Farmer Direct Marketing Newsletter

January/February/March 2000

line.gif (1082 bytes)

Please scroll down screen or click on topic of interest.

Contents:

USDA Activities:

       Glickman Confirms Commitment to Small Farms and Announces AMS Partnership with SARE

Direct Marketing in the News:

        "Immigrant Farmers Bring Techniques, Seeds and Crops to U.S." (AP, 1/25/2000)                 

Announcements:

       New List Server - "Market-Farming"

         The United States 2000 Census - Rural America Counts!

         North Country (NY) Food and Economic Security Project

Articles

       Travel the Road to Success with a Marketing Plan (Wen-fei Uva, Cornell University Extension)

         Do You Know What the Small Business Administration Has To Offer?

         Small Businesses Are Backbone of Communities (Metta Winter, Cornell University)

        Production, Processing, and Marketing Opportunities for Athens County, Ohio, Farmers:
                      Assessing Needs and Creating Solutions  (Penrose, Smith and Vollborn.  Journal of Extension.                         December 1999)

line.gif (1082 bytes)

Return to Farmer Direct Marketing Newsletter Index to view previous editions

line.gif (1082 bytes)

USDA Activities:

Glickman Confirms Commitment to Small Farms
and Announces AMS Partnership with SARE

Glickman Announces New Funding and Technical Assistance for Small Farmers

Release No. 0018.00

Susan McAvoy (202) 720-4623    susan.mcavoy@usda.gov

GLICKMAN ANNOUNCES NEW FUNDING AND TECHNICAL ASSISTANCE FOR SMALL FARMERS

WASHINGTON, Jan. 19, 2000--Agriculture Secretary Dan Glickman today announced two new steps to help small farmers and ranchers find better ways to market and export their products. "There is no higher priority for USDA than working to ensure the long-term survival and economic well-being of America's small- and medium-size family farms," Glickman said. "Expanded export opportunities and improved marketing offer tremendous opportunities to boost small farm incomes during this time of depressed prices."

Glickman announced that USDA will provide $500,000 to help small farmers develop new ways to market their products, including direct selling to restaurants and institutions, agri-tourism and pick-your-own farms. Under USDA's Sustainable Agriculture Research and Education Program, the University of Vermont, University of Nebraska, University of Georgia, and Utah State University will select and assist specific new marketing projects that will benefit smaller farms.

In addition, USDA will offer technical assistance to help small farmers and ranchers form cooperatives to export crops and livestock to international markets. Loans are available to help finance the development of value-added processing at existing cooperatives.

Glickman made the announcements at a meeting of USDA's Advisory Committee on Small Farms. The 19-member committee is composed of small-scale farmers, ranchers, and woodlot owners who advise the Secretary on policies and programs to assist America's smaller farms. 

USDA has also assisted America's small- and medium-size farmers by targeting emergency assistance for hog, sheep, lamb, and dairy farms. Secretary Glickman also fought hard to win passage of legislation for mandatory price reporting, providing livestock producers with better information about prices and pricing practices.

To learn more about or to apply for one of the producer marketing grants:

Southern SARE

http://www.griffin.peachnet.edu/sare/00mktann.html

Southern SARE Region - Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, Puerto Rico, and the U.S. Virgin Islands.

North Central SARE

http://www.sare.org/san/ncrsare/

North Central SARE Region - Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

Left side bar for grant proposal information

Western SARE

http://wsare.usu.edu/ (must be able to read .pdf documents to look at information and application)

Western SARE Region - Alaska, American Samoa, Arizona, California, Colorado, Guam, Hawaii, Idaho, Micronesia, Montana, Nevada, New Mexico, N. Mariana Islands, Oregon, Utah, Washington, and Wyoming

Northeast SARE

http://www.uvm.edu/~nesare/index.html

Northeast SARE Region - Connecticut, Delaware, Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, West Virginia, Vermont, and Washington, D.C.

Back to Contents

 

Direct Marketing in the News:

"Immigrant Farmers Bring Techniques, Seeds and Crops to U.S."

"PACIFIC GROVE, Calif. (AP)   When Efren Avalos left his home in Mexico for a better life in the U.S., he brought more than his farming skills.  He brought seeds.

Today Avalos, who farms in the lush Salinas Valley, grows a breed of red corn common in his homeland but unavailable in local supermarkets.  He also grows small, unique tomatoes called tomatillos, an edible cactus called nopales and special fava beans that are cooked in the pod.

Avalos wouldn't be growing these crops if there weren't a market.  In fact, business is booming.

"Although a lot of American people don't recognize my crops, we have so many Latinos living in the area that I sell out," he said.

Avalos is one of hundreds of immigrant farmers making a good living growing fruits and vegetables from their home lands.

For Avalos, it's not just immigrants snapping up his produce.  This year he sold 100 pounds of organic purple tomatillos to Whole Foods markets, charging about $1 a pound.  Whole Foods resells the tomatillos to customers for twice that price.

"I wasn't sure I was going to find a market, but now I think I should plant even more," he told farmers last week at Eco-Farm 2000, the nation's largest annual gathering of organic farmers.

While Avalos grows primarily for the burgeoning Latino population in his region, Central Valley farmers, including thousands of South East Asian immigrants, are growing and marketing their own array of ethnic specialty crops.

"Lemon grass, winter melon, red basil, bitter eggplant, lotus roots - maybe you have never heard of this stuff, but this is what we love to grow and eat," said Michael Yang, a Hmong immigrant who works with farmers in Fresno, Calif., through the University of California's cooperative extension program.

Yang said there are more than 850 South East Asian families farming in Fresno County, including Hmong, Loa, Mien, Cambodian and Thai.

They sell their produce through wholesalers and at farmers' markets, renting land from large property owners.

Because their crops are uncommon, Yang said they sometimes have a hard time convincing brokers to buy it.  However, as these items become mainstream, he said the farmers have a distinct advantage over traditional farmers because they've been growing these crops for generations.

Lemon grass, for example, is traditionally used by South East Asians for tea, medicine and flavoring meals.  In recent years it's become a high-end product in specialty markets, and Yang said Fresno growers are selling their lemon grass for $180 for a 40-pound box.

"This has become a very good way to make a living off a small farm," he said.

It's not just immigrants cashing in on ethnic produce.

Glenn Johnson, who runs Shady Glenn Farm in Nipomo, Calif., said "dumb luck" led him to they "yellow lime" market in the Latino community.

"I took a bucket of green limes to the farmers market and the Hispanic customers picked through them and grabbed the ones that had already turned yellow," he said.  "Now I leave all my limes on the trees until they turn yellow and they sell out."

Back to Contents

 

 

Announcements:

New List Server - "Market-Farming"

Abridged version of information received from list owner:

"WHAT IS Market Farming?

Name of list: market-farming

Posting address for list: market-farming@franklin.oit.unc.edu is a mailing list/newsgroup/webforum for networking among farmers of small acreage whose primary marketing outlets are consumer-direct and local. We hope to see discussions on appropriate scale production methods and equipment, marketing and profitability, cropping sequences and diversification, sustainability, both of the land and of the farm family,working with extension agents, private consultants, and fellow farmers, in other words, all those things involved in making a living providing food and fiber from your small acreage. The list owners are Marcie A. Rosenzweig, Full Circle Organic Farm, fullcircle@jps.net and Lawrence F. London, Jr., Venaura Farm, lflondon@mindspring.com

WHAT IS A MARKET FARM? For the purposes of this list, a Market Farm is a small acreage farm whose primary marketing outlets are consumer-direct and local.  Generally, we find farms of 2-20 acres having similar production, marketing, and time problems.  We don't screen for acreage when you sign up, but if you're not trying to make a living from your land, or you're applying for USDA crop subsidies, or shipping veggies overseas in 747s, you probably won't find this an appropriate forum for your concerns.  Most growers on this list use organic, biodynamic, or sustainable production practices.   Direct marketing through local and regional farmers' markets, roadside stands, to restaurants, and through Community Supported Agriculture shares and subscriptions is the norm.

HOW DO I SUBSCRIBE TO MARKET FARMING?  Self-subscribe through the Web by accessing the Website at http://franklin.oit.unc.edu/cgi-bin/lyris.pl?enter=market-farming.   Subscribing and unsubscribing to market-farming using email instead of the Web interface:  In case you do not have Web access or for any reason need to use the email interface, here are some key commands; In all cases, the default server address is:   lyris@franklin.oit.unc.edu.  This is the email address to send commands to change the status of your account.

WHERE CAN THE MARKET FARMING MAILING LIST FAQ BE FOUND?

The FAQ will be sent to you automatically to indicate that you have subscribed successfully OR you may read it (market-farming.faq) at: http://metalab.unc.edu/intergarden/documents/market-farming.faq OR have it sent to you by email by sending email to:lyris@franklin.oit.unc.edu with the message text or subject line containing:  get market-farming market-farming-list.faq"

Back to Contents

 

 

The United States 2000 Census - Rural America Counts!

The 2000 American Census is coming in April!

Why does it matter?

Participating in the census is in everyone's own self interest.  People who answer the census help their communities obtain Federal and State funding and valuable information for planning schools, hospitals, roads, and more.   For example, census information helps decision makers understand which neighborhoods need new schools and which ones need greater services for the elderly.   But they will not be able to tell what your neighborhood needs if you do not fill out your census form.  The uses of the data are far reaching.  For example, census data are used to estimate shelter and food needs during emergency situations such as hurricanes, floods, and tornadoes.  Make sure you are counted!

Rural America Counts (from http://www.census.gov)

The Reward for Rural Areas:

After Census 2000, more small rural communities will have the statistics they need for planning and programs.  Rural areas are now divided census tracts just as urban areas, so local officials can define unincorporated communities regardless of their total populations.  Billions of dollars in federal and state funding are distributed based on  census data.  A complete population count is a critical part of this process.

Why are Rural Areas Special?

In 1990 the census missed approximately 1.2 percent of all rural residents.  It missed 5.9 percent of rural renters, compared with 4.2 percent of urban renters.   Because rural America includes everything from housing subdivisions just outside of urban areas to open country areas with very low population densities, Census 2000 is forming partnerships with those who know rural areas best: community groups, businesses, the media, and State, local, and tribal governments.

The "Long Form" is Another Example of the Special Treatment Needed in Rural Areas.

A significant proportion of Federal funds supporting schools,employment services, housing assistance, highway construction, hospital services, programs for the elderly, and more are distributed based on data from the long form.  Overall, the long form goes to one in six addresses nationwide, but in some small towns and rural areas, as many as every other address may receive a long form.  This larger sample is needed to ensure that these areas receive the same quality information as urban areas.

Spread the Word that Answering the Census is Important, Easy, and Safe.

The Constitution directs the Census Bureau to conduct a complete accounting of every resident every 10 years.  People who answer the census help their communities obtain State and Federal funds and provide valuable information for planning schools, hospitals, and roads.

Your answers are protected by law.

The Census Bureau cannot share the individual answers it receives with others, including welfare agencies, the Immigration and Naturalization Service, the Internal Revenue Service, courts, police, and the military.  The law works--millions of questionnaires were processed during the 1990's without any breach of trust.

To Ensure an Accurate Census, Partnerships are Especially Important in Areas Without House Numbers.

A complete address list helps ensure that Census 2000 will reach households everywhere.   While every address will receive a questionnaire, delivery methods will vary.   Where the Postal Service delivers mail by house number and street name, questionnaires will be mailed to each residence.  Where rural route/box number, post office box, and/or general delivery addresses are used, enumerators create an accurate address list before the census.  At census time, they deliver questionnaires to each address and ensure that the list includes every dwelling.

Three Steps to Ensuring an Accurate Census in Rural Areas.

1) Enlisting Rural Partnerships:  To increase participation in Census 2000, the Census Bureau is forming partnerships with organizations that are prominent in rural communities and provide services to large numbers of rural residents, including:

* Youth groups and Head-Start programs
* Rural clinics and health service organizations
* Volunteer programs and civic/service organizations
* Chambers of commerce and industry associations
* Farm organizations, cooperatives, and migrant and seasonal farm workers' associations
* Ministerial alliances and religious organizations
* National organizations that have affiliates and members in rural communities

2) Partnering Effectively With Organizations in Rural Areas:

The Census Bureau seeks partnerships with State Government agencies that serve rural areas, including departments of community development, social services, education and planning.  Rural governments and community groups can help Census 2000 in various ways, including:

* Recruiting census takers and office staff
* Identifying locations to distribute forms
* Organizing census promotional events
* Providing space for testing and training census employees
* Identifying and providing space for Questionnaire Assistance Centers
* Identifying areas in need of materials in languages other than English

3) Working With Partners in Rural Areas to Identify and Enumerate Hard-To-Count Populations:

The most difficult to enumerate areas are those where the following situations exist:

* A highly mobile population
* Language barriers
* Nontraditional household or living arrangements and irregular housing units
* Conditions that lead to resistance to outsiders or a disbelief in census confidentiality

For additional information about Census 2000 and to find out more about becoming a Census 2000 partner, visit the Census Bureau's Internet site at http://www.census.gov or call one of our Regional Census Centers across the country:

Atlanta 404-331-0573
Boston 617-424-4977
Charlotte 704-344-6624
Chicago 312-353-9759
Dallas 214-655-3060
Denver 303-231-5029
Detroit 248-967-9524
Kansas City 816-801-2020
Los Angeles 818-904-6522
New York City 2l2-620-7702 or 212-620-7703
Philadelphia 215-597-8312
Seattle 206-553-5882"

Back to Contents

 

 

North Country (NY) Food and Economic Security Project

The North Country Community Food and Economic Security Project is on line!

To learn about this six-county, food security project in northern New York State, involving county residents, Cornell Cooperative Extension and Community Action Agencies of each county, and researchers/facilitators from Cornell University, log onto http://www.cce.cornell.edu/community/NorthCountry

 

Back to Contents

 

 

Articles:

Travel the Road to Success with a Marketing Plan
(Wen-fei Uva, Cornell University Extension)

"Travel the Road to Success with a Marketing Plan"

by Wen-fei L. Uva  (w132@cornell.edu)
Senior Extension Associate
Horticultural Product Marketing
Department of Agricultural, Resource, and Managerial Economics
Cornell University

"Successful marketing requires planning.  Marketing involves more than the product you are selling.  Developing a sound marketing plan that works for you is the first step to improving profitability.  A marketing plan serves as a road map.  It establishes objectives, assigns responsibilities, and recommends actions for achieving goals.  A marketing plan requires the individual to think through the process of how a product/service will be sold.  It minimizes the emotion and guesswork when making a marketing decision.  The following outlines the steps in developing a marketing plan:

I.   Situation Analysis - gather market information

Explore who the consumers are.  It is important to take a moment and determine who the consumers are and their needs and wants.  A good start is to identify the geographic area you wish to serve and analyze consumer demographics, their lifestyles, income, and expected changes in the future.  Research the industry and the environment.  It is wise to collect as much information as possible about the industry you are in as well as relevant elements in the competitive environment, including government policies and regulations, technological changes, effects of globalization, social and cultural behavior, and industry trends. 

Assess your strengths and weaknesses.  A self-analysis will help you develop strategies which take advantage of the firm's strengths and opportunities-neutralizing weaknesses and avoiding threats.  Investigate the competition (current and potential).  Important information about the competition includes who they are, their location, their products and services, their price ranges, their reputation, their promotional activities, and what they do better than you can.  You can develop your competitive edge based on this information.

Develop product or service ideas.  Your product or service ideas should be developed based on the information from the consumer and industry research. You should be able to answer the following questions:  what are your products and services,   what are the benefits of your products, and what makes them different from your competitors' products and services?  Determine the target market.  A target market is not just who is buying, or will buy your products, but a market segment which you identified as the most desirable and profitable.  A firm can compete more effectively in a limited number of market segments.  Criteria useful to segmenting a market include demographic, geographic, psychographic, consumer behavior, and business markets.

Test the market potential.  This refers to estimating the expected sales of a product/service for the market over a specific time period.  A starting point for an existing firm can be based on recent history.  One way to test a new product/service is to conduct simple-test market research, i.e. offer a free-trial period to a small focus group and collect their honest opinion.

II.  Determine your marketing objectives.  Objectives are measurable,quantifiable, and realistic statements of what you expect to accomplish.  For example, specific objectives for the next two years might be to increase sales by 15%, increase net profit by 15%, or increase your market share by 15%.

III.   Select the marketing strategies.  Marketing strategies are about how you expect to accomplish your objectives.  Strategies can include product differentiation, market segmentation, new product introduction, diversification, business positioning, and any number of alternatives.

IV.  Implementation.  This is to determine who is responsible, what tasks they are responsible for, and when the tasks are to be completed.  Tactical actions are designed to implement the strategies and meet the objectives. They can be grouped as product/service, price, promotion, distribution, and people.

--Products are more than the physical item that a buyer purchases.  All agricultural products can have services added to them.  Services can include packing, grading, storing, and inventory management.  Prices are determined by market conditions and competition.  While the price received for an agricultural product often depends on the distribution channel through which the product is sold, marketing texts admonish us not to "lack courage in pricing!"

--Promotion includes a variety of advertising, public relations, and sales promotion activities.  To maximize the effect of your promotion, select your media and activities based on your target market.

--Distribution includes product delivery systems, hours of operation, and number of locations.  A company wants a distribution channel that meets customers' needs as well as provides an edge on competition.

--People are perhaps the most important part of a marketing plan.  A marketing plan eventually becomes a schedule of activities, and responsibilities are assigned to individuals who must get the job done.

V.   Monitor, evaluate, and modify the plan.  This is the control phase of a marketing plan.  It requires setting up performance standards to monitor the progress made toward achieving the objectives.  Four key control areas are monitoring sales, costs, net margin, and customer satisfaction.  The plan might have to be modified according to the evaluation results.  It is important to note that a good plan must be flexible. Marketing plans can be developed to answer questions, such as whether a specialty crop should be added to the product mix of an operation, or used to consider more complex questions, such as entrance into a new market.  Develop a marketing plan tailored to your needs, and you are ready to travel the road to success."

To view the article at the source go to:  http://www.cals.cornell.edu/dept/arme/hortmgt/pubs/smartmkt/uva.PDF
                                                            (This is a .pdf document.)

The Horticultural Business Management and Marketing Program has many other publications about marketing.
For a full list visit:  http://www.cals.cornell.edu/dept/arme/hortmgt/pubs/smartmkt/index.htm

Back to Contents

 

 

 

Do You Know What the Small Business Administration Has To Offer?

A cruise around the Small Business Administration (SBA) Website may provide helpful tips and services for your farming business.

The Small Business Administration (http://www.sba.gov) offers a range of services.  One of the best ways to find out about how SBA can help your farm or farm-based business is to check out local resources.  On the SBA Website at http://www.sba.gov/regions/states.html, a user can find local resources such as Small Business Development Centers, Business Information Centers, and on-line publications. 

The SBA "Classroom" at http://www.sba.gov/classroom offers information about on-line resources and training/courses/conferences offered in local areas.  This is a great way to get some inexpensive and brief training in fields such as accounting, e-commerce, business plans, and more.

SCORE (Service Corps of Retired Executives) (http://www.score.org) is a resource partner with SBA.  SCORE is dedicated to aiding in the formation, growth, and success of small businesses nationwide.  With more than 11,000 volunteer business counselors, SCORE provides small business mentoring and advice on the full range of business topics. SCORE business counselors are well versed in how to develop effective business plans and create strategies for business growth—they are here to help you set your course for success. SCORE counseling is free, confidential, and available to all U.S. citizens.  Small business owners can either meet face to face locally with a SCORE counselor or receive advice via e-mail! 

Every farm is a business - SBA can assist in achieving success!

Back to Contents

 

 

Small Businesses Are Backbone of Communities

by Metta Winter 
from "Agriculture and Life Sciences News"
(Cornell's College of Agriculture and Life Sciences)
December 1999

"Big businesses that dominate a town's economy don't have the community's interests at heart. For communities to thrive, they need locally owned businesses, including farms.

Rural sociologist Tom Lyson holds up his U.S. Department of Commerce badge and says that it's his ticket to the inner sanctum of the Census Bureau.  Lyson is the first sociologist to get into Census Bureau data files for the purpose of showing that communities dependent on big business interests are less well off-economically and in every other way-than those built on small locally owned businesses.

"When the economy of a community is dominated by one large plant or nationally owned business, it has a dampening effect on organizational life which, in turn, means less investment in the well-being of the community over the long haul," explains Lyson, citing an observation that was made in testimony before Congress at the end of World War II.  As Lyson tells the story (that has taken him years to piece together), Congress didn't listen to the sociologists of the day, awarded munitions contracts to big businesses, and the military-industrial complex was born.  As long as the United States dominated the world economy, businesses could afford to enter into a tacit social contract with labor unions.  As a result, towns in the industrial heartland, Buffalo and Syracuse among them, thrived.

"But when the economies of Europe, Japan, and southeast Asia became strong competitors, American corporations reacted by becoming lean and mean - they moved out and left these communities to die," Lyson points out.  That doesn't happen to communities that have a strong, independent, merchant class of small businesses and family-owned farms.  Small business owners are committed to their communities; they might be fiscally conservative but nevertheless won't let the schools or the roads go to pot.  What's more, locally owned businesses spawn a rich associational life.  Kiwanis clubs, bowling leagues, hospital auxiliaries, church youth groups,and choral societies all contribute to better social outcomes such as less crime, fewer out-of-wedlock births, and better health.  "But if you're working for Kodak, you are thinking about where you'll be transferred next.  So your allegiance is to the corporation not to the community," Lyson says.

"I get really juiced up when I can make the big connections, when the lightbulb goes on and I can push things a bit," says Lyson, professor of rural sociology, who, a dozen years ago, found in the college a home for his controversial ideas.  And a place in which to act on them, too.  Take the theory of civic community, which says that the goal of agriculture should be more than producing low-cost food and making a profit; rather that agriculture and food are inextricably linked to the community and to the environment as well.

"And if the food costs a little more, then I'll pay more for it," he adds,"because there is value in having farms out there, value in keeping people employed in agriculture." 

Lofty idea, a holdover perhaps from Lyson's early days as a warrior in President Lyndon Johnson's war on poverty.  But how likely is it to fly at a time when the middle class in America is struggling financially to keep its head above water?

Lyson has put the theory of civic community into action as director of Farming Alternatives:  Cornell's Agriculture and Development and Diversification Program.  The program is a $250,000-a-year think tank that promotes community agricultural development through sophisticated direct marketing of locally grown, value-added products - what's known as the New Agriculture.

Examples include fresh fruit and vegetable stands at travel plazas on the New York State Thruway, farmers' markets, community-supported agriculture(CSAs) where individuals buy a share of a farmer's crop, restaurants featuring New York State-grown produce and wines, and agritourism operations such as U-pick pumpkin farms featuring hay rides and homemade pies.

Lyson contends that in the Northeast we've paid a lot of attention to industrial, mass production agriculture by increasing yields, increasing milk output, making farms bigger, and making farmers into managers.  But if this is all we rely on, we'll get beaten by global-scale processors from California, Florida, Texas, and Mexico. Lyson says that instead of putting all its economic eggs in one basket, New York should be simultaneously focusing on bringing production and consumption closer together.

New York State imports an estimated 85 percent of its food and that percentage would be closer to 95 were it not for milk.   "New York City is at the center of the biggest consumer market in the world, stretching from Boston to Washington, and we've hardly begun to exploit it," Lyson says.  "Why should the food eaten in Manhattan come from California, when a lot of it could be grown next door in the Hudson Valley?"

By developing unique, regionally identified products and cultivating local and regional markets, the potential is unlimited.   Lyson points to cheese as an example.  "The biggest economic multiplier is with a cheese plant," he says, explaining that in the manufacture of cheese, every dollar rotates back six times through the community (to the farmer, the veterinarian, the feed seller, the milk hauler, etc.).  "So we need to think creatively about cheese just like we did with the wine industry.  Because of the Farm Family Winery Act of 1975, there are more than 100 wineries in the state now.  Why  don't we do this with cheese plants and have a wine and cheese trail?" 

In the long run, Lyson says, Farming Alternatives establishes an agriculture that will be food for communities and the environment. He points out further, "The New Agriculture isn't an act of resistance to industrialized agriculture; rather it's an opportunity for a small, local, consumer-driven food system that disappeared a century ago to come back and exist with it side by side."

Back to Contents

 

 

Production, Processing, and Marketing Opportunities
For Athens County, Ohio Farmers:  Assessing Needs and
Creating Solutions

As published in the Journal of Extension, December 1999 (Vol.37, No. 6)
To view document from original source visit http://www.joe.org/joe/1999december/rb2.html

Christopher D. Penrose (penrose1@postoffice.ag.ohio-state.edu)
Assistant Professor and Extension Agent
Agriculture and Natural Resources

Penne L. Smith
Assistant Professor and Extension Agent
4-H Youth Development and Community Development

Ohio State University Extension, Athens County
Athens, Ohio

Edward M. Vollborn
Assistant Professor and Leader, Grazing Program
Ohio State University Extension, Jackson, Ohio

Introduction

Athens County, a rural county in the Appalachian foothills in Southeast Ohio had a 1997 population was 61,276 (Pritchard & Bolton, 1998), which included the population of Ohio University with more than 17,000 students.  The university is the largest employer in the county.  The county poverty rate for 1992 was 32% (Crawford & Bentley, 1994).  With a diverse population of residents ranging from the very poor to affluent, and 510 farms averaging 160 acres, farmers have an opportunity to capitalize farm production with local markets.

Expanding agricultural production, processing, and marketing programs has long been a high priority for Ohio State University Extension in Athens County. Based on a 1992 program review, new and improved markets for farmers was considered a priority.  Other organizations in the county such as Community Food Initiatives and Rural Action also have a focus on marketing.

Ohio State University Extension, Rural Action, and Community Food Initiatives collaborated to assess the marketing needs and opportunities in Athens County.   In 1995, community leaders perceived that agricultural production, processing, and marketing opportunities would change substantially in the future.  A committee representing these agencies met together to develop an instrument to assess the needs of farmers.

Purpose and Objectives

The purpose of the study was to determine needs related to: farming status, perceived needs and interests, and processing and marketing options of farmers and agricultural landowners in Athens County.  The first objective was to identify satisfaction with current markets and determine market voids. Objective two was to explore farmer perceptions of processing and marketing opportunities.  The final objective was to develop a framework to fulfill these needs.

Methodology

A mail questionnaire was used to collect data.  The questionnaire was pilot-tested by twelve volunteers representing the intended audience to check questions for readability and applicability to the population and appropriate changes were made.  In 1996, 510 farms were in the county (Pritchard & Bolton, 1998).  A population of farmers and agricultural landowners identified from the mailing lists of Ohio State University Extension, Rural Action, Athens County Farm Bureau, and Community Food Initiatives.

The questionnaire was sent to 509 residents and owners determined to be involved with farming in Athens County on April 10, 1995.  Accompanying the questionnaire was a hand-signed cover letter explaining the rationale of the study and a stamped return envelop. Follow-up cards were mailed ten days later.

Results

One hundred-twenty questionnaires were returned for a 24% response rate.  Twenty-nine respondents farmed full-time, 47 part-time, and 19 were retired. Forty-five (37.5%) needed improved or expanded markets and 33 (27.5%) indicated that they could use assistance for locating improved markets.  The greatest area of marketing interest was for cattle, 29 (24.2%), followed by hay 17 (14.1%), and vegetables 17 (14.1%).  There was also interest in processed foods, other livestock, fruit, bedding and nursery plants, and forest products.

The questionnaire included a section asking for additional programs or services needed by the respondents.  Agencies could then focus and prioritize efforts based on the results.  Improved markets was the number one area of interest, with nearly one-third of the respondents expressing interest, followed by livestock production (30%), farm management (27.5%), natural resource management (23.3%), and extending the grazing season for ruminant livestock (22.5%).

Impact

Once the study was completed and results tabulated, plans were developed to meet the needs of area farmers responding to the survey.  A cooperator-owned retail store (Farms-Plenty) that features locally grown foods was established as a result of the study.  The store sells bedding plants, perennials, fresh fruit, vegetables, dairy, poultry, and meat products produced by local farmers.   Value-added products are now being marketed through this cooperative in the form of processed meats, pies, fruits and vegetables through a kitchen and deli.  Ohio State University Extension provided information and support during the planning and building of the store.

In addition, sales at the local farmers' market increased by more than 30% in 1998 and a new satellite market was established in 1998 through the leadership of Rural Action.  Community Foods Initiative houses community food kitchens to provide start-up businesses facilities to manufacture food products such as salsa and baked goods.

Ohio State University Extension has provided leadership in the area of marketing cattle. Direct marketing of feeder calves has allowed local farmers to add value and increase income from their operation.  The local agricultural and natural resource agent provided names of feedlots throughout Ohio looking for fresh calves. The agent helps organize and group calves so they can be sold in large groups.   Since 1996, over 1,000 feeder calves have been marketed directly to feedlots in Northern Ohio as a result of these contacts.

Increasing selling price is one way to improve profitability, but lowering costs of production is another.  Considerable effort has been provided to area grazing councils to help farmers more efficiently utilize forages and lower overhead costs in order to become more competitive in the marketplace.  Many of the educational meeting held also included topics on how to market products, whether it be through the farmers' market, feeder calf pools, local food stores, or direct marketing to consumers. Grazing councils are provided with discussions on direct and niche marketing on a monthly basis.

In addition, the agriculture and natural resource agent has worked with the grazing program leader and Extension agents and specialists on research projects to extend the grazing season for ruminant livestock.  A new publication, Maximizing Fall and Winter Grazing of Beef Cows and Stocker Cattle (Boyles, 1998) has been published as a result of this work to help farmers address the issue of extending the grazing season.  The Athens County agriculture and natural resource agent also works with the local woodland interest group to develop forestry and wildlife related programs, including income through non-timber sources.

Future Plans and Conclusion

Plans are underway to work with the grazing program leader and the district agriculture and natural resource specialist to provide farm analysis programs utilizing the FINPACK program developed by the University of Minnesota.  This program will help potential farmers develop a business program and current farmers expand or start a new enterprise.

Collaboration will continue with Rural Action to assist in the growth of the new satellite farmers' market and the local woodland interest group with the marketing of non-timber products.  Leadership will be provided to the Ohio State University Extension, Athens County Master Gardeners as a new project is initiated to develop markets for herbs and flowers.

Marketing has become a higher priority for most farmers in the area.  Advertising, improved markets, and cooperation have improved profitability.  Many producers are realizing that success can be attained through cooperation with their neighbors.

References

Boyles, S. L.; Vollborn, E.M.; Penrose, C.D.; Bartholomew, H.M.; & Hendershot, R.L.  (1998).  Maximizing fall and winter grazing of beef cows and stocker cattle. Bulletin 872, Ohio State University Extension.

Crawford, S., & Bentley, L. (1994).  Athens County agriculture profile.  Columbus:  Ohio State University Extension.

Pritch, T. and Bolton, L. (1998).  Athens County profile. Columbus:  Ohio State University Extension.

This article is online at http://joe.org/joe/1999december/rb2.html.

Copyright (c) by Extension Journal, Inc. ISSN 1077-5315.  Articles appearing in the Journal become the property of the Journal.  Single copies of articles may be reproduced in electronic or print form for use in educational or training activities. Inclusion of articles in other publications, electronic sources, or systematic large-scale distribution may be done only with prior electronic or written permission of the Journal Editorial Office, joe-ed@joe.org, 1062 Woodside Drive, Eugene, OR 97401."

Back to Contents

line.gif (1082 bytes)

Return to Farmer Direct Marketing Newsletter Index to view previous editions