| Abstract | As the driving force for development projects in rural areas, family farms are increasingly
emerging, driven by the rural development program funds. These projects are aimed at
improving the agricultural activities and complementing the business with the r elated non
agricultural activities.
Agritourism is the forms of entrepreneurial activity that is carried out with the preservation of
the environment, landscapes and the heritage. The aim of this paper is to determine the
possibilities of developing agrotourism in the continental Croatia and to examine the feasibility
of it on the Emina Burek farm . The main activity of the farm is milk and meat production. In
order to reduce the production economic risks, farm's intention is to complement its
operations with services that would include the hospitality, meals and drinks from its own
production and production of farms from the surrounding area.
This study is looking on how to valorise, create an added value and stabilise business of
the
livestock farm, by making it more sustainable and less dependent. The developmental
preconditions of this study are connected to the European Agricultural Fund for Rural
Development EAFRD (2014 2020) which defines diversification through the common
agricultural policy, in measure 6, sub measure 6.2. "Support for investments in starting non
agricultural activities in rural areas" and 6.4 “Investments in the develo pment of non
agricultural activities" g iven that the topic of the final thesis was submitted in 2020. when the
program period 2014 2020 was in place However, i t is important to emphasize that almost
the same conditions are applicable in the new program period 2023 2027 within the
allocation of grants from Strategic Plan of the Common Agricultural Policy (CAP) 2023 2027.
under Intervention: 75.02 Diversificatio n of the income of agricultural holdings to non
agricultural activities.
Accordingly, this Study further focuses on the
start up of the Emina’s stake house, registered
as Farm’s Excursion site or "Izletište" which is a specific type of tourism facility regulated by
the relevant legislative in this area . Case study includes a business plan for an investment
worth 83,000 EUR, of which 60% is co financed from EU grants. The results of the observed
investment are analysed in conservative way, on two levels of which both confirm the
profitability and sustainability of the investment. The investment observed at the level of the
independent activity of rural tourism generates positive cash flows throughout the entire
observed period. The payback period of the investment in question is in the fifth year of the
observed period . At the Farm’s level , the investment, through the expansion of the existing
offer and the increase in the recognition of
offer and the increase in the recognition of the Farmthe Farm, directly influences the stable growth of , directly influences the stable growth of income from regular activities, which in the observed period will grow at a rate higher than 5% income from regular activities, which in the observed period will grow at a rate higher than 5% per year, whereby the share of new activities in total revenue from sales will constantly be per year, whereby the share of new activities in total revenue from sales will constantly be above 10% per yearabove 10% per year which proves the positive impact on sustainability and further growth of which proves the positive impact on sustainability and further growth of the Farm.the Farm. |
