Farms have had it rough for decades.

The economics haven’t been in their favor. Agricultural subsidies exist, but they haven’t been enough to offset what Big Food consolidation has done to margins. Most small farms survive only by relying on off-farm jobs.

But something’s changed.

And farms that figure this out are positioned to skyrocket their revenue and profit potential in ways that weren’t possible 20 years ago.

The squeeze

Here’s how bad it’s gotten:

In the 1980s, farmers received about 37 cents of every dollar consumers spent on food.

Today? They get 16 cents.

The other 84 cents goes to the middlemen in the supply chain.

A wheat farmer might earn 12 cents from a loaf of bread that retails for $6.49. That’s under 2% of the final price. The other $6.37 goes to processors, distributors, retailers, and everyone else.

Net farm income in 2024 was 41% lower than the peak in 2022. The average farm brought in just $21,964 in 2024 – the lowest in two decades. About half of what it was in 2023.

For years, farmer economics have been moving in the wrong direction. Shrinking margins and persistent financial stress is the norm. Most producers operate at or near break-even.

Most producers operate at or near break-even.

But there’s a new path.

What’s changed

Two things are converging that create a massive opportunity for farms:

First: Consumer demand.

80% of consumers say they prefer to buy from local farms. 78% would pay 8-12% more for local food. Organic food sales hit $61.7 billion in 2022 – triple what it was 15 years ago.

People want to know where their food comes from. They want to support farms directly. They’re willing to pay a premium for it.

Second: The infrastructure exists now.

It’s never been easier or cheaper for a farm to sell direct-to-consumer at scale.

Shopify costs $30/month. You can set up an online store in an afternoon. Fulfillment networks exist for perishable goods. Rural broadband has improved. The barriers that existed 20 years ago are basically gone.

And farms are taking advantage.

Direct-to-consumer farm sales jumped from $7.9 billion in 2019 to $10.7 billion in 2020. A 35% increase in one year.

Over 130,000 U.S. farms are now selling directly to consumers. Farmers markets have gone from 1,755 in 1994 to 8,771 by 2019.

The new media and commerce world is very receptive to what farms have to offer.

The content opportunity

Look at Ballerina Farm.

10.4 million Instagram followers. 2.5 billion TikTok views on their hashtag. $70 million in e-commerce sales in 2023.

From sharing daily farm life, sourdough bread videos, milking cows, and cooking with their kids.

They sell out of butcher boxes online. They run on-farm events. They’ve built a lifestyle brand around their farm.

And they’re not the only ones.

Farm influencers across the country are turning content into income. Six- and seven-figure follower counts. Direct product sales to a national audience. Brand partnerships. Ad revenue.

The authenticity of farm life combined with compelling content has opened up a completely new path to profitability.

Actually, to be more precise…new paths.

Here’s the economics behind it all:

When you sell wholesale, you get 16 cents on the dollar. When you sell direct, you keep the whole dollar.

A product at a farmers market can fetch 2-3x what you’d get wholesale. Farm-fresh eggs that would earn you $1-2 per dozen in commodity channels? You can charge $6-7 direct to customers.

Yes, you take on marketing and distribution costs. But the margin boost is substantial enough to more than cover the extra costs.

And you’re not competing on commodity prices anymore. You’re building a brand and creating a relationship with customers who would much prefer to contribute to your farm than a big chain grocery store.

The barriers to entry are lower than ever. You don’t need expensive equipment – most farms already have smartphones.

But you still need to create good content. Compelling storytelling. Strong hooks that get people to stop scrolling.

The good news is that there’s tons of free educational content out there on how to do this well. And audiences have shown they love authentic farm content when it’s done right.

It’s never been easier to reach the people who want to see you win.

The hospitality opportunity

There’s another path that’s working:

Farm hospitality.

Agritourism revenue has more than tripled since 2002. Farms generated $1.26 billion from agritourism in 2022 – stays, U-pick operations, weddings, tours, farm-to-table dinners.

Farm stays are booming. More than 7,000 U.S. farms offered accommodations in 2021. In July 2024 alone, farm stays booked 165,000 guest-nights and grossed $42.5 million.

And then there’s the wedding market.

20% of all U.S. weddings now take place at farm or barn venues. That’s 480,000 weddings.

Farms are charging $5,000-6,000 per event. For many, the hospitality income rivals or surpasses their agricultural earnings.

One cattle farmer in Missouri started hosting weddings in their barn as a side venture. Now it pays all the farm’s bills.

And this is part of the vision that we have for Baya, our new farm hotel brand

We’re building farm hospitality properties using a land lease model that works for both the farmer and the developer.

99-year lease. Percentage of net revenue.

The farm stays with the family who owns it. They keep farming. And we build the hotel around the agricultural operation.

For the farmer, it’s typically 3-4x what they’d earn from agriculture alone. For us, it’s multiples less than financing a land purchase.

When we perform well, the landowner performs well. Incentives stay aligned.

Our first location is on 25 acres of tropical fruit farm in South Florida. We’re actively looking for farm partners across North America for future locations.

For farms with the right property, this unlocks value without selling the land or investing millions in capital to build a hotel.

Why this works now

There’s a romance to farms. A nostalgia.

It hits on what the modern consumer wants: clean eating, food transparency, health and wellness, experiential participation.

And people show up differently for farms than they do for other businesses.

I’ve seen it firsthand. Whenever there’s a farmer’s market or farm event, it’s always the most positive vibes. Everyone’s cheering you on. Everyone wants you to do well.

That goodwill translates into customer loyalty. Into premium pricing and people wanting to invest in what you’re doing.

The infrastructure is there. The consumer demand is there. The tools to build an audience and sell direct are as accessible as they’ve ever been.

Farms just need to lean into it.

If you have a farm or property that could work with our land lease model for Baya, reply to this email.

We’re helping farmers unlock value while building the next generation of farm hospitality.

If you’re ready to treat content like the revenue growth tool it actually is, let’s talk. At Oasi, we specialize in generating demand and pricing power for hotels through viral video storytelling. We have a proven content system that increases your social views, engagement and web traffic by 10x, which translates into more direct bookings.

​Fill out an inquiry here and let’s explore how we can work together.

See you next week.

— Ben Wolff

P.S. I’ve launched a separate newsletter for travelers and anyone who just wants to discover cool properties around the world. If that’s you (or someone you know), check out The Modern Traveler on Substack. Very different vibe from this one – less business strategy, more “here are incredible places you should know about.”

🎥 Check Out Our Latest Podcast Episode On “This Week In Hospitality”

Links to the show here!👇

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🎥 Check Out My Podcast with Steve Turk Diving into The Story Behind Baya, Our New Tropical Landscape Resort​

🎥 Check Out My Episode on The Bigger Pockets STR Podcast on Redefining Luxury Hotels and Outperforming Traditional Hotel Models​

Ben Wolff​
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