Beyond a Niche

A recent statewide survey of Washington farmers confirms that direct and local marketing strategies are becoming increasingly important for farms of a variety of sizes, types, and locations. Currently, nearly a fifth of all farmers in the state reported using some type of face-to-face direct marketing method that involved direct, personal contact between farmers and consumers, such as farmers’ markets, roadside stands, u-pick sales, and community-supported agriculture (CSA).  Internet, mail order, and restaurant sales were also important.  Interest in getting into direct marketing in the future is also high, with 25 percent of all farmers and nearly 46% of vegetable farmers stating that they plan to “do more direct marketing to consumers” within the next three years.

Roadside stands are the most commonly employed form of direct marketing in Washington, especially among larger farms. In contrast, farmers markets and CSA are most frequently employed by smaller farms. Livestock producers are the most likely to utilize Internet and mail-order strategies.  In general, fruit and vegetable growers and those closest to the state’s population center west of the Cascades are the most likely to direct market using face-to-face methods. In most cases, direct marketing appears to be a supplemental rather than a primary marketing strategy: only 5.3 percent of farmers said they sold all of what they produced via direct marketing. However, among farms in close proximity to urban population centers such as Seattle, the portion of farmers using direct marketing as their primary marketing method increases to more than 26 percent of the farms.

Local sales of farm products are also important statewide.  More than half of all the respondents reported that they sell at least some of their crops to consumers in their counties.  One in six farmers stated that they sell all of what they produce to in-county consumers. These numbers are influenced by the large percentage of farmers who produce hay that is sold to nearby farmers.

Farmer Views on Marketing and Policy Issues

Farmers as a whole favor policies that encourage direct and local market development over international market development.  For example, while approximately 77 percent of all farmers think that a “grown in Washington” labeling program would benefit Washington farmers, relatively few (23%) believed that free-trade agreements would help their farms’ profitability.  A majority of farmers, except grain producers, believe that consumers in their counties should have access to more locally grown foods and that direct-marketing strategies can be a viable means of improving the economic viability of farms in their area.  Overall, 62 percent of Washington farmers felt that direct marketing was helping to keep farms viable in their area.

An important constraint facing Washington farmers is what their farms are capable of producing and their proximity to population centers.  While some farmers may have the ability to adapt what they produce to changing market conditions and emerging opportunities, others have very little flexibilty.  Furthermore, significant infrastructure barriers such as a lack of processing facilities and prohibitive county health codes continue to limit direct market sales of meat and many other value-added products.  While direct marketing appears to offer a useful vehicle for increasing numbers of Washington farms to diversify their marketing mix, current benefits may be limited for many common types of Washington farms such as cow-calf operations, dairies, apple growers, and wheat growers.

This preliminary draft was compiled by Dr. Marcia Ostrom, Small Farms Program Director and Assistant Professor, Washington State University. For more information, please contact: mrostrom@wsu.edu, 253-445-4514. This research project was funded by the W.K. Kellogg Foundation and the Washington Farming and the Environment Project. For more 2002 survey results and details see: http://www.crs.wsu.edu/agsurvey/index.html