1. Small Farms Program Emerging Farm Marketing Opportunities in Skagit County Best Western, Mt. Vernon November 8, 2004 Marcy Ostrom

2. Increasing numbers of farmers and consumers seeking alternatives to mass markets Rapid diversification into higher value production, distribution, and marketing channels WA Agriculture is Changing:

3. Negotiating New Market Relationships Direct Marketing Farm Stands/You-Pick Farmers Markets Community Supported Agriculture/Subscription Institutions (schools), restaurants, retailers Internet/mail order Producer Processing and Marketing Cooperatives Adding Value  Processing and packaging  Labeling—Skagit’s Own, Puget Sound Fresh, Heart of WA Regional, organic, fair trade, eco-labels Branding, creating authentic farm identity Agri-tourism/educational farm experiences

4. Assessing the Extent of Marketing Alternatives in WA: Farmer Survey Sample drawn from list maintained by state (WASS) Minimum of 10% of farms in each county 3,718 surveys sent out in 2002 1,201 completed surveys Adjusted return rate just under 50% Relatively representative by farm size and type in comparison with Ag. Census Funded by Farming and the Environment, W.K. Kellogg and USDA NRI

5. Direct Marketing Becoming Common

6. 73% of Skagit Farmers Say Direct Marketing is Effective

7. Skagit Growers Very Interested in Trying New Marketing Strategies Skagit County State-Wide More Direct Marketing to Consumers40%25% Diversify Products Grown on Farm3124 Explore Greenhouse Production126 Add On-Farm Packing/Processing154 Join Producers’ Co-operative 105 Market Directly to Stores/Restaurants/ Cafeterias157 Use Product Labeling (e.g. “green”)166

8. Common Themes of New Agricultural Enterprises Linked to local communities and economies Entrepreneurial--flexible production tailored to specific local or known markets Diversified Intensive, high-value crop production per acre, net more of gross Knowledge/management intensive Environmental Stewardship Require strong consumer support

9. The Role of Consumers in New Farming Approaches WA Consumer Surveys Show Recognition of Civic and Environmental Value of Agriculture Two telephone polls of around 900 WA residents, Farming and the Environment Group and WSU(2000, 2002) Respondents saw profitable family owned farms and food enterprises as important components of the local economy Appreciation of multi-functional nature of agriculture Want healthy, safe, and secure food supply Most see economic benefit to keeping farms in business Many see environmental, wildlife, benefits Many see aesthetic and cultural benefits 7 in 10 said WA Farmers are responsible environmental stewards (Farming and Env. 2000) Over 80% want to increase local purchasing (2002)

10. Current frequency of Direct Purchasing from Farmers Twice a month or more Never Once a month or less 26%

11. Interested in more direct purchases of: Vegetables82% Fruits81% Eggs52% Dairy44% Beef36% Poultry34%

12. Relative Importance of Food Purchasing Criteria

13. If locally grown foods were available, how much extra would you pay? Not Willing to Pay More 23% Would Pay 10% More 54% Would Pay 25% More 21% Would Pay 50% More 3%

14. Reasons for not Purchasing Food Directly from Farmers Convenience a bigger factor than price Want foods available where normally shop, eat Grocery stores, discount stores, restaurants, cafeterias Want farmers markets nearby in neighborhood Want to shop at convenient times Want easy parking Not always aware of available options for buying local A third say there are no markets/stands nearby (even though in many cases there are) Most (83%) are unfamiliar with CSA Unaware that current purchases are not local

15. Consumers and Farmers Favor Labeling 94% consumers believe food should be labeled to show origin 94% consumers think having a WA label would help WA farmers 77% farmers think that a WA label would help them

16. Small Farms Program Discussion Points A significant amount of activity and interest in direct marketing from growers and consumers New levels of acceptance, moving beyond a niche? Growth possible given high consumer and farmer interest Need more availability—local into existing commercial and retail channels Health, quality, local/family farm are big selling points Health increasing in importance, especially for children Consumer education, branding, and labeling are key Only partial solutions  Need distribution and processing infrastructure  Important sectors left out (meats, apples, grains) locality and commodity specific  Many farmers don’t like marketing/time intensive  Will niches be saturated? Farmers not operating in global vs. direct markets, but rather a strategic mix.  Diversification of markets is a top farmer priority