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Are agritourism venues kidding themselves about their revenue growth?

We are hearing reports from many of our agritourism clients that their revenues have increased post-pandemic. They may well be kidding themselves since there has been substantial post-2019inflation. Their revenues will have had to have increased more than inflation to have grown. Otherwise, they've experienced decreased revenues when factoring in inflation.

From February 2020 to June 2024, we've seen the following inflation increases:

• Overall consumer prices (CPI) - 21%
• Food away from home - 27%
• Admission to movie theaters and concerts - 19%

As a result, if an agritourism farm's or ranch's revenues haven't increased by at least 21% since February 2020, its revenues have actually declined. It takes $121 in revenue today to equal the value of $100 in revenue pre-pandemic February 2020. The same is true for profits. If profits haven't increased at least 21% post-pandemic, the agritourism venue has declining profitability. Today, many agritourism farms and ranches think their revenues and profits have improved when, in fact, they have declined.

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