CSA and Farmer Vendors

Whether you’re gearing up to sell at a farmers’ market, through your roadside stand, or by private treaty, you cannot thrive in business today without a pricing strategy. The price you set for your product must fall between two points: what the customer is willing to pay and your breakeven point (the point at which you start losing money).

While some of the COVID-19 restrictions covering outside gatherings are being lifted, most states are still recommending folks wear a mask and social distance at events like farmers' markets and pick-your-own farms. Last year, most people complied with wearing masks, but as restrictions are changing and more folks are now vaccinated, more customers are choosing to not wear their masks at these types of gatherings.

Profitability through direct marketing has, in large part, been derived by targeting a customer segment that has a higher level of disposable income. This segment often lists freshness, supporting local farmers, and product quality ahead of prices when deciding to purchase local food products. While the U.S. economy appears to be strong, the Hartman Group in their recent report “The Business of Thrift 2018: Understanding Low-Income and Value-Oriented Consumers” finds that over half of American households (56%) qualify as low-income today (based on federal poverty guidelines and size of household).

By its very nature, agritourism activities bring groups of people together. Since Covid-19 protocols call for social distancing and avoidance of “crowd” situations, how are farms that feature agritourism as their core business model fairing? This is the start of the pick or cut-your-own season and on-farm markets premiering early season produce. What strategies, adjustments, and even innovative ways are these farms keeping their doors open to the public?

It was a joke in the county economic development office where I worked that I was the only person in the office that spoke “farmese.” You know…that strange language that uses terms like sustainable, organic, row feet, CSA, cagefree, free-range, over-order pricing, certified organic, etc. Any phone call from a farmer came straight to me because I was the only one in the office who understood what they were talking about.

Across much of the United States, farmers markets have reported a decrease in consumer participation over the last couple of years, resulting in a decrease in farm sales and income. In an attempt to understand and reverse this slump, a multi-state study is being undertaken by Farmers Market Federation of NY and Cornell Cooperative Extension of Broome County, in partnership with Community Involved in Agriculture (CISA), NOFA-VT, University of Maryland Extension, and the Farmers Market Association of Maryland.

During a recent webinar that I led addressing vending at Farmers’ Markets, a participant asked how to discover food trends and consumer purchasing preferences. While we discussed several resources for searching out “what’s hot and what’s not”, the real key to keeping our customers engaged is more about understanding their wants and needs than trying to capitalize on any one trend or specific product. Peter Drucker’s timeless adage that “the purpose of any business is to have a satisfied customer”, still holds today in our multi-channel, wireless, 24/7 shopping arena.