on iPads. They are often willing to pay a significant premium for an activity that they feel is "good" for their children. If your farm experience teaches a child where milk comes from or how bees make honey, it transforms from "entertainment" to "education."

• Real-Life Example (The Dairy Farm):

  A dairy farm might charge $5 for a simple tour. But if they rebrand it as a "Junior Farmer Class" where kids get a certificate, learn to milk a dummy cow, and churn their own butter, the price can easily jump to $25 per child. The parents pay this happily because they feel they are investing in their child's knowledge.

  
  

C. The "Escape" Factor

Post-pandemic, there is a massive demand for open spaces, fresh air, and privacy. City dwellers are often stressed and claustrophobic. They view your farm not as a workplace, but as a sanctuary.

• Key Insight:

  • Privacy Sells: A picnic table in a crowded area is worth $0. That same picnic table moved to a private corner of the vineyard with a "Reserved" sign and a better view is suddenly a "Private Dining Experience" worth $50+.

  • Quiet is Valuable: Silence and open horizons are rare luxuries for urban tourists. Do not underestimate how much they will pay simply to sit in a quiet field with a nice view.

3. Key Factors Influencing Willingness to Pay (WTP)

Demographics: The Urban vs. Rural Split

The single biggest factor in how much you can charge is where your visitors live. Urban residents often have a much higher "Willingness to Pay" (WTP) than rural neighbors because they are paying for access to nature, not just the activity itself.

Rural neighbors might see a cornfield as a common sight, but a family from the city sees it as a rare novelty.

A perfect example of this is Underwood Family Farms in California. Located near the dense urban sprawl of Los Angeles, they charge an admission fee just to enter the farm center—ranging from $14 on weekdays to over $28 on peak weekends.

Despite the cost, thousands of urban families pay it because the farm offers a clean, safe, and organized "countryside experience" that is otherwise inaccessible to them.

Exclusivity and Scarcity

If an experience feels unlimited, it feels cheap. If it feels rare, the value skyrockets. Agritourism operators can artificially create scarcity by limiting the number of tickets sold or offering "once-a-year" events. High-end exclusivity allows farms to move away from volume (hundreds of cheap tickets) to value (fewer guests paying a premium).

The gold standard for this is Blackberry Farm in Tennessee. They have transformed a working farm into a luxury resort where guests pay thousands of dollars per night. They don't sell "farm tours"; they sell an exclusive lifestyle where guests can participate in truffle hunts or master gardener classes without the crowds.

While most farms won't charge thousands, the principle holds true: a private sunset hayride for two couples can often earn more profit than a public hayride for fifty people, with far less headache.

Perceived Sustainability

Modern tourists, especially Millennials and Gen Z, are increasingly voting with their wallets. They are willing to pay a "values premium" for businesses that align with their ethics. If your farm is organic, regenerative, or animal-welfare certified, you must signal this in your marketing.

Visitors aren't just buying a strawberry; they are buying the peace of mind that comes with supporting sustainable agriculture. Farms like Daylesford Organic in the UK leverage this heavily, charging premium prices for workshops and stays because they have successfully branded themselves as leaders in sustainable luxury.

4. Pricing Models & Strategies for Agritourism

The "Good-Better-Best" (Tiered) Model

One of the most effective psychological pricing tools is the "Tiered Model." When you offer a single price (e.g., "$20 Entry"), customers ask, "Is this expensive?" When you offer three options, they stop asking if they should buy, and start asking which one they should buy.

This is often called the "Decoy Effect"—the middle option usually offers the best value, while the high-priced "Best" option makes the others look affordable.

Saunders Farm in Ottawa, Canada, uses this effectively during their "Fright Fest." They don't just sell a ticket; they sell different levels of access. You can buy a standard ticket, or upgrade to a "Speed Pass" to skip the lines. By offering a premium tier, they capture extra revenue from guests who value time more than money, without raising the base price for budget-conscious families.

Dynamic Pricing

A hotel room costs more on New Year’s Eve than on a Tuesday in February. Agritourism should work the same way.

Dynamic pricing means changing your prices based on demand. This helps smooth out your crowd flow; budget travelers will visit on cheaper weekdays (reducing your weekend congestion), while those who insist on visiting during peak times pay a premium for the privilege.

Tulleys Farm in the UK is a master of this strategy with their "Shocktober Fest." Their ticket prices vary significantly depending on the date. A Tuesday night early in the month might cost £40, while a Saturday night close to Halloween could cost nearly double. This maximizes revenue on days when they are guaranteed to sell out, while still attracting visitors on slower nights.

Bundling

Bundling is the art of combining low-cost items with your ticket to increase the perceived value. Families hate "nickel-and-diming"—having to pull out their wallet every five minutes for animal feed, a wagon ride, or a cup of cider. By creating a bundled "All-Inclusive" pass, you reduce the "pain of paying."

Cox Farms in Virginia uses this for their massive Fall Festival. Their admission isn't cheap, but it includes almost everything—hayrides, slides, music, and animals. Because the customer pays once and gets "unlimited" fun, they leave feeling they got a great deal, even if the upfront cost was higher than a competitor who charges for every individual ride.

The "Freemium" Approach

In this model, the "Gate" is free, but the "Experience" costs money. This is common for orchards or farms with large market stands. The goal is to get as many people as possible onto the property to buy produce, jams, and donuts (the free tier), while charging strictly for the high-maintenance attractions.

Linvilla Orchards in Pennsylvania operates similarly to this. You can drive in and visit their massive farm market and garden center for free. This drives huge retail traffic. However, if you want to go on a hayride to "Bunnyland" or go fishing, you must buy a ticket. This model works best for farms that have a strong retail product line they want to move.

5. Benchmarking: How Much is Too Much?

Many new agritourism operators make the mistake of looking at the farm down the road to set their prices. If Neighbor Bob charges $10, they charge $9. This is a race to the bottom. Instead, you need to change who you compare yourself to.

The Starbucks Test

Think about your target customer. On their way to your farm, they likely stopped at a drive-thru and paid $6 or $7 for a latte. That drink lasts 15 minutes. If you are charging $5 for a two-hour farm tour, you are telling the customer that your hard work, land, and personal time are worth less than a cup of coffee.

You must benchmark your prices against local entertainment, not just other farms. If a movie ticket in your nearest city costs $15 and a trampoline park costs $25 for an hour, your farm experience—which offers fresh air, education, and unique memories—should be priced in that same bracket.

Cost-Plus vs. Value-Based Pricing

There are two ways to calculate your price. Most farmers use the first method, but successful agritourism businesses use the second.

• Cost-Plus (The Wrong Way): You calculate that it costs you $2 in seeds and labor to grow a pumpkin, so you sell it for $4. You make a small profit, but you leave money on the table.

• Value-Based (The Right Way): You ignore the cost of the seed. Instead, you look at what the experience is worth to the family. They get a hayride, a photo opportunity for Instagram, and a fun afternoon. The "value" of that afternoon is $20 per person, regardless of what the pumpkin cost you to grow.

Real-World Example:

Look at Willows Activity Farm in the UK. They do not price themselves like a simple petting zoo. Their entry price can be over £20 ($25+) per person. Why? Because they benchmark themselves against theme parks and soft-play centers.

They offer a full day of "edutainment" with Peter Rabbit-themed adventure playgrounds and shows. If they priced based on the cost of feeding the rabbits, they would go out of business. Instead, they price based on the value of a full day of family entertainment.

6. Common Pricing Pitfalls

Even experienced farmers fall into specific traps when they move into tourism. Avoiding these three pitfalls can save your business.

The "Hobby Farmer" Mindset

This is the most common issue. You might think, "I love farming, I’d do it for free, so I feel guilty charging people to watch me." This mindset is dangerous. You are running a business, not a charity. When you underprice, you attract customers who are looking for a bargain rather than a quality experience. These customers are often the most demanding and the least loyal.

Ignoring Hidden Costs

It is easy to calculate the cost of animal feed, but agritourism has invisible costs that eat your profits.

• Liability Insurance: bringing the public onto your land requires expensive premiums.

• Marketing: website hosting, social media ads, and flyers.

• Labor: This is the big one. If you spend 2 hours leading a tour, you must pay yourself for that time.

Real-World Example:

Consider Heap’s Giant Pumpkin Farm in Illinois, USA. They started as a traditional farm growing corn and soybeans. When they diversified into agritourism (pumpkins, corn maze, hayrides), they didn't just open the gates; they treated it as a separate business unit.

They understood that the "product" was no longer just the crop—it was the entertainment. This shift allowed them to weather low commodity prices because they weren't just selling corn; they were selling a fall tradition. If they had ignored the hidden costs of insurance and staff required to manage crowds, the tourism side would have drained profits from the farming side.

Lack of Clarity (Nickel-and-Diming)

Customers hate pulling out their wallets every five minutes. If you charge $5 for entry, then $3 for the slide, $2 to pet the goat, and $4 for the tractor ride, the customer feels "nickel-and-dimed." It creates "pain of paying."

Better Approach:

Use a "wristband" or "all-inclusive" model. Finca La Donaira in Spain is a luxury example of this. They are an eco-retreat and working farm, but they don't charge separately for a workshop or a tour. It is bundled into a high-value experience.

While they are high-end, the principle applies to small farms too: charge a higher upfront gate price (e.g., $20) that includes all activities. It makes the customer feel relaxed and free to enjoy the day.

7. Conclusion: How To Price Your Farm

Pricing agritourism is not just about math; it is a marketing signal. When you set a low price, you signal "cheap commodity." When you set a confident price, you signal "premium experience."

Summary

• Move away from charging based on what it costs you to produce (Cost-Plus).

• Start charging based on the memories and joy you provide (Value-Based).

• Don't be afraid to compare your prices to movies, zoos, and theme parks.

Final Advice

Start higher than you think you should. It is much easier to offer a "local resident discount" or a "special family deal" later than it is to raise prices on customers who are used to paying very little.

Call to Action

This week, do an audit of your "competitors." But don't just visit other farms. Go to the local cinema, the bowling alley, and the nearest museum. See what they charge for two hours of entertainment. That is your new price benchmark.

Find the "white space" where you can offer something they can't—sunshine, fresh air, and a connection to the land—and charge what it is truly worth.