Small Farms Program Emerging Farm Marketing Opportunities in

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Small Farms Program Emerging Farm Marketing Opportunities in Skagit County Best Western, Mt. Vernon

Small Farms Program Emerging Farm Marketing Opportunities in Skagit County Best Western, Mt. Vernon November 8, 2004 Marcy Ostrom

WA Agriculture is Changing: • Increasing numbers of farmers and consumers seeking alternatives to

WA Agriculture is Changing: • Increasing numbers of farmers and consumers seeking alternatives to mass markets • Rapid diversification into higher value production, distribution, and marketing channels

Negotiating New Market Relationships • Direct Marketing • Farm Stands/You-Pick • Farmers Markets •

Negotiating New Market Relationships • Direct Marketing • Farm Stands/You-Pick • Farmers Markets • Community Supported Agriculture/Subscription • Institutions (schools), restaurants, retailers • Internet/mail order • Producer Processing and Marketing Cooperatives • Adding Value § Processing and packaging § Labeling—Skagit’s Own, Puget Sound Fresh, Heart of WA • Regional, organic, fair trade, eco-labels • Branding, creating authentic farm identity • Agri-tourism/educational farm experiences

Assessing the Extent of Marketing Alternatives in WA: Farmer Survey • Sample drawn from

Assessing the Extent of Marketing Alternatives in WA: Farmer Survey • Sample drawn from list maintained by state (WASS) • Minimum of 10% of farms in each county • 3, 718 surveys sent out in 2002 • Relatively representative by farm size and type in comparison with Ag. Census • Funded by Farming and the Environment, W. K. Kellogg and USDA NRI • 1, 201 completed surveys • Adjusted return rate just under 50%

Direct Marketing Becoming Common

Direct Marketing Becoming Common

73% of Skagit Farmers Say Direct Marketing is Effective

73% of Skagit Farmers Say Direct Marketing is Effective

Skagit Growers Very Interested in Trying New Marketing Strategies Skagit County State-Wide More Direct

Skagit Growers Very Interested in Trying New Marketing Strategies Skagit County State-Wide More Direct Marketing to Consumers 40% 25% Diversify Products Grown on Farm 31 24 Explore Greenhouse Production 12 6 Add On-Farm Packing/Processing 15 4 Join Producers’ Co-operative 5 10

Common Themes of New Agricultural Enterprises • Linked to local communities and economies •

Common Themes of New Agricultural Enterprises • Linked to local communities and economies • Entrepreneurial--flexible production tailored to specific local or known markets • Diversified • Intensive, high-value crop production per acre, net more of gross • Knowledge/management intensive • Environmental Stewardship • Require strong consumer support

The Role of Consumers in New Farming Approaches • WA Consumer Surveys Show Recognition

The Role of Consumers in New Farming Approaches • WA Consumer Surveys Show Recognition of Civic and Environmental Value of Agriculture • Two telephone polls of around 900 WA residents, Farming and the Environment Group and WSU(2000, 2002) • Respondents saw profitable family owned farms and food enterprises as important components of the local economy • Appreciation of multi-functional nature of agriculture • • Want healthy, safe, and secure food supply Most see economic benefit to keeping farms in business Many see environmental, wildlife, benefits Many see aesthetic and cultural benefits • 7 in 10 said WA Farmers are responsible environmental stewards (Farming and Env. 2000) • Over 80% want to increase local purchasing (2002)

Current frequency of Direct Purchasing from Farmers Twice a month 26% or more Once

Current frequency of Direct Purchasing from Farmers Twice a month 26% or more Once a month or less Never

Interested in more direct purchases of: Vegetables Fruits Eggs Dairy Beef Poultry 82% 81%

Interested in more direct purchases of: Vegetables Fruits Eggs Dairy Beef Poultry 82% 81% 52% 44% 36% 34%

Relative Importance of Food Purchasing Criteria

Relative Importance of Food Purchasing Criteria

If locally grown foods were available, how much extra would you pay? Not Willing

If locally grown foods were available, how much extra would you pay? Not Willing to Pay More 23% Would Pay 10% More 54% Would Pay 25% More 21% Would Pay 50% More 3%

Reasons for not Purchasing Food Directly from Farmers • Convenience a bigger factor than

Reasons for not Purchasing Food Directly from Farmers • Convenience a bigger factor than price • Want foods available where normally shop, eat • Grocery stores, discount stores, restaurants, cafeterias • Want farmers markets nearby in neighborhood • Want to shop at convenient times • Want easy parking • Not always aware of available options for buying local • A third say there are no markets/stands nearby (even though in many cases there are) • Most (83%) are unfamiliar with CSA • Unaware that current purchases are not local

Consumers and Farmers Favor Labeling • 94% consumers believe food should be labeled to

Consumers and Farmers Favor Labeling • 94% consumers believe food should be labeled to show origin • 94% consumers think having a WA label would help WA farmers • 77% farmers think that a WA label would help them

Small Farms Program • Discussion Points A significant amount of activity and interest in

Small Farms Program • Discussion Points A significant amount of activity and interest in direct marketing from growers and consumers • New levels of acceptance, moving beyond a niche? • Growth possible given high consumer and farmer interest • Only partial solutions • Farmers not operating in global vs. direct markets, but rather a strategic mix. • Need more availability—local into existing commercial and retail channels • Health, quality, local/family farm are big selling points • Health increasing in importance, especially for children • Consumer education, branding, and labeling are key § Need distribution and processing infrastructure § Important sectors left out (meats, apples, grains) • locality and commodity specific § Many farmers don’t like marketing/time intensive § Will niches be saturated? § Diversification of markets is a top farmer priority