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Poland

2006

ORGANIZATION OF AGROTOURISM -FARMS

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Index

A. Agricultural Tourism...................................................................................5

1.1 Forms of agricultural tourism.......................................................................9

1.2 Hospitality .................................................................................................9

1.3 Nutrition.................................................................................................. 11

1.4 Accommodation ....................................................................................... 12

B. Establishing and running of an agricultural tourist business................ 14

2.1 Farms ..................................................................................................... 14

2.2 Agro Farms.............................................................................................. 16

2.3 Risk in agrotourism .................................................................................. 20

2.4 Definitions and categories of costs............................................................. 21

2.4.1 Types of costs ...................................................................................... 21

2.4.2 Hypothetical calculation of costs in agro farm ............................................. 22

3. Two examples of agricultural farms in Poland............................................... 24

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GLOSSARY

agrotourism: the tourist enterprise made by farmers on the base of

the owned production and own work. it is generally

enterprise on the small scale, regarding the advantages

of the rural environs.

ecotourism: tourism is oriented on the particularity of the nature.

The participants are very ecological consciousness and

natural sensibility.

agricultural farm: farm, that beside the agricultural enterprise, is also runs

tourist service, adjusting the natural sources and

material goods to the needs of tourists.

quality of agricultural

services: the level of services made by the farmer. it depends

mostly on such factors as: category of object (rooms,

boarding) other service offers

categorisation of

agricultural services: classification of rooms according to these various levels.

Numerous elements are used as the basis for giving the

proper category that determine the minimal and desired

standard as far as the safety, running of the building

and its surroundings are concerned.

the elements (products)

of agrotourism: accommodation, attractions of the environment,

available facilities, the forms of spending free time,

possible services.

selling of agricultural

services: the number of service places, that found the clients in

the given place and gives time.

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the constant means of

production in agrotourism: the farmer’s house with rooms, other buildings for

tourist, horses, bicycles, boats, kayaks.

the rotative means of

production in agrotourism: the equipment of the flat, furniture, rtv and agd

equipment.

alternative tourism

(balanced): the tourist service made by small family enterprises for

the small number of tourists.

mild tourism: mostly with the family or in small groups connected with

having pleasure from the beauty of the environs and

from having free time.

mass tourism: so called fast, in big groups, the program of the journey

is strictly realised, sightseeing.

rural tourism: each form of tourism in the rural environment that

exploits the natural cultural and landscape values of the

environment.

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A. Agricultural Tourism

Tourism can have various forms. In the literature on this subject we can find the terms:

mass tourism (traveling with a group, passie form of relaxing) and mild tourism (individual,

spontaneous, active form of relaxing/rest). Agrotourism represents the second model.

Among the features, which distinguish agrotourism from mass tourism there are among

others:

Place of rest – farm, the tourist gets to know the rhythm of life, has a contact with

domestic animals, fresh food, colourful landscapes, the sounds, the smell.

People – the direct contact with family, possibility of getting to know the family´s

customs, hospitability, making contacts with new people.

Rural life – the daily tasks of country’s citizens, getting to know the culture and

customs of the given place, tradition, history of the given place, tradition, history of

the country and of the region, folklore.

Space – the contact with nature, the freedom in moving around, the silence, the

possibility of pursuing sports and possibility of recreation.

This form of tourism includes mostly recreational activities connected with the nature, with

hiking, health tourism, sightseeing tourism, culture tourism and ethnic tourism.

It is wrong that in Poland people confine agrotourism in every type of activity consisted in

renting rooms in the country. Actually the agrotourism are only these forms of tourism, that

have some connection with agriculture, breeding, fishing, gardening, most often with active

farm. The remaining forms should be called rural tourism or tourism in the rural regions.

The notion agrotourism appeared at the end of the twentieth century. Agrotourism is a

term introduced by representatives of those agricultural farms, which deal with tourism. That

notion spread over all activities connected with not only tourists but also holiday- makers in

general. For that reason the notion is understood differently by tourists themselves and by

those who deal with tourism. For tourists agrotourism means all activities of people who are

going to learn about agricultural production or rest in a farm environment

There is a fundamental belief in agriculture that agricultural farm is a basic field that delivers

tourist service.

Having free workforce, accommodation or cheep food supply it can gain income thanks to

the tourism. However, the practice shows that other subjects are also interested in

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agricultural activity; while farms, especially those located in the area attractive touristically,

narrow their activity to agriculture.

The meaning of the notion agriculture changes depending on the geographical region in the

world. What is more, the relations between agriculture and rural tourism also change. The

difference is a consequence of the role of rural community and agriculture in a given country

or region.

In Europe, where country has some different than agricultural functions, the differentiation

between the agrotourism and rural tourism is crucial. In the areas where farming production

is divided and highly specialised and where it is possible to observe the close relations in the

rural community, it is advisable to use the term ”rural tourism” to agrotourism.

In the wide meaning agrotourism includes also some service of companies dealing with food

production as well as its trade. That aspect of agrotourism is crucial for promotion of rural

production in the countries of highly developed food production.

Agrotourism then is the subject of social, agricultural and economical policy of countries of

the European Union, known as multifunctional economical development of the

agricultural farms and multifunctional development of rural areas.

Agrotourism is the example of the extra-agricultural development of the agricultural farms

and rural areas.

Nowadays agrotourism contains wide knowledge in the areas of economy, organisation,

marketing and managing.

Agrotourism is very important for the communities both urban and rural. It can have several

functions, such as: income, employment, using free accommodation, activating the rural

areas, preserving natural sources and also recreation and education of the urban community.

The most common groups of functions are: sociopsychology, economics and environmental.

The first one are connected with increasing respect for the rural community, culture

promoting and possibilities of introducing the traditional lifestyle of the rural areas.

Economical functions deal with stimulation of development of agricultural, horticultural or

breeding farms, creating additional sources of income for farms and local governments.

Environmental functions deal with protection of natural environment and taking care of the

rural one.

Main problem of the countries in the European Union is the low income of rural community

and especially income from farming. One of main aims of the Union written in Rome Treaty

is “providing (...) good standard of life for the rural communities especially by increasing the

income of people working in agriculture”.

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That is why, the Community using financial and agricultural politics undertakes actions to

increase those incomes. In many countries of the Union the income of the agricultural farms

is the same or even a little bit higher than average. At the same time the situation where

farmers have two occupations becomes more and more popular so their income comes from

two sources.

In the countries where that situation is common, for instance in Germany, the reason for

undertaking several occupations by the farmers is that the income from agriculture is not

sufficient and the workforce is too high.

Changes in employment and sources of income influence the decreasing number of total

quantity of farms and more and more farmers work part-time (part-time agriculture). That

kind of work is common especially in the countries of southern Europe, such as Greece,

Portugal, Italy or Spain, where more than half of employed in agriculture are part-time

farmers. It is assessed that in Greece even 70% and in Italy 90% of the workforce are the

people working part-time.

Agricultural offer of Europe is very rich. Agricultural farms, companies dealing with farm

production and farmers themselves show impressing invention in finding additional sources

of income from tourist service.

Serving those tourists who spend weekends in the countryside is very important for rural

areas of most European developed countries. In England, Scotland and Ireland very common

are B&B services. In France and Italy the PDO1 conception is used.

Some agrotourism farms in the European Union use the funds of that Union. Others try to

get money from different sources. In some countries it is commercial so it concentrates

especially on foreign tourists.

The success of agricultural activity depends on the quality of the service because the tourists

usually expect certain conditions. According to the World Tourist Organisation the quality of

the service in tourism is,, fulfilling for established price all customer’s conditions guaranteed

by law and at the same time respecting safety and hygiene rules and the harmony of the

human and natural environment”(Agrotourism, training materials 2002).

Crucial instrument of assessing the quality is categorisation and standarisation of agricultural

objects and rural tourism.

System of assessing the quality of products and service of accommodation in agriculture in

most countries stress the standard of technical equipment of the rooms and elements

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stressing rural and agricultural character of the offer. Those systems are significantly

different in different countries. In Great Britain the quality of agricultural farms is assessed

by the National Board of Tourism, using the same criterion for the rural and urban areas. In

France, Austria and Germany categorisation of the rooms is done by the country inspectors.

System of control and assessing the quality is to achieve and preserve the high level of the

products and is very important for marketing.

In France the symbol of the quality in agriculture is an ear. In Austria it is marked by a daisy

and the best quality farms get four daisies.

In Poland categorisation is established on the basis of legislation act from 29-th August

1997. However it does not state clearly about standarisation according to rural agriculture.

That is why “System Kwalifikacji i Kategoryzacji Wielkiej Bazy Noclegowej” (the System of

Qualification and Categorisation of the Great Accommodation Base) was introduced and it is

ruled by Polska Federacja Turystyki Wiejskiej “Gospodarstwa Gościnne” (Polish Federation of

the Great Tourism “Guest Houses”). It is quite expensive for the farm owners to get the

category of their farm. Besides some law requirements the farmhouses must fulfil others,

such as proper marking, preserving in good condition the driveway, yards and all buildings,

proper lightening and temperature inside the house.

Many specialists and tourists visit typical agricultural farms. The aims of those visits are

modern technology in farm production or simply comparing own farms with foreign ones.

The number of those visits, dealing mostly with agriculture, is not very big.

Travelling around rural areas it is possible to see farms specialising in breeding wild animals.

In the world, farmers breed for farm reasons many wild animals, such as ostriches, deer,

crocodiles and snakes. However not in all of those farms the tourists or visitors are

welcomed.

In Spain and France bulls are kept for the reason of bull-fights. Farmers in some countries

keep wild animals in special parks as the attraction for tourists.

Theme parks, such as botanical gardens or palm gardens gain popularity in many countries.

They were first set in Paris to fulfil people’s interests. With time those parks were built both

in big and rich and small and poor places in the world.

Besides that the orchards were built to fulfil the general interest or to give the possibility to

fruit-picking. Developing the rural areas with the help of orchards and gardens is one of the

most important ways of multifunctional farming.

It can be easily noticed that the most important role in that enterprise is creativity of people,

their competence, knowledge and skills.

1 Product of Designated Origin- product marked by the place of origin

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1.1 Forms of agricultural tourism

In this way we can distinguish the following forms of alternative tourism:

tourism in the rural regions (rural tourism) – we include to this different forms of

qualified; weekend- and trip–tourism. In this manner we can name every form of

extra-urban tourism with the term of agrotourism.

tourism connected with agriculture (agrotourism) – it is offered as a tourist product

directly connected with agricultural environment, agricultural products (hay – making,

fruit – plucking, open – air festivals, local holidays).

the tourist stay on the farm (farm tourism) – this form of tourism is tightly connected

with the place of stay and tasks, that are done there. The stay on the farm can be

connected with different interests or social groups e.g fans of horse-riding.

Each owner of the farm, that runs the agricultural activity, has to take into account the

needs of potential tourists ranging from these basic i.e. existential, food to cultural ones.

These needs can be fulfilled by proper adjusting of elements of agrotourism to them. Among

these elements we find: the organisation of accommodation on the proper level, attractions

of environment, accessibility of every-day facilities, forms of spending the leisure time.

All these elements build the ruraltourism, which is one of the most widespread forms of

alternative tourism by propagating the active form of spending free time in impeccable

natural environment.

1.2 Hospitality

Many factors influence the development of agrotourism. Next to attractiveness of the

environment, means of constant production, one should name the social assets – people,

their personalities, predispositions to leading the own agricultural activity. A person/a family

that leads their own agricultural activity has to take into consideration all these aspects and

as a consequence create such style of life, that will allow to fulfill the needs of potential

tourists and by keeping the family worths.

To one of the biggest trumps of the Polish belongs hospitality. The Poles try to be kind and

warm-hearted towards their guests. The old polish saying gives the whole meaning „Gość w

dom – Bóg w dom!” – „Guest at home – God at home!” The rural tourism ensures its

participiants the silence, peacefulness, the active form of rest in the natural environment,

and first and foremost the tight contact with the local people in the nice atmosphere.

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The important factor of starting and developing of agrotourism build therefare the people

and their competences. The condition to develop agrotourism is creating of positive

relationship of the citizens of the country towards the tourists. The key element to the

success of enterprise are nice service and kindness of hosts next to proper standard of farm

equipment – so claim the tourists.

Often the high qualities of the region or place – the presence of numerous complexes and of

various services – can be unsufficient, if the quality of service on the farm is poor. The family

and its predispositions t. Leading the own agricultural activity are the most important asset

in making decision of starting the agricultural activity.

In order to meet the expectance of tourists and to make them´ feel at home´ the host

should have the following features: independence, faith in yourself decisiveness, vigour,

care, the ability of dealing in new situations, the ability of forecasting – perspectiveness,

optimism and ability of cooperation. The host should guess the client´s needs and first and

foremost to deal so, that the client is convinced, that there is nothing more important than

they and their matters. These needs result mostly from motives and aims of journey. In this

connection the host should be prepared for making e.g. the bureau technology facilities

accessible, if the tourist comes to farm, so as to work in silence on the lap of nature. Each

owner must be punctual, reliable and neat beside fulfilling the needs of others. Owing to

above named features the stay of tourist will be efficient without unexpected and

unnecessary stresses disturbing the rest. The next feature which each owner should have is

obstinacy and determination. These predispositions – next to stress resistance, learning from

failures and positive relationship towards people – bring the expected results in every

enterprise.

However this is the kindness of the host towards the client, which should be characteristic

for every host. In other words there are internal and external factors that influence the

success in agrotourism and make tourists want to visit the given region. External factors are:

the attractiveness of the landscape of the given region and presence of numerous sights.

Internal factors include the standard of tourist base: the quality of agricultural services,

standard of rooms, kindness of hosts. Estimating of the both kinds of these factors will allow

to indicate the potential possibilities of development of agricultural services. Hospitality and

kindness of hosts and the time they sacrifice for tourists makes the agrotourism exceptional

and different form of spending free time.

Holidays in such places will leave unforgettable impressions first and foremost on children,

for whose it is often the first contact with a real cow, or combine harvester. Children

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remember such adventure for the long time and are eager to visit their new´ aunts and

uncles´ again.

1.3 Nutrition

Nutrition (cooking organic products, serving, menu of the week). Agrotourism is propagating

of the healthy lifestyle in non – polluted natural environment. In Poland there are terrains,

which are not polluted/contaminated with artificial prefabricates. Poland has many farms that

produce ecological food produced in natural, cultivated since hundreds of years way.

The small farms in particular take care of it and live with the idea of love to the earth. Farms

are ecological farms with rooms to rent that run the production consistent with nature for

their own needs for the needs of tourists. In these farms the different species of animals are

breeded ranging from domesticated birds: hens, ducks, geese, to several pigs (hogs), milk

cows and horses. Ecological agriculture is consistent with the needs of soil, of plants and of

animals.

Its aim is to produce food of the highest quality by keeping the biological balance of the

environment.

There are 3 different methods in ecological agriculture:

1) Biodynamic Method: the rule of this method is the tight dependence

between – human-earth-space. All activities on the

farms are done in consistence with biodynamic

calendar, which has connection with moon phases.

2) organic-biological method: the rule of this method is achieving the high production

rate by using the proper rotation of crops and optimal

exploiting of organic fertilizers.

3) organic method: this is the system of production that excludes exploiting

of artificial fertilizers, pesticides, synthetic fodder aids

and growth-regulators. It is recommended to exploit

organic fertilizers, green fertilizers and rotation of

crops.2

The most common method is ORGANIC METHOD. Agrotourism is also a good way to include

the people from the country in the idea of eco-development. The development of ecological

awareness stimulating the local enterprises, forming the organizational abilities, cooperation

with the neighbors, these are others enormous advantages of development of rural tourism.

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Fully equipped kitchens are very often available for the guests, where they have possibility

both of cooking and preparing preserves from mushrooms and from blueberries picked in the

nearby forests.

Moreover hostesses offer local, traditional, vegetarian and dietetic cuisine. The majority of

farms serve polish dishes among others: pork with mushrooms, veal cutlet, meat dumplings,

bigos (chopped meat stewed in sauerkaraut) – traditional polish dish. Menu depends on the

localization of the farm. If the country is located at the seaside or near the loke, fish dishes

dominate menu. Fishes are mostly smoked in hosts smoke houses. Kitchen annexes and

garden kitchens (grill place, smoke house, place for fire) are also available for the guests.

Ecological food has the highest quality awing to the fact it was made in healthy

surroundings. These conditions contribute to this, that the basic elements of healthy food

such as proteins, carbohydrates, fats, vitamins are in the nearly ideal proportions.

Hostesses generally offer home cuisine bosed on the products from their farm. Hosts often

have apiary and produce natural honey and bee´s products that have curable features.

Tourist can watch the procedures of preparing the product, that is typical for the given

region e.g baking of pyramidal cake by the fireplace. Guests can purchase fruit, vegetables,

honey and corns. Breakfasts, dinners and suppers are established according to the likes of

the tourists. Menu generally is full of fresh eggs, home-made bread and butter made by the

hostess.

1.4 Accommodation

The whole houses are available for the guests. They are mostly not very big and they can

comfortably hold 1 – 2 families. Before the accommodation is given to use as a touristic

place the host must announce the accommodation in the local association of agritourists.

The CATOGARISATION of agritouristic base is led by The Polish federation of rural Tourism

(Polska Federacja Turystyki Wiejskiej).

The system of categorisation, that is used in Poland, is based on the solutions accepted in

other european countries such as England, France, Germany.

Three categories of objects are foreseen:

* I – the highest standard

* II – the middle standard

* III – the basic standard

2 www.magazynfarmerski.pl

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Each accommodation, that has received the determinal category, has the right to use the

sign PFTW3 “Hosts Farms” („Gospodarstwo gościnne”) for 2 years.

After two years the owner of the farm has to rejoin the Federation and let the object to be

inspected in order to keep the privileges of categorised accommodation.

During these years the category can be raised or lowered depending on the change of

conditions. Obviously the higher category of the house, the higher price there is. Category

has influence on the price of each service and bundle of services.

The farmers that announce their accommodations to be noted, prepare their houses very

well and that is the reason the majority of them is counted to one of the first categories.4

Farms make possible spending of holidays with the close family or friends. The advantage is

that the rest is not restricted by any thing (except the rules that concern all people) and is

independent.

The objects are mostly vast, safe yards, rest corners, places for fire or grill places. The

houses are located not far from others tourist attractions. (depending on it in which region of

Poland they are) If this us Masurian country there are in the nearby for sure lakes and

therefore there is a possibility of sailing or fishing. When the country is in the mountains the

tourist has the possibility of watching or participating in agricultural works typical of the

given region, they can also go hiking (in the summer) or do sledging cavalcade in the

mountains (in the winter).

3 Polska Federacja Turystyki Wiejskiej “ Gospodarstwa gościnne” The Polish Federation of Rural Tourism “Hosts farms”. 4 M. Dębniewska, Agroturystyka. Koszty, ceny, efekty; Warszawa 1997

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B. Establishing and running of an agricultural tourist business

In everyday life and in economy and scientific literature there are number of different

notions dealing with farms: family farm, forest farm, country farm or agrotourist-farm.

According to type of production or service there are also more specific names such as

breeding farm or diary farm.

The notion farm refers to a property in a country including the ground and all buildings,

which are for production purpose.

Family farm in the economic sense consists of all people living and working together. Usually

they are all members of one family. Family farms have different functions such as production

and employment and their main aim is to support income.

Country farm refers to all kinds of country production including farming, processing or

handwork.

Nowadays country farms deal with some new activities such as trade or tourism.

Agricultural farm is a basic unit in agriculture and it is equiped in all necessary items for

production: ground, buildings and machines.

In Europe, Asia and Africa most farms are family ones.

Farm production on a farm is often only one form of activities on an agricultural farm. Family

farms spread their activities on other areas. One of the possibilities is agrotourism.

Agro-farm is an agricultural farm enriched by agricultural activity. The most common reason why family farms start agricultural activity is the need to increase the income using existing accommodation possibilities, workforce and the need to get better prices for farm products.

2.1 Farms

Agricultural farm is the basic production unit in agriculture. It consists of the ground and

other items used for production such as buildings, machines and tools. It possesses its own

workforce. All activities and production are managed by a farmer. The farm differs from

other production units because the ground is the most important factor and it also produces

some natural goods, which are used in later farm production.

The farm usually deals with plant or animal production and sometimes it possesses a kind of

company leading food production as well.

The farm can be a farmer’s possession, it can be rented, it can also be a part of a company,

cooperative or association.

The farm has two spheres. The first is technical and productive and it includes processing

one goods into the others with bases on nature. The second sphere is economical one and it

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deals with the process of production with relation between products and prices as well as

financial and value taking part in production.

The ground and productive resources are the property of the farm. The property is a tool

used to achieve productive aims. Everything that is the property can be divided into

permanent or changeable means.

Permanent means use up in the process of production gradually transferring their value into

newly produced goods and services.

Changeable means use up in one production cycle during which it transfers the value into

newly produced goods. The division into permanent and changeable means is regulated by

separate directives, which strictly determine to which group the means should belong. What

are more the directives state the criteria of value of permanent means.

PERMANENT MEANS

Buildings, equipment

Drainage equipment

Machines, tools, means of transport

Long-standing plantations

Office equipment and others

Basic herd

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CHANGEABLE MEANS

Materials

Feedstuff

Fertilizers

Fuel

Young animals

Cash

Animals of little value

The structure of production organisation can be complicated and in that case the farm can

be traditional or multidirectional. It can also be simple and then we have simple or

specialised farm.

Traditional farm is the farm where different plant and animal products and their processed

goods are produced for ages.

Specialised farms deal with one kind of production and supply the market with huge one-

kind products.

Diverse farms to avoid economic risk do not deal with one narrow specialisation but lead

their high quality production in two or three fields.

Within the farm there are some sections and branches.

There are production and processing sections as well as service and the general-economic

section. Because of variety of products in all sections they are divided into branches.

2.2 Agro Farms

A farm which introduced a new section into its structure –agro-tourism – is called an agro-

farm. That kind of farm except from plant and animal products offers service in agro-

tourism.

Farm and tourism sections can be independent on a farm. In that case there is no

connection between them. The example can be a farm specialising in grain production,

which is situated in an attractive area and for that reason it has tourist service.

The sections on a farm can be dependable from one another. Often the farm production

depends partly or fully on tourism, for example tourists eat food produced on the farm. The

degree in which given sections depend from one another can be different.

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On agriculture farm 100% of income comes from plant or animal production as well as food

processing. On an agro-tourism farm part of the income comes from tourism and the rest

from farm production. Farm production can fully depend on agro-tourism and in that case

100% of income comes from agro-tourism, too.

The rate of income from agro-tourism in total income of the farm shows the meaning of

agro-tourism for that farm. The more income comes from agro-tourism, the more important

it is for the farm.

The agro-farm must have proper infrastructure, which enables to invite the tourists, while

agricultural farm does not have proper buildings to live because the farmer can live

somewhere else.

Agricultural farm and agro-farm differ in the ways of managing and the structure of

production. First of all it applies to the way of using the ground, how intensive is the

production, managing the workforce and the attitude towards environment protecting.

The aim of agricultural farm is maximising of income through intensive production. That is

why those farms use all the ground for plant or animal production, which guarantees

income.

On the other hand, the agro-farms use the most grounds for buildings, car-parks, lawns and

flower-beds to make the area more attractive or sports fields and others used for recreation.

The way of managing agricultural farms is sometimes very different from agro-tourist ones.

For instance, agricultural farms try to specialise the production focusing often on one kind of

production, while for the agro-tourism farms diversification is better because this way it is

more attractive for tourists.

The agricultural farms try to achieve an intensive production basing on, for example, using

much fertilisers or pesticides to protect plants or keeping many animals per hectare. The

farms, which increase their income by producing ecologically clean products, are also

developed. These farms usually get higher prices for their production.

The agro-farms try to make their production more extensive or ecologically clean because

these meet the needs of the tourists. Agricultural farms try to introduce as much technical

development as they can. In the late last century the ways of production changed radically.

The aim was achieving higher production. Modern techniques used in farm production are

not very attractive for tourists. They are more or less the same in different countries, those

highly developed and poor.

Those modern techniques make it impossible for the tourists to take part in the process of

production because the complicated machines require qualified stuff.

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The old methods of production are of great importance for the agro-tourism, especially those

used to the end of the 60s of XX century. They were different in different countries and even

different regions. Agro-farms accept technical development only in the field of improving

tourist service.

The angle at which the farms look at the market is also different. The market is very

important for the farms with farm production, while agro-farms treat people as their market.

The structure of plant or animal production depends on these ways of looking at the market.

The connection with the society in the country is also seen differently in those two types of

farms. The way of production in the agricultural farms implies quite loose relations with

members of the community. Quite often the country is not the market for a farm and the

farm is not the place of employment for the local people. The connection is rather based on

the cooperation between the farms in the field of using expensive machines or the help in

different activities.

On the other hand, a country, its architecture and community are the attraction for tourists,

especially if it offers local traditions, culture, and its own language which differ it from other

communities. The connection of the agro-farm with the country is much stronger and varied

and it enables better development.

Comparison of the ways of managing the agricultural farm and agro-farm

The way of

managing

Agricultural farm Agro-farm

Using of the

land

Maximising agricultural using

the land

Partial using for the agricultural purpose,

using it for tourism (car parks)

Structure of

production

Agricultural sections only, plant, animal or food processing; specialising of production, growing of production

Agricultural and agro-farm production in different cooperation levels, agriculture serves agro-tourism; diversification, balanced development of the farm

Work

organisation

Maximising of crops; using technical development, effectiveness, automatically conditioned work

Organising production in an entertaining way or even enabling the tourists taking part in it, effectiveness is not the aim

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The level of work

Intensified production, using lots of pesticides, especially fertilisers and plat protection for maximising production

Stress put on extensive production and protection of the environment; reasonable using of pesticides and fertilisers; optimal usage of the agro-tourism area

The market for products

Market outside farm, mainly selling

Production inside farm for its own tourism purposes, overproduction sold on the market

Source of income and its

meaning

All income from plant, animal or processing production

Two sources of income: agricultural production and tourism, or tourism alone; the meaning of tourism depends on its share in total income

Country

Farm production in the country area, but the country does not play important role in the production

Country enables agro-farming, there is a need of using folk traditions

Relations between farm tourism sections and the agricultural ones can be different:

� complementary

� supplementary

� competition

� antagonistic

Complementary relation is when the agricultural section and farm tourism section are the

structural whole and the growth of importance of farm tourism causes the growth of

importance of agriculture and vice versa.

If the agro-farm invites more guests it needs more production of food.

Except from that market there are also new possibilities of selling products because the

tourists often buy the products that could not be sold by the farmer. That relation works in

the other way, too. For example, if the farmer had a bigger strawberry plantation, he would

need more tourists to pick the fruit.

Between agricultural production and tourist farming there can be a supplementary

relation. Farm tourism supplements agricultural production. It is in the situation when the

farm can open new possibilities that had not been used so far.

In that case opening the farm tourist section does not influence existing production.

Farm tourist section can be a competitive factor for some other farm sections. Competition

can refer to all aspects of the farm such as ground, work and capital. For example, the

farmer producing plants for industry wants to open an agro-farm. For that reason, part of

the land or founds should be excluded from production and converted into agro-farming.

Additional workforce must be turned into farm tourism.

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Antagonistic relation is when one activity excludes the other. The best example

antagonistic relation between farm tourism and agriculture production is the case of animal

breeding, especially pig farming.

Farm tourism in close neighbourhood with pig, cattle or hen farming is impossible. Tourists

do not accept that kind of production because of terrible and unpleasant smell.

All kinds of farm production being a source of unpleasant smell exclude farm tourism.

On the diverse farm where there are two or three pigs or other animals tourists do not

complain at all and accept small amounts of each animal.

What is more some other kinds of farm production can exclude tourist farming, too. It is in

the case of some chemicals used for plant protection what needs some restrictions for safety

reasons.

2.3 Risk in agrotourism

Dealing with tourist farming is connected with some kind of risk. The risk refers to service

subject and tourists themselves.

For the farmers the risk is a consequence of loosing inside the farm or the loosing for

different reasons. Tourists may unintentionally bring some bacteria or viruses causing serious

diseases among the animals or they can cause the accident which leads to the death of

animals or crop destruction.

The places producing food can be put in danger by letting in bacteria or viruses. To avoid

that many companies build galleries where the tourists can observe the process of

production without the need of straight contact with the product. Offices dealing with farm

tourism had serious financial losses for different reasons sometimes not depending on

themselves. The reasons were hoof and mouth disease spreading in Europe, terrorist attacks

and wars. They paralysed farm tourism for some time. Rumours and not stabile situation led

some agro-tourist subjects to a bankruptcy.

A tourist resting in an agro-farm is also disposed on a risk dangerous not only for the health

but even life. The risk is similar to traditional tourism.

In some cases the risk can be bigger when dealing with animals or leaving the children,

especially those smaller ones, without constant care. The farm machines can be dangerous

to for all inexperienced users. What is more there is the risk of getting serious diseases

spreading among animals. (bruceloza, ptasia grypa)

Because of that farm tourism needs insurance for civil liability. Letting the area for other

people can be connected with ordinary accidents such as breaking the leg on a slippery

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surface or on the stairs. Insurance of some kinds of activity is so expensive that farmers

choose not putting it in their offer.

Civil liability is an obligation of financial refund for ones action, which was harmful for others.

The cause of that liability is can be not fulfilling or wrong partial fulfilling of the agreement or

doing harm to other person by a forbidden did.

That liability usually is in a form of financial compensation, that is a sum of money

corresponding to the losses.

Voluntary insurance of civil liability is one of the ways of dealing with the risk connected with

civil liability according to the guests coming to the farm.

2.4 Definitions and categories of costs

In the process of managing the company finances play crucial role because every decision

has its financial dimension. Financial analysis includes some points such as structural analysis

or indication analysis of financial reports, analysis of the level of profitability, investment

decisions, planning the financial demand or others.

All mentioned analysis is complicated matters and they demand advanced accountancy.

Agro-farms usually do not have that accountancy.

Economic activity of a company is stated by categories of income, financial outlays and

costs. These categories are precisely described in tax law dealing with leading tax books.

Outlays: are all not material means and material ones, which are aimed to making

products and services in agro-tourism. There is a difference between outlays

and costs. Outlays are given in physical units such as kilogram, man-hour or in

cash.

Costs: are outlays and expenses given only in the form of value, cash. Outlay has the

material dimension, while cost is given in cash. In agro-tourism there are

different forms of costs.

2.4.1 Types of costs

a) Property costs: caused by possessing property

b) Production costs: costs connected with producing goods and services.

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The difference between those costs is significant. If somebody possesses property, eg farm

which do not produces goods, the owner must have property costs. It is obligatory to pay

taxes and payments, paint the building or repair damages. Property costs are the costs,

which must be paid even if the farm does not produce goods.

Property costs are special in agro-tourism. Keeping property gives significant costs, especially

in dead season like winter.

a) Direct costs – costs that can be connected directly to the product or service in

farm tourism

b) Indirect costs– costs in general farm tourism activity

For all products there are different kinds of costs.

Example:

For the agro-tourism activity such as horse riding there are costs as follows:

- Payments for taking care of horses

- Payments for trainer and instructor

- Equipment costs

- Food costs

- Amortization

- The costs for breeding horses

- Expenses for stable

- Others

A very important category are alternative costs (opportunity costs) or costs of lost

chances. Analysing of that category helps to state whether the choice and financial

managing of a given opportunity was right.

E.g. financial sources could be put into a bank account with an interest of 3% while invested

in an agro-farm brought a profit of 6%. The lost chance is the bank interest. Taking above

into account our profit was only 3%. Analysis on the base of alternative costs has a great

value in taking financial decisions.

2.4.2 Hypothetical calculation of costs in agro farm

Counting costs separate branches and kinds of service in multifunctional farm, which is agro-

farm, needs some methodical explanations.

Some of the activities do not bring direct income but only costs.

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The centre of income is the branch, product or service, which gives income and costs for the

farm.

The centre of costs is a branch, product or service which generate costs and do not give

income. The centre of income is the centre of costs t the same time.

An exemplary agro-farm offers service such as horse riding and accommodation, which is

bed and breakfast, and it has an agricultural production at the same time, which is planting

for agriculture and horse feed production.

In that farm it is possible to analyse the costs:

a) agro-tourist services:

- horse riding

- bed and breakfast

b) plant production:

- production for industry

- horse feed

What is more on that farm there is an administration section serving farm tourism and farm

production.

Centres of income are: horse riding, bed and breakfast and farm production.

Centres of costs are: horse riding, bed and breakfast, farm production, production of

horse feed and administration activity.

Centres of costs and centres of income are differentiated according to the needs of analysis.

In conclusion, it can be stated that the centres of income and costs in a given example are:

horse riding, bed and breakfast and production for sale.

The centres of costs are solely: production of horse feed and administration.

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3. Two examples of agricultural farms in Poland

Below we present the examples of agricultural farms in the polish country at the seaside and

in the mountains.

The first one is located in Pomorskie Province whose the Northern Boundary in the Baltic

coast. In this region there are two National Parks. There are plenty of lakes made from the

previous bays. Pomorze (The Province Pomorze) is also famous in Poland for bathing place.

In this province there is the town – SOPOT with the longest in Europe wooden pier and

Forest Opera (Opera Leśna).

This region is one of the most attractive places in Poland. Owing to the beautiful landscapes.

In this connection´ there are more and more agricultural offers from year to year.

One of such offers is the agricultural farm “Zacisze” (The Silent Place) wchich is

located in the Kashubian lake district.

In the distinction from the Kashubian Baltic Coastline

The Kashubian lake district is the land of forests, lakes and picturesque moraine hills.

The vivid country is located in pine woods and lakes its advantage in the close presence of

nature (lack of industry and holiday centres), the beautiful landscape and the possibility of

versatile rest. The hosts offer home cuisine local cuisine (Krasowa – Karst/Karstic) and

vegetarian cuisine. In the menu there are also – roasted pig, venice, and different kinds of

poultry, fruit vodka prepared on the basis of old recipes, home-baked bread.

For the wish of client pigsticking and making of meat products (the farm has its own smoke

house).

This house was categorised by the Polish Federation of Rural tourism and has received the

highest Note (three suns).

The farm is located among the forests and lakes in the outback of the small country. The

whole house is available for tourist where 6 people can live and there is a flat, wchich can

pack 8 people.

The hosts took care of comfort of tourists. Both the house and the flat have living room with

chimney-fire place, TV – set, small library, fully equipped kitchen, bath with shower and

games and toys for children. Moreover there are playgrounds for children, playgrounds for

basketball, volleyball and football.

The tourist have the possibility of renting bicycles, boats and fishing-rods. In the summer

chaise ride are organised and in the winter sledging cavalcades.

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In the terrain of the farm there are smoke houses for fish, drying places for mushrooms and

place for fire and grill place.

Their is also pond, possibility of fishing and in the nearby big lakes, possibility of mushrooms

picking´ and collecting of other forest under growth. In the distance of 3 km from the farm

there are 7 lakes.

This place is also a paradise for mushroom pickers, anglers, hunters that can train in the

nearby hunter´s shooting-gallery.

In the vincinity it is also possible to do horse-riding, there is sight tower (the second place

regarding the height in the Province Pomorze – 240 metres above the sea level). In the

environs there are designated two natural paths.

The farm has its own website: http://www.zacisze.kaszuby.pl/main.html

The agricultural farm “Piekiełko” („Little Hell”) is the example of agrotourism in the

mountains.

It is located in the south-east part of Table Mountains (Góry Stołowe) , between the range of

Piekielna Góra (The Helly Mountain) (533 metres above the sea level) and range Szytnik

(589 metres above the sea level). The Table Mountains are one of the most beautiful and

most attractive mountain ranges in Poland.

The farm can receive 4 people. In the building which is destined for tourist there is fully

aquipped kitchen, bathroom and terrace with the view on mountains. There is also a

restaurant and the number and the time of the meals depends on tourists´ likings.

The Restaurant „Piekiełko” („Little Hell”) has existed since 1960 and during the last several

years (as the hosts assure) the restaurant has been always known for good food. To the

restaurant´s specialties belong: trout in herbs, loin with garlic butter, chicken fillet,

traditional beer soup and sour soup. The hosts assure that almost every dish is currently

prepared – as the order of the guests. The dishes are prepared from fresh products and

mostly from their own production.

The environs of the farm is favorable for active rest. There are numerous touristical paths

and cycling paths far away from the urban bustle.

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The website of the farm is: http://www.piekielko.com.pl/index.html

You can book the rooms via this site.

As it is known there are among the main reasons for choosing this form of rest:

- The low costs of holidays on the farm;

- Meals for tourists prepared from products, that come from the owner´ farms, are not

chemical (e.g fresh milk directly from cow, traditional rural bread, honey from the

own aviary and so on);

- Possibility of practical getting to know the work in the farm (e.g) help by harvesting

or hay-making, milking the cows, feeding the livestock;

- The active relaxing (horse riding, picking of blueberries or mushrooms, bathing in the

river and so on).

Above described farms fulfill actually the tourists´ expecting and what is most important

such form of holidays which is payable for every average Pole.