Capital and credit constraints limit the small farm’s ability to adequately use resources for optimum performance. Farmers’ access to capital is constrained in multiple ways, including price factors, risk factors, and transaction factors, as well as access to and ease of rural agricultural financing. Using a primary survey data of small farms in Tennessee, we analyzed factors influencing credit constraint and its impact on farm performance. Farm operators’ gender, off-farm work, land acreage holdings, farm specialization, and the use of smart phone with Internet significantly influenced credit constraint. We found that the financial performance of credit constrained small farmers was significantly lower than that of unconstrained small farmers—an adverse impact of constrained capacity to credit could result in up to $51,000 lower in gross farm sales. Additionally, our reason-specific results within credit constraint suggested that around $32,000 to $39,000 lower performance in gross sales can be attributable to the constrained borrowing with deficit to obtain agricultural loans at required or desired level.

With recent development, agritourism – visiting a working agricultural setting such as farm and ranch for leisure, recreation, or educational purposes – is gaining popularity in the US. Agritourism can be considered as a viable alternative agricultural enterprise to enhance income and sustainability of farms. This study maps agritourism locations and analyzes the structural factors affecting agritourism location and establishments. Using zip-code level location information, county-level data from Tennessee and spatial regression models, we found significant effects of rural factors, demographics, and educational-, economic-, and cultural- capital factors and their interactions on the location and establishment of agritourism farms. The counties lagging behind in agritourism can focus on educational and capital related factors to enable farms to participate in agritourism activities. Rural areas can capitalize the recreational and natural aspects of agriculture complementing it with agritourism activities. Additionally, our significant spatial terms and tests suggest for the need to test and account for potential spatial effects on studies focused on structural factors and location decision models.

Farm households adopt various diversification strategies to enhance their stable income. This study analyzes the factors affecting farm household's decision to adopt organic, agritourism, and agri-environmental strategies. Using a nationwide farm household data collected through the Agricultural Resource Management Survey, our results show the interlinkages between these on-farm diversification decisions. We found complementarity between agritourism and organic farming decisions, and between agri-environmental conservation and agritourism. Additionally, farm's financial position, insurance participation, land acreage holdings, and farm type and location are likely to influence the diversification decisions of the farm households.

Small farms in the US have significant challenges in financial management. This study examines how small farmers undertake farm financial management to meet their agricultural and farm-related spending and expenses. Using primary survey data from Tennessee, the study investigates the factors influencing the extent of use of five financing sources to meet the spending and expenses: cash/fund directly generated from the sale of agricultural products, farmer’s past savings, farm household’s off-farm income, income/incentives from government payments, and external loans. Using negative binomial regression estimation of generalized linear models, findings suggest that the decision on the use of financing sources is significantly influenced in general by age, education, income and land acreage holdings, off-farm work, and risk factors related to farmer or farm household. However, the associated factors and their effects on the extent of use are different depending on the financing source.

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