Abstract:
This article reviewed literature on potential of agri tourism as a risk management strategy in rural
agriculture sector with special reference to developing countries. Reviewing literature indicated
that agri tourism as a risk management strategy in rural agriculture sector has an immense potential
to contribute to manage the risk in agricultural economy. Evidence from the production and price
fluctuations during last three to four decades in both conventional agriculture sector with intensive
production of rice, vegetables, and other subsistence crops and plantation agriculture sector with
intensive production of tea, rubber, coconut, coffee, etc shows that they are highly vulnerable to
external factors such as internal & international politics, climate change and whether pattern
changers, market and trade slumps, etc. Sudden and unanticipated influences of these external
factors cause higher risks in sustainability of agriculture sector and it results in the collapse of both
micro and macro economies in a country. This paper attempts to discuss how agri tourism can be
introduced to agriculture sector as a supplementary income source as a risk management strategy
which is less susceptible to above mentioned externalities. Further, agri tourism will motivate and
encourage farming communities to raise their crops in eco friendly approach and to conserve the
biodiversity of farms which will minimize the internal risk factors of farming such as pest and
disease outbreaks, soil degradation, etc. Research studies has shown that a well-developed agri
tourism industry would result in a market mechanism generating additional income of US $251
to US $364 million annually in counties like Dominican Republic. Agri tourism sector would
improve sustainable agricultural practices by maintaining and increasing positive externalities
and nonmarket services provided by agriculture. Agri tourism products and services would have
the added benefit of promoting sustainable agricultural practices too. This is a good option for
farmers and planters who are willing to diversify their farming operations that will help bringing
more economic activities to rural areas sustaining livelihoods of the rural people. In addition, agri
tourism not only allows farmers to enjoy greater economic benefits through managing risks, but
also helps to retain the young generation of the farming community in the rural areas instead of
migrating to urban areas for better livelihoods.
