Farmers’ markets have been steadily growing in the United States for decades. From 1994 to 2019, the number of farmers' markets grew from 1,755 to 8,771, almost 7% per year. This has been incredibly powerful for local communities, giving them more access to fresh foods and helping foster local markets for farmers.
No two farmers’ markets are alike, which is good and bad. It is good because it means each local community can craft their own to meet its needs and goals. It is bad because some markets are in higher income areas, have more foot traffic, or have less competition than others.
There are no perfect farmers’ markets, but knowing if your farm should focus your efforts on selling at yours is a valuable question worth reflecting on. It may be the best decision or hold you back from your bigger goals.
Well, that depends on many factors. The first soil health principle (the basis of all successful regenerative agriculture efforts) is understanding context. The same applies to this question. You must ask yourself questions to find the answer for your farm. Hopefully, some of the questions below will help start that process:
No sales channel for your farm is perfect. They all come with trade-offs. When thinking about whether or not we should attend, we need to consider the pros and cons, as well as the opportunity costs associated with both decisions. Everything has a cost, and it just depends on how much value we get from each decision.
Despite how busy farmer’s markets are, there are always select products that sell consistently across all of them. People mainly come for fresh seasonal fruits and vegetables. They are usually drawn to buying locally during the growing season because of the taste and freshness of the produce.
Meat and eggs are usually close competitors for fresh produce in markets. Eggs are usually one of those items that if customers aren’t there early to buy some, they will miss out! As a customer, buying meat at markets is always a treat and presents opportunities to talk with the farmer raising the animals about their practices and philosophy on welfare.
Lastly, specialty goods and value-added products, like jams, pickles, and baked goods, often sell extremely well. Some of these products fall under “cottage law,” which recognizes low-risk foods that pose a low risk of food contamination and allow you to prepare these products without a commercial kitchen.
This allows you to differentiate yourself at the market and create more shelf-stable products from what you grow. Check with your local and state regulatory agencies to learn more.
As a farm, you must figure out which sales channels you want to nurture and never become too reliant on a single one. Farmers’ markets closed across the country during the pandemic, and many producers were stuck. Growing profitably demands that you have multiple strong sales channels to sell your products through. Ideally, each channel can benefit one another, like Toledo Thursday Market found out when they switched to using Local Line to grow their sales.
Tip: Consider leveraging them both. Use the market to find new customers and build your brand awareness. Promote your online store at the market. "Want to be the first to get our eggs? Pre-order online!"
Ultimately it’s going to be an intuitive process to know exactly when the farmer’s market is no longer serving your farm. It will depend on many factors, and only some of them are financial. You personally may benefit from the social interaction and community-building aspect of farmers’ markets. It may be a really strong sales channel for you, so giving it up would pose serious financial challenges.
You need to figure out the opportunity cost of attending the farmer’s market.
There is a cost you are paying with your time and energy when you attend, which is taking away from potential other sales opportunities. For you, the farmers’ market may make the most sense to attend, but I have talked with farmers who used it as a springboard to growing their customer base and reputation in the community before launching a CSA or developing more direct sales channels online or on-farm pickups.
There are many key factors to consider. Am I making a return on my time commitment and associated expenses when I attend? Are the sales from the market profitable when I factor everything in? Am I acquiring new customers?
Evaluate your specific situation—farmer’s market location, foot traffic, target customer, product offering, etc. These variables will lead you to an answer that works for you.
Combining farmers markets with sales software like Local Line can help you maintain a steady income, expand your reach, and diversify your sales channels so you aren’t entirely reliant on the fluctuation of the markets.
Typical costs associated with selling at a farmer's market include booth fees, transportation expenses, permits, insurance, and packaging materials. These costs vary depending on the market's size and location but are essential to budget for to maximize profitability.
How much you can sell at a farmer's market depends on product quality, pricing, customer demand, and marketing efforts. With effective branding and competitive pricing, small farms can generate a substantial weekly income by connecting with local customers.
Bring essentials to a farmer's market booth, such as a well-stocked inventory, cash box or card reader, display materials, price signage, promotional materials, and a tent or table. Providing samples, a friendly atmosphere, and clear branding can help attract customers to your booth.
To find the right farmer's market for your products, research local markets to determine their customer base, fees, and vendor requirements. Choose a market that aligns with your target audience and offers a supportive community atmosphere for small producers.
Yes, you typically need a business license to sell at a farmer's market and any necessary health permits or insurance. Depending on local regulations, requirements can vary, so check with the specific market's guidelines to ensure compliance.
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