Newsletters
XML Feeds
Farmers' Markets: Marketing and Business Guide
 A printable PDF version of this entire document is available at:http://attra.ncat.org/attra-pub/PDF/farmmarket.pdf 24 pages — 1.3M Download Acrobat Reader |
Abstract
 Photo by: Jim Lukens |
The number of farmers' markets has increased dramatically in the U.S. during the past two decades. This publication is a resource for those who want to organize a farmers' market, to improve an existing market, or to increase their sales.
| Farmers' markets are one of the most exciting trends in America's food system. Go downtown in almost any town or city in America during the summer, and you will see signs for the local farmers' market. Read any farm publication examining new marketing opportunities for farmers, and farmers' markets will be addressed. Talk with any public official interested in providing fresh nutritious food to inner city residents, and farmers' markets will be mentioned. Farmers' markets are important because they give local farmers the chance to sell food they raise directly to customers; they allow consumers to buy fresh food from the farmers who raise it; they help create new farms and food businesses; they provide communities ways to create excitement and activity in downtowns and neighborhoods; and most importantly, they give us all the opportunity to think about what goes into producing our food supply. These reasons explain why farmers' markets are one of the fastest growing forms of farm marketing in our nation. —Neil Hamilton, Farmers' Markets: Rules, Regulations and Opportunities |
Table of Contents
- Introduction
- Organizing a new market
- Personal success at a farmers' market
- Promoting your market
- Evaluating your market
- Strength in numbers: state associations
- Additional Resources
- Appendix 1: Market rules that work
- Appendix 2: Mystery shopping at the Crescent City Farmers' Market
- Appendix 3: Farmers' market vendor evaluation
- Appendix 4: SWOT analysis worksheet
- Appendix 5: Services offered by a state association
- Appendix 6: State farmers' market associations
Introduction
Farmers' markets are an ancient method used by farmers worldwide to sell their produce directly to consumers. As U.S. food production became increasingly industrialized and specialized, farmers' markets were replaced by brokers and supermarkets. During the past couple of decades, however, farmers' markets have rapidly regained popularity in the U.S.
Farmers find a number of advantages in selling at farmers' markets. By selling directly to their customers without going through middlemen, farmers can charge retail prices for their produce. A farmers' market is a good place for new growers who are perfecting production skills and learning which products customers want most. In addition, many growers enjoy the interaction with customers and other vendors, and say, 'This is my social life.'
For customers, too, the farmers' market is not just a place to buy food, but a social affair. A festive atmosphere helps to bring people to markets, where they can talk with farmers about how the produce was grown and how it can be prepared.
Organizing a new market
A new market is often started by a small group of people who recognize the potential benefits for their community and for local producers. Although markets are sometimes established with as few as three to five regular vendors, a larger number of vendors generally will draw more customers. Your local Cooperative Extension Service or county agricultural commissioner may be able to help you compile a list of potential vendors to invite to your first organizational meeting. Use local news media to help publicize your intentions.
Although some markets may be very informally organized, a set of bylaws, rules, and regulations will help to prevent problems down the road. Following are some of the issues to be addressed:
| Farmers' markets growth In 1994, the U.S. Department of Agriculture (USDA) began publishing the National Directory of Farmers Markets which lists all farmers' markets operating in the U.S. Since that time, USDA has updated the Directory every two years. The following graph shows the number of markets at each update.  From USDA Agricultural Marketing Service |
- Leadership. Who will serve on the board of directors? Some market boards are made up entirely of vendors, while some include other people from the community.
- Management. Will the manager be a market member or hired from outside the market? What are the terms of employment? What are the responsibilities?
- Vendor membership. Who can be a member and vendor? Are there geographic restrictions?
- Location. Is the market site easily accessible, aesthetically pleasing, and highly visible? Does it have shade from trees or a structure to provide protection from the elements? Does it provide adequate parking and display space for vendors? Are electricity, water, and restrooms available?
- Hours, days, and months of operation. When is the market open? At what time on a market day do vendors need to be in their assigned spaces? When do the spaces need to be vacated?
- Fresh products. Will you have a producers-only market, with vendors selling only produce, meats, and plants grown on their own farm? Or will farmers sell what they grow, along with products from other local farms? Or will vendors sell any products they can purchase, locally or not, acting essentially as brokers?
Pop-up tents offer shade for farmers at an Austin, Texas market.
Photo by: Jim Lukens
- Value-added products. Will these be made primarily from vendor-grown produce? Will wine be allowed? How do state and federal agencies regulate production and marketing?
- Arts and crafts. Will these be allowed? If so, will they be juried or limited in number?
- Containers, weights, and measures. Are these regulated in any way by the state?
- Space assignments. How will spaces be assigned for the season? Seniority, number of markets attended the previous year, and sales volume are used in some markets.
- Space and membership fees. What is fair for both large- and small-volume vendors? What does the market need to operate? Some markets charge a flat rate per space, others charge a commission based on total sales. Most markets also have a membership fee.
- Pricing. How will you ensure competitive pricing? It may take an educational effort to promote harmony, cooperation, quality, and presentation among vendors and discourage price fixing. Most markets insist that vendors post their prices.
- Process for dealing with infractions of rules. How can the rules be enforced fairly, firmly, and consistently? How can a member appeal a penalty?
- Local and state regulations. How is the market affected by health and safety standards for food handling?
- Insurance. Physical liability insurance in case of injuries or accidents can be purchased by the market or by individual vendors.
Appendix 1 and materials listed under Additional Resources provide additional details and ideas for organizing a new market.
An established farmers' market can be among the jewels of a community, and for this reason should have strong support from the Chamber of Commerce or economic development council. Cities often provide space for a market free-of-charge. They can also help promote special events that draw customers both to the market and to shops in the vicinity. The city may be willing to construct shelters to give vendors and customers protection from rain and sun.
Is a farmers' market the right market for you? Are you a 'people person?' Do you want to interact with customers?
|
| A recent case study in California compared marketing costs of three farms selling by wholesale, CSA, and farmers' market. All three farms were well-established, diversified organic growers in Northern California—one small (20 acres, 2 full-time employees); one medium (70 acres, 7 employees); and one larger (240 acres, 30 employees). Across all three, labor was the highest marketing expense. For the small farm, labor was 77 percent of all marketing costs, ranging from 67 percent in wholesale to 82 percent for farmers' markets. Farmers' markets generated the lowest net revenue return for all three growers, while wholesale provided the highest net return for all. The study points out that price premiums at farmers' markets are not pure profit. Hardesty, Shermain. 2008. Case study compares marketing costs of farms selling wholesale, CSA, and farmers' market. Small Farm News. p. 4. |
Personal success at a farmers' market
A successful market depends on successful vendors. Lynn Byczynski, editor and publisher of Growing for Market, put together a special issue in 2001 on how to be successful at farmers' markets. The following is excerpted from her introduction.
 A beautiful location is an advantage. Photo by: Jim Lukens |
Farmers' markets are much more than just a place to sell food. They have become important community institutions. They are a venue for socializing, where urban residents meet farmers and their neighbors. They have figured in the revitalization of downtown districts, bringing people into areas that were once vacant on Saturday mornings. They serve an educational function, too, helping people learn to eat better.
The success of farmers' markets in general is great news for you as a farmer. It means you're entering a well-established and well-regarded marketing system with great potential for growth. But even at the most successful farmers' markets, success for you individually is more likely if you meet certain criteria. Here are some of the aspects that are of chief importance:
- At the base of all your efforts is quality. You must offer the highest-quality products. Food must be fresh, delicious, and handled with care. Flowers must be vibrant and long-lived. Everything you sell must be clean and packaged properly. Make no mistake about this—you won't succeed if you don't have good food and flowers. Every other marketing strategy depends entirely on your quality.
- Pricing must be appropriate. You must be a student of prices, keeping track of what your customers are paying for the items you sell. What would they pay at the supermarket or the florist? What would they pay elsewhere at your farmers' market? You must know the value of your product and set fair prices—enough for you to be profitable while being competitive.
- Merchandising is important, too. There are dozens of tricks of the trade that will inspire confidence in your products. You need to display your produce in a neat, well-organized, and eye-catching manner.
- Sampling can be an important sales tool, but you need to know what is allowed. Rules about sampling are all geared toward preventing food-borne illness. (The Arkansas Department of Health, for example, allows samples of uncut fruits and vegetables, but cut samples must be prepared in a certified kitchen.) If you provide samples, practice good hygiene, such as using disposable gloves, covering your samples, and distributing samples in such a way that customers' hands don't come in contact with the food.
- The personality of the grower is one of the most important elements to success. Gregarious farmers—those who like to meet new people and talk about their food and farms—will always do better than the quiet types. Friendliness, courtesy, and respect for the customers will win you a loyal following. People come to farmers' markets seeking social interactions, and the more you can help them accomplish that, the better you will do.
The farmers' market issue of Growing for Market can be downloaded from the Growing for Market Web site. And Byczynski's new book, Market Farming Success, has an excellent section on farmers' markets. See Additional Resources.
Promoting your market
 An artistic hand-crafted sign identifies this vendor's spot. Photo by: Jim Lukens |
Champagne PR on a Beer Budget: Grassroots ways your market can make a marketing splash! was a session presented by a New Orleans public relations professional, Diana Pinckley, at a 2004 workshop on managing a farmers' market (The Four Ms of Farmers' Markets, organized by the Economics Institute of Loyola University; see Twomey Center for Peace through Justice in the Additional Resources section at the back of this publication). Ms. Pinckley helped the Crescent City Farmers' Market establish and implement their marketing plan.
After talking about how to figure out what your message is, who you want to hear it, and what you want them to do in response, Ms. Pinckley focused on how to deliver the message. She said paid advertising is generally too costly and ineffective to be considered as a major part of a marketing plan for a farmers' market. Ms. Pinckley emphasized what she called 'The Four Ws' of getting a message out:
- Word of mouth
Selected farmers' market Web sites:
- Work the media to get them to cover your message as news
- Web strategy that works for both external and internal audiences
- Well-chosen print pieces such as newsletters, brochures, flyers, and postcards
Why is word of mouth so important? In this time of excessive hype, we all protect ourselves by tuning out advertising, and then being skeptical of what we do pay attention to.
Word of mouth is the most effective delivery method. When you hear something from somebody you know and trust, the message comes with built-in credibility. Word of mouth is low cost in terms of dollars. It does, however, require an investment of time by everyone associated with the market—especially the vendors. Each vendor needs to be ready and eager to be friendly and help customers enjoy the market when they are attending it, as well as to tell people about the market when they see them in a store, at the ballgame, at church, or in an elevator. In fact, Ms. Pinckley said, 'Everybody needs to know an elevator pitch.'
An elevator pitch is a 30-second, distinctive, compelling explanation of what the market is and what it means to you. (Imagine that you have the time it takes to ride with someone in an elevator from the first floor to the third floor.) How do you describe it, hitting the most important points in a few words? 'Practice it,' advises Pinckley.
 'SalsaFest' tomatoes at the Fayetteville, AR, Farmers' Market. Everyone is happy when local tomatoes ripen. Photo by: Jim Lukens |
How do you get the media to cover your message as news? Events are one way. Opening day of the market should be a big one. To many regular customers, opening day marks the real beginning of spring. At the Fayetteville Farmers' Market in northwest Arkansas, opening day coincides with a free tree distribution sponsored by the city. This brings tremendous crowds. Other events can be planned around a special product at the peak of the season. In Fayetteville, SalsaFest in mid-July celebrates the abundance of tomatoes and peppers grown by vendors, who contribute dozens of varieties for a tomato and pepper 'museum.' Restaurants serve samples of their unique salsas, musicians play Latin rhythms, and a salsa dance instructor gets people dancing. Events do not necessarily translate to more dollars spent on the day of the event, but they do serve to bring out the media—and newcomers, who are likely to come back.
Marketing the Market, a Kansas Rural Center Sustainable Agriculture Management Guide, also highlights ways to promote markets on a limited budget. The six-page guide emphasizes the most important part of marketing the market: efforts by individual vendors. See Additional Resources for obtaining a copy.
Evaluating your market
Just as for any other business, you need to evaluate your farmers' market on a regular basis. There are a number of ways you can involve vendors, customers, and management.
Customer surveys
Mystery Shopping at the Crescent City Farmers' Market is adapted from common practices in large retail companies. Mystery shoppers are people who are recruited to report to the management about the experience of shopping in a given place. This is a way to get feedback on a market from regular or new shoppers. A copy of the form used at the Crescent City Farmers' Market is in Appendix 2. It includes instructions for the shoppers. You can adapt the form for your own market.
Formal surveys can be designed to learn why people shop at the market, how often they attend, how far they travel, their most important reasons for shopping, how they learned about the market, how much they spend, and their age, sex, ethnicity, level of education, and annual household income. Such a survey should be kept as short and simple as possible.
 NCAT's Midwest Field Office Director Holly Born used the Dot Survey technique at the St. Paul, Minnesota market in 2007. She says people at the market really enjoyed 'doing the dots.' Several told her they never knew a survey could be fun. Photo by: Holly Born |
Dot Surveys ask a limited number of questions displayed on flip charts. Customers indicate their responses using colorful self-stick circles or 'dots.' One advantage of this technique is that people enjoy it. A weakness is that respondents may be heavily influenced by previous postings. Details on how to set up Dot Surveys can be found in the Oregon State University publication Tools for Rapid Market Assessment.
Pedestrian counts
Counts of the number of people entering your market give you interesting information. The tools needed include clip boards, tally sheets, pencils, and tally counters. Finding enough volunteers so that none has to work for more than two hours and so that each entry point has one person counting is perhaps the biggest challenge. By breaking the tally sheets into fifteen-minute segments, you can verify peak hours of customer traffic. Do the counts several times throughout the season and on days with events and without events.
Another way to do pedestrian counts is to have the manager or a volunteer walk through the market at one-hour intervals and count all visitors present. This will not give you a total number of pedestrians, but can give you figures to compare attendance from day to day and year to year. Tools for Rapid Market Assessment also has details and ideas for customer counts.
Vendor surveys
How do you involve your members in market decisions? Surveys can encourage vendors to express their ideas, concerns, and satisfaction. Dot Surveys work just as well with market members as with customers. Try this at your next member meeting. Also see Appendix 3, Farmers' Market Vendor Evaluation.
Financial
It is important to document the business of farmers' markets. By recording the number of vendors per market, sales per vendor, and total sales, you can track the success— or lack of success—of a market. Sales records are easy to obtain if the market fee is based on sales. FRESHFARM Markets in the Chesapeake Bay region, for example, has a fee of 6% commission. With this data, you can show the impact of your market on the income of farmers and the importance of the market to the community.
SWOT analysis
SWOT is a planning tool that can be used in a business context by a market's board of directors or committees, or in a personal context. SWOT stands for:
Strengths
Weaknesses
Opportunities
Threats
Strengths and weaknesses are internal factors. Opportunities and threats are external factors. Appendix 4 provides a chart for listing these.
Strengths may be things like a large diversity of fresh locally grown products at the market, a committed and thoughtful board of directors, and financial stability.
Weaknesses may be things like lack of consensus on vision for the market, poor record keeping, or poor displays.
Opportunities offer new chances for success. These might be new products, new partnerships with other businesses or organizations, and more interest by the public in local products.
Threats may be dogs at the market, a perceived lack of parking spaces, or competition from big box stores. (Sometimes a threat can be turned into an opportunity.)
Once you have the SWOT analysis on paper, you need to plan for how to deal with the items you listed. Each of these plans needs to be discussed so that you get ideas from everyone involved. When all players have helped to create a written plan, you can do a better job.
What makes SWOT particularly powerful is that with a little thought, it can help you uncover opportunities that you are well placed to exploit. And by understanding the weaknesses of your business, you can manage and eliminate threats that would otherwise catch you unawares.
Even more than this, by looking at yourself and your competitors using the SWOT framework, you can start to craft a strategy that helps you distinguish yourself from your competitors. This will help you compete successfully in your market.
Strength in numbers: state associations
"Farmers' markets are definitely here to stay, and they continue to expand and are an important direct marketing strategy for farmers,' says Randii MacNear, manager of the Davis Farmers' Market in Davis, California. 'It's important for us as managers to be as effective as possible. We have so much to learn from each other. It's important to stay in touch and become united so we have a voice in issues important across the United States and Canada. We need strength in numbers."
State farmers' market associations are forming around the country. Many are aimed at assisting current markets and coordinating the development of new ones. But they can also serve as a united voice to promote governmental actions that support farmers' markets—or to prevent actions that will harm them. See Appendix 5 for an example of what one state association (New Mexico) offers its members and Appendix 6 for a list of state associations.
Additional Resources
National organizations and agencies
Farmers Market Coalition
Stacy Miller, Executive Secretary
304-685-2669
stacy@farmersmarketcoalition.org
The FMC grew out of the North American Farmers Direct Marketing Association, and evolved to become a separate 501(c )3 organization. The mission of the FMC is to strengthen farmers' markets for the benefit of farmers, consumers, and communities. The membership fee is $25 per year for individual markets.
Project for Public Spaces
700 Broadway, 4th Floor
New York, NY 1003
212-620-5660
Project for Public Spaces is a nonprofit organization dedicated to helping people create and sustain public spaces that build stronger communities. It has managed grants to fund a number of farmers' market projects around the country.
Twomey Center for Peace through Justice
Loyola University
New Orleans, Louisiana
The Twomey Center initiates and promotes the ecology of local economies through the four M's: managing markets, mobilizing citizens, mentoring leaders, and modeling best practices. The organization promotes the simple, traditional, and enjoyable world of public markets because it believes that in these ancient mechanisms lie the seeds for a brighter, greener future.
Wallace Center Winrock International
Matthew Kurlanski, Research Associate
1621 N. Kent Street
Arlington, VA 22209
703-525-9430 ext.671
MKurlanski@winrock.org
In 2007, the Wallace Center led a collaborative effort involving twelve partners from around the U.S. to develop resources for farmers and farmers' market managers. One result is a pair of handbooks, Getting Started with Farmers' Markets and Recruiting for a Farmers' Market. They can be downloaded from the Web, or will be sent upon request. For copies of the handbooks, or information about the ongoing initiative, contact them.
USDA/Agricultural Marketing Service
Velma R. Lakins, Marketing Specialist
1400 Independence Ave.
Room 2646-S, Stop 0269
Washington, D.C. 20250-0269
202-690-8103
velma.lakins@usda.gov
The USDA/AMS offers programs, publications, and more to assist farmers' markets. A few of the programs are described below. Go to the Web site to see what is currently available.
The Women, Infants, and Children (WIC) Farmers' Market Nutrition Program (FMNP), established in 1992, is a federal program that benefits both vendors and low-income customers. It provides special coupons to WIC participants, which they can use to purchase fresh fruits and vegetables at participating farmers' markets. The program has two goals:
- To provide fresh nutritious unprepared food such as fruits and vegetables to WIC participants who are at nutritional risk
- To expand consumer awareness and use of farmers' markets
During fiscal year 2005, 14,323 farmers, 2,715 farmers' markets, and 1,999 roadside stands were authorized to accept FMNP coupons. Coupons redeemed through the FMNP resulted in over $23 million in revenue to farmers for fiscal year 2005.
Each state agency is responsible for authorizing individual farmers, farmers' markets, or both. The FMNP contact person for each state agency can be found at www.fns.usda.gov/wic/Contacts/farm.htm.
The Senior Farmers' Market Nutrition Program (SFMNP) awards grants to States, United States Territories, and federally recognized Indian tribal governments to provide low-income seniors with coupons that can be exchanged for eligible foods at farmers' markets, roadside stands, and community supported agriculture programs. Go to the SFMNP Web site for more details and to learn whether the program is operating in your state.
The Food Stamp Program helps low-income people and families buy the food they need for good health. Benefits are provided on an electronic card that is used like a credit card in grocery stores and farmers' markets that have been authorized to accept them. The 2008 EBT Farmers' Market Projects Status Report describes how markets around the country are using EBT.
| At the Midtown Public Market in South Minneapolis, thirty local growers are accepting tokens from food stamp clients. The Market is open on Saturdays from May through October. From mid-July to late October, the market also operates on Tuesdays. Another associated market, the Midtown Global Market, operates on Thursdays with 15 vendors. Patrons use $1 tokens, which can be purchased at a central location within the market. The market advertises its ability to accept food stamp transactions through signage at the market, as well as through flyers, information provided during nutrition classes, and at exhibitor tables at local events. The market works with other local nonprofit and community organizations to spread the word. The state mailed a flyer to approximately 500 households in the area surrounding the markets. The flyer provided information about the use of EBT at the two markets, along with a colorful brochure about healthy eating. The project received support from a Project for Public Spaces grant with funding from the WK Kellogg Foundation. The NCAT Web site also provides information about EBT. |
The Farmers Market Promotion Program (FMPP) provides grants to help eligible entities improve and expand domestic farmers' markets, roadside stands, community-supported agriculture programs, and other direct producer-to-consumer market opportunities. Eligible entities under the FMPP program include agricultural cooperatives, local governments, nonprofit corporations, public benefit corporations, economic development corporations, regional farmers' market authorities, and Tribal governments. In federal year 2006, approximately $1 million was allocated for the program with a maximum amount of $75,000 awarded for any one proposal. Go to the Farmers Market Promotion Program Web site for information.
USDA Risk Management Agency
USDA/RMA
Independence Ave., SW
Mail Stop 0801 1400
Washington, DC 20250-0801
The RMA's Community Outreach and Assistance Partnership Program may be of interest to farmers' market members. The competitive grants program is designed for activities that will improve markets and reduce risks.
USDA Cooperative State Research, Education, and Extension Service
USDA/NIFA
1400 Independence Ave., SW Stop 2201
Washington, DC 20250-2201
NIFA supports community food projects that meet the food needs of low-income people, that increase the self-reliance of communities in providing for their own needs, and that promote responses to local food, farm, and nutrition problems. It also supports efforts to develop state, local, or neighborhood food and agriculture infrastructure; plan for long-term solutions; and create innovative marketing activities that benefit agricultural producers and low-income consumers.
Books
The New Farmers' Market. 2001. By Eric Gibson, Marcie Rosenzweig, and Vance Corum. New World Publishing, Auburn, CA. 272 p.
Available for $24.95 plus shipping.
The Legal Guide for Direct Farm Marketing. 1999. By Neil D. Hamilton. Drake University Law School, Des Moines, IA. 235 p.
Available for $20 plus shipping.
Farmers' Markets: Rules, Regulations and Opportunities. 2002. By Neil D. Hamilton. National Center for Agricultural Law Research and Information Center. 47 p.
Covers fundamental issues that must be addressed by all farmers' markets, regardless of their size or complexity: who administers the market, who determines who can sell what, how the market will operate.
Grassroots Marketing: Getting Noticed in a Noisy World. 2000. By Shel Horowitz. 306 p.
A resource for any kind of small business, including horticultural businesses, the book has ideas for low-cost or free publicity. Topics include creating an image; how to write ad copy and press releases; tricks of the printing trade to save money on brochures and ads; direct mail; selling on the Internet; working with the media; and much more. $22.95 plus shipping.
Dynamic Farmers' Marketing. 1997. By Jeff Ishee. Bittersweet Farmstead, Middlebrook, VA. 130 p.
Available for $14.95 plus $2.50 shipping from:
Bittersweet Farmstead
P.O. Box 52
Middlebrook, VA 24459
540-886-8477
Market Farming Success. 2006. By Lynn Byczynski. Fairplain Publications, Lawrence, KS. 138 p.
Available for $20 plus $4 shipping from:
Fairplain Publications Inc.
Growing for Market
P.O. Box 3747
Lawrence, KS 66046
800-307-8949
Publications from an Organization or Agency
Selling Strategies for Local Food Producers. 2007. By Bill McKelvey, Mary Hendrickson, and Joe Parcell. University of Missouri Extension, Columbia, MO. 8 p.
Starting a Seasonal Open-Air Market in Kansas: A Market Organizer's Field Guide. 2007. By Claire Homitsky, Kansas Rural Center; and Jana Beckman, K-State Research and Extension, Kansas State University, Manhattan, KS. 22 p.
Marketing the Market. By Jerry Jost and Mercedes Taylor-Puckett. The Kansas Rural Center. 6 p. (PDF / 953 KB) Download Acrobat Reader
A must-read for farmers' market members, boards, and managers. Printed copies are available from:
Kansas Rural Center
P.O. Box 133
Whiting, KS 66552
785-873-3431
Step-by-Step Guide for Establishing a Farmers' Market Association. By Diane Eggert, Farmers' Market Federation of New York. 11 p. (PDF / 111 KB) Download Acrobat Reader
Includes sample bylaws and member agreement.
117 Highbridge Street, Suite U-3
Fayetteville, NY 13066
315-637-4690
Establishing and Operating a Community Farmers' Market. 1992. By Forrest Stegelin. University of Kentucky Cooperative Extension Service. 8 p.
Getting Started with Farmers' Markets. 2008. Wallace Center, Winrock International. 28 p.
A simple and brief guide to show farmers how other farmers have worked to make their farms profitable by selling some or all of their products at farmers' markets. See address under National Organizations.
Recruiting Vendors for a Farmers' Market. 2008. Wallace Center, Winrock International. 24 p.
This guide is designed to help show how market managers diversify their vendor and customer bases to grow their markets. See address under National Organizations.
Understanding Farmers' Market Rules. 2006. By Jess Anna Speier and Jill E. Krueger. Farmers' Legal Action Group. 8 p. (PDF / 858 KB) Download Acrobat Reader
Intended to help farmers understand their responsibilities and rights as vendors at a farmers' market. Also highlights some of the relevant federal, state, and local laws that may apply.
FLAG
360 North Robert Street, Suite 500
St. Paul, MN 55101-1589
651-223-5400
lawyers@flaginc.org
Periodicals
Growing for Market
P.O. Box 3747
Lawrence, KS 66046
800-307-8949
Growing for Market is a monthly publication about growing and direct marketing vegetables, fruits, herbs, cut flowers, and plants. It covers farmers' markets, Community Supported Agriculture, the local food movement, organic growing, cut flowers, and much more. Print subscriptions are $33 per year, or two years for $60. Check the Web site for online subscriptions.
Farmers' Markets Today
Scissortail Productions LLC
120 W. 4th St. Ste. A
Cedar Falls, IA 50613-2832
info@farmersmarketstoday.com
Published bimonthly, Farmers' Markets Today subscriptions are $33.95 per year.
Market Farming e-mail discussion group
Market Farming provides the small-scale farmer a way to network with other farmers to discuss appropriate scale production methods; equipment; marketing; profitability; cropping sequences; diversification; sustainability; working with extension agents, private consultants, and fellow farmers; and anything else involved in making a living and providing food and fiber from your small acreage farm. To see the collection of prior postings to the list, visit the Market-farming Archives.
Related ATTRA Publications
Get a free printed copy of ATTRA publications by calling 800-346-9140, or download from the ATTRA Web site.
Direct Marketing. 1999. By Katherine Adam, Radika Balasubrahmanyam, and Holly Born. 36 p.
Market Gardening: A Start-up Guide. 2008. By Janet Bachmann.
Postharvest Handling of Fruits and Vegetables. 2000 By Janet Bachmann and Richard Earles. 28 p.
Adding Value to Farm Products: An Overview. 2006. By Holly Born and Janet Bachmann. 12 p.
Keys to Success in Value-Added Agriculture. 2001. By Holly Born. 20 p.
Appendix 1: Market rules that work
Trina Pilonera
Silver Heights Farm
216 Eggler Road
Jeffersonville, NY 12748
845-482-3608
Member, Board of Directors, Sullivan County Area Farmers' Market, Inc. (SCAFM)
Member, Governing Council, Northeast Organic Farming Association–New York
Farmers' markets come in all sizes, with a multitude of purposes, organized by many different groups and individuals, and serve many different kinds of communities. Without some form of guidance, markets can become highly disorganized and fall apart.
Mission statement
Before developing any rules, the organizers of a market need to answer several questions about their particular market. Why is this market being created? What is the purpose or philosophy of this particular market? Who will benefit from this market? A mission statement for the market answers these questions:
- (This market) is here to serve (this community) by providing locally grown, fresh, high quality produce and products, and to provide an opportunity for local farmers, producers, and artisans as an economic outlet within (this community.)
- (This market) is a showcase for locally grown food and other farm-related products, providing an alternative marketing opportunity that allows farmers and consumers to interact directly with each other.
- (This market) provides the opportunity to preserve the connection between farmers and consumer, and to educate consumers about the benefits of preserving local agriculture and the benefits of using locally produced foods.
A mission statement is a statement of purpose. It should be brief, but communicate your values and future vision. Consider who will see your mission statement and bear this in mind as you write. Will you post it somewhere visible for customers to read, like a label or brochure? Notice that in all of these mission statements both providers and consumers of products are identified. The market organizers should understand who the market will be serving on the consumer end.
Rules and regulations
The role of rules is to keep a market intact, define its purpose, and make it possible to be administered in an effective manner. There are no universal guidelines for 'the best' set of rules for every market, but there are some general guidelines that every market can consider for developing and enforcing rules.
Market rules define who is eligible to participate as a vendor. Will this be a producer-only market? Will re-selling another's products be allowed? Will value added products be allowed? Will artisans or cottage industries be allowed? Will drop-in vendors be permitted? Will local groups (churches, not-for-profits, 4-H, ...) be permitted to participate on an occasional basis? Will take-home foods be permitted? Will there be entertainment or education? Some markets define what locality the vendors must come from—within a 50-mile radius, within the county or multi-county area, within the state, within a 3-hour drive. Statement of who qualifies as an eligible vendor must be clear so that enforcement cannot be easily challenged.
Market rules define eligible products. Some markets are very specific about what produce and products can be sold. Is the market a produce-only market? Can more than one vendor offer the same produce? Are plants (herbs, bedding, landscape) and cut flowers allowed? Will eggs, meat, honey, maple syrup, jams and jellies, baked goods, wine, soaps and cosmetics be allowed? The larger the market, the more important this parameter becomes. A market with 3 or 4 vendors needs as much product as possible to remain economically viable. A 20-plus vendor market needs to ensure that all vendors have the opportunity to make money without allowing overly intense competition when everyone is selling the same products. So a 20-plus market could benefit from having a value-added aspect beyond produce.
Market rules need provisions that address effective operation of the marketplace.
- Identify the sponsor or organizer of the market.
- Identify the day-to-day decision maker (market manager) and define that individual's responsibilities.
- Enumerate the rules for market operation. Agreeing to abide by the market rules should be part of a legally binding agreement between the vendor and the market, or rules cannot be enforced. Have the applicant sign an agreement to abide by the rules and regulations in the application process. (See #8 for specific kinds of rules.)
- Vendor and product eligibility are defined. Producer-only or re-sale requirements are defined. Other terms (farmer, other eligible vendors, organic, local) should be defined.
- Locations of markets are identified. Hours and days of operation are established.
- Membership fees, space fees, and payment requirements are stated.
- The application process is clear. The vendor needs to know who reviews each application. Are there any privileges extended to prior vendors, such as space assignment or preference in the acceptance process?
- Guidelines for selling should include signage for the farm and products, posting of prices and pricing guidelines, whether or not pre-market sales are acceptable, whether a vendor can leave early or arrive late on a market day, arrival times for set-up and times for departure, display space, pets at the market, acceptable representatives of the vendor at the market, cleanliness of the selling space, product quality, courtesy towards customers and other vendors and the manager, deceptive advertising, parking, sampling, hawking, smoking, non-attendance and notification of inability to attend, use of legal scales, specific rules for food handling that may not be covered by local or state regulations, participation in Farmers' Market Nutrition Program (FMNP), allowance for end-of-market discounting (not recommended), compliance with local, state, and federal regulations and laws.
- Necessary licensing and permits are to be submitted to the organizers as well as displayed at market. (This fits the regulatory aspect of markets for localities and the state.)
- Define a clear-cut procedure for dealing with violations of rules and regulations. If rules are not enforced, they become meaningless. Establish how and to whom violations are reported and how to notify vendors about the violations (informal spoken, formal written). Establish penalties (suspension or removal after X number of violations, fines). Compliance with rules should be incorporated into the application approval. Can vendors complain about others violating rules? Is there an appeal process?
- Define insurance requirements. Does the market itself carry insurance? Is it enough that vendors have farm insurance, or should they also name the market as an additional insured? Do vendors also need product liability insurance?
- Are there provisions for changes in ownership of a vendor's farm or business? Is there a waiting list for eligibility, and seniority on such a list? How are spaces at the market assigned?
- Develop a hold harmless and indemnification clause acceptable to whoever gives the market legal advice. Decide whether the community should be included. As part of the application process, the vendor should agree that the market organizers and other sponsors are protected from legal and financial liability in accidents and other incidents at the marketplace.
- Provide for and conduct farm/business inspections to verify that the vendor is producing what they are selling. Decide if a detailed farm plan is necessary for this process. Is there a fee if violations are found with inspection of facilities? Who conducts the inspections?
- If there is a board of directors for the market organization, how are they elected or appointed to serve? Terms and limitations of offices and types of administrative committees should be defined.
Make a provision for a regular review of rules so that rules remain effective. Rules can be dropped, changed, and added as needs present themselves. Keep rules as simple as possible. Complicated rules are confusing, often not understood, and hard to enforce if vendors get a headache trying to interpret their meaning. For instance, if absolutely no selling is allowed before market is open, say so. If there are exceptions to selling before market opens, be specific:
Sales before market opens are allowed in the following instances only:
- Sales to other vendors.
- Sales to customers who have placed an order at a prior market, and the market manager is notified before the customer is allowed to get the order.
- Sales with market manager approval only.
- Violations to these rules will result in a written notification, which can lead to suspension.
Enforcement of a market's rules needs to be fair and consistent. The market manager is given the discretion to issue verbal warnings that have no 'teeth' so that the vendor can fall back into compliance without being penalized as long as compliance is immediate. (People do forget rules and regulations, and a reminder is usually all that is necessary.) However, if the market manager decides that the vendor is not responding to the verbal warnings or that the violation is blatant and important, two written warnings in a market season are issued before true financial impact to the vendor is enforced. With the issuance of a third written warning, the vendor is not allowed to attend the market the following week. With the issuance of another warning, the vendor cannot attend any of the four markets they are in during the next 2 weeks. With the issuance of a final warning, the vendor is expelled from the market for the remainder of the season. The vendor continues to owe fees for stall space when suspended.
If you stop and think about rules violations, some violations are considerably more important than others. For instance, not posting prices is not as important as selling spoiled meat. Forgetting to post prices does not potentially kill a customer, while salmonella in spoiled meat can kill the customer—and the market place. Rules should provide a sliding scale of penalties based on numbers and severity of violations. Markets need to decide if fines should be paid, suspension from whatever number of market days, and expulsion are appropriate.
Furthermore, markets need to provide an opportunity for non-frivolous complaints to be filed by other vendors and by customers without threats of recriminations. Usually, a 'heads-up' stated to a market manager should be sufficient, if there is an appropriate enforcement policy handy. Some markets attach a fee that is refundable only if the violation is proven and results in discipline of the offender. This helps cut down on frivolous complaints.
Vendors also must have the right to defend themselves against accusations in front of whatever enforcement group is set up by the market. And those found in violation ought to have the opportunity to appeal decisions. Not all individuals are 'nice' to be around, and managers and sponsors may disfavor certain individuals enough to the point of persecution. The right for a hearing helps keep management abuses in line.
When SCAFM was being set up in 1995, we reviewed copies of rules and regulations from other farmers' markets throughout the state. We earmarked every rule we thought would be pertinent to our market in each set of rules we found. Then, we re-ordered the rules into the following framework:
Mission Statement
General Rules (how the organization is run)
Items for Sale (Day-to-day operations in the marketplace)
Regulatory Guide (State, local, SCAFM legal requirements)Insurance
Sanitation
Products
Deceptive Advertising is Not Acceptable
Deceptive Packaging Is Illegal
Definitions
The rules are reviewed and revised every January by the newly elected Board of Directors. State and local regulations and contact phone numbers are reviewed and updated. Rules can also be revised or added anytime during the year by the Board of Directors.
The application is revised every year. On the application, we have added size of vehicle to help the Market Manager decide where to assign appropriate spaces. We also have requested permission to post appropriate vendor Web sites or e-mail addresses on the SCAFM Web site. The application asks for appropriate information for our database. It includes a checklist so that we receive a complete application from the get-go:
_____ Completed application
_____ Completed listing of produce and products
_____ Membership fees
_____ Two-week stall deposit fee
_____ Photocopy of Sales Tax Certificate if you sell taxable items
_____ Copy of Certificate of Insurance for general (premises and product) liability naming SCAFM, Inc., as an additional insured. (Name & phone of SCAFM insurance agent included.)
The application also includes a Vendor Compliance and Indemnity Agreement with a required signature:
I (we), the undersigned, have read the Rules and Regulations of SCAFM, Inc., and do agree to abide by all these rules and regulations.
I (we) further agree to operate my (our) stall in accordance with these rules and regulations and to pay all applicable fees as set out in the rules and regulations.
I (we) do understand that the stall fee, length of season and hours of operations are set in the rules and regulations, and I (we) will abide by them.
I (we) further understand that failure to comply with the rules and regulations of SCAFM, Inc., could mean dismissal from the market.
As a vendor wishing to participate in SCAFM, Inc., located in (names of communities), I (we) agree to SAVE, HOLD HARMLESS AND INDEMNIFY, SCAFM, Inc., Cornell Cooperative Extension of Sullivan County and the Town(s) of (names of various local towns) from any and all liability or responsibility pertaining to any damages to person or property on the site assigned to me (us) by SCAFM, Inc., when such damages or liability arise out of acts of my (our) own, or of my (our) employees or associates, located at such site.
The applicant's signature represents a legal binding agreement between the vendor and the market once the application is approved.
So, rules have a good function in the operation of viable farmers' markets. They help interested parties identify the purpose and philosophy of a market. They set up a framework for day-to-day administration. They provide for disciplinary procedures. The application process creates a legal binding agreement between market and vendor. Rules that are kept simple, are pertinent to a particular market, and are reviewed from time to time can guide a market to success.
SCAFM, Inc., Rules and Regulations (PDF / 31KB) can be read on the Web site. Using any search engine, type in 'farmers' market rules' and you will get many choices.
Appendix 2: Mystery shopping at the Crescent City Farmers' Market
An example of a customer survey at the Crescent City Farmers' Market (PDF / 46KB).
Appendix 3: Farmers' market vendor evaluation
The Farmers' Market Federation of New York offers many resources including a vendor evaluation form (PDF / 27 KB).
Appendix 4: SWOT analysis worksheet
Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis worksheet
Strengths: What do you do well? What unique resources can you draw on? What do others see as your strengths? |
Weaknesses: What could you improve? Where do you have fewer resources than others? What are others likely to see as weaknesses? |
| Opportunities: What good opportunities are open to you? What trends could you take advantage of? How can you turn your strengths into opportunities? |
Threats: What trends could harm you? What is your competition doing? What threats do your weaknesses expose you to? |
Appendix 5: Services offered by a state association
Services offered by the New Mexico Farmers' Marketing Association to New Mexico Communities
Market Development – We assist communities with starting new farmers' markets. We support the growth of existing markets, through assistance with organizational development, grower recruitment, finding volunteers, and developing revenue streams to help markets become self-sustaining.
Marketing – Our statewide marketing campaigns increase public awareness of the markets. Promotion efforts include:
- Our promotional Web site (visit us at farmersmarketsnm.org)
- Farmers' Market Day at the State Fair
- A bi-weekly column, 'This Week at the Farmers' Market' in the Albuquerque Journal.
- A four-color state-wide brochure
- Our toll-free information number
We assist markets with local-level promotion, by providing marketing materials, promotional products, a newsletter, and our professionally designed logo.
Partners – We receive base funding from the New Mexico Department of Agriculture in order to promote and develop our markets. We also partner with the New Mexico Economic Development Department, to help markets with advertising, and with the New Mexico Cooperative Extension Service.
The Association works with several national organizations including the National Association of Farmers' Market Nutrition Programs, the Community Food Security Coalition and the North American Farmers' Direct Marketing Association.
Training for Market Managers & Vendors – We hold two annual meetings for our market managers, where we provide training to improve their management and marketing skills. We assist markets with putting on educational workshops for the farmers in their regions.
A Unified Voice in Santa Fe – We work to secure funding for the WIC and Senior Farmers' Market Nutrition Programs. We represent the markets with a strong unified voice at the state legislature.
Networking Opportunities – We provide access to a great network of market managers and staff from our markets across the state, as well as regionally and nationally. We keep our members informed through email, and through periodic bulletins.
Financial Assistance – We offer a grants program to assist our markets with promotion, and with building their market organizations.
Insurance – We offer a competitively priced general liability policy for markets.
Resources Available – The New Mexico Farmers' Market Manual contains everything you ever wanted to know about starting a farmers' market in the Land of Enchantment!
Appendix 6: State farmers' market associations
Alabama
Don Wambles, Director
Alabama Farmers' Market Authority
770 Washington Ave, Ste 330
Montgomery, AL 36130
Phone: 334-242-2618
Cell: 334-868-9978
Fax: 334-242-0536
don.wambles@fma.alabama.gov
Alaska
Amy Pettit, State Farmers Market
Representative
Alaska Dept. of Agriculture
1800 Glenn Highway, Suite 12
Palmer, AK 99645
Phone: 907-745-7200
Fax: 907-745-7254
Amy.Pettit@Alaska.gov
Arizona
Arizona Community Farmers Markets
Arkansas
Arkansas Farmers' Market Association
Jean Jones, President
3004 Linden Avenue
Texarkana, AR 71854
Phone: 870-772-4558
Cell: 903-559-9401
jeanjones@cableone.net
California
California Federation of Certified Farmers' Markets
P.O. Box 1813
Davis, CA 95617
Phone: 530-753-9999
cafarmersmarkets@dcn.org
Colorado
Colorado Farmers' Market Association
Sally Haines
P.O. Box 4354
Boulder, CO 80306
Phone: 303-887-5972
contact08@coloradofarmers.org
Florida
Association of Florida Community
Farmers' Market
John Matthews
Phone: 941-928-3384
Georgia
Georgia Department of Agriculture
19 Martin Luther King, Jr. Dr., S.W.
Atlanta, GA 30334
Phone: 404-656-3645
Toll Free: 800-282-5852
Indiana
Indiana Farm Market Association
Purdue University
625 Agriculture Mall Drive
West Lafayette, IN 47907-2010
Iowa
Iowa Farmers Market Association
404 N. Center Street
Toledo, IA 52342
Moralhunter@yahoo.com
Louisiana
Louisiana Farmers Markets
Jimmy Boudreaux, State Farmers Market Representative
LSU Agricultural Center
155 J.C. Miller Hall
Baton Rouge, LA 70803
Phone: 225-578-2222
Fax: 225-578-0773
jboudreaux@agctr.lsu.edu
Maryland
Maryland Dept of Agriculture
Annapolis, MD 21401
Phone: 410-841-5770
marylandsbest@mda.state.md.us
Massachusetts
The Federation of Mass Farmers' Markets
240 Beaver Street, Waltham, MA 02452
Phone: 781-893-8222
Fax: 781-893-8777
Michigan
Michigan Food & Farming Systems (MIFFS)
416 Agriculture Hall
East Lansing, MI 48824
Dru Montri, Association Manager
Michigan Farmers Market Association (MIFMA)
Phone: 517-432-3381
Fax: 517-353-7961
Missouri
Missouri Farmers' Market Association
President Deb Connors, The City Market
20 East 5th Street, Ste. 201
Kansas City, MO 64106
Phone: 816-842-1271
dconnors@cwbkc.com
Nevada
Nevada Certified Farmers Market Association (NCFMA)
Ann Louhela
P.O. Box 2108
Sparks, NV 89432
Phone: 775-351-2551
markets@nevadagrown.com
New Mexico
New Mexico Farmers' Market Association
320 Aztec Street, Suite B
Santa Fe, NM 87501
Phone: 888-983-4400
dmiller@farmersmarketsnm.org
New York
Farmers' Market Federation of New York
Diane Eggert, Executive Director
117 Highbridge Street, Suite U-3
Fayetteville, NY 13066
Phone: 315-637-4690
Fax: 315-637-4691
info@nyfarmersmarket.com
North Dakota
North Dakota Farmers Market and Growers Association
Stephanie Sinner, Marketing Specialist
ND Department of Agriculture
P.O. Box 5316
Fargo, ND 58105-5316
Phone: 701-239-7211
Fax: 701-239-7212
ssinner@nd.gov
Oklahoma
Oklahoma Farmers' Market Alliance
Susie Lawrence
OFMA Secretary/Treasurer
Rt 1 Box 10
Braggs, OK 74423
sandcreekfarm@mynewroads.com
Oregon
Oregon Farmers' Markets Association
Phone: 541-525-1035
info@oregonfarmersmarkets.org
Pennsylvania
Farmers Market Alliance of Western Pennsylvania
1204 Malvern Ave.
Pittsburgh, PA 15217
Rhode Island
Farm Fresh Rhode Island
Box 1943
Providence, RI 02912
sheri@farmfreshri.org
Utah
Richard Sparks, Deputy Director
Marketing and Development Division
Utah Department of Agriculture & Food
Utah's Own Program
350 N. Redwood Road
P.O. Box 146500
Salt Lake City, UT 84114-6500
Phone: 801-538-4913
rsparks@utah.gov
Washington
Washington State Farmers Market Association
Jackie Aitchison, Executive Director
P.O. Box 445
Suquamish, WA 98392
Phone: 206-706-5198
info@wafarmersmarkets.com
West Virginia
West Virginia Farmers Market Association
c/o Tom McConnell
WVU Extension Service
P.O. Box 6108
Morgantown, WV
26506-6108
TRMcConnell@mail.wvu.edu
Wyoming
Wyoming Farmers Marketing Association
Kim Porter
P.O. Box 20939
Cheyenne, WY 82003
Phone: 307-777-6319
Farmers' Markets: Marketing and Business Guide
By Janet Bachmann
NCAT Agriculture Specialist
Karen Van Epen, Editor
Sherry Vogel, HTML Production
IP146
Slot 96
This page was last updated on: June 23, 2010
Facebook