Local-based, alternative-marketing strategy could help save more small farms

Rural Cooperatives, May-June, 2005 by Thomas W. Gray

Heffernan of the University of Missouri estimates there are approximately 200 of these plants in the United States. They tend to be associated with industrialized agriculture and farming systems that have historically involved increasing scale and use of technology. It is a strategy that seeks to provide outlets for commodity production while retaining value (obtained from processing) for the local farmer.

The local advantage

Nearly all of these activities involve some aspect of localism. Community supported agriculture, restaurant agriculture, farmers' markets and farm-to-school and institutional buying programs all typically have strong "buy-local" themes. Buy-local campaigns seek to expand the consumption of local products, thereby bringing greater economic returns to the local area, rather than sending those same consumption dollars "out of town."

Farmers selling their products directly to consumers do not have to share value with middlemen. Dollars spent locally for local products multiplies the economic benefits of this spending.

It also draws out the creativity of local people. Part of buying locally may also involve products that are almost emblematic of shared local values. For example, a rural town may be known as the "pumpkin or blueberry capital" of its state; or the highlight of a town's annual events calendar may center on hosting the state's sweet potato, almond or turnip festival. In some states, these are important tourism events. Crops can become a primary focus of community identity--one which the entire population wants to preserve.

This local identity can sometimes be expanded to a regional or statewide identity with a great deal of consumer value. Green and Hilchey note such marketing messages as: your family-farm neighbors; keeping dollars in the local community; knowing the farmer who produced your food; preserving open space in the community. These types of appeals may be combined with such regional identifiers as: Pennsylvania Dutch, Appalachian, Blue Ridge, Low Country, Up-Country, Down East, Eastern Shore, Twin-Lakes, and countless others.

Role for co-ops

While many of these strategies do not rely on formal cooperative organization in their development, cooperative formation could be quite useful in resolving some of the difficulties and challenges.

Cooperatives have been successful in agriculture Because relatively small producers with similar production operations and output had a strong common need for marketing services and production supplies. Farmers marketing to schools, nursing homes, hospitals and restaurants face similar product assembly, marketing coordination and standardization problems. These market niches require timely, dependable and reliable deliver), of high-quality products. They also require a diversity of products--fruits, vegetables, dairy and meats. However, the vagaries of farming--weather being the largest--can make the best of these links tenuous.

A local cooperative organization can provide a mechanism for drawing upon several farmers for a variety of products, while providing for assembly, delivery and standardization that ensures quality. This same cooperative might also provide a bargaining function.