THE INCREASING ROLE OF DIRECT MARKETING AND FARMERS MARKETS FOR WESTERN US PRODUCERS

Farmers markets have a rich history in the development of agriculture in the United States. They represented an important community food distribution system long before the rise of the retail agribusiness system, and began to re-emerge (after years of decline) after the passage of the Farmer-to-Consumer Direct Marketing Act of 1976. Some argue that they are now integral part of the food community linking consumers and producers through business and social relationships, while others view markets as an appropriate marketing channel for entrepreneurial and small farmers who strive to establish a loyal customer base through personal selling and quality differentiated (vs. low margin commodity) marketing strategies. Still, direct markets, including farmers markets, are seldom studied. For market analysis, it is important to understand supply side (number of producers, mix of products and marketing channels) and demand side (growth in sales, as well as number and types of potential consumers) factors, as well as how direct marketing activities influence the financial performance of farms that adopt such business strategies. The objectives of this article are to summarize the findings of some recent analyses of farmers market and direct marketing by agricultural producers, including the US Ag Census, USDA’s Agricultural Marketing Service (AMS) 2000 study of Farmers markets and Farmers market data collected every two years by the USDA-AMS. By examining trends in the number of farmers markets, sales made directly by producers and how direct marketing strategies relate to other farm characteristics, one can assess the potential role of such channels in agricultural development, especially for small farms or producers with specialty and value-added agricultural products. Direct Marketing by Producers