Selling Local Food & Products

vendor at farmers market

How to get started

When you're planning to grow local foods to sell there are several steps you must take before you ever actually plant the seeds.

  • Feasibility: You must look into the feasibility of selling local foods. Do you have the time? Do you have the patience? Do you have the money?
  • Research: Research your idea thoroughly. Make sure you know exactaly what it takes to grow and care for the produce. Also look into where you can sell them and what the regulations are. Look into your competitors. Look into the market, is it a good time to enter?
  • Planning: Set up a business plan for your idea. A good marketing plan starts with the customer and then works backward to the production. Lay out everything you need, what it's going to cost and how much time it will take. Contact organizations for help as needed.
  • Analysis: Weigh the cost versus the benefits of your venture. Will the benefits of selling local foods outweigh the costs it takes to grow and package them?
  • Cost: Have you considered all the costs associated? (seeds, water, stall fees, insurance, fuel, packaging, employees/assistants and your own time)
  • Compare: Visit similar businesses or growers to get a better understanding of what it takes to sell local foods.
  • Time: Do you have time to be away from the farm or other responsibilities? Selling of local foods takes time in care, transportation, harvest, packaging and selling.
  • Relationships: Establish a relationship with consumers or retail owners BEFORE growing your product. Make sure you have a place to sell your local foods before you have produce.
  • People Person: Customers of local produce like to know the story behind the foods they buy and they want to hear it from you. Make sure you're willing to share your story and interact with the customers.
  • Future: Where do you wish to be in 5 years? Consider your objectives for the future and what goals need to be reached to get you there.

Resources

Start2Farm.gov Good information for if you are thinking of starting to farm or have already started!

Nebraska Food Code, Nebraska Department of Agriculture Bureau of Dairies and Foods


Getting Started Examples Videos: Farmstead First, LLC owners Krista Dittman &Charuth Loth

Discuss the feasibility of starting your own business

Discuss the aspects of starting their own business.

Farm to School

Farm to School Logo

Farm to School in Nebraska

Buy Fresh Buy Local Nebraska is the state's supporting partner for Farm to School! We are actively working to get more local foods in school meals through statewide programming with the Nebraska Department of Education (NDE). Farm to school assists farmers, school food managers and school administrators to increase local nutritious food into their schools and offers educational opportunities for students about how their food is grown.

  • Nebraska's Harvest of the Month features a different Nebraska-grown vegetable or fruit each month of the school year and provides resources such as school lunch recipes, taste test guides, and promotional posters for schools to cook these vegetables for their students. Learn more on the Nebraska Harvest of the Month NDE website.
  • Nebraska Thursdays is a statewide program for schools to feature a Nebraska-sourced meal the first Thursday of every month..
  • October is Nebraska Farm to School Month. There are so many ways to celebrate Farm to School month - from participating in the Mountain Plains Crunch Off, to partnering with a local school for a farm tour. Find out more on the Nebraska Department of Education's Farm to School Month  website. 
  • Mountain Plains Crunch Off is an eight state competition (CO, KS, MO, MT, NE, ND, SD, and WY). The state with the most crunches into a local apple or other crunch-able local product per capita is crowned the champion. The Crunch Off event encourages healthy eating, supports local agriculture, and helps students and community members gain a deeper understanding of the food system.
  • Nebraska Farm to Preschool includes early childhood programs encompassing preschools, Head Starts, child care centers, and day care homes serving garden or local foods, and providing hands-on nutrition educational activities like field trips to local farms, guest speakers (farmers, gardeners, chefs, etc.), cooking with children, and gardening with children.

Nebraska Farm to School Resources for Farmers

Buy Fresh Buy Local Nebraska and the Nebraska Department of Education have created resources for Nebraska farmers interested in selling to Nebraska schools.

Nebraska Harvest of the Month Info Sheet for Farmers
Learn more about how you can use Nebraska Harvest of the Month to form a relationship with a local school!

Download

Nebraska Farm to School Flowchart for Farmers
Get a good feel for the steps of selling to a school and how the process works.

Download

Selling to Nebraska schools Q&A
The Nebraska Department of Education answers to frequently asked farmer questions about selling to schools.

Download

Meeting with a School Food Service Director Checklist
Use this checklist before, during and after a meeting with a school Food Service Director.

Download

Product Availability and Pricing Sheet
A fillable pdf that farmers can complete and send to a  school listing products, case sizes, seasonal availability and more!

Download

Farm Bio
A fillable pdf that introduces your farm and products to a school food service director.

Download

herbs in pots

Nebraska Harvest of the Month for Farmers

Learn more about using this statewide farm to school program to market items you are already likely growing!

Online Selling to Consumers

Online selling directly to consumers requires time, patience, technology and an user-friendly outlet. Some producers choose to sell through organizations, giving them the benefits of online selling without the hassle of managing a website. Nebraska Food Cooperative Inc. is a year around marketing and distribution service designed to improve market access for farmer producers and local food access for consumers. www.nebraskafood.org

Points to consider:

  • Distribution system were the consumers place orders on-line
  • Membership fee
  • You set your own prices
  • Reduce your time and cost of marketing and distributing your products
  • Retain your farm identity

Direct Marketing of Specialty Food Products Curriculum
If you want to:

  • Learn strategies to direct market food and sell online
  • Evaluate the role of technology in your business in regards to direct online marketing
  • Examine strategies necessary to deal with the technology and weigh some cost/benefit measures
  • Consider the evolution of information technology to meet changing business priorities and market demands
  • Understand how online marketing is part of an over-all business and marketing strategy...

Then the Direct Marketing of Specialty Food Products online curriculum is for you! As it is designed to help you make wise decisions about your online marketing strategy!

Wholesale Selling

Wholesaling through a distributor gives you access to a variety of business customer and saves you time and expense in finding customers.

Points to Consider:

  • They set the price
  • You will have additional cost: product liability insurance, invoicing, additional labor, additional equipment for picking, grading, cleaning, packaging, labeling,
  • Price you receive for your product may fluctuate with the market
  • Good choice if you have limited time for face-to-face meetings
  • May not get paid immediately as in direct marketing
  • Can market large quantities at one time
  • Need to grow large quantities and guarantee the delivery of the contract

Selling Directly to Customers

If you are a new market farmer, direct-to-customer-retail marketing is a great way to get started. You have to be a good planner, have time and enjoy meeting and talking to people.

Farmers' Markets

Direct to the consumer through farmers' markets is the way many farmers begin selling, because of the low startup costs. Farmers' markets can provide a low risk opportunity for new farmers to: try new products, build a customer base, increase marketing methods, refine people skills and promote the business brand.

Points to Consider:

  • Tend to be seasonal
  • Farmers generally receive retail prices or higher for their products
  • Vendor startup costs can be very inexpensive
  • Collaborative selling attracts more customers
  • Have competitive price pressures from fellow vendors
  • Increase time spent away from production

Farm Stands

Customers who stop and shop at roadside stands like to see colorful plantings, neat crop gardens, healthy animals and old farm tool displays. Farm stands tend to be located on the farm, on a well-traveled road with good access/parking.

Points to Consider:

  • Can be in operation seasonally or all year depending on offered products
  • Need quality displays of produce
  • Roadside markets usually charge near retail prices
  • Clean & wash produce before selling and encourage customers to wash
  • Farm stands/markets are structures and may be subject to local building codes and highway setback regulations/signage

U-Pick Farms

Pick-Your-Own farms grow crops specifically to be harvested by customers. This type of direct sales appeals to individuals and families who want to experience "where their food comes from".

Points to Consider:

  • Priced received is often very close to retail
  • Selling your crops through u-pick farms can save you work
  • Potentially hurt your crop if customers do not know how to pick properly
  • Opportunity to educate your customers about your crops & how to handle crops correctly

CSA - Community Supported Agriculture

Community Supported Agriculture or CSA's are about creating a relationship between farmers and consumers where the bounties and risks are shared. CSA customers purchase shares for a season by paying a fee in advance and in return they receive a regular (weekly) selection of food.

Points to Consider:

  • Having cash in advance provides financial security for the producer
  • Shared risk of low production and crop failures eases strain
  • Shared benefit of food strengthens the farmer-consumer bond
  • Opportunity for consumer education about your agricultural practices

Agritourism

Agritourism appeals to customers who want to visit a farm and experience its activities. Options include: on-farm bed and breakfasts, Christmas trees, corn mazes, pumpkin patches, petting zoos, festivals, school tours and catered parties.

Points to consider:

  • Your operation can also be blended with other direct marketing techniques
  • You can charge a fee
  • Can involve other farmers in the area
  • Opportunity to educate visitors about agriculture
  • Economic potential for your rural community

Restaurants

As local restaurants are starting to cultivate relationships with farms for high quality, local food, many producers are starting to market directly to restaurants. Selling directly to restaurants eliminates steps in the market channel, which adds to your product value.

Points to Consider:

  • Eliminate the middlemen but you assume the associated costs
  • May not be able to charge full retail price
  • Restaurants may note your farm and products on their menu
  • Chefs demand the same consistent quality and service of a wholesaler from you
  • Responsible for invoicing, which must meet restaurants requirements
  • Keys to a Successful Relationship: Tools for Selling to Restaurants, Retailers, and Institutions,

Grocery Stores and Co-op

Many of our local independent grocers, indoor year round farmers' markets, health food stores and co-op stores are purchasing locally grown food.

Points to Consider:

  • Demand the same consistent quality and service of a wholesaler from you
  • Partial cases, clean produce, frequent delivery schedules, convenient ordering and expert advice. (See the restaurant section for further information.)

Home Delivery

With home delivery consumers value the convenience offered and believe the products are superior to other outlets.

  • Requires additional time, transportation costs, strong advertising, catalog and reliable delivery system
  • Consumers enjoy keeping in touch with the farmer they purchase from
  • You can combine with a CSA

 

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