Direct Ag Market Moves in New Directions

Twenty years ago, the agricultural direct market (producer to consumer sales) consisted primarily of roadside produce stands, pick-your-own fruit and vegetable enterprises and a few farmers' markets.

Today, direct marketing includes upscale farmers' markets, subscription farms and on-farm shops that mix crafts and antiques with the strawberries and sweet corn.

"In the last decade or so, direct marketing in agriculture has evolved and grown dramatically," said John Cottingham, agricultural economist and Extension marketing specialist at UW-Platteville.  "The growth of community-supported agriculture (CSA) is one of the newest innovations." Members of a CSA enterprise buy a share of the farm's produce, paying in advance for delivery of fresh, usually organic, produce during the growing season.  At some CSAs, members donate time and sweat to the enterprise as well, pitching in to help with planting, weeding and harvesting. 

Cottingham says direct market enterprises usually exist in small, relatively fragile markets.  "People generally won't drive more than 10 to 20 miles to go to a you-pick strawberry farm," he said.  "And sometimes, an enterprise that was going well can falter if one person too many starts offering the same product."Cottingham says a big change in the direct agricultural market has been the steep drop in the number of people who buy produce in quantity for canning or freezing. 

"People want convenience, and home canning and home preparation is far less prevalent," he explained. 

As a result, the kind of direct markets that used to provide people with bushels of sweet corn or green beans are fading. On the other hand, people are willing to drive out to the country to visit a farm market that offers "an experience," he said. 

"These markets offer entertainment as well as produce.  They may sell crafts or antiques.  There may be animal petting or rides for the children."

Another direct marketing opportunity exists in the growing number of farmers' markets in communities around the state.  Most of these markets operate only on Saturdays; a few, like the market in West Allis, are open several days during the week. 

The Madison Saturday market attracts hundreds of vendors and thousands of shoppers each week, but Cottingham says it's not typical of the hundred or so farmers' markets in communities around the state. 

"Most markets have five or six vendors and are open for a few hours on Saturday mornings," he said. "It's hard to keep track of how many there are because they come and go from year to year."

Customers at farmers' markets and on-farm markets seem less influenced by price than they once were, Cottingham added.  "When people buy direct from the producer, they are most interested in quality and freshness and in the idea of supporting local producers.  Price is far less important, and people will often pay more than they would pay at a supermarket."

Thinking of planting a few acres of you-pick strawberries and asparagus or setting up a market stand in that empty tool shed?   

Extension marketing specialist John Cottingham says direct selling can be a good business, but the market is fragile and changeable. 

Here are some things to consider before you start: