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Home » Resource Center » Farm Research » Growing Farm Incomes

Growing Farm Incomes

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The latest research on how local and direct marketing can improve farm profits

Throughout Washington state, small-to-moderate scale, family-owned farms struggle to be profitable within the ever larger worldwide food system. Consolidation and global competition continue to drive wholesale prices down while costs of production remain fixed or increase. Dr. Marcia Ostrom, who established and directs the Small Farms Program at WSU, has been exploring how direct and local marketing systems can help stem declining farm incomes.

Dr. Ostrom has been conducting surveys to help her identify barriers in regional food systems that prevent the easy transfer of food products from farm to table. To date, she has surveyed:

  • consumers about their preferences and attitudes about purchasing local products and farmland protection

  • farmers about their attitudes toward environmental policies

  • farmers about their local and direct marketing strategies

The results point to barriers that can be transformed into opportunities for farmers to capture greater value for their products and for consumers to enjoy the fresh taste of local farm products.

Not surprisingly, the survey of farmers showed that direct marketing to consumers is increasingly important for farms of all sizes and from Puget Sound to Eastern Washington. Nearly 20 percent of all farmers in the state reported using some type of face-to-face direct marketing methods such as farmers’ markets or mail order.

Consumers are just as eager to buy directly from farmers as farmers are to sell to them. Survey results indicated that nearly 70 percent of consumers currently buy some food, typically fruits and vegetables during the growing season, directly from farmers.

These facts aren’t news to Joel and Cynthia Huesby of Thundering Hooves Farm in Walla Walla, or Grant Gibbs of Gibbs Organic Produce in Leavenworth, who were runners-up for this year’s Vim Wright Stewardship Award. Both families attribute the success of their farms to an increasing number of consumers who care about food quality and taste and how their food is produced.

The Huesby’s market their pasture-finished livestock by building direct relationships with customers at farmers’ markets and on their web site. One of their slogans is, “You know your doctor, you know your dentist, but do you know who grows your food?” From talking with their customers, they’ve also learned that people want to know why meat naturally raised on chemical-free pastures tastes better than meat cattle raised in feedlots.

Grant Gibbs is one of a growing number of farmers who focus on selling locally. All of the organic fruit, vegetables, and livestock he produces are sold to consumers at farmers’ markets and natural food stores within Chelan County. This has reduced the wear and tear on his trucks and fuel costs. No wonder that according to Dr. Ostrom’s survey 25 percent of Washington State farmers and 46 percent of vegetable farmers plan to do more direct marketing to consumers in the next three years.