Category: Specialty Topics

Farmers markets represent a unique market channel with specific implications for specialty crop production support systems.  The vast majority of vendors are small scale producers, but increasingly require production and management skills quite different from their commercial scale counterparts.  Farmers markets play important roles within many communities as the face of food and agriculture to many who are otherwise disconnected.  Food access and nutrition are key issues, but these markets also provide vendors with an important platform to develop attractive niche enterprises, value-added products, and connect with consumer groups holding shared food values.  

Nationally, we have seen farmers markets demonstrate considerable resilience in production, organization, and distribution, becoming nimble and creative in an effort to help their community patrons access their products.  Farm markets, like other food retailers, were deemed essential businesses early during Covid because of their role in providing many food access.  Covid has sparked a lot of change and innovation, to be sure.  While many markets and vendors struggled with the economics of Covid, there has been a strong resilience and resurgence; now over 9,000 farm market sites are active nationally.

The growing complexity of farmer-vendor and consumer interactions is a major point of concern, but also an opportunity.  Darlene Wolnik, Program Director for the Farmers Market Coalition, provided five broad themes to think about regarding emerging challenges facing farmers markets, specialty crops, and the U.S. South.  We can relate them to our experiences with farmers markets in Kentucky in connection with the Center for Crop Diversification.

1. Very few (any?) states in the U.S. South have an organized state farm market association.  These have been critical in other parts of the country (WA, IL, MI, NY) to close the gaps for market innovation, create a voice for policy/research needs, and operationalizing data/program sharing across a network of markets.  Some coordination work has been attempted through LFPP and FMPP projects across the South, but this kind of coordination does not substitute for strong grassroots member-driven organizations.  States with active state associations were in much better position to coordinate during a time of crisis, but also can speed market innovation, lead vendor advocacy, coordinate around data sharing and aggregation, can support wide vendor business development, and pursue various grants as a collective.
2. Climate adaptation for specialty crops is especially acute in the South both for farms, markets, and market infrastructure.  This is becoming a key issue as it relates to new plant pests and diseases, but also season extensions and climate zone plant viability.
3. Many state agencies across the South have maintained a focus on commodity agriculture.  Programs for direct marketing of specialty crops, value-added products, and direct meat marketing require very different expertise.  New regulatory/certification issues, marketing programs, technical assistance with small-scale production systems, and community engagement facilitation are required.  Many “new farmers” in direct markets have less ag background and more experience in marketing or other first careers and their needs are different. Many respond well to social media but have no idea how to use enterprise budgets or where to look for small scale production management questions. Commodity producers looking to diversify into direct markets are often in the opposite situation.  
4. Markets have many diverse needs for technical assistance, including bringing on youth and new vendors, learning how to build collective appeal to the market through season extension, new products and varieties, and value-added products.  Many of the needs of young and beginning direct marketers don’t fit as well with traditional publication and basic lecture-based trainings familiar to extension and technical assistance providers—they require more tailored education and support like the ‘Marketing for All Program’ which allows them to choose their own needs and path, but even that program is not as flexible and individualized as it could be to meet these very unique needs.
5. Pricing for markets is not always intuitive.  Input costs are certainly higher and these costs are compounded by the lack of scale economies connected with small farms.  Other costs, like management and risk, are difficult for many vendors and consumers to understand.  More farmer education and consumer public relations are needed to recognize these costs.  There are many different types of markets and even different types of consumers that may shop within the same market.  Helpful work is emerging exploring different market taxonomies, but, like many markets, research needs are growing with increases in data, shopping formats, digital sales, and patron demographics.  The price reports we offer through the Center for Crop Diversification are very helpful to many producers, but there is a great need for a supporting base of knowledge and education to be able to apply them accurately, and setting prices based on the reports is certainly not a guarantee of profitability.  This is especially important in the current environment when there is so much input cost volatility and risk.

The farmers market space will continue to create opportunities for farmers of all kinds of products as a key platform in the direct-to-consumer marketing model.  New technical assistance needs relating to the issues above will need to be developed in support of this growing community.  These markets will continue to be a high profile interface for agriculture with the public and will evolve.  The opportunities to facilitate stronger collective market performance remain, especially in the South, through a variety of approaches that can help both vendors and community patrons.

Some related links

https://www.uky.edu/ccd/

http://farmersmarketcoalition.org/

https://www.ams.usda.gov/market-news/local-regional-food

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On July 4, 2023, the world experienced the hottest temperature on record: 17.18 Celsius (62.92 Fahrenheit) degrees (Paddison, 2023). Heat waves have been felt across the Earth in places like India, China, and the Americas in the last few weeks. The United States also hit new highs: Phoenix experienced a temperature of 114 Fahrenheit on July 12, while Fort Lauderdale, Cincinnati, Philadelphia, St. Louis, Detroit, Miami, San Antonio, McAllen, and New Orleans broke records with temperatures close to 100 degrees Fahrenheit or above (Bushard, 2023). Moreover, on July 16 most areas in the South were facing an abnormal (and potentially dangerous) heat wave (Figure 1), which was predicted to extend at least for the entire week (Figure 2). The excessively high temperatures and low air quality could have been exacerbated by the smoke from wildfires in Canada. However, phenomena like “El Niño” and “La Niña” (associated with climate change), are expected to increase in frequency and severity regardless.

Agriculture, construction, landscaping, and oil and gas extraction are some of the sectors in which workers are most at risk of being impacted by rising temperatures. Farmworkers are one of the most vulnerable populations to be affected by extreme weather episodes, as they perform physically demanding tasks in environments that can be humid, polluted (by smoke from fires or pesticides), and heat stress. Given the nature of their job, agricultural workers are generally exposed to the elements and need to be outdoors a significant amount of time. The harvesting seasons of some labor-intensive crops grown in Southern states and other parts of the country peak around the summer, limiting the ability to re-schedule activities throughout the year as can be done in other industries. Excessive and constant exposure to elevated temperatures can lead to heart disease, heart stroke, faintness, sunburn, dizziness, dehydration, chronic kidney illnesses, and death (Farmworker Justice, 2022).

There are several measures that can be taken to protect farmworkers during heat waves and prevent negative impacts on their health:

1. Access to clean water: workers should be able to drink clean and sufficient water whenever they need to. Ideally, water should be cold, provided free of charge, and be offered near the employees’ workplace. Frequent water drinking should be encouraged.

• Access to shades: workers should be offered the opportunity to access shaded areas during their free and recovery times. Whenever possible, employers should use tractors or other tools to transport and keep shade-providing structures around harvesting areas. Fans and other cooling devices should also be offered to workers in their housing arrangements.

• Introduction of “alternative” shifts: the hottest hours during the day should be avoided for outdoor activity. If portable lights are an option, shifts could be moved to the evening or early morning to avoid exposure to sunlight.

• Increasing the frequency and number of resting periods: to allow workers to recover and hydrate. Special considerations should be given to older workers.

• Implementation of peer-involving strategies: incentivizing workers to constantly look, together with their supervisors, for indications that their co-workers could be suffering from heat stress.

• Training: workers on how to detect heat-related stress symptoms, what to do if they experience any, where to access water and shades, and how to adapt their clothing depending on the temperature. 

• Information: about weather forecasts and other recommendations by public officials should be monitored. Generally, Extension personnel at universities, state and local health departments, and non-profit groups can provide additional resources related to protecting workers during heat waves (both in English and Spanish).

Heat waves are likely to happen more often as the planet experiences the consequences of climate change. Naturally, agriculture is going to be one of the most negatively impacted sectors. Some labor-intensive crops have very small windows of harvesting times. In addition, farmworkers generally get paid by the hour or piece and if crops are lost to heat or not harvested, their incomes can be substantially reduced, making them reluctant to protect themselves. For these reasons, it is important to take precautionary measures to take care of workers’ health, as agricultural production processes will need to continue and adapt to new weather conditions. Measures taken by employers and employees should be complemented by governmental actions tackling climate change.

Figure 1. Extreme Heat Distribution in the United States: July 16, 2023

Figure 2. Extreme Heat Distribution in the United States: July 17-22, 2023

References

Ahmed, N., and Muyskens, J. (2023). 70 million people in the U.S. may be exposed to dangerous heat today. The Washington Post, July 17, 2023, online version. 

Bushhard, B. (2023). Record-breaking high temperatures: Here’s where the U.S. has hit new highs for 2023, including Miami, Phoenix and Austin. Forbes, July 11, 2023, online version.

Farmworker Justice. (2022). Farmworkers and the climate crisis. Environmental Justice Symposium Report.

Paddison, L. (2023). The planet saw its hottest day on record this week. It’s a record that will be broken again and again. CNN, July 6, 2023, online version.

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Gutierrez-Li, Alejandro. “How to Protect Farmworkers During Heat Waves?” Southern Ag Today 3(30.5). July 28, 2023. Permalink

Farming is not for the faint of heart. Farmers and farm families work long hours and face uncertain weather, input costs, and prices. 

The mission of Cooperative Extension includes supporting farmers and their families through research-based information and programming on agriculture and natural resources, child development, community development, and health. University of Georgia Extension is taking a holistic next step, by supporting farmer and farm family emotional health in addition to economic and physical health, through a new Behavioral Health Team (BHT).

The BHT includes Extension Specialists with expertise in childhood development, mental health, family relationships, substance misuse, women and veteran farmers, and stress and coping. It provides training and consultation on behavioral health topics to both Extension staff and to communities. 

One specific BHT initiative is the Farm Stress Production Meeting model, which infuses information on stress and coping into existing Extension production meetings. 300+ farmers have participated, and evaluation shows a significant shift in farmer attitudes towards stress. Two conferences, a Farm Stress Summit and AgrileadHer have provided information and virtual support on stress and coping to several hundred participants. Informed both by messaging research with growers and focus groups with farm wives, we have created fresh informational materials about farm stress and coping. A new blog, Thriving on the Farm, reinforces these messages through weekly posts about stress and coping. 

The BHT is another way Extension is committed to sustaining farms—by sustaining farmers—because a farmer is the most important asset of their farm. 

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Scheyett, Anna. “Sustaining Farms by Sustaining Farmers and Farm Families.” Southern Ag Today 3(29.5). July 21, 2023. Permalink

It is widely recognized that agricultural cooperatives are founded on seven distinct principles.

1. Voluntary and open membership
2. Democratic member control
3. Members’ economic participation
4. Autonomy and independence
5. Education, training, and information
6. Cooperation among cooperatives
7. Concern for community

Although some cooperatives adjust the first two principles, in general, adherence to these principles allow agricultural producers to collectively own assets of production that they might not otherwise be able to access. Simply put, the cooperative business structure works, and it will always be needed by agricultural producers so long as they participate in markets with very large buyers and sellers or lack the ability to effectively transfer cost increases and risk downstream. 

However, these principles add some complexity to successful management. Occasionally managers and directors feel their cooperative is not meeting their expectations. Their frustrations often originate with the challenges presented by cooperative principles and a misunderstanding of how those principles apply to successful cooperative leadership. Here are a few examples of complexities that might describe your cooperative.

We struggle with member loyalty.

Cooperatives are owned by their customers, so one would expect that cooperative members would naturally be loyal to the business they own. However, cooperative managers often complain that their members are only loyal to price. Cooperatives rely on their members economic participation for profitability, but most feature open and voluntary membership. Just like any other firm, cooperatives must offer their customers a reason to do business, but it must be more than just price. If cooperative members are choosing your competitors, they may need to be educated about the value of the cooperative’s services, the value of shared profits, or the value of the cooperative’s influence on market power.    

We struggle with recruiting directors with the skills we need.

Cooperative directors are elected from among the membership. Members, in turn, are users or customers of the business. The implication of democratic member control is that directors are selected from among a group of relatively similar people with similar skills and backgrounds from within a defined geographic region. Compared to other forms of corporations, a cooperative can’t always recruit directors from other industries or with specific professional backgrounds. On the other hand, a cooperative board has incredible customer insight. 

We struggle with directors who want to control managerial decisions.

Another implication of democratic member control is that cooperative directors are not only customers, but they themselves are managers of their own business ventures. Most likely, the directors of your cooperative are also very successful managers. However, the director role is very different in purpose and function from that of management. At times, cooperative directors might fall back on what they know best (operational management) if they aren’t familiar with the role of the director (setting policy and strategy). In addition, cooperative directors may need education about the industry or business model of their cooperative. For example, a director may be very familiar with cotton production, but not understand retail pricing and inventory control at their cooperative farm store. Or a director may be familiar with grain production, but not understand the economics of milling and bagging feed. 

Education is a key method for helping a struggling cooperative. There are many professionals ready to assist a cooperative board with specific knowledge and education to help them overcome these struggles. Look for help from your local bank, accountant, lawyer, and cooperative extension service.

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As U.S. consumers become more health-conscious and cognizant of the impacts of their food choices on their health, they have started to recognize the importance of leafy greens and vegetables more fully for a well-balanced diet. This has led to an increase in consumption of products with these characteristics as seen in the figure below (USDA, 2017).  

Figure 1: U.S Per Capita Loss-adjusted Vegetable Availability, 1970 and 2015

As a result of this health trend, Kale (Brassica oleracea var. acephala), one of the oldest cultivated cabbage-like plants, is becoming more often consumed. Today, because of the rising popularity of kale, there is even a National Kale Day on the first Wednesday in October each year. Kale is sold for its leaves in a wide variety of options based on maturity stages. Compared to other leafy greens and vegetables most of the Kale sold in US is certified organic (Peda et al., 2021).

However, there is limited information about the profitability of organic Kale production versus conventional one. Recently, Agricultural Economists at Clemson University, in collaboration with WP Rawl (a vertically integrated Kale farm in South Carolina) developed the first enterprise budget for organic Kale production. The findings indicate that the switch to organic production increased NPV by around 15% after 18 years. The break-even point was 4 years. In other words, one year after farmers who choose to transition to organic kale undergo the three-year mandatory transition period during which they must sell their kale as conventional they are able to break even with what they could have made if they had chosen to stick with conventional kale. The researchers’ analysis assumes that the kale is sold by the box with 24 bunches per box. The analysis also assumes a conventional yield of 800 boxes of kale per acre sold at $10 a box and organic kale with a yield of 700 boxes per acre at a selling price of $14 a box.  

Funding Source: Project funded by USDA NIFA ORG program (Award Number:2021-51106-35495)

References:

Reda, T., P. Thavarajah, R. Polomski, W. Bridges, E. SHipe, and D. Thavarajah. 2021. “Reaching the highest self: A review of organic production, nutritional quality, and shelf life of kale (Brassica oleracea var. acephala) Plants People Planet 3(4): 308-318

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Francis, Samuel, Felipe de Figueiredo Silv, and Michael Vassalos. “Is the Transition from Conventional to Organic Kale Production Profitable?” Southern Ag Today 3(27.5). July 7, 2023. Permalink

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