Agri Tourism as a Risk Management Strategy in Rural Agriculture Sector: With Special Reference to Developing Countries

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.