Choosing Your Market -- A Direct Marketing Decision Tool

Community Supported Agriculture (CSA) is both a marketing strategy and a philosophy. The farmer sells shares in the next season’s produce before the season begins. Each week of the season the shareholder will receive a "share" or box of fresh produce from the farm. In some CSAs the shareholders are involved in decision-making of all aspects of the operation, in others the farmer makes all the decisions. Each CSA is unique to the farmer and the community that is served. Shareholders may pick up their boxes at the farm, at delivery sites, or home delivery may be offered. Recently, farmers have been developing e-mail communities that order their produce online and pick it up at a designated spot.

• Farmer receives money before the season starts for seed, inputs, supplies, etc.
• Farmer markets in the off-season to recruit new members and is able to concentrate on production during the season
• Relationship with shareholders is at least one season long, and may extend for years afterwards
• Community is able to share risk of farming with support and possibly labor

Challenges

• Crop production - as many as 40-50 different crops must be grown to provide diversity to shareholders throughout the season
• Labor availability - crops are continually being planted, harvested, cleaned, sorted, and packed
• Location - if the location of the farm is near enough to the customers, on-farm pickup is the least burdensome for the farmer; otherwise, delivery sites must be established
• Shareholder retention - too much produce or too much unfamiliar produce will cause shareholders to drop out of a CSA

Required Resources

• Experience growing large quantities of many different vegetables
• Small amount of land OK if intensive production used
• Location close to urban center
• Ability to manage the crops, harvest, pack, and deliver
• Labor

Statistics of CSAs across the US

• 20-30 shares per acre is possible
• 30-40 shares per farmer or laborer is possible
• To earn a full-time income 80-100 shares are necessary
• The weight of the share per week ranges from 5-20 lbs. (average 10 lbs.)
• The number of items per share per week ranges from 5-12 (average 8)
• The share price ranges from $300-$700 per share/yr ($10-$20 per share/week)
• Season length ranges from 10 to 52 weeks

Tips

• Start small - 5-25 shareholders if experienced at growing, otherwise grow a couple of years for farmers’ markets and keep good records of production
• Diversify marketing, especially at first, selling excess to farmers’ markets, restaurants, or on-farm
• Involve shareholders with farm events, field days, work-shares, etc. to increase shareholder retention
• Publish a newsletter each week to put in the shareholders’ box. Include what is happening on the farm, a list of what is in the box, recipes, etc.
• Educate shareholders to seasonal eating, sustainable principles, and unfamiliar produce
• Don’t underprice the shares - this is the biggest reason for farmer burnout
• Make the strategy work for you - there are many modifications using e-mail or computers

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