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Unit 2: Marketing Opportunities and Strategies for Sustainable Farm/Ranch Businesses

Direct Marketing.
Direct marketing depends on building relationships with customers, especially important for promoting repeat business. For this reason, it is also commonly called relationship marketing.
  • Farm/Roadside Stands

    • Farm/Roadside Stands

    Roadside stands require a good location and cheap labor. The most important ingredient of success is attracting repeat customers. Quality, appearance and friendly service are important. Capital requirements can be near nothing if the farm is in the right location, or they can be substantial if space must be rented. Check with local authorities for legal requirements and regulations.

  • Farmers' Markets

    • Farmers' Markets

    Farmers' markets are a relatively low-cost alternative if one already operates in the area. Growers can plug into an established market – letting it do the promotion – and spend most of their time and energy on production. Typically a full-year or per market fee is required to reserve stall space at farmers markets. The downside? Farmers' markets can be very competitive and growers do not have much power to set prices. In 2014, the USDA Agricultural Marketing Service estimated 8,268 farmers' markets were operating in the United States, nearly five times the number in 1994.

  • CSAs

    • CSAs

    Community Supported Agriculture (CSA) is a great example of relationship marketing. With a CSA, members purchase ‘shares’ of the farm business. In return, they receive weekly or bi-monthly deliveries of fruits, vegetables or other items produced at the farm. CSA farms tend to be located near urban areas. More recently, however, farms located 60 miles or more from urban towns are organizing CSAs and either establishing a central drop site in town from which food can be distributed or staying close to home and providing food for rural residents. One of the biggest challenges for CSA owners is high customer turnover year to year.

  • Mail Order / Internet sales

    • Mail Order/Internet Sales

    Mail order and Internet sales may be a good choice if the farm is located far from a large urban area and if the product ships well. Perishable and heavy products are not good candidates. Experienced growers say that mail order/Internet sales can be difficult to get started and work best if developed slowly while other marketing strategies provide the bulk of sales.

  • Pick-Your-Own

Pick-Your-Own

Pick-Your-Own or U-Pick marketing is a relatively low-cost marketing option. It works best for products where ripeness is easily recognized. Often growers can charge a price similar to labor-picked produce because u-pick customers enjoy harvesting their own produce. Disadvantages include potential damage or loss of produce, liability concerns, and bad weather harming ripe produce.

[Excerpted from Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses, Minnesota Institute for Sustainable Agriculture. 2003.]
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