California Food and Justice Coalition: Issues: Direct Marketing

Issue Paper:
Farmers Markets and Direct Marketing
By Reggie Knox and Gail Feenstra

-WORKING DRAFT-

What is the problem?
Many farmers, both organic and conventional, are being left out of the new consolidated wholesale markets. In these markets, very large farming operations benefit by initiating price wars and riding out the storm until they can dominate the market. Quality and environmental responsibility play second fiddle to bargain-basement prices. Long-term relationships and trust between farmers and consumers are of little consequence.

Market consolidation and globalization of the food system has resulted in unfair prices offered to small and mid-sized farmers. These farmers are the cornerstone of American strength and prosperity. They provide the essential knowledge, local experience and farming ability to protect and manage natural resources - soil, water, air, land - in the most environmentally appropriate manner. This irreplaceable knowledge base erodes with every family farm that goes out of business. These farms also define town boundaries, discourage urban sprawl and promote sustainable development.

Farmers' markets and other forms of direct marketing are the only means for family farmers to address these market trends and to resist pressure to sell the farm for development. The Community Food Security Coalition and it partners should support family farmers in developing and accessing alternative and direct markets, and reaching out to urban populations to build meaningful economic relationships between consumers and farmers.

Direct marketing options include:

Farmer's markets
Community Supported Agriculture and clustered CSAs
Direct sales to retail outlets and restaurants
On farm sales including U-Pick and sales of processed products
Ag tourism
Farm stands and roadside stands
Direct sales to institutional buyers such as school districts and churches

What's the feasibility for moving forward in this area? Costs? Precedents? What organizations already work on this issue?
Interest in direct marketing has grown substantially in the last several years, as access to wholesale and organic markets have declined for small farmers. There are many organizations coordinating and advocating for farmers' markets and there have been substantial efforts recently to develop ag tourism in California. Momentum is building, but what is the appropriate role for the Community Food Security Coalition (CFSC) in this large organizing area? Clearly, the CFSC should continue to support linking direct markets with low-income communities and linking high-income consumers with low-income consumers. If other groups currently organizing around farmers' markets and ag tourism shoulder many of the costs, then a collaborative role for CFSC might not be too expensive.

Farmers' Markets: In the 1970s the CA Direct Marketing Association (CDMA) passed legislation that legalized farmer's markets in CA, exempting direct market farmers from grading and packing regulations. During the 1980s CDMA and Community Alliance with Family Farmers (CAFF) worked together to protect and strengthen the CDFA direct marketing program whose focus was to promote farmer's markets to the public. CA communities now have over 350 certified farmer's markets that provide an essential source of income for thousands of the state's small, mid-size and organic farms. Not only do the markets provide valuable revenue, they can also play a significant role in revitalizing downtown commerce and providing a strong sense of community identity and pride. Despite extensive advocacy efforts on behalf of the CDFA direct marketing program, it was slowly downsized slowly due to a dependence on general funds. During the early 90's economic recession, CDFA cut a number of programs that were not industry funded. Today, there is a direct marketing enforcement program because the farmers and markets are assessing themselves to support it. Many other states and countries now have much stronger direct market assistance programs than California.

Key organizations that coordinate and advocate for farmers' market today are the CA Federation of Certified Farmers Markets and the Southland Farmers Market Association. There are many smaller regional farmers' market associations all over the state.

Ag tourism provides much needed revenue to small and medium sized farms worldwide that are struggling in the current economy. Ag tourism consists of a variety of on-farm experiences for the public including farm tours, harvest festivals, school visits, ranch stays, and U-Pick operations. Through these experiences people gain a deeper appreciation for the contribution of local agriculture. The ag tourism industry in California is severely underdeveloped relative to some other states and European countries even though California is a prime tourist destination. Over the last several years local ag tourism workgroups in the San Joaquin Valley and Central Coast have worked closely with farmers, municipal Chambers of Commerce, Visitor's Councils and Tourism Bureaus to develop California's Ag Tourism industry. The organizations providing leadership in this effort are The Small Farm Center, UC Cooperative Extension, Central Coast Resource and Development Council and CAFF. CAFF helped pass legislation in 2000 allowing farms to serve food to paying guests without having to pay the huge cost of commercial kitchen certification.

Community Supported Agriculture (CSA) is an integral part of the economic stability of many small-scale farms around the state. CSA is a mutually supportive arrangement in which farm members pay a portion of a farmer's production expenses and in return receive weekly shipments of fresh produce which vary in content according to the season. CSA members learn to eat seasonally, and to cook foods they may never have used before. Fresh fruits and vegetables become an integral part of the family's weekly diet, providing a nutritional boost and an alternative to processed and fast food. The only statewide effort to promote Community Supported Agriculture (CSA) was CAFF's CSA West program which ended when funding ran out in 1996.The program provided support to farmers starting CSAs, conducted conferences and public events in urban areas and acted as a clearing house for information about CSAs. The CA Institute for Rural Studies, SAREP, and CASFS have recently conducted research on CSA farms.

Buy Local Campaigns: CAFF is beginning to work with Fires of Hope, in Pennsylvania, on a national partnership with ten nonprofits to nurture strong regional markets for locally grown foods. These Campaigns will be informed by a successful effort in Massachussets launched by Community Involved in Sustainable Agriculture (CISA) called "Be a Local Hero, Buy Locally Grown".

Direct Market Conferences: CAFF and CDMA began the CA Farm Conference in the 1980s. The primary focus of the conference was direct marketing. This year the conference will be held in Ventura in September. Other conference sponsors include the Small Farm Center, Center for Agroecology and Sustainable Food Systems, others? The Sustainable Agriculture Research and Education Program (SAREP) will hold a Direct Marketing conference March 1st in Davis.

Efforts to establish direct market links to schools and other institutional food buyers are addressed in the Farm to School Issue Paper. There has been very little public advocacy around on-farm sales, U-Pick and farm stands since the dissolution of the CDFA direct marketing program. Even when the program existed, there was little emphasis on these forms of marketing aside from a few "how to" publications.

Does the issue lend itself to campaigns that engage the grassroots, media and advocates?
Direct marketing is a broad issue area. It might need to be split up into smaller pieces such as farmers' markets, or just CSAs. People are passionate about their farmers' markets as they often provide an important community gathering place and social event in addition to fresh, nutritious food. Farmers' markets provide a ready-made venue for outreach to the grassroots. Many farmers' markets provide tabling opportunities and have hosted organizing and educational events around various political issues. CSA shareholders are also an excellent constituency for direct marketing outreach and organizing. Local media in the Central Coast consistently cover CSA agriculture and farmers market issues. Selective use of print and sound media will be crucial to increase direct marketing in California.

What is the issue's organizing value?
Farmers' markets, roadside stands, ag tourism, and CSAs all have significant, dedicated constituencies in California that we can access. These direct marketing options present a clear way to engage a cross section of consumers in food security and sustainable agriculture advocacy.

What is the solution? What are the policy opportunities?
In the Fall of 2001, the Fair Share Coalition conducted an advocacy campaign to promote the use of CDFA specialty crop block grant funds for biological agriculture, Farm to School and direct marketing. The specialty crop funds are a new source of currently one-time funds that present an immediate opportunity to increase state level support for direct marketing. The Fair share Plan's direct marketing component articulates some immediate policy opportunities:

Launch a "Buy California Direct" marketing campaign to increase farmers' sales at Certified Farmers' Markets. This new initiative is currently oriented toward in-state, generic promotion of California grown commodities. Senior CDFA officials, including Secretary Lyons, have expressed an interest to incorporate direct marketing promotion efforts.

Prevent a loss of income for Certified Farmers' Markets by providing state funds to match available federal funds for the Women and Infant Children (WIC) and Senior Farmers' Market Nutrition Programs and facilitating food stamp electronic benefits transfers (EBT) at farmers' markets. WIC and Senior coupons along with food stamps have greatly increased farmer's market sales, especially in mixed and low-income communities. Without this state match, farmers' incomes at CFMs will decrease and many farmer's markets will die. Example: Sixty percent of sales at the Watsonville farmers' market come from WIC coupons.

Provide training and public outreach on Community Supported Agriculture; support print and internet directories of direct-market farms; provide funds to the Sustainable Ag Research and Education Program's direct marketing grants program.

Other opportunities include strengthening collaboration between the farmers' market associations, food security and sustainable agriculture groups and participating in the conferences such as the North American Farmer's DM Association to learn how other states are successfully promoting direct markets.

The California Food and Justice Coalition is a project of the