DLCD’s Farmstand Rulemaking: A Critical Moment for Fate of Agritourism

The Oregon Department of Land Conservation and Development (DLCD) is currently engaged in a rulemaking process that could significantly impact the future of farmstands and agritourism in Oregon’s exclusive farm use (EFU) zones. 

While the stated purpose of this rulemaking was to clarify existing law and reduce regulatory friction between farmers and local governments, the draft rules released by DLCD have raised serious concerns among stakeholders— particularly the Oregon Property Owners Association (OPOA), which sits on the Rulemaking Advisory Committee representing landowners and rural businesses across the state.

Background: Legislative Intent and DLCD’s Charge

This rulemaking was initiated following legislative discussions around HB 3133, which sought to address longstanding confusion over what activities are permitted under a farmstand permit. OPOA brought the bill in the 2025 Legislative Session to protect longstanding agritourism operations and to ensure that they had legal certainty about the types and scale of activities their farms depend on. 

The Legislature ultimately deferred action and directed DLCD to clarify the rules administratively. The Rulemaking Advisory Committee (RAC), composed of farmers, county planners, and advocacy organizations, was convened to guide this process. OPOA serves on the RAC to add our expertise as land use attorneys and advocates for agritourism.

The original intent was clear – support farmers engaged in agritourism, reduce unnecessary enforcement actions, and provide clarity for local governments. 

Unfortunately, DLCD’s draft rules appear to deviate from this purpose, introducing new restrictions and enforcement mechanisms that could undermine the viability of many family farms.

Farmstands Under ORS 215: The Backbone of Agritourism Permitting

Under Oregon Revised Statutes (ORS) 215.283 and 215.203, farmstands are a recognized as an allowed use within EFU zones. A farmstand is generally understood as a structure used for the sale of farm crops or livestock grown on the farm or within the local agricultural area. However, state law allows farmstands to sell incidental retail items and host promotional events, provided that income from these activities does not exceed 25 percent of the farmstand’s total sales.

Importantly, many agritourism activities— such as flower festivals, corn mazes, harvest festivals, and farm-to-table dinners — are permitted through the farmstand framework.

This permitting pathway has become the most accessible and widely used mechanism for farmers to engage in agritourism, especially in counties that do not offer separate permits for commercial events. As such, any changes to the farmstand rules have direct and far-reaching implications for Oregon’s rural economy and the future of agritourism in the state. 

OPOA’s Concerns with the Proposed Rules

As a member of the RAC and land use attorneys, OPOA has identified several key areas of concern:

1. Farm Use vs. Farmstand Permit Requirements –  DLCD’s proposed language risks requiring land use approval for farmers selling their own products from permanent structures— despite ORS 215.203 clearly protecting such activities as “farm use.” This could subject basic agricultural operations to unnecessary permitting and treats protected farm uses as “non-farm uses” which is inconsistent with state law.

2. New Limits On Retail Incidental Items –  The draft rules narrowly define “retail incidental items” as those that directly promote farm products sold at the stand. This would prohibit many items currently sold at farmstands, such as crafts, gifts, and value-added products that generally relate to agriculture or that customers want. If this rule is adopted, a significant portion of local goods will no longer be available at farmstands. 

3. Prepared Foods –  Despite HB 3133 highlighting the need for clarity, DLCD’s rules remain vague on whether prepared foods— such as cider donuts or milkshakes made from farm-grown ingredients— can be sold at the farmstand and in what quantities. This ambiguity has already led some counties to prohibit such sales. DLCD’s rules do not provide needed clarity. 

4. New Limits On Promotional Events – DLCD’s definition of promotional events excludes popular agritourism activities like petting zoos, cow-train rides, and live music unless they directly feature a farm product or have an educational component. This narrow framing will disqualify many beloved agritourism experiences.

5. New Limits On Farm-to-Table Dinners – The rules propose capping farm-to-table dinners at 17 per year, despite broad support from RAC members and existing income limits that already regulate their scale. OPOA views this as arbitrary and unnecessary restrictions on something that the public loves and is important for farmers. 

6. Lack Of Clarity On Indoor Events – While DLCD’s rules allows tents for outdoor events, it fails to address the need for indoor flexibility during inclement weather. OPOA supports the use of temporary structures, but urges DLCD to clarify that events may occur inside farmstands when needed. If LCDC cannot make this clear in rule, they should support the Legislature making this clarification.

7. New Siting Standards and Enforcement Regime – DLCD introduces new siting standards (e.g., parking and access) and a periodic permit review system that allows local governments to charge fees and revoke permits. This creates a burdensome and unequal enforcement regime for farmstand operators—one not applied to other non-farm uses in EFU zones. Most concerningly, LCDC proposes to reach back to existing vested permits. This likely violates several aspects of state law. 

8. No Relief From Income Restrictions – HB 3133 also attempted to address the longstanding 25% cap on incidental sales and event tickets outlined in statute. Unfortunately, DLCD did not attempt to solve this issue. As such, the proposed rules do not reflect modern agritourism economics. OPOA proposes redefining “sale of farm products” to include ticketed experiences like flower festivals and corn mazes, where the product is consumed through interaction rather than harvest.

9. No Legitimate Alternative Options – To justify these additional restrictions, DLCD argues that farmers can seek conditional use permits like home occupations or apply for “agritourism event” permits. However, DLCD fails to recognize that counties do not have to offer these options and most do not. Thus, DLCD’s rule will ban certain activities in counties that do not offer alternative pathways. 

A Call for Reconsideration

OPOA is joining the call of farmers around the state urging DLCD to reconsider its approach and return to the original goal of supporting agritourism and small farms. OPOA is preparing detailed written comments, including alternative language that the department could adopt as guidance for county planners. 

OPOA hopes that the public will join them in supporting this guidance-led approach, instead of the adoption of a new enforcement regime that may put many family farms out of business. 

How to Get Involved

Given how past rulemakings have gone, it is very difficult to change DLCD staffs’ opinion once proposed rule language is published. In our experience, it will take significant public comment to get DLCD to change course on what they put forth to the Commission for adoption. 

DLCD plans to publish formal notice of these rules on September 1, 2025! 

If you value Oregon’s rural economy and agritourism heritage, now is the time to speak up!

• Send an email to DLCD at farmforest.comment@dlcd.oregon.gov

• See the Rulemaking Materials for OAR 660-033-0130 Regarding Farm Stands

• Watch Past RAC Meetings

• Contact Your State Legislators 

• Reach out to the Governor

Oregon’s farmstands are vital economic engines, cultural landmarks, and community hubs. Let’s ensure they remain protected and supported for generations to come.

The opinions expressed in this post are those of the author and do not represent the opinions or positions of any party represented by the OPOA Legal Center on any particular matter.