2pgs, Roadside stands are physical structures located on a farm or along a nearby road where farmers sell produce, meat, eggs, dairy, or other products from the farm. The stands can be as simple as a small open-sided display with payment on the honor system, or as elaborate as a small grocery store.
2pgs, The Internet is a communication and marketing tool that can provide exposure to a large number of potential customers. The Internet can be used to advertise your farm with pictures and maps, take orders online, show product availability, keep in touch with your existing customers, and support other ways of selling, such as CSAs or farmers markets. Farmers can have an Internet presence through their own website or by using a website run by a third party.
2pgs, CSA is a system of direct marketing where consumers pay the farmer at the beginning of the growing season for a weekly box of fresh fruits and vegetables. A CSA “share” is harvested and delivered to customers over a period of several months. CSAs may include meat, grain, flowers, or value-added products such as bread or cheese, in addition to fresh produce.
2pgs, Institutional markets are entities such as cafeterias in state and local government buildings, schools, universities, prisons, hospitals, or similar organizations. These institutions are becoming more interested in buying local food, which provides a new marketing opportunity for a medium to large-scale farm
2pgs, Restaurants are businesses that provide full meals and drinks, and try to offer a unique atmosphere and menu for customers. Some restaurants, especially locally owned ones, now want to feature dishes using local produce. This presents a good marketing opportunity for farmers to sell to them directly.
2pgs, Aggregators are agricultural businesses or cooperatives of growers that consolidate and distribute agricultural products. They typically support regional growers of diverse sizes and experience, and sell products to local or regional markets. The consolidation of multiple farms’ products can help supply fresh product for distributors and other wholesale customers and is not limited by grower size.
2pgs, Produce packing houses are large-scale businesses that buy produce from growers through a contract and then re-sell it on the open market. They sell very large quantities. Packing houses can also own land, renting plots to farmers to grow specifically for them, and sometimes supplying seed, inputs and packaging. They have invested in equipment such as coolers and fumigators, so they have the ability to store large amounts of product. Packing houses never own the product once they receive it, therefore the price the farmer receives is based on what it sells for at the end of the chain. Some packing houses are cooperatively owned by farmers
2pgs, Each year, more and more farms accept Supplemental Nutrition Assistance Program (SNAP) payments for community supported agriculture (CSA) programs. When farms decide to accept SNAP, it opens the door to a new revenue stream, as well as providing healthy local food to community members with limited incomes. According to the U.S. Department of Agriculture, more than $63 million in benefits were distributed to SNAP recipients last year, representing a significant market opportunity for farmers (USDA, 2018). In order to capture some of this market share, SNAP recipients need to be aware that your farm accepts SNAP payments for your CSA. Outreach is one of the most important aspects to gaining SNAP recipients as new CSA customers. Below, you will find some key tips for conducting successful outreach to SNAP participants.
2pgs, Farmers markets are temporary retail establishments typically held outdoors, where farmers come to sell their produce at a specified place and time. Farmers markets are growing in popularity across the country and can be a good entry-level selling place for beginning farmers.
2pgs, Grocery stores typically buy large volumes of fresh and processed foods as well as other household items, reselling their products to individual consumers. Grocery stores are appealing because they sell everything customers need at one convenient place. Depending on the size of the town, these stores may have more than one location. Very large grocery chains operate stores across broad regions of the country. Many grocery stores are now interested in selling products grown by local farmers.
2pgs, A produce broker is a salesperson who has access to any seller in the food chain, including packing houses, processors, agribusinesses, and mid- to large-scale farms. Typically they work with large-scale farms. A broker will help arrange the logistics of getting your product from your farm to their buyer, often taking commissions based on a percentage of the sale. Their success depends on their reputation and they spend years building relationships.
2pgs, Produce distributors are businesses that aggregate product and resell it in small or large quantities to their customers. Distributors may be an individual with a van or a company with a fleet of eighteen-wheelers. A distributor’s primary relationship is purchasing directly from farmers, although distributors can also buy from brokers or packing houses.
2pgs, Wholesale buyers are typically located in permanent stalls at a terminal market. Terminal markets are central sites, often in a metropolitan area, that serve as an assembly and trading place for agricultural commodities. Wholesale buyers will purchase products from farmers, brokers, or packing houses in large quantities, and resell it.
28pgs, If you are farming to be profitable, you need to be more than a farmer. You need to be the executive director of your farm business. Moving product to a paying customer, a.k.a. marketing, is the core of that business. And we have learned that product moves based on the meanings that we associate with it. Consumers buy from farm stands, for example, because they want to support local businesses, eat fresher, or know their farmer. In other words, consumers are buying the story of your farm as much as they are buying your physical farm products. This publication helps you take control of your farm story and develop a farm brand that will connect with your customers.
