Leelanau News and Events

Orchard Glamping: Could Agritourism Diversify Revenues For Leelanau Township Farmers?

By Craig Manning | Feb. 3, 2021

Seeking unique vacation spots far from crowded cities is the name of the game for many travelers in the era of COVID-19 — a trend that Phil and Sarah Hallstedt are hoping will play in their favor as they aim to bring more agritourism to the tip of the Leelanau Peninsula. The Hallstedts own and operate Hallstedt Homestead Cherries (HH Cherries), a sweet cherry and flower U-Pick in Northport. They are currently seeking a zoning ordinance amendment from the Leelanau Township Planning Commission that would enable farmers to establish “Farm Site” camping or lodging areas on their property.

If granted, the request could potentially diversify both the revenue streams open to Leelanau Township farms and the types of experiences available to Leelanau visitors. The question planning commissioners are mulling over now is whether approving the request would open up a can of worms that results in unchecked camping across the township’s abundant farmland.

For the Hallstedts, the push for the amendment is motivated in part by necessity. A husband-and-wife team of first-generation cherry farmers, the two relocated to Northport from the Indianapolis area several years ago, buying a 53-acre parcel and planting it with sweet cherries. The problem? In the time it took for the crop to reach maturity, the cherry market transformed.

“[When we bought and planted the parcel], we worked with Michigan State University and some great mentors here locally, as well as a large food distributor in Grand Rapids,” says Phil Hallstedt. “We really did our homework, and we came up with a business case on sweet cherries for fresh produce. We started planting in 2010. When we moved up here about four years ago, as the trees came into full production, what we quickly found out is our market dynamics had changed dramatically. The pricing was down, the volume was down, the labor costs were higher, and we just couldn't make it work.”

The Hallstedts refined their vision for the orchard, eyeing agritourism to turn a profit and stay solvent. Defined by the United States Department of Agriculture (USDA) as “farms that contain a recreational or educational enterprise component,” agritourism can mean anything from farm tours to U-Pick farms to activities that let customers experience life on a working farm. According to the USDA, agritourism revenues in the United States “more than tripled between 2002 and 2017,” with areas like Leelanau — those “located near natural amenities or in close proximity to other outdoor activities” — seeing particularly strong gains.

HH Cherries pivoted to the U-Pick model two years ago, after a late spring frost wiped out 80 percent of the season’s crop. Quickly, the Hallstedts started seeing more traction from their agritourism business than from their wholesale business. That shift forced a revelation for the pair: northern Michigan cherry growers were leaving money on the table by not taking full advantage of the agritourism market.

“What we heard from people coming up here to U-Pick — and they were coming from literally all over the country — was that the quintessential experience [they were seeking] in the Cherry Capital was to go to a U-Pick farm and pick cherries,” Hallstedt tells the Leelanau Ticker. “What would be better than that, to me, would be [an opportunity] to be close to agriculture and to actually stay on an orchard.”

Currently, the type of vacation housing arrangement HH Cherries is proposing is not permitted in agricultural zoning districts in Leelanau Township. The amendment the Hallstedts are seeking would allow the farm to operate an “Accessory Agricultural Support Business,” with up to four rustic farm site spaces throughout their 53-acre property. Those Farm Sites could be set up in one of three ways: as campsites with space for tents or RVs; as “glampsites,” with temporary structures for guests to use, such as hard-sided tents or yurts; or as accessory dwelling sites, with permanent lodges or tiny houses that could also be used as housing for seasonal workers. The amendment would also open the door for other farms in the township to try similar things.

Since November, the Hallstedts have made several presentations on their request to the planning commissioners. Currently, Zoning Administrator Steve Patmore says the commission is focused on how to grant the request without campsites popping up everywhere. Hallstedt says he’s confident that the current HH Cherries proposal would prevent any such outcome. Under that proposal, a property owner could only offer camping space on their land if they meet two criteria: first, the land would have to have “an established, conforming, agricultural-related principal use, such as a commercial farm, orchard, or winery”; second, it would need to be “the principal residence of the farm owner.”

Farms would also have to be at least 50 acres in size to host campers, with at least 50 percent of that land carrying an agricultural use. All campsites would need to be at least 50 feet from property lines and at least 100 feet from crops. Other restrictions included in the proposal would set quiet hours from 10pm to 8am, prohibit amplified music, restrict renters to 21 years of age or older, limit outdoor lighting, and put the responsibility on property owners to enforce all rules.

Hallstedt says Patmore is currently “putting together an outline of what the amendment would look like,” as well as going through zoning ordinances in other townships to compare and contrast.

The matter will likely end up the subject of a public meeting, where other township residents will have a chance to share their opinions. While Hallstedt doesn’t expect 100 percent positive reception to the idea, he’s hopeful that the public will understand the goal.

“There’s a lot of data that shows that for millennials and Gen Xers especially, this [type of agritourism] is a real draw to them,” Hallstedt says. “They want something that’s cultural, they want something food-related, they want something that is authentic, they want something that is outdoors-oriented. For some people, this is what vacations are. We are confident that we can find enough people that would help supplement and diversify the income on the farm.”

Among township supporters is Kathy Garthe, who sits on the board of directors for the Leelanau Conservancy. She strongly supports the HH Cherries proposal, as well as opening more doors for local agritourism in general. Garthe, whose husband Gene is a fourth-generation Leelanau fruit grower, says diversification has always been vital for keeping farms profitable and for making sure that farmers can maintain ownership of their land.

“As the next generation gets involved with farming, we want to make sure that there are tools available [to generate income] as circumstances change,” Garthe says. “Agritourism is a tool that should be in the toolbox, as a way of staying in agriculture and keeping all of the land in agriculture, but still having ways of serving the public and making income related to the farmland.”

Pictured: The orchard at Hallstedt Homestead Cherries by Alex Paul Photo.

Sept 21, 2021 update: The Leelanau Township planning commission has been working through options with the Hallstedts since late fall 2020, and the township is now asking for community feedback on allowing up to four rustic (no in-ground water/sewer to structure) campsites on an active agricultural farm on its Master Plan survey, which is live until October 5, 2021.

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