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Farm wineries differ from commercial wineries in that the fruit which is the source of the wine is usually produced on the farm, and the final product is also sold on the farm. A few states, such as New York , also have a special permit available to open a satellite store in a tourist area. Farm wineries are usually at a much smaller scale than commercial ones, as well.

Farm wineries may produce distinctive and very high quality wines. There are highly competitive contests by which wineries can establish prestige by winning in their categories.

Farm wineries are a form of Value Added Marketing , also known as Agritourism , for farmers who may otherwise be struggling to show a profit. Other forms include roadside stands, school field trips, Hayride s, Halloween Haunted House s, and other events designed to entertain or educate folks, while bringing them to the farm to purchase the farm's products.