Farm Direct Marketing Performance
FARM DIRECT MARKETING RESOURCES
A wide range of institutions and organizations offer resources to assist producers with direct marketing of farm products. In researching our project we conducted a jurisdictional scan to survey what resources are available to farmers to guide them in choosing the most suitable marketing model, estimating the costs involved, and understanding the corresponding regulations. Below is a summary of the most pertinent and practical tools we uncovered in North America.
We have organized the information to logically guide you from the more general and basic aspects of direct marketing through more specific resources. Although most of the information is presented with internet links, you are encouraged you access these resources in person (wherever possible) and form contacts in your community with potential clients and other persons or groups involved in direct marketing.
The sections are arranged as follows:
1. Background: Agrifood Industry and Consumer Trends
This first section offers information on current and emerging consumer trends in food. The three reports featured focus specifically on the growing demand for speciality products such as whole and organic foods and direct marketing channels like farmers markets.
2. Learning About Direct Marketing
In this section you can expect to find general information about what direct marketing entails, the different channels by which farm products are sold directly to consumers, and the types of products which are ideal for direct sales. This section also offers more specific information on Community Supported Agriculture, farmers markets, roadside stands and on-farm markets, agri-tourism, restaurant and institutional sales, and internet sales.
3. Business Planning
This section features resources for small businesses which can be accessed both in person and on-line. A list of local small business centres and Service Ontario locations is provided.
4. A Comprehensive Guide
This section offers a comprehensive step-by-step guide to farm direct marketing outlining crucial steps in the decision-making process.
5. Information for Small Businesses
In this section you can expect to find on-line business planning guides for evaluating the feasibility of a new farm enterprise, writing a business plan, and creating budgets.
6. Regulations
This section offers an easy-reference chart on federal and provincial regulations for sales of farm products. Listings for municipalities and Local Health Units are also provided for you to contact these services in your area directly and obtain the most up-to-date information.
7. Books and Further Training
In this section you can expect to find a short list of books which provide more in-depth information on business planning for farm direct marketing. You will also find some links to watch for workshops in your area.
1. Background: Agrifood Industry and Consumer Trends
Farmers Markets Ontario: Farmers Markets Ontario Impact Study 2009
This study offers market information for on-farm marketing ventures in Ontario and examines direct marketing models such as pick-your-own, on-farm markets, agri-tainment, on-farm food service, maple & honey production, and on-farm sale of natural non-edibles.
Farm Credit Canada: Knowledge Insider: Where Business Meets Opportunity - Consumer Trends
This market study presents an in-depth overview of current and emerging consumer trends in Canadian food markets and the drivers behind shifting trends.
Organic Council of Ontario: Community Shared Agricultural Survey 2009
This survey contains demographic information on farmers' market users as well as the most common commodities purchased and CSA operation variables like pricing and challenges.
2. Learning about Direct Marketing
U-pick, roadside stands, and farmers markets are just three examples of direct marketing models. Here are some general guides and descriptions for a number of different models.
Appropriate Technology Transfer for Rural Areas: Direct Marketing
This publication on direct marketing alternatives-with emphasis on niche, specialty and value-added crops-features information on enterprise budgets and promotion/ publicity as well as many farm case studies. There is also a section on the implications of Internet marketing and e-commerce for agriculture.
Alberta Agriculture and Rural Development: What is Farm Direct Marketing?
Types of Farm Direct Marketing
Alberta Agriculture and Rural Development: Ag Strategies - Farm Direct Marketing for Rural Producers
This factsheet looks at advantages and pitfalls for different types of farm direct marketing (models): roadside stand or farm store, u-pick, CSA, farmers markets, municipal buying clubs, agri-tourism, gift baskets and mail-order, e-commerce, and direct sales to restaurants.
Specific Types of Direct Marketing Channels
2.1 Community Supported Agriculture and Co-operatives
CSA Canada: So You Want to Become a CSA Farmer?
Offers advice on decision-making, zoning, and business management for starting your own direct-marketing venture.
CSAFarms.ca: CSA Training Manual
Covers production, distribution, and business aspects of establishing a community-supported agriculture business.
US Department of Agriculture: How to Start a Cooperative
A step-by-step guide on how to start a cooperative and where to find the necessary support and resources.
2.2 Farmers Market
Farmers Markets Ontario: Are you Ready to Start a Farmers Market?
This checklist covers timing, financial base, demand for your product, location, and other things you will need to consider to start a farmers market or similar direct-marketing operation.
2.3 Roadside Stands & On-Farm Markets
University of Arizona, Department of Agriculture and Resource Economics: Running a Roadside Stand: Some Helpful Tips
Direct Farm Marketing and Tourism Handbook -- Helpful Hints.
Department of Agricultural Economics and Rural Sociology, Pennsylvania State University: Developing a Roadside Farm Market
This guide offers an overview of many important aspects to consider for establishing an on-farm market including location, size, merchandizing, pricing, customer relations, record keeping, staffing, and advertizing.
2.4 Agritourism
Appropriate Technology Transfer for Rural Areas - National Sustainable Agriculture Information Service: Entertainment Farming and Agri-Tourism
This publication discusses agri-tainment; a highly consumer-focused type of agriculture, which may offer additional options for diversification and add stability to farm incomes.
2.5 Restaurants and Institutions
Appropriate Technology Transfer for Rural Areas - National Sustainable Agriculture Information Service: Bringing Local Food to Local Institutions
This publication provides farmers, school administrators, and institutional food-service planners with contact information and descriptions of existing programs that have made connections between local farmers and local school lunchrooms, college dining halls, or cafeterias in other institutions.
2.6 Internet Sales
US Department of Agriculture: How to Direct Market Farm Products on the Internet
This publication provides basic information and suggestions for direct farm marketers on selecting and tailoring a Web site to meet their marketing needs and goals, including: reasons for considering the Internet for direct farm marketing; how to develop a marketing plan, research the market, and set up and market the Web site.
3. Business Planning
Farm direct marketing is a business venture and as such requires some degree of business planning. This section offers general financial, business planning, and marketing advice for farming enterprises.
The Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) has produced a number of farm business guides covering topics from financial planning to best practices in a wide range of agricultural endeavours. Below are those which are most pertinent to starting a new farm business such as direct marketing of farm products.
Ontario Ministry of Agriculture, Food and Rural Affairs: Farm Financial Analysis and Planning Workbook
This general farm enterprise accounting and budgeting workbook includes a balance sheet, cash-flow summary, and projected cash for different parts of farm enterprise.
Ontario Ministry of Agriculture, Food and Rural Affairs: Evaluating the Feasibility of a Business Opportunity
Decision-making guide with questions and important consideration in deciding whether to pursue a business opportunity. Features steps leading up to the creation of a business plan.
Ontario Ministry of Agriculture, Food and Rural Affairs: Preparing Business Plans (OMAFRA Factsheet 811)
Guide to help develop major components of a business plan including a marketing plan. Sections also include production, human resource, and financial planning.
Ontario Ministry of Agriculture, Food and Rural Affairs: Guide to Cost Production Budgeting
A guide to estimating production costs and using the information to make future farm enterprise decisions.
The Canadian Farm Business Management Centre is a valuable and extensive on-line resource for searching out general farm business guides, sample budgets, and business plans for a variety of agricultural operations.
The Canadian Farm Business Management Centre: Growing Your Business
Guide to expanding a farm business operation including business plan tips, market trends, and ideas for producing effective documentation.
The Canadian Farm Business Management Centre: Marketing Plan Workbook
This workbook is aimed at developing a marketing strategy for a proposed product or service. Offers a general roadmap that will result in a marketing plan built on sound analysis and reflection by looking at the entrepreneur's commitment and readiness, the background in terms of its market, marketing strategies and tactics, marketing and financial objectives, and necessary adjustments to respond to market responses.
4. A Comprehensive Guide
Alberta Agriculture and Rural Development has produced a variety of checklists to guide farmers through the beginning stages of farm direct marketing.
Have You Got What it Takes to be a Direct Marketer
This checklist looks at necessary personal qualifications, production capabilities, merchandizing and marketing savvy, logistics, business factors and other considerations as well as critical success factors.
Marketing: Will it Sell?
A guide to evaluating the feasibility of a new business venture including worksheets for defining product or service, target market description, marketing options, demand, competition, trends, pricing and volume.
Production Requirements: Do You Have the Resources?
A general guide for determining the necessary resources for new business venture including a worksheet for evaluating production requirements.
Financial Feasibility: Can You Afford to Do It?
Offers guidance on how to make cash flow projections and estimations, and how to secure financing if needed.
Profitability: Will it Make Money?
Suggests steps to estimating income and expenses; includes two worksheets: projected income statement and balance statement.
Decision Making: Will You Start the New Enterprise?
This link offers a decision-making framework for proceeding with the venture and helps with creating a business development timeline and plan.
5. Information for Small Businesses
Many municipalities and counties in Ontario offer assistance for small businesses. Below are some helpful resources to get you started. Although these small business centres offer lots of useful and expeditious information on-line there is great value in visiting the office locations in person. As a business person, networking is essential to your success and there is no better place to start than with your local small business enterprise centre.
The Ontario Ministry of Economic Development and Trade offers a list of more than 50 Small Business Enterprise Centres in Ontario
If you would like to visit or contact one of over 900 Service Ontario offices, you can use the Service Ontario Location Finder
Service Ontario Services for Businesses provides information on registering your business, taxation, industries in Ontario and more.
The Canada-Ontario Business Service Centre offers information on grants, loans and financing for small business as well as obtaining permits and licenses.
6. Regulations
Federal, provincial and municipal laws regulate many aspects of farm product sales: everything from labelling to zoning. Our farm products chart will refer you to the appropriate federal and provincial regulations on sales of products such as fresh and processed fruits and vegetables, meat, eggs, dairy, honey and maple syrup. Although we can not summarize by-laws for every one of Ontario's 400-plus municipalities, we have compiled a list of municipal contacts in Ontario you can get in touch with to find out about sales of farm products in your area. Your county or regional Local Health Unit can provide you with information about health codes regarding preparation, handling, storage and display of food offered for sale.
***Disclaimer: We have done our best to provide you with the most recent and relevant information, however if is your responsibility to find out which regulations pertain to your specific type of operation and product line. ***
7. Books and Further Training
More complete information on farm direct marketing can be obtained through books and workshops in your area.
7.1 Books
For more in-depth knowledge on business planning and specific types of farm direct marketing here is a short list of books.
Colihan, M.A. & R.T. Chorney (2004) Farmers' Markets Ontario - Sharing the Harvest. Epic Press. A complete guide on starting a farmers market that can be adapted to developing an agricultural direct marketing business venture.
Ordering Information
The Canadian Farm Business Management Centre. (2000) Value-Added Products in Agriculture. Agriculture and Agri-Food Canada.
This booklet contains a series of modules with case studies to take the mystery out of value-adding and market assessment. Topics include: how to conduct research; defining your product; and targeting customers. Sells for approx. $30 CAD.
Ordering Information
The Canadian Farm Business Management Centre (2002). Marketing on the Edge: A Marketing Guide for Progressive Farmers.Canadian Farm Business Management Council.
Easy to read and well organized, this 162-page booklet outlines how you can launch a processing business and sell products directly to the public. Sells for approx. $30 CAD . Ordering Information
The Canadian Farm Business Management Centre. (2004). Building Value Added Through Farm Diversification. Canadian Farm Business Management Council.
This book is a journey along the diversification pathway that explores the opportunities of value adding by a farm business. Sells for approx. $30 CAD.
Ordering Information
Wiswall, Richard (2009). The Organic Farmer's Business Handbook. Chelsea Green Publishing, Vermont.
This book offers advice on producing specialty farm products for profit. It covers many aspects of a small business such as business planning, how to find your market, marketing strategies, management, record-keeping, and producing efficiently. Sells for approx. $40 CAD.
Ordering Information
7.2 Workshops and Training
Workshops offer a wide range of in-depth information and practical advice for different aspects of direct marketing. These can also be a great networking opportunity.
Ontario Ministry of Agriculture, Food and Rural Affairs: Growing Forward Ontario Business Development
Growing Forward Business Development for Farm Businesses incorporates self-assessment and action plan development with a range of cost-share advisory services and skills development opportunities to help reach your farm business goals.
Farm Start Ontario
Offers a variety of workshops and training opportunities for new farmers and persons looking to enter into agriculture, sustainable farming, and direct marketing.
OMAFRA