Questions for Those Considering “Direct Marketing” of Farm Products

U-pick and farm stand sales can be great for some people, but make sure this marketing approach will fit your personality.

Selling directly to customers can be a great way to improve net profits for produce, fruits, meat animals and other farm products. But a good deal of careful consideration should be given to the details before plunging ahead. One of the most important is dealing with people, your customers. Are you well-suited to dealing one-on-one with customers? Do people generally get under your skin? Are you a real people-person?

The following list of questions was developed with the help of a seasoned U-pick strawberry grower and retired Michigan State University Extension professional. The success and longevity of his strawberry business gives a lot of weight to these observations. Here are nine questions to ask yourself before you get started.

1. Are you a people person?

• Ninety-eight percent of customers are good people to deal with.
• Two percent of customers will give you headaches.

2. Where are you at right now with your ag business?

• Are you already producing but not selling what you intend to direct market?
• Are you already producing and selling it?
• Neither?

Producing and marketing need to be addressed separately.

Start where you find yourself right now.

Be realistic.

3. What kind of market are you aiming for?

• Niche?
• Local?
• Larger?

4. Who are you going to sell to?

• Individuals? (Least headaches and most profits.)
• Groups?
• Businesses?
• Retail, wholesale or both?

5. Are you assuming you have a market for your product, or have you proved that your market exists?

• Talk to a lot of people; visit with organizations (local planning organizations, Chamber of Commerce, etc.).
• Who else is currently selling the same or similar product?
• Can I produce a better product than the competition?

6. Do you have a quality product?

• Compare your product with the best in the industry, not just your neighbor.

7. Do you have a business plan?

• This is essential if you need to borrow money.
• Be conservative when making the plan. Don’t assume you will have high yields, high prices and sell everything you have. Make middle of the road assumptions.

8. Do you know your cost of production? How will you calculate your price?

9. Are you comfortable with the concept of “the customer is always right?”

• Remember, the customer drives the direct marketing business.

Other comments:

• Get involved with an association specific to your enterprise.
• Join AgriMissouri.
• The North American Farm Direct Marketing Association is a good contact.
• The farm needs to pay for itself. Don’t use your other income to subsidize farm expenses. 

Expanding Opportunities for Small-Scale Beef Producers

Sometimes big things come in small packages.  At USDA, they provide programs and services to producers of all sizes – and now we’re offering even more to small-scale and local beef producers.  Many small-scale producers are contributing to the growth of the grass-fed beef industry.  And, thanks to a new program tailored to meet their needs, they now have another resource in their marketing toolbox.

The USDA Grass Fed Program for Small and Very Small Producers, administered by USDA’s Agricultural Marketing Service (AMS), is designed as a verification tool for small and very small producers to certify that animals meet the requirements of the grass-fed marketing claim standard and will make them eligible to have their products marketed as “USDA Certified Grass Fed Beef”.

With today’s label-conscious, savvy consumers, producers are relying on verified and certified labels to help distinguish their products in the marketplace.  This new initiative joins our suite of consumer-trusted verification programs for meat, poultry, and eggs.

Audit-based verification services help producers and consumers by providing independent verification so that specific production practices or processing points are clearly defined, accurate, and transparent.  These services can include auditing the raising, feeding, handling, processing, and labeling practices from farm to table.  For producers, this means added value and market-share for their products.  For consumers, it means they can buy USDA certified and verified products and be confident in the quality and integrity of their purchases.  Unfortunately, many small-scale producers have not had an opportunity to benefit from these programs due to the user-fee costs involved—but we’re working to change that.

As part of USDA-wide efforts to create more opportunities for small-scale producers, AMS designed a less costly application and verification process tailored to meet the needs of small-scale producers.  Using the USDA Certified Grass-Fed claim as its first example, the new program will issue certificates that allow small producers to market cattle as USDA certified grass-fed.  The certification will add value to their products, creating new economic opportunities and keeping small-scale producers competitive in today’s marketplace.

The grass-fed marketing claim standard requires that animals be fed only grass and forage, with the exception of milk consumed prior to weaning.  Animals certified under this program cannot be fed grain or grain byproducts and must have continuous access to pasture during the growing season.

AMS also recently began publishing a USDA Market News report covering grass fed beef.  This is the first report of its kind, filling a significant data gap for the industry and increasing transparency in the marketplace.

The recent Census of Agriculture shows that there is tremendous growth potential for small and mid-sized producers.  USDA is taking a hard look at our existing resources to ensure that they work for producers of all sizes.  They’ve adjusted policies, strengthened programs and intensified outreach to meet the needs of small and mid-sized producers.  We’re excited to create this opportunity for small-scale producers to differentiate themselves in the marketplace and communicate the value of their products to customers.

More information about tools and resources available to small and mid-sized farmers will be rolled out in the coming months on USDA’s Small and Mid-Sized Farmer Resources webpage.

Farm Hack: Connecting Farmers with Low-cost Tools

Laydown Weeder

Purchasing and maintaining farm equipment is not only costly but can also create a barrier for young farmers. Farm Hack has turned into a national effort to connect farmers with ingenious designs that ease start-up costs for farming.

In 2011, a group of engineers from the Massachusetts Institute of Technology (MIT) and regional farms met to discuss innovative, collaborative opportunities, and established the first-ever Farm Hack convention, a meeting ground to share and brainstorm blueprints and designs for low-cost farm tools and equipment. Since that meeting, Farm Hack has turned into a national effort to connect farmers with these ingenious designs.

The Farm Hack community evolved from an old farming tradition of tinkering with haggard equipment and inventing new equipment with recycled or on-farm materials. Farm Hack is striving to restore this creative effort and bring farmers and engineers together to collaborate on both designing and sharing these innovations.

Purchasing and maintaining farm equipment is not only costly but can also create a barrier for young farmers. The National Youth Farmers Coalition and the Greenhorns, both of whom share the mission of promoting the success of young farmers, formed a partnership to create the Farm Hack community. Through a combination of community efforts, regional events, and an online discussion board and database, Farm Hack aims to reach farmers all over the United States.

Chestnuts are a lucrative crop for family farmers

Missouri river hills would look beautiful lined with chestnut trees and they’d turn a pretty profit.

“Missouri has a lot of acres in the river hills, which are fertile, deep, well-drained soils perfect for growing chestnuts,” said Michael Gold, professor of forestry at the University of Missouri.

“If you manage a 50-acre orchard you can produce 100,000 pounds of chestnuts,” Gold said. “And even at the lower end of the wholesale prices for chestnuts, that’s $200,000 (gross) for the family farm.”

Gold, associate director of the MU Center for Agroforestry, says that since 1996 the center has been building a body of research designed to increase chestnut production in the state. Everything from the cost breakdown for establishing 50 trees on a single acre to a grower’s calendar, and even guides and brochures to help producers market chestnuts.

The MU College of Agriculture, Food and Natural Resources’ Horticulture and Agroforestry Center (HARC), in New Franklin, Missouri, researches alternative crops for family farms. Small to medium-size farms don’t have enough acres to grow corn or soybeans competitively. Gold says you don’t need thousands of acres to be a major chestnut producer.

“Fifty acres of corn, you’re a garden. Fifty acres of chestnuts, you’re in big business,” Gold said. “If you had a 50-acre orchard, by the time the trees are 12 years old you've got 100,000 pounds of chestnuts a year.”

There’s a growing market eager to buy chestnuts as fast as they can be grown.

“There’s not only demand, but those individuals who are serious about chestnut production cannot keep up with the demand. Their crops are sold out as soon as they’re harvested,” Gold said.

The chestnut market goes beyond just raw nuts. Gold says there are many value-added products that can be made from chestnuts.

For example, chestnuts can be dried and ground into gluten-free flour. There’s a brewery in St. Louis that produces chestnut-flavored beer. Gold says there are chestnut liquors, sweetened puree, gluten-free pancake mixes and marron glace, a candied chestnut popular in France and Italy.

Cooking with chestnuts is gaining in popularity too. You can add roasted chestnuts to pasta, vegetables and grain dishes, Gold said. They can be made into a puree and spread on crepes and pancakes. Whole chestnuts can be used to thicken soups and stews.

Today, consumers are more interested in what they eat and where it comes from. “The National Restaurant Association’s ‘What’s Hot in 2014’ has locally grown, gluten-free cuisine and environmentally friendly foods in the top five trends,” Gold said. “Missouri chestnuts meet all three.”

There’s more to chestnuts than roasting over an open fire. Gold says chestnuts are called the “un-nut” because they are very different from their tree-nut cousins.

“They’re 99-percent fat-free, gluten-free, cholesterol-free and have as much vitamin C as an equal weight of lemons,” he said.

Right now it’s a seasonal nut, but the more people are exposed to chestnuts, the more they will buy them, Gold said. In Europe, especially Italy, chestnuts are celebrated in the fall just as Americans celebrate pumpkins. If chestnuts become as popular here as they are in Europe, they will easily move from just a holiday treat to standard fare.

For that to happen, we need chestnut producers. The United States lost ground when blight destroyed the American chestnut in the first half of the 20th century. Today, the Chinese chestnut is becoming an increasingly important crop in several states, including Michigan and California. But Missouri is perfectly poised to become the top chestnut producer in the country, Gold said. All we need are family farmers willing to plant the trees on their river hill acres.

For more information, go to www.centerforagroforestry.org and aes.missouri.edu/harc.

Be Well-Informed When Hunting and Preparing Mushrooms

Mushrooms are in season. And although a person does not need a license to hunt them, if someone wants to sell them, a licensed or certified inspector must attest to their safety first.

When hunting mushrooms, it is important to be 100% sure that the mushrooms you find are safe to eat. For example, morel mushrooms vary in size and color, but one identifying factor for them is their hollow, cone- or globe-shaped head connected at the base to a hollow neck. The convolutions on the head make them look very porous. The cap is one to five inches high and the stem is about the same height. They are generally found in various shades of brown from tan to black. A description and picture of morels (and other edible types) can be found on the Missouri Department of Conservation's website at http://mdc.mo.gov/discover-nature/field-guide/morels.

If it is a morel, as described above, it is safe to eat. However, if it is shaped and sized similarly but is NOT hollow, it is poisonous, so be very careful.

If you find a large amount of edible mushrooms or grow them yourself, you may consider selling some. The state of Missouri requires that a certified inspector confirm that they are a safe variety for sale. Certification is done through the Missouri Department of Health and Senior Services.

Mushrooms keep in the refrigerator for only 2-3 days. If you have more than you can use in that time, consider freezing some within a day of picking to maintain best quality. You can find information on the best way to freeze mushrooms in the MU Extension publication Freezing Unusual Fruits and Vegetables (GH1507). Drying is another option and is described in the publication How To Dry Foods at Home (GH1563).

Unlike some other mushrooms that are enjoyed raw, morels must be well cooked to be eaten safely and avoid the irritation to the stomach that can otherwise occur. The first step, and perhaps the most tedious, is getting them clean. All the cracks and crevices make for lots of places for sand, dirt and small insects to hide. To clean, rinse several times quickly and carefully under running water to remove dirt and sand. Then set in salt water for about an hour, changing the water often to draw out the bugs. Avoid over-soaking as this can dilute the flavor. Use freshly collected mushrooms within 2-3 days.

For more information on cooking and preserving mushrooms, contact Janet Hackert, Regional Nutrition Specialist, at 660-425-6434 or HackertJ@missouri.edu.

To view this article online, go to http://missourifamilies.org/features/foodsafetyarticles/fdsfty84.htm

(by Janet Hackert, Nutrition and Health Education Specialist, Harrison County, University of Missouri Extension)

(Photo from Missouri Department of Conservation)

FSMA and Water

The Food Safety Modernization Act (FSMA) regulates irrigation water testing and what water needs to be tested. This article outlines a fine point that can make a big difference in the amount of testing required of growers.

As many growers are aware, the Food Safety Modernization Act (FSMA) is the most sweeping legislation in 70 years regarding raw agricultural products. FSMA spans over 500 pages and is extremely complex. One area of particular complexity is the issue of irrigation water testing and what water needs to be tested.

The act classifies two types of water used in the field: agricultural water and indirect water. If water comes into direct contact with the edible portion of a plant, it is considered agricultural water. If a grower uses overhead sprinklers to irrigate a lettuce field, it would be considered agricultural water. The second type of water is called indirect water. In this case, the water would not come into direct contact with the edible portion of the plant. If drip tape under plastic is used to maintain tomato plants, this would be considered indirect water.

Sometimes the plant stage dictates whether a particular type of water is either agricultural or indirect. Sprinkler irrigation of blueberries from bloom through harvest would be considered agricultural water. The same source of water delivered in the same way would be indirect water when used after completion of harvest.

These differences seem like small points, but they can have a big impact in the cost of sampling under FSMA. FSMA requires that surface water used for agricultural water be tested weekly for generic E. coli. There is no testing frequency proposed for indirect water.

(from Michigan State University)

Food Safety Modernization Act and Good Agriculture Practices are not the Same

Being GAP-certified is not the same as being FSMA compliant. Check with your buyer first to determine if you need a GAP certification above and beyond being FSMA compliant.

With the advent of the Food Safety Modernization Act (FSMA), we now have a uniform minimum standard of food safety that the overwhelming majority of fresh produce growers must adhere to. The key with FSMA is that it is a minimum requirement. It will not eliminate buyer imposed programs for food safety, such as Good Agriculture Practice (GAP,) that are already in place. Even if a farm is FSMA compliant, they may still need to be certified under one or more GAPs to sell to certain buyers.

There are several different “brands” of GAP certification, each with their own special requirements and certification agency. Primus GAP is one example of a brand of GAP certification. A particular retailer or processor may not accept your product unless you are Primus GAP certified. The type of GAP certification required is wholly the choice of the produce buying company. In some cases, a grower may need two or more certifications to sell to several different buyers. It is best to ask your produce buyer what certification they want first before even starting a GAP manual.

All certifications cost time and money. You need to gather the information ahead of time and maybe adjust handling practices. You need to keep more records of your management. You need to pay to have the auditor spend a day with you on farm. The total process may cost as much as $2,000 in actual money and more than that in devoting time to the process.

The good news is that often food safety is the same, irrespective of the audit that a grower needs to perform. The food safety manual for a particular audit will be virtually the same for another audit under two different GAP brands. This saves time upfront when a grower needs more than one audit.

If you sell to a retailer or processor, good communication is the key to effectively meeting the certification needs of your buyer. Ask them what brand of GAP certification they want. In many cases, there are only marginal differences between GAP certifications, but they are different and not interchangeable. Ask your produce buyer what certification they want first before beginning to assemble a GAP manual.

(from Michigan State University)