Description
Trading and food markets are probably as old as agriculture itself, likely developing in ancient Mesopotamian and Nile Valley civilizations. As soon as communities of people moved away from subsistence farming and began specializing in agriculture and engaging in trade, the marketplace became an essential feature of community life.
Desmond Jolly, Editor
The Farmers Market Management Series • Volume 1
Starting a New Farmers Market
Series Editor and Project Developer
Desmond Jolly
Director, UC Small Farm Center and Series Editor
Extension Economist, University of California Dept. of Agricultural and Resource Econom-
ics
Educational Consultant
Eileen Eckert
Project Coordinator, UC Small Farm Center
Contributing Project Staf
Suzanne Ashworth
Eileen Eckert
Danielle LeGrand
Chris Lewis
Production
Natalie Karst
UC Small Farm Center
One Shields Avenue
Davis, CA 95616
916.752.8136
www.sfc.ucdavis.edu
© 2005 UC Small Farm Center
This publication was partially supported
by the U.S. Department of Agriculture Risk
Management Agency.
1
1
An Introduction to Farmers Markets
Farmers Markets and
Communities—Past and Present
T
rading and food markets are probably as old as agriculture
itself, likely developing in ancient Mesopotamian and Nile
Valley civilizations. As soon as communities of people moved
away from subsistence farming and began specializing in
agriculture and engaging in trade, the marketplace became an
essential feature of community life. In the United States, Gov-
ernor John Winthrop of Boston established the frst recorded
market in the English colonies in 1634 and President Thomas
Jeferson is reported to have attended a market in Georgetown
in 1806 to buy beef, eggs, and assorted vegetables. Like most
other people of his time, he relied on farmers markets for his
daily supply of fresh food.
Farmers markets reached their peak of popularity in the
nineteenth century before beginning a decline that continued
through much of the twentieth century. After World War II, the
development of suburbia and the ascendancy of supermarkets, chain stores, and
convenience shopping were especially damaging to farmers markets. However,
even during this time, many towns maintained their markets, preserving the close
tie between their communities and local
farmers. For example, in Lancaster, Penn-
sylvania, the Central Market has been held
in the same location since the 1730s.
During the 1970s and 1980s, the United
States witnessed a nationwide resurgence
of interest in local farmers markets that
stemmed in part from the “Back to the
Land” movement of the 1960s and 1970s.
This movement favored self-sufciency
and local food production. Cities, com-
This chapter will enable
you to:
? Understand the history
of farmers markets and
their past and present
roles in communities.
? Be aware of the ways
farmers markets can
beneft consumers,
farmers, and
communities.
? Begin thinking about
the kind of farmers
market you want for
your community.
2
Starting a New Farmers Market
munity groups, and farmers began to establish marketplaces for selling farm prod-
ucts directly to consumers.
Currently, farmers markets are enjoying an upsurge in popularity. The number of
markets in the U.S. has grown rapidly. The markets’ rapid growth and success has
impressed community planners, historic preservationists, town council members,
economic developers, and farmers alike.
Farmers markets are seen as one solution to the multifaceted problem of our
culture’s growing isolation—from other people, from the environment, and from
the sources of our food. People perceive farmers markets as gathering places
where families can bond with neighbors and visit with friends. Farmers markets
also provide a medium by which people can get closer to their food sources. Many
consumers feel good about supporting local farmers. They also tend to distinguish
the produce ofered at farmers markets as higher in quality, more favorful, fresher,
and more healthy than the produce typically found in other outlets. Farmers, in
turn, can interact directly with their customers, building relationships and fostering
customer loyalty while potentially generating greater profts than if they sell their
produce wholesale.
Types of Markets
Today’s farmers markets come in a variety of types and sizes. The
essential meaning of “farmers market” has become somewhat
diluted as many supermarket chains and fea markets have adopted
the term and closely follow the same design concept. Certifed farmers
markets, by defnition, are sites where local farmers participate in selling direct
to consumers. Certifcation means that a government agency or ofcial—in Cali-
fornia, it is the county agriculture commissioner—has certifed that the market’s
vendors have grown what they sell at the market and that the market includes
only farmers who are certifed producers. The National Farmers Market Association
recognizes only farmers markets that:
? ofer locally grown produce (grown within a thirty- to ffty-mile radius of
the market);
? are sold by “principal producers” (the stall is operated by someone directly
involved in production);
? are operated in accordance with trading standards, environmental health
regulations, licensing, charters, and other relevant legislation; and
? have criteria for market rules and policies that do not confict with the main
principles set by the National Farmers Market Association.
3
Introduction
1
At a certifed farmers market, all vendors sell “direct from the farm” items such as
fruits, vegetables, nuts, herbs, and fowers. Some farmers markets include meat,
eggs, and dairy products. Farmers market managers often encourage the sale of
value-added items such as salsas, jams, specialty oils, and nut butters and incor-
poration of local handicrafts and artisans. Depending on state regulations and
the market bylaws, vendors may be required to grow all of what they sell or they
may be able to bring in a percentage of items that they did not produce but sell
on behalf of other growers. During the start-up process, it will be necessary to
research and follow the regulations that apply in your state, region, and locality.
Some smaller markets can be informal afairs consisting of a small group of farm-
ers selling produce straight from the backs of their trucks. Other markets are open
year round and have permanent buildings with more than a hundred vendors. In
California, certifed farmers markets vary in size and numbers of vendors, and farm-
ers are required to produce what they sell. California certifed farmers markets are
the focus of this book. However, most of the information is pertinent to markets
throughout the United States.
Benefts of Farmers Markets
There are many reasons why farmers markets have been successful and why so
many communities support them. Farmers markets provide signifcant benefts to
consumers, farmers, and the communities they serve.
Benefts to Consumers
Consumers fock to farmers markets for two main reasons: the wide selection of
fresh, afordable produce and specialty food items such as honey and artisanal
cheeses and the opportunity to gather with friends. Maureen Kelley, a customer
who shops at the Sonora, California,
farmers market says, “Oh, I get food.
But mainly I go to see my friends. It
has become sort of a tradition to meet
there and it is the only chance in the
week I have to talk with people I do not
otherwise see.”
At many markets, buying direct from
the farmer means lower prices and a
large variety and selection of produce,
as well as access to primary producers
4
Starting a New Farmers Market
who can answer questions about their growing methods and food preparation.
Farmers markets also make it easier for people interested in home processing to
purchase large quantities of produce at afordable prices.
Benefts to Farmers
Selling direct to consumers through farmers markets allows farmers to produce
and sell in a way that provides more income and consumer contact than would
be possible selling through other channels. Farmers markets are particularly good
outlets for small-scale farmers who have relatively small volumes of produce.
Many growers also use farmers markets as an opportunity to experiment with
small amounts of exotic or new products that would be risky to produce in large
quantities for wholesale distribution. Farmers markets allow them to develop their
product marketing methods according to consumer needs and buy-
ing behavior and get feedback on new products directly
from consumers.
Farmers markets can also serve as launching pads for
farm-based small businesses. A recent study of California
farmers markets found that, from 2000 to 2003, approxi-
mately 21 percent of vendors had expanded their operations to ofer produce to
secondary and tertiary farmers markets, community supported agriculture (CSA)
groups, and/or direct sales to restaurants. Half of the market managers polled had
seen an increase in the amount of value-added products ofered. Farmers markets
have acted as a vehicle by which farmers can increase their proftability by diversi-
fying their product base, expanding direct marketing eforts, and developing their
business skills.
Vendors have the opportunity to set their own prices and may receive other mar-
ket-related benefts as well. Benefts can include market-generated promotional
materials and exemptions from certain marketing requirements. After a day of
selling at a farmers market, they have the satisfaction of seeing the immediate cash
return with no accounts receivables pending. Above all, by selling direct, farmers
have the opportunity to interact with their customers.
Benefts to Communities
Farmers markets can serve as building blocks for stronger communities and also
encourage and enhance the preservation of farmland. A well-planned market
can create a safe, festive, and healthy atmosphere in which all members of the
community can participate. In urban areas, farmers markets provide a link between
5
Introduction
1
food consumption and production, allowing residents to get a better sense of their
foods’ origins.
Farmers markets address the needs of many low-income communities, where
access to quality produce is severely limited. Corner markets and convenience
stores in low-income communities oftentimes are the primary providers of fresh
produce. Quality at these markets is mostly poor and prices are often higher than
those in retail grocery stores. Families are subsequently left with very few options
for creating a balanced, healthy diet without spending considerable time and
money to travel outside their neighborhoods.
Farmers markets are an excellent way for these communities to address their
nutritional needs by making available a more diverse and afordable selection
of fresh produce. In Hartford, Connecticut, the Latino population comes largely
from predominantly rural Puerto Rican backgrounds. However, living in a large
city makes it nearly impossible to maintain their agricultural traditions. For these
people, old and young, meeting farmers at the market and eating farm-fresh foods
are thus an important relationship between this community and its agricultural
heritage.
Farmers markets contribute to local food security and agricultural diversity. In
today’s agriculture, vast areas of the country specialize in only one or two crops. At
the same time, more American farmers increasingly depend on transportation and
expensive technologies to compete in the global marketplace.
Farmers markets draw consumers into cen-
tral downtown areas, local malls, and store
parking lots. This, in turn, generates sales and
exposure for local businesses. Some mar-
kets provide a time and place for nonproft
groups, community organizations, city of-
cials, and University of California Cooperative
Extension specialists to provide information
on topics such as local classes, health issues,
and summer activities. Some markets, such
as the Capitol Square Market in Madison,
Wisconsin, and the Eighth and Oak Street
Market in Eugene, Oregon, are famous for
their public forums and free-speech sites.
Farmers markets contribute to local food security and agricultural diversity. A
number of political and economic factors are converging to give a signifcant
competitive edge to large agribusinesses and to reduce the number of small and
6
Starting a New Farmers Market
family farms. The entire food system has become so large and complex that many
consumers feel powerless to infuence it. Farmers markets empower consumers
and make communities more interdependent. The local population can support its
local farmers, who in turn get more money to invest in local businesses. As a result,
communities as a whole develop a more secure economic base and food system.
The Purpose of this Manual
Anyone can start a farmers market—city governments, farmers, community
groups, business associations, individuals—but becoming a certifed farmers
market in California involves certain requirements and conditions. Our focus here
is particularly on certifed farmers markets and markets organized by and with
farmers as owners. Every market comes together diferently according to vari-
ables such as local demographics, politics, and site availability. The combination of
goals, resources, and organizational challenges are unique to each market. How-
ever, many markets have similar needs when they frst get going. This manual is
designed to guide users through the process of starting a farmers market. It covers
successful methods and innovative strategies developed by many experienced
market managers and professionals. These approaches should be carefully tailored
to ft an individual market’s needs. By using this manual as a companion to your
start-up activities, you can avoid many common pitfalls of the start-up process and
lay a solid foundation for a viable and successful market.
The next chapter will guide you through setting up an organizing committee and
conducting a feasibility study to determine your potential for success in starting a
farmers market in your community.
7
2
Envisioning the Farmers Market
in Your Community
T
he previous chapter provided a history of farmers markets
so that you could see their origins and purposes from the
early days of European settlement of North America to the
present. This chapter will help you to look forward and use the
rich history of farmers markets to create a vision of the farmers
market you would like to see developed in your community.
The idea for a farmers market can originate with farmers,
consumers, a community organization, or a combination
of groups. One person may wish for a source of fresh local
produce and work to make that wish a reality. Or an urban
development group may see a farmers market as part of
a larger plan to revitalize a neighborhood. The starting
points difer but the development process follows a pattern:
articulate a vision, gain community support, and create and
implement a plan. The start-up process generally takes about a
year.
An Overview of the Start-up Process
The year that is typically devoted to start-up activities is a busy
one. It involves frst articulating your vision and then bringing
together a core group of partners and assessing the feasibility
of starting a farmers market in your community. Once the feasibility of the mar-
ket is established and you decide to move ahead, you develop the organizational
structure and begin forming the board of directors. The board then hires the mar-
ket manager and oversees the remaining start-up activities. Start-up activities can
be categorized as organization building; assessment, planning, and infrastructure
building; and preparation for opening day and beyond.
Establishing and developing the organization begins with an organizing com-
mittee made up of members who actively work to make the market a reality.
Identifcation of potential partners and supporters, initial outreach, and meetings
of organizers and of farmers and other potential vendors are key activities for suc-
This chapter will enable
you to:
? Articulate your vision
for a new farmers
market in your
community.
? Understand the steps
involved in creating a
new farmers market.
? Identify individuals
and organizations as
potential partners or
supporters.
? Establish an efective
organizing commitee
and working commitees
to conduct a feasibility
study.
8
Starting a New Farmers Market
cess. It is important to create working committees of committed, results-oriented
individuals and to establish an efective, productive board of directors. These are
the people who will make decisions and establish the bylaws and policies for the
market, and their eforts will be crucial to the market’s success.
Assessment and planning includes gauging community support, analyzing con-
sumer demand, preparing a written plan and budget, establishing the business
and fnancial structure of the market, writing rules and bylaws, choosing a site, and
researching and complying with permitting requirements and other regulations.
Preparation for opening day consists of promoting the opening of the market,
planning special events for open-
ing day, and ensuring that all the
participants—from vendors to volun-
teers—know what to expect and are
adequately prepared.
Articulating Your Vision
The frst step in starting a farmers
market is getting your ideas on paper.
You probably have a mental picture
of the farmers market you want to
create or of the problem to be solved
with the addition of a market in your
community. But to make your vision
a reality, you need to put that vision
into words so that others can under-
stand it and share it.
Following are descriptions of several
farmers markets. Each one is success-
ful and refects a unique vision. Read
the descriptions and highlight the attributes of each market that appeal to you.
You also can note things that do not appeal to you or that do not seem relevant
to your community. You can then use these notes to describe your vision for your
farmers market.
9
Envisioning a Farmers Market in Your Community
2
Market 1
Greenmarket – New York City
Greenmarket in New York City runs open-air seasonal farmers markets in neighbor-
hoods throughout the city. According to the Greenmarket website, “Greenmarket,
a program of the Council on the Environment of New York City, promotes regional
agriculture and ensures a continuing supply of fresh, local produce for New York-
ers. Greenmarket has organized and managed open-air farmers markets in New
York City since 1976. By providing regional small family farmers with opportu-
nities to sell their fruits, vegetables, and other farm products to New Yorkers,
Greenmarket supports farmers and preserves farmland for the future.” Some mar-
ket facts from the website illustrate
the Greenmarket vision and how it
is put into action:
? Forty-seven markets in
thirty-three locations in
Manhattan, Brooklyn,
Queens, the Bronx, and
Staten Island.
? Twenty-three of the markets
in sixteen locations operate
year round.
? More than 250,000 custom-
ers frequent the markets
each week during the
peak season.
? Coupons ofered by the Farmers Market Nutrition Program worth more
than $800,000 were redeemed at Greenmarket in 2000.
? More than 105 restaurants obtain ingredients from Greenmarket farmers
each week.
? Three thousand students from eighty-two schools participate in
Greenmarket’s educational tours.
? Greenmarket farmers donate about 500,000 pounds of food to City Harvest
and other hunger relief organizations each year.
To ensure an adequate supply of farm products for New York City consumers,
Greenmarket collaborates with Cornell University Cooperative Extension in the
10
Starting a New Farmers Market
New Farmer Development Project, an efort that helps immigrants with farming
experience to become farmers in the New York metropolitan region.
Market 2
Dane County Farmers Market – Madison, Wisconsin
The mission of the Dane County Farmers Market refects another vision. Dane
County Farmers Market, Inc. is an organization founded to pursue the following
goals:
? To give growers and producers of Wisconsin agricultural commodities and
other farm-related products alternative marketing opportunities.
? To promote the sale of Wisconsin-grown farm products.
? To improve the variety, freshness, taste, and nutritional value of produce
available in the Madison area.
? To provide an opportunity for farmers and people from urban communities
to deal directly with each other rather than through third parties and to
thereby get to know and learn from one another.
? To provide an educational forum for consumers to learn about the uses and
benefts of high-quality, locally grown or prepared food products.
? To provide educational opportunities for producers to test and refne their
products and marketing skills.
? To enhance the quality of life
in the greater Madison area
by providing a community
activity that fosters social
gathering and interaction.
? To preserve Wisconsin’s
unique agricultural heritage
and the historical role that
farmers markets have played
in it.
The market’s website (www.dcfm.
org/aboutmkt.asp) ofers the follow-
ing details:
? The Dane County Farmers Market on the Square is a Saturday and Wednes-
day tradition in Madison.
11
Envisioning a Farmers Market in Your Community
2
? You will fnd the season’s best bounty of vegetables, fowers, and specialty
products from approximately 300 vendors. All of the agriculturally related
items are produced in Wisconsin. The market is reported to be the largest
producer-only farmers market in the country!
? Both the Saturday and Wednesday locations are easily accessible by bike,
bus, or car. Dogs (except service dogs) are NOT ALLOWED on the Square
during the Saturday Market—it is a safety issue.
? The Saturday Scene on the Square is really four diferent events going on
at once.
? The Dane County Farmers Market is the heart of the activities on the
square. Our vendors line the outside edge of the state capitol grounds.
They sell agriculturally related producer-only products from Wisconsin. The
market has strict rules and a three-year waiting list for new vendors.
? The interior of the state capitol grounds is used for nonproft, political, and
public information booths and for various entertainment activities. All per-
mits are handled through the capitol police.
? The arts and crafts vendors are located across the street on city property.
Permits for this market are handled through the City of Madison.
? Also, many street musicians play across the street on city property and add
to the festivities.
? Enjoy the market as often as possible. It is about fun, food, and friendly
vendors. Early arrivals get frst choice of the fne selection. It is a great place
for people watching too.
After reading the descriptions of these two markets, it is easy to see the diferent
visions of the markets’ founders and directors. Greenmarket’s vision is oriented
toward building a healthy, nutritious food supply that is accessible and afordable
to low-income consumers and that protects the region’s agricultural heritage and
capacity. Dane County Farmers Market includes agricultural preservation as well,
but it also includes quality of life, interactions between farmers and consumers,
and education. Dane County Farmers Market is a “destination” market, while Green-
markets are “stop and shop” markets; one entices consumers to linger and enjoy
the area, while the other is designed for convenient access.
12
Starting a New Farmers Market
Market 3
Urban Oaks – New Britain, Connecticut
Yet another vision is demonstrated in the case of Urban Oaks farmers market
in New Britain, Connecticut. Urban Oaks is a small organic farm in the heart of
industrial New Britain. When farmland in rural Bolton was being gobbled up by
suburban housing development, Tony Norris and his partner gave up their rented
Bolton farmland and returned to Tony’s hometown of New Britain, where they
converted an abandoned lot into an organic farm. Urban Oaks is a fnancially self-
supporting nonproft organization. Tony hires local youth who can work on the
farm as long as they keep up their grades in school. He also helps young employ-
ees to navigate the admissions and fnancial aid systems to attend college, many as
the frst in their families to do so. In addition to supplying restaurants and univer-
sity dining halls, Urban Oaks is the source of healthy organic fruits and vegetables
in its neighborhood, and it has become a distributor for organic farms throughout
the region. One day a week Urban Oaks ofers a farmers market that makes high-
quality produce available to the largely immigrant community in its New Britain
neighborhood as part of its larger commitment to contributing to the neighbor-
hood and to the viability of organic farming.
What is Your Vision?
The markets described here ofer just a few of many possible variations for a vision
of a farmers market.
Now that you have
read them, which
ones appeal to you?
What would you
include in your vision
of the farmers market
you want to create?
List the characteristics
you envision for your
farmers market on
the next page. You
can use the elements
shown in the boxes to
help you defne your
vision and check the
ones that interest you.
13
Envisioning a Farmers Market in Your Community
2
? Afordable produce
? Accessible by public transporta-
tion
? Lots of variety
? Individuals/families as customers
? Neighborhood-based
? Downtown
? Convenient
? Community gathering place
? Cultural forum
? Information dissemination
? Free speech
? Gourmet products
? Meat, fsh, dairy, eggs, honey
? Restaurants as customers
? Entertainment
? Family friendly
? Arts and crafts products
? Value-added products
? Education
? Product demonstrations
? Fundraising
? Agricultural heritage
? Sustainable agriculture
My vision includes:
Vision statement:
Desirable Characteristics for your Farmers Market
14
Starting a New Farmers Market
Using Your Vision to Create an Efective Organizing Commitee—
Forming Partnerships and Building Community Support
Your vision for the farmers market will direct your search for partners and sup-
porters. There are many possible sources of collaboration and support, and your
venture will be most successful if you involve the organizations and people who
share your vision and will work with you to make it a reality.
Some potential partners and supporters are listed on the following page. Put a
check next to those whose work seems most closely aligned with your vision for
the farmers market.
Once you have identifed potential partners and supporters, you should share your
vision with them and invite their participation in making that vision a reality. This
happens through the initial contact, by an invitation to an organizing meeting, and
during the meeting.
15
Envisioning a Farmers Market in Your Community
2
? 4-H Clubs ? Town, city, and county governments
? Chambers of commerce ? Food buying clubs
? High school or university
agriculture departments
? County economic opportunity
commissions
? Commodity boards and
marketing orders
? Downtown improvement districts
and development associations
? Community development
corporations
? Community development programs
at local colleges
? Community gardens ? Garden clubs
? Consumer cooperatives ? Cooking classes/clubs
? County farm bureau ofces ? Food pantries/soup kitchens
? Economic development ? Ethnic organizations
? Food banks ? Local U.S. Department of Agriculture ofce
? Sustainable or organic farm-
ing
? State departments of food and
agriculture
? Direct marketing programs
and organizations
? Farmers market associations or
federations
? County nutrition programs ? Herb societies
? Restaurants ? Master gardeners
? Health clubs ? Local Grange
? Religious groups (churches,
synagogues, mosques, etc.)
? Service organizations (Elks, Lions,
Rotary Club, etc.)
? County agricultural
commissioner’s ofce
? County farm advisors/Cooperative
Extension ofces
? Elected ofcials ? Local production or marketing coopera-
? Future Farmers of America ? Local farm trails
16
Starting a New Farmers Market
Reaching Out to Potential Partners and Supporters
Outreach to potential partners and supporters can happen formally or informally.
One approach is to begin with people you already know who are involved in any
of the organizations you would like to recruit. Call and ask them to participate and
for an introduction to their colleagues in other organizations. Another approach is
to write a letter that accomplishes both the introduction and the invitation to an
initial meeting. In your letter, describe your vision for a new farmers market and
any partners or other details that have been determined and outline the roles and
responsibilities you foresee for partners.
As you recruit organizations and individuals, consider the following characteristics:
? The organization’s goals, activities, and approach to partnerships add
an important quality to your organizing committee and the individual
recruited is willing and able to represent the organization.
? The individual representative has the authority to make commitments on
behalf of the organization or is in communication with those who have the
authority.
? The individual has the time and energy to participate actively in the
start-up process.
? The individual will work positively and collaboratively with other individu-
als and organizations in the group.
If any of these criteria are not met, you may need to reconsider the commitment
you are requesting, the role you want that organization or individual to play,
the suitability of that individual representative, or even whether to invite the
organization’s participation. Consider your organizing committee members care-
fully because they are the people whose work will determine whether you move
forward with starting a market. If you are planning a market for a low-income area,
you should read through Chapter Three, Organizing a Market in a Low-Income Area,
so that you can address issues specifc to such neighborhoods from the beginning.
The Organizing Meeting
When you bring together potential partners and supporters for an initial organiz-
ing meeting, you can have a basic framework prepared so that all participants can
form a realistic idea of the commitment and activities involved in starting a new
farmers market and decide whether they can make a commitment to the project.
17
Envisioning a Farmers Market in Your Community
2
Before the Meeting
? Send out invitations three to four weeks in
advance of the meeting.
? Secure a functional, comfortable,
accessible space.
? Plan your agenda.
? Send reminder emails or make reminder calls
to ensure good attendance.
Write a leter of invitation to the meeting. The frst meeting is an opportu-
nity to bring prospective partners and supporters together to share information
and ideas. To establish a small group of active partners, you need to reach out
to a somewhat larger group. Introduce the idea of the farmers market and invite
people to the organizational meeting with a brief letter that includes:
? A one-sentence description of the purpose of the meeting, which is the for-
mation of an organizing committee and working committees to establish
the feasibility of starting a farmers market.
? The meeting date, time, and location.
? The benefts that markets bring to farmers and producers, consumers, and
communities.
? Your vision for a local farmers market.
? Any people and organizations that are already involved in the efort to
establish the market.
? Contact information.
? A request that they RSVP.
The next two pages contain a sample letter of invitation and a sample agenda.
18
Starting a New Farmers Market
Sample Letter of Invitation
Your Name
Address
Recipient’s Name
Recipient’s Organization
Address
March 1, 2006
Dear _________________________:
I am writing to invite you to a meeting to discuss starting a farmers market
in our town and to create an organizing commitee and working commitees
that will assess the feasibility of creating a farmers market. The meeting will
be held in the Public Library Community Room on Tuesday, March 23, from
4:30–5:30 p.m.
Starting a farmers market in our town could bring many benefts to farmers,
consumers, and communities. For farmers, a market means the opportunity
to sell directly to consumers, thereby earning a larger share of the price than
when selling wholesale. It also means the opportunity to hear consumers’
preferences directly and to test new and specialty products. For consumers,
a farmers market means access to high-quality, locally grown produce and
other farm products. For communities, a farmers market can have both social
and economic benefts. Farmers markets can be popular gathering places,
strengthening a sense of community. They also can bring economic benefts
as people come to buy at a farmers market and stay to shop at neighbor-
ing businesses. We envision a farmers market that is an enjoyable gathering
place, a source of healthy local food, and a strong contributor to the social
and economic vitality of our town and surrounding agricultural communi-
ties.
The Chamber of Commerce and the Grange Hall have both expressed an
interest in supporting the project, and they join me in inviting you to this
organizational meeting. Please contact me at 555.123.4567 by March 15 to
RSVP and if you have questions or would like to discuss the project. We look
forward to seeing you on March 23rd at 4:30.
Sincerely,
______________________
19
Envisioning a Farmers Market in Your Community
2
Create an Agenda for the
Meeting. Create an agenda
so that you will use the
meeting time productively.
The meeting should achieve
three objectives: Share your
vision, gain commitments
from a sufcient number of
people to form an organizing
committee, and create work-
ing committees to take on
the tasks involved in assess-
ing the feasibility of starting
a market. The sample agenda
at right includes agenda
items to support each of
the meeting’s objectives,
along with an estimate of
the amount of time to spend
on each item. Try to balance
time for discussion with the
need to keep the meeting
manageable in length so that
people do not start leaving
before committing to work-
ing on making the market a
reality.
Running a
Successful Meeting
Especially in an initial organizing meeting, it is crucial that interest and commit-
ment not be undermined by poor meeting facilitation. Everyone has been to
meetings that do not start on time, continue well past the expected adjournment,
or do not accomplish anything because they are poorly run. The worst possible
outcome is that people who could be instrumental in the success of a new market
simply do not want to be part of your project. If you are not an experienced and
confdent meeting organizer, you might want to use the information that follows
to help make sure your meeting is a success.
Farmers Market
Organizational Meeting Agenda
Place:
Date:
Time:
1. Welcome and introductions.
(ten minutes)
2. PowerPoint presentation: What is a
farmers market and what would it mean
to our community?
(ten to ffeen minutes)
3. Questions and answers.
(twenty to thirty minutes)
4. Outline of the start-up process.
(ffeen minutes)
5. Next steps: Establishing the organizing
commitee, forming working commitees,
and recruiting commitee members
and chairs.
(thirty minutes)
6. Next meeting date.
(fve to ten minutes)
7. Adjourn.
20
Starting a New Farmers Market
Beginning the Meeting
? Provide name tags at the entrance area. All attendees should have name
tags, as this makes it easier to start conversations with new people.
? Begin on time.
? Start by clearly defning the roles of the facilitator, notetaker, timekeeper,
and any others participating in running the meeting.
? Ask participants to introduce themselves to those near them and briefy
describe why they are there.
? Set ground rules, such as clear time limits for each item and the amount of
time available for questions and discussion.
Facilitating the Meeting
? Follow the agenda and stick to time limits. If any new
issues come up that are obviously important to people,
add them to the agenda or schedule them for the next
meeting. But do not let these other issues distract you from the agenda item at
hand.
? Distribute a mailing list sign-up for attendees to fll out during the meeting.
Concluding the Meeting
? Give a quick summary of the discussions and the decisions that were made
at the meeting. Re-establish action items: who, what, when.
? Read the list of people and organizations that have committed to joining
the organizing committee.
? Take a count of potential volunteers for working committees.
? Set the date and place of the next meeting and develop a preliminary
agenda.
? Close the meeting on a positive note and on time.
Afer the Meeting
? Evaluate the meeting with the other organizers.
? Clean up and rearrange the room.
? Prepare the group memo for the next meeting and send out thank-you
cards to key community members for their participation.
21
Envisioning a Farmers Market in Your Community
2
? Follow up on action items and begin planning for the next meeting.
Commitees and Their Roles and Responsibilities
The Organizing Commitee
The organizing committee has several major responsibilities. First, in working com-
mittees, this group conducts the assessment and analysis necessary to establish
the feasibility of starting a market. Second, the organizing committee analyzes
the fndings of the working committees and decides whether to proceed. Third,
the organizing committee determines the organizational structure of the market
and creates the board of directors, which then writes bylaws and hires the market
manager.
The importance of the organizing committee and the working committees can-
not be overstated. The individuals who comprise the organizing committee must
be eager, action oriented, and keenly focused on completing the early tasks of
assessing the feasibility of the market and creating an efective board of directors.
Gaining the commitment of this core group is critical. Team members should be
aware that starting a farmers market requires hard work, excellent communication
skills, and superior organizational abilities.
If a sufcient level of commitment is not achieved at the frst meeting, it may be
necessary to seek individuals who are especially interested in helping to start the
market and have the time to commit to the project. Continue to network with
established committee members, city ofcials, and key community activists to
recruit people so you can build a solid team.
Once an organizing committee is in place, the next step is to create working com-
mittees to assess the feasibility of starting a new market. If farmers themselves
initiate the market, their views will be strongly represented in the working com-
mittees. However, if community organizers are starting the market, they need to
ensure that grower interests are represented on all committees.
Designate teams of volunteers and/or members of the organizing committee to
serve on the following key committees.
? Market Analysis—This committee assesses the need
and potential support for the market in the community.
Part of this committee’s work may involve consumer
education to strengthen demand for the locally grown
products available at a farmers market.
22
Starting a New Farmers Market
? Site Analysis—This committee assesses potential sites for a new farmers
market.
? Financial Analysis—This committee assesses potential revenue and costs to
evaluate the fnancial self-sufciency or proftability of the market and the
potential for proftability for vendors.
? Vendor Recruitment—This committee’s work involves not only assessing
whether there is a sufcient number of local farmers for a successful market
but also recruiting farmers to sell at the market.
Chapters Three and Four deal with special considerations for starting a farmers
market in a low-income area, including some issues that afect the feasibility study.
Those chapters are followed by several chapters that outline how to conduct a
feasibility study to determine whether to move forward with a market.
23
This chapter will enable
you to:
? Be aware of special
issues associated with
starting a market in a
low-income area.
? Be aware of
characteristics
of markets that
successfully serve
low-income areas.
3
Organizing in a Low-Income Area
L
ow-income communities ofer many opportunities for
direct marketing of fresh produce and other agricultural
products. Some of the largest and most successful markets
in the United States are situated in low-income, inner-city
neighborhoods. And many smaller rural markets also serve
communities with limited incomes. These markets provide
benefts such as a community focal point, entrepreneurial
development opportunities, and a reliable, afordable source of
fresh produce.
Why Start a Market in a Low-Income Area
Farmers markets play an important role in delivering fresh
produce directly from farmers to consumers. In low-income city
neighborhoods, a weekly farmers market is sometimes the only source of fresh,
nutritious, economically priced food. Because large grocery chains sometimes fnd
it unproftable to locate in these areas, produce and meat sales are often left to
convenience and liquor stores that do not focus on freshness, quality, or selection.
Grocery stores are often few and far between in low-income areas, so people
frequently rely on fast food outlets for meals. According to information presented
at the November 1999 Community Food Security Workshop in Chicago, for
example, “in one neighborhood in East Los Angeles, there were approximately 700
liquor stores and only one grocery store within a twenty-mile area. That grocery
store stocked its meat and produce sections with the lowest-quality product, ofer-
ing wilted vegetables and meat with sell-by dates that had expired.” The lack of
supermarkets creates a vacuum in supply that leaves much of the local demand for
fresh produce unmet. In 2002, the Center for Food and Justice reported that there
are typically three times as many supermarkets per capita in upper- and middle-
income neighborhoods as in low-income neighborhoods. In some areas, where
access is severely limited, many residents are considered to be food insecure.
But food shortages and nutritional defciencies are not problems only for inner cit-
ies. Rural communities often face similar dilemmas. In 2001, more than 32 million
24
Starting a New Farmers Market
Americans lived at or below the poverty threshold. Many of those people had to
rely on food banks, soup kitchens, and other food assistance programs on a regular
basis. Farmers markets play a vital role in delivering fresh produce directly from
farmers to consumers.
Considerations for
Markets in Low-Income
Areas
When considering starting a
market in a low-income neighbor-
hood, the working committees
discussed in Chapter Two will
have to address needs and issues
particular to such areas. Each of
the following considerations can
be addressed during the process
of analyzing the feasibility of starting a new market.
Special Considerations
? The product mix must be geared to demographic and cultural charac-
teristics of the market’s customers, which is sometimes a challenge to
determine. (Market Analysis Committee)
? Finding farmers who can provide appropriate products may require some
organizing efort. (Vendor Recruitment Committee)
? Customer education on how to prepare fresh produce may be challenged
by language or other cultural diferences. (Market Analysis Committee)
? Limited incomes decrease customers’ purchasing power. (Market Analysis
Committee, Financial Analysis Committee)
? Farmers are usually looking for the highest price they can command and
may resist committing to a low-income market. (Vendor Recruitment Com-
mittee)
? The cumulative, limited purchasing power of a market’s area may not be
adequate to keep farmers and the market in business. (Financial Analysis
Committee)
25
Organizing in a Low-Income Area
3
? Many low-income individuals hold multiple jobs and may not have the
fexibility to shop during the market’s limited hours. (Market Analysis
Committee)
? Transportation options to and from the market may be limited. (Site Analy-
sis Committee)
? Individuals may have difculty carrying bulky produce purchases on public
transportation. (Market Analysis Committee)
? In large urban areas, some neighborhoods have access to sources of inex-
pensive, culturally appropriate produce that is available year-round from
chain discount stores. (Market Analysis Committee)
? Large chain discount markets such as Food for Less, Sam’s Club, and Costco
may ofer prices that are lower than those at a farmers market. (Market
Analysis Committee)
? If price is the overriding issue, a farmers market may not succeed. However,
freshness, quality, availability, and ambience can add extra attributes to the
product mix and support a willingness to pay slightly higher prices. (Market
Analysis Committee)
Elements of Successful Markets in Low-Income Areas
Successful markets in low-income areas are supported, endorsed, and developed
as vital components of their communities. The desire for a farmers market should
be broad-based with support that is not limited to a single nonproft group, reli-
gious organization, or merchant association. A community-organizing approach
to establishing a new market is more fruitful than a publicity-based strategy. Other
successful market strategies include:
? Involve as many people as possible in the organizing process.
? Create a farmers market advisory committee with members from nonproft
groups, religious organizations, merchant associations, and other stake-
holders.
? Determine that transportation is available via bus or other local means and
that adequate parking space also is available.
? Create a market publicity plan, which is vital to the survival of the mar-
ket. The plan should include community organizing, media work, special
events, and local merchant tie-ins. Research the marketing strategies that
already are being used for previous successful events in the community.
26
Starting a New Farmers Market
? Consider consumer income levels and ethnicities when identifying poten-
tial products and recruiting farmers. Conduct surveys of consumers in the
community to determine product preferences.
? Make sure that market organizers are well connected to local political
representatives.
? Meet with city and county representatives at the beginning of the market’s
organizing process. Market organizers will run into regulatory problems
that require political assistance. Inform political leaders about the farmers
market that you are organizing in their district before you need their assis-
tance.
? Consider locating the market in a “transition” neighborhood—one that
draws both low- and middle-income customers. This type of location may
have a better chance of success than a market located in a strictly low-
income area.
? Accept food stamps. Individual farmers or the market in general can be
certifed to accept food stamps. (See details about food stamps in Chapter
Four.)
? Participate in the Women, Infant and Children (WIC) and Senior Farmers
Market Nutrition Programs (SFMNP) at the farmers market. Some markets
are open only for the duration of the program (May 1–November 30) with
80 percent of their clienteles being WIC participants. (See details about
these programs in Chapter Four.)
? Guarantee that customers feel safe while shopping at the market. It may be
necessary to hire security or ask for police assistance to ensure that custom-
ers feel secure while at the site.
? Suggest that farmers use multitier pricing that provides discounts for vol-
ume purchases.
Alternatives to Farmers Markets for Low-Income Areas
Some of the challenges of operating a farmers market in a low-income area have
led to development of alternative marketing strategies that still take advantage of
federal food assistance programs while improving access to local farm products.
Subscription farming enterprises such as CSAs (community-supported agriculture)
provide these opportunities, as do farm stands and you-pick direct-marketing
venues.
27
Organizing in a Low-Income Area
3
Case Study: Growing Power’s Market Basket Program
In 1995, Will Allen began to develop an alternative marketing
venture for the produce he grew on his urban farm. His idea was
to form a cooperative community-supported agriculture (CSA) or
subscription marketing agreement with several other local small
farms. The project would also work with local youth to provide
education on sustainable agriculture and marketing. The target
market was low-income residents of Milwaukee.
Today, the program has grown to serve 300 subscribers throughout
Wisconsin at more than thirty-fve drop-of points. It has become
known as the Market Basket Program and is run through Growing
Power, a nonproft organization working in Milwaukee, Chicago,
and Homer, Alaska, to provide high-quality, healthy, afordable
food in those communities. Growing Power develops “community
food centers” that ofer training, active demonstrations, outreach,
and technical assistance. Community food centers are local places
where people learn sustainable practices to grow, process, market,
and distribute food.
Will is now the director of Growing Power. He says that 50 percent
of Market Basket subscribers pick up their produce at the Mil-
waukee community food center, where they can use both Farmers
Market Nutrition Program coupons and Food Stamp EBT cards
to pay. According to Will, other features of the program that con-
tribute to its success with low-income people are its convenient
ordering procedures and afordable prices. Customers place orders
for the produce weekly, unlike most CSAs, which require monthly,
seasonal, or even annual subscriptions. The program ofers two
options: a $12 box of conventional produce packed to contain a
retail value of about $24 and a “Sustainably Grown” box at $24 that
features organic products.
Growing Power works with Wisconsin Shares to make Wiscon-
sin deliveries outside of Milwaukee and has recently expanded
through Growing Power’s Chicago food center to include six more
delivery points.
28
Starting a New Farmers Market
Several markets have experimented with programs modeled on the subscrip-
tion or CSA marketing structure. These programs are often called “market basket”
programs because they feature a basket or box of market produce. The produce is
supplied by vendors and packed by the market’s staf or volunteers for home deliv-
ery or pick-up at a more convenient location such as a local WIC ofce. Participants
in the program use the same benefts they would have used at the market to pay
for the produce.
These programs can help markets, vendors, and customers overcome some acces-
sibility barriers such as electronic benefts transfer (EBT) implementation and
transportation issues inherent to regular farmers markets. Some programs have
succeeded in becoming sustainable; others have not. For an example of one of the
more successful programs of this type, see the case study titled “Growing Power’s
Market Basket Program” on the preceding page.
Conclusion
Once the organizing committee has conducted the feasibility study and chosen to
move ahead in organizing a farmers market, the next step will be to form a board
of directors and hire a market manager. While the cost of hiring a market manager
may be more of an issue for a market in a low-income area than for a market in
a more afuent community, the additional bureaucracy involved in federal food
assistance programs means that it is vital to have someone at the helm who has
the necessary knowledge, skills, and time to devote to start-up activities. For more
on federal food assistance programs and processes, see the next chapter.
29
4
Federal Food Assistance Programs
B
efore choosing to move ahead with starting a farmers
market in a low-income area, you will need to establish the
feasibility of the market by adapting the feasibility study pro-
cess outlined in Chapters Five through Eight. If the prospects
for a new market’s success are positive, then the organizing
committee needs to establish a board of directors, hire a mar-
ket manager, and follow the same process outlined in Chapters
Nine through Sixteen.
Additional considerations apply to markets in low-income
areas. The U.S. Department of Agriculture’s (USDA’s) Food
and Nutrition Service (FNS) now operates several programs
that help low-income people obtain better access to food
and nutrition. Three of these services—Women, Infants and
Children (WIC), Senior Farmers Market Nutrition Programs
(SFMNP), and Food Stamps—can be used at farmers markets
with benefts to consumers as well as vendors. During the
feasibility study, the fnancial-analysis committee can assess the potential of the
market to work with various food assistance programs and how doing so would
afect the fnancial viability of the market.
Farmers Market
Nutrition Programs
Two of USDA’s Food and Nutrition Service
programs directly involve farmers markets—
the WIC Farmers Market Nutrition Program
(FMNP) and SFMNP. WIC provides supple-
mental food, health care referrals, and
nutrition education at no cost to women
who are pregnant or postpartum and to
infants and children up to fve years old
who are at nutritional risk. SFMNP awards
grants to states, U.S. territories, and feder-
ally-recognized Indian tribal governments
This chapter will enable
you to:
? Be aware of various
programs specifc to
markets and consumers
in low-income
communities.
? Make informed
decisions about
participation in
federal food assistance
programs.
30
Starting a New Farmers Market
to provide low-income seniors with coupons that can be exchanged for approved
foods at farmers markets, roadside stands, and CSA programs.
Both programs provide only a limited value of coupons per year to each partici-
pant (typically $20) per season, but the cumulative income can still be signifcant
for vendors. In addition, the educational components of the programs promote
the health benefts of eating fresh produce and expose potential new customers
to farmers markets. A California survey of WIC FMNP participants showed that they
consumed an average of about one extra serving of fruits and vegetables per day
after participating in the program. Eighty-fve percent reported that their frst visit
to a farmers market was through the program.
A 1997 random survey of 2,000 participants in the USDA WIC FMNP found that
the program helped motivate low-income . . . mothers to buy and eat fresh
fruits and vegetables from farmers markets.
Farmers who receive the coupons generally exchange them with farmers market
management for cash or as payment for their stall fees. The issuing state agency
then reimburses the market for the value of the coupons. Farmers also may redeem
the coupons as they would cash checks at local banks.
The farmers market nutrition programs are popular with vendors because of the
additional sales generated by the program’s coupons. Marcia Veldman, manager
of the Bloomington Community Farmers Market in Bloomington, Indiana, reports
that, when the WIC FMNP coupons were frst introduced at her market, only a few
vendors chose to participate. But other vendors quickly signed on when they saw
how many additional sales were generated for farmers at booths that accepted
them. Her vendors found that signing up was simple, and they enjoyed being able
to sell their products to the women participating in the program, which has grown
signifcantly. In 1998, it accounted for $13,245 in sales at the Bloomington market.
At New York City’s Greenmarkets, FMNP purchases accounted for
$800,000 in sales in 2000.
Successful FMNP projects have included educational components
that result in signifcant benefts such as increased consumption of
fresh vegetables and a greater awareness of local sources of fresh
produce. Markets that have participated in FMNP projects that did
not successfully convey information to customer-participants found mixed success
with the program. The case study at the end of this chapter illustrates an example
of this concern.
Many state agencies and tribal organizations participate in FMNP. To fnd out if
your state is involved, visit the USDA website for updates and additional informa-
tion or call the local USDA Food and Nutrition Service feld ofce.
31
Federal Food Assistance Programs
4
USDA and Congress have received assistance in FMNP promotion from the
National Association of Farmers Market Nutrition Programs. This organization
is made up of representatives from participating states, tribes, and territories in
addition to the markets involved. The association produces an annual report that
analyzes how the coupons are used and provides details on their impact in each
state.
Food Stamp Program
Nineteen million people received food stamp assistance in 2002. The Food Stamp
Program serves U.S. citizens and qualifying noncitizens who have been determined
to be in need of food assistance. The program’s goal is to help low-income house-
holds purchase the food they need for a nutritionally adequate diet. State and local
welfare ofces operate the program under the administration of the federal gov-
ernment.
The Food Stamp Program enables low-income families to buy nutritious food
with coupons and electronic benefts transfer (EBT) cards. Food stamp recipients
spend their benefts to buy eligible foods from authorized retail food stores and
farmers markets.
Many farmers markets are authorized to accept food stamps. As with FMNP, the
benefts are transferred, either by an authorized vendor or the market manage-
ment, directly into the retailer’s bank account. To learn more about the Food Stamp
Program, visit the USDA Food Stamp Program website at www.fns.usda.gov/fsp,
email [email protected], or call 800.221.5689 for contact information.
Electronic Beneft Transfer
An important change in the method in which the Food Stamp Program is being
administered is currently being implemented. The Welfare Reform Act of 1996
required that all states eventually switch to issuing Food Stamp Program benefts
via electronic beneft transfer or EBT. EBT is intended to replace paper stamps.
What is EBT?
Forty-nine of the ffty-one EBT systems currently in operation use magnetic strip
cards similar to bank debit cards. Food stamp recipients are given an account,
choose a personal identifcation number, and then use the cards at points of sale to
purchase food. Transactions are completed online, usually via a telephone connec-
tion.
32
Starting a New Farmers Market
When the cards are swiped through a transaction machine, the online system
authorizes the identifcation number, examines the available balance, and, upon
approval, transfers the government benefts from the consumer’s account to the
retailer’s account. Instead of picking up food stamps at the local ofce, food stamp
recipients are given their regular monthly benefts by an automatic addition to
their EBT accounts.
Two states, Ohio and Wyoming, are implementing alternative EBT systems that
use an ofine “smart card” technology instead of online magnetic strip cards. The
“smart cards” are embedded with microprocessor chips that manage account
transactions at the point of sale without the need for a network connection.
Monthly balances are reset when a participant visits the local benefts ofce.
All the equipment required to implement these systems is provided free of cost
to retailers by the state or a state-contracted supplier. Retailers still must acquire
authorization from the local USDA Food and Nutrition Service feld ofce to par-
ticipate. To fnd the most current information on EBT, visit the USDA Food and
Nutrition Service website at www.fns.usda.gov/fsp/ebt/default.htm.
How EBT Impacts Farmers Markets
EBT appears to be a more efcient and secure system for providing welfare recipi-
ents with their benefts while helping to reduce fraud. All states are either using
the system or planning its implementation. Most businesses are already familiar
with the technology to process EBT cards since they accept credit and debit cards.
Unfortunately for farmers markets, most of those cards require online transaction
machines. The machines communicate over telephone lines with a host computer
to perform the balance transfer. Most markets do not have this type of technology
currently available and there is considerable speculation about how to implement
it.
Eighty-fve percent of food stamp benefts were issued via EBT in 2002. Contact the
local Food Stamp Program feld ofce for more information on how food stamp
purchases are handled in your state. For a brief description of projects involving
EBT and farmers markets, visit www.fns.usda.gov/fsp/ebt/ebt_farmers_markstatus_
4_01.htm.
Farmers markets can play a vital role in the food systems of low-income commu-
nities. The Food Stamp and Farmers Market Nutrition Programs support this role,
providing links between farmers and low-income communities through farm-
ers markets. Facilitating the use of noncash purchases through EBT and similar
programs enhances the services a farmers market provides to its vendors and its
customers.
33
Federal Food Assistance Programs
4
The Role of EBT Participation in Market Competition and Success
In 2002, the average value of food stamp benefts was about $80 a month. Any
portion of those benefts could have been redeemed at a farmers market. When
EBT cards are issued in an area in which farmers markets are not prepared to
process them, the markets lose their share of that potential revenue. For farmers
markets to retain these customers, they must be able to accept the same govern-
ment aid programs that are accepted at grocery stores and supermarkets.
The farmers market immediately experienced a large drop in sales when EBT
was implemented in a pilot project. Albuquerque was one of the frst places
where EBT was introduced and the farmers market was not prepared to process
the EBT cards.
– Pam Roy, executive director of the Santa Fe Area
Farmers Market in Albuquerque, New Mexico
Implementing EBT at Farmers Markets
Markets around the country are working on a variety of methods for adopting EBT
technology with various degrees of success. Some markets are experimenting with
automated teller kiosks that accept EBT cards and issue “market dollars,” a currency
that is accepted only at the farmers market. Several slower-paced rural markets
have also tried handling EBT transactions with a single machine at the manager’s
stand. The manager debits the card for a requested amount in exchange for market
vouchers of equal value.
For fast-paced urban markets that handle large volumes of customers, such a
system is likely to be too slow to be efective. These markets need several machines
and potentially one machine per vendor. Just setting up the phone lines for such a
system presents a challenge. People have tried cellular and radio technology trans-
action devices when they cannot hook up to a phone line, but these technologies
are expensive and have not yet become cost efective.
In Wyoming and Ohio, the food stamp program is changing over to EBT through
the use of the smart cards that have a microprocessor chip inside. The transaction
machines, called “smart wallets,” can authorize the user’s identifcation number and
debit the amount of the purchase through the chip, which eliminates the need for
online communication with a host computer. Then, by going online once at the
end of the business day, all of the accounts are settled and confrmed. Smart cards
are commonly used in Europe but relatively unknown in the United States.
34
Starting a New Farmers Market
Case Study: Education as a Part of Assistance Programs
With new customers at farmers markets, education about seasonal
availability and ways to prepare fresh produce contributes greatly
to a market’s success. Alice Whitlatch with the Cedar County
Farmers market in Tipton, Iowa, found that accepting Farmers
Market Nutrition Program (FMNP) coupons was challenging
because participants were not familiar with farmers markets and
the seasonal availability of items sold there. She discovered a
great need for education and communication, not only for FMNP
recipients but also for Women Infant and Children (WIC) Program
personnel and farmers market vendors.
Whitlatch found that the women participating in WIC FMNP
would not come to the market until the end of the season when
they realized they had to use the coupons, which could not be
redeemed elsewhere. At the market, they found few stalls and a
sparse selection of produce. Frustrated, the women ended up buy-
ing large quantities of produce that they did not necessarily know
how to prepare simply because it was the last chance to use the
coupons before the season ended.
For vendors, it was upseting to see the women’s disappointment
and frustrating to see the FMNP coupons used so inefectively.
Market employees realized that the participants were not familiar
with farmers markets and did not always fnd them accessible.
As a result, the Cedar County Farmers Market has begun to ofer
outreach and education to the women on how the markets work,
why the availability and diversity of produce is seasonal, and the
stalls at which the coupons can be used. Market members also
work with the WIC ofce, encouraging the staf there to explain
the process to new WIC recipients.
Whitlatch and her fellow vendors hope that in the coming years
more and more WIC participants will recognize how much the
farmers market ofers and more ofen use their coupons in a way
that benefts everyone involved.
35
Federal Food Assistance Programs
4
Marcia Veldman, manager of the
Bloomington Community Farmers
Market in Bloomington, Indiana,
reports that her state’s Health Depart-
ment makes the annual sign-up for her
market vendors straightforward. Each
year at a meeting before the market
season opens, the state representa-
tive comes to sign up new members,
hand out signs for stalls, and give each
vendor a stamp to put on the coupons
they accept.
Involving the Market in Food Assistance Programs
The importance of food assistance programs to a market depends on the market’s
mission, clientele, and available resources. Questions to be addressed by market
management, the board of directors, and vendors during an assessment of the
programs’ importance include:
?
How important are food assistance programs to customers in the area?
?
Will the market as a whole participate in the Food Stamp Program, the WIC
FMNP program or both or will the decision be left to individual vendors?
?
Are Food Stamp Program recipients using EBT in the area?
?
What is the process by which vendors and/or the market can be authorized
to participate in these programs?
Participation in the Food Stamp Program requires a transition to EBT, but there is
no such mandate for WIC. WIC intends to develop a technology that can do more
than simply authorize personal identifcation numbers and check balances. WIC
would like to establish a system that can provide food, prescriptions, and health
information in addition to payments. The implication for farmers markets? While
FMNP coupons are likely to stay around for a few more years, new technology is on
the horizon.
Shoppers may be confused if only some vendors at a market accept federal assis-
tance programs. Vendors’ stalls should clearly display signs stating the methods
of payment that are accepted. Generally, participation in both of the programs is
left up to individual vendors rather than made by market management. However,
some markets have added a rule to the
bylaws dictating that all vendors must
accept food stamps and FMNP coupons.
For markets operating in low-income
neighborhoods, acceptance of gov-
ernment program payment systems is
essential.
How to Sign Up
Acquiring authorization to accept food
stamps, EBT payments, and FMNP cou-
pons is generally easy but does vary from
location to location. The process is free
but may require an in-person interview
36
Starting a New Farmers Market
or training session and up to thirty days may be required for processing of the
application for authorization. Contact the local USDA Food and Nutrition Service
feld ofce for more information or visit www.fns.usda.gov/fns.
37
This chapter will enable
you to:
? Outline the tasks
involved in the
market-analysis portion
of the feasibility study.
? Collect and analyze
data to determine the
market’s feasibility.
5
Conducting the Feasibility Study:
Market Analysis
Conducting the Market Analysis
T
his chapter covers issues that are specifc to analyzing
the feasibility of a new market. Market feasibility refers
to the potential customer base and demand for farmers
market products and the level and types of competition a
new market will face.
Potential Customer Base
The frst task for the market-analysis committee is collecting
demographic data. The committee should develop a profle
of the local market that considers the age, gender, ethnicity,
languages used, income, and education levels of potential customers. This type of
demographic information can be found at www.census.gov or from sources such
as the local chamber of commerce. Census data are available for census tracts
and zip codes, which are relatively small areas, as well as for cities, counties, and
states. These surveys also include information such as the number of children per
household and the size and number of schools within the trade area. Important
information about potential customers for a farmers market could include gender,
age, household income, education level, neighborhood, ethnicity, the presence of
children, and how many times a week households typically prepare home-cooked
meals. This data is useful for estimating the number of potential customers.
Analyzing the Target Clientele
Who are the market’s potential customers? Market analyses generally include
determining who potential customers are and how many the market will serve. If
the population is large enough and there is considerable interest in local produce
and value-added goods, then the market and other businesses in the area will
38
Starting a New Farmers Market
likely thrive. However, it still is necessary to profle prospective customers to ensure
that the market meets their needs. The market’s target audience afects many
aspects of the market, including the product mix, advertising, and promotional
activities. Get to know who your target customers are and their preferences. Is the
target market an upper-income or a lower-income group? Are they of a particular
ethnic group or more of a cross-section of demographic groups?
Defne your market area (your region or community). In the case of a farmers
market business, your primary market is localized and may be restricted to custom-
ers who come to the market from within a fve-mile radius. Your secondary market
might be chefs who work at local restaurants and require specialty products and
high-quality produce for their menus. Members of Chef’s Collaborative, for exam-
ple, are concerned with sustainable agriculture and buy only fresh produce from
farmers.
Once the committee has collected demographic data and established a profle of
target customers in the community, the next step is to survey a sample of poten-
tial customers to get a better description of their demand for particular items at
the market. Surveys can ask respondents to check of or list products they usually
purchase, such as fruits, cheese, eggs, meat, nuts, cofee, fowers, and handicrafts,
as well as items they would like to purchase from a farmers market that have not
been available. For example, consumers might be interested in buying locally pro-
duced honey or eggs from free-range chickens, items that they cannot fnd at local
supermarkets.
To get a better idea of desirable market features, your survey also could ask
respondents to rank other farmers markets they have attended and their local gro-
cery retailer, cooperative, or supermarket.
Assessing Market Feasibility
Unearth the following kinds of information when assessing a market’s feasibility:
? Is the community interested? How much community
support can be generated or already exists?
? Is there another market nearby? What is the level of
competition? Does the competition have the potential
to impede success?
?
Can the market generate sufcient revenue to make it
worthwhile for farmers and management?
The details of these issues will need to be explored further as the market research
team develops a solid market feasibility study.
39
The Feasibility Study: Market Analysis
5
Conclusion
In addition to competing farmers markets in the area, there are other types of
businesses that present competitive forces. For example,
there may be nearby roadside farm stands or you-pick oper-
ations. There also may be a retail grocery store in the area.
The committee can conduct most of the farmers market
research and analysis with committee members contribut-
ing according to their areas of expertise. If additional help is
needed with the feasibility study, consider consulting with a
Cooperative Extension agent or other appropriate experts.
Another way to complete a feasibility study is to recruit a
local college marketing student or students who are interested in doing a case
study or class project on your potential market. If you have the budget, you could
hire a professional market researcher.
The market-analysis committee’s report should address the questions previously
discussed. The resulting market feasibility study can be used to gather support
from community groups, local businesses, producers, and government ofcials.
40
Starting a New Farmers Market
41
6
Conducting the Feasibility Study:
Site Assessment
T
his chapter covers issues specifc to the potential site of the new market. The
site-assessment committee’s primary responsibility is to look further into the
analysis of all potential market sites. The committee should create a list of the pros
and cons for each site and various ideas to present as fndings
to the organizing committee or board of directors. A recent
USDA study (“Farmers Markets Survey Report”) found that the
two primary reasons for market failure are location and compe-
tition; that is, in-season dominance by alternative vendors.
Site Factors
Several factors should be considered when undertaking this
assessment. Initially, you need to have some basic idea of
where the market could be held. Important points to con-
sider include centrality, parking, visibility, ease of access, and environment. It may
be necessary to compromise on a site if a location that meets all of the desired
attributes cannot be found. Outline all potential and alternative market loca-
tions, listing their positive and negative characteristics. Be aware that the market’s
location and the demographic profle of its clientele will greatly infuence product
oferings and economic viability.
Permanent versus Temporary
When choosing a market site, an important consideration is whether or not the site
will likely be used on a temporary or permanent basis. A permanent site is one that
the market either owns or has secured a long-term lease that enables the market
to remain on the site for the foreseeable future (such leases last from seven to ten
years). A temporary site is contracted for a year at a time, which can be a good
option if you want to test the location before entering into a long-term arrange-
ment.
This chapter will enable
you to:
? Identify potential sites
for a new market.
? Determine the
suitability of each
potential site.
42
Starting a New Farmers Market
Permanent Site
A truly permanent location can be secured only through purchase or permanent
deed. Cities or towns occasionally have sites that may be donated for the exclusive
use of a market. Long-term agreements with the city, or long-term leases with
private landowners, are also fairly dependable ways to establish a semi-permanent
location for the market without an outright purchase. It may be possible to secure
a free site. Look in the area for
vacant parking lots, churches,
synagogues, city ofces, court-
houses, malls, parks, athletic
felds, vacant lots, county
fairgrounds, school grounds,
blocked city streets, and town
squares.
A major advantage of a per-
manent marketplace is that
it can be made more secure.
Storage facilities can be built
in, allowing vendors to leave
their setup materials at the site.
Fences, stalls, and displays can
be built into the market structure, further reducing the time needed for setup and
breakdown. A permanent shelter also may be constructed to provide year-round
protection from the elements. The Davis, California, market pictured here began on
sidewalks adjacent to the central park. Later, however, the city built a permanent
structure for the market, allowing it to evolve into the central feature of the core
area of the city. The market, its vendors, and its customers all reap the benefts of
long-term investment.
Long-term sites ofer many benefts. A permanent home allows consumers to
become familiar with the location and establish regular, long-term shopping pat-
terns. It also allows for permanent improvements over time to suit the evolving
needs of management and vendors.
The main disadvantage to a permanent location is its initial purchase cost. The
costs of insurance, upkeep, and taxes are additional expenses. In temporary sites,
the landlord, as a part of the rental contract, often absorbs these costs. Another
thing to consider is whether the site is appropriate for a permanent location. A
good alternative may be to start with a short-term commitment until the market
has demonstrated success in the location.
43
The Feasibility Study: Site Assessment
6
Assessing a Temporary Site
The main advantage of a temporary location is fexibility. The fexibility provided
by a short-term commitment allows the market to relocate to a better location
as needed. As a market gains in popularity, public or private organizations may
be more willing to provide the market with access to a more centralized location
and could end up ofering a long-term arrangement. Also, as the market grows, it
may be necessary to relocate for more space or better customer access. Satisfac-
tion with this sort of arrangement often depends on how comfortable the board,
manager, and vendors are with the costs and logistics of re-establishing the market
in a new location.
There are disadvantages, however, to a temporary site. Often, an ideal downtown
location may be available only briefy, until alternative development is approved.
The market is then faced with moving to another location and disrupting its
customer base when it has not yet taken root in the community. This could be like
starting the market all over again if the market must move a considerable distance.
Another drawback to temporary sites is possible multiple uses that must share
the site. If the location is used for other purposes during nonmarket
days, there may be no way for vendors to leave stalls and display items
at the site. Occasionally, temporary markets can make site
enhancements or erect semi-permanent structures, but it is
difcult to justify the large investment required when tenure at a
location is uncertain. Because of this, markets at temporary sites
do not usually beneft from the same improvements for vendors
and customers that are possible at more permanent locations.
Site Selection Criteria
There are two key areas on which to focus when choosing a location for a farmers
market. The frst is narrowing the number of possible sites using visible aspects of
each potential site as a determining factor. The second is researching the logistical
aspects of potential sites:
Size: Ideally, the site should accommodate two rows of vendor stalls and be at
least 40,000 square feet in size.
Centrality: An ideal site for a farmers market is a central location close to areas
where potential customers live, work, and shop. The market should be in
an area that appeals to a wide cross-section of customers, both culturally
and economically. Bus and train stops nearby are a major advantage. Other
activities (e.g., sports, shopping, attractions for children) located in the
44
Starting a New Farmers Market
vicinity of the market also are a plus for attracting potential customers. The
area should be perceived as a safe area for customers to visit.
Visibility and access: The site should be easily visible from the main thor-
oughfare or adjacent streets. If not, additional signs may be necessary to
attract customers’ attention. Markets that are visible in heavily travelled
areas enjoy the beneft of curious people who stop on impulse. If the
market is not easily visible, it cannot attract this kind of interest, which
limits the customer base to those who are already aware of its existence.
Consumers should be able to locate the
market easily with a few simple direc-
tions. The harder it is to fnd, the harder
it is for new people to attend.
Environment: The market should interface
well with the neighborhood. Litter
caused by the market’s set-up and
breakdown should be removed. The
market should enhance, not detract,
from its surroundings. Seating and pic-
nic areas, parks, fountains, and gardens
can provide shoppers with inviting
places to relax and enjoy the farmers market experience.
Transportation: The site should be easily and conveniently accessible by public
transportation such as a bus or light rail route.
Parking: The market should be convenient for customer access. The site man-
ager for the Marin County Farmers Market in San Rafael, California, says,
“Parking is very important. Customers are not going to want to shop if it is
inconvenient to fnd a space or if they have to walk far between their cars
and the market.” Consider the vendors’ needs as well. They need room to
move their vehicles into a stall or area, turn around, unload, and situate
themselves for selling.
Water: Water must be available. Hose spigots can provide water for keeping
produce cool and the area clean. To conform to health regulations, vendors
will likely need to use water at their stalls. In addition, water fountains for
customers and vendors help to keep people cool and hydrated on hot sum-
mer days.
Restrooms: Restroom access in the immediate vicinity of the market is another
necessity. Restrooms are important for vendors as well as for customers.
Vendors will be onsite anywhere from three to ten hours. Onsite restrooms
45
The Feasibility Study: Site Assessment
6
also may be a health department requirement. If no restrooms are available
onsite, consider renting a portable service that can be left at the site and
locked after market hours.
Surface cover: A site’s surface makes a diference aesthetically as well as
functionally. Wood chips, pavement, gravel, and grass each have diferent
advantages and disadvantages. A shady grass-covered park is inviting on a
hot summer day but probably requires farmers to park their vehicles some
distance from the stalls. Grass also may not withstand heavy foot trafc
and can become difcult to negotiate in rainy weather. Pavement, on the
other hand, will surely withstand heavy foot and vehicle trafc but can be
blistering hot on a sunny summer afternoon. Consider the geographic area
and the weather conditions likely to be experienced during the market
season. Is rain likely? Will temperatures soar into the nineties or above? If
the market operates during the rainy season, make sure that the surface
is graded and has adequate drainage. A gentle or moderate grade is ideal.
A grade that is too steep will make parking and set-up awkward and may
also restrict handicapped access. If heat is a likely issue, look for a location
with some shade, such as a parking lot with trees, or consider starting the
market early in the day. Above all, make sure the surface the market plans
to use is even and free of holes and other obstructions that put customers
and vendors at risk.
Shelter: Protection from sun and rain creates a more comfortable and appeal-
ing market. Customers are more likely to venture out during hot, cold, or
wet weather if the market area is covered and protected from the elements.
Stall layout: Visualize how the stalls would likely ft on the site. How many
vendors will ft in the space? Will the market have room for potential expan-
sion? Keep in mind that the market also will need room for customer trafc,
including those with special access needs (e.g., wheelchairs). A circular fow
creates easy passage and helps balance visibility for all of the stalls. The
evaluators also should visualize where the market would establish a central
location for the information booth, which can be made easily identifable
with colorful fags or banners.
Ownership: The owner may be a business, person, church, city, or other entity.
The terms and tenure of a contract depend on the nature of the property’s
ownership and prospects for alternate uses or for development.
Cost: Some owners may require rent; others may be willing to forego rent for
the beneft of increasing foot trafc or providing a community service.
46
Starting a New Farmers Market
Zoning: The site must be zoned for business. If not, it may be necessary to
obtain a variance.
Fire regulations: Most farmers markets will require at least a fre lane.
Law enforcement regulations: Be aware of any law enforcement concerns
and regulations.
Property taxes: The market’s presence may afect the tax owed for the site.
Insurability: The site will need to be insured and appropriate groups must be
covered for liability risks.
Final Thoughts on Choosing a Site
Ideally, you want the market to be situated in a place where vendors, manag-
ers, and especially customers will enjoy their time there. Ofer your customers an
organic environment, a place where shopping for fresh food seems natural. Studies
have found that consumers patronize farmers markets frst because of the farm-
fresh produce and then for the ambience. A pleasurable shopping experience is
very important in attracting and retaining customers.
Even if the only location available to you seems dismal and undesirable, you can
take steps to create an inviting atmosphere. If the site is under a highway overpass,
for instance, as it is for the Oakland Lake Merritt Farmers Market, you can use the
cement structures to your advantage. You can have bands play music under the
overpass, using the concrete caving as an amplifer to drown out the sounds of
trafc above. You also may want to consider creating some large decorations (for
instance, hand painted murals by local schoolchildren) that can easily be attached
and removed for each market. These are not extravagant or expensive ideas, but
they help to brighten up a site.
Food quality, customer relations, and good management are very important, but
without a positive, upbeat atmosphere, even a well-run market will lack the appeal
that gives people delight in their shopping experiences. If the market is in a vacant
lot, for example, try to add landscaping features. Perhaps some of the growers
could donate perennial fowers and herbs. Consider involving neighborhood
gardeners who may want to form a committee to help beautify the market site.
The pleasure that customers and vendors take in the market will have a signifcant
impact on its longevity.
47
This chapter will enable
you to:
? Be aware of potential
sources of start-up and
operating funding.
? Collect data to project
income and expenses.
? Determine the fnancial
feasibility of a new
market.
7
Conducting the Feasibility Study:
Financial Analysis
T
he fnancial-analysis committee has two important tasks: determine possible
sources of funding the start-up of a new farmers market and develop a pro-
jection of income and expenses to determine whether it is
feasible to start a new market. If opening a new market goes
forward, the budget generated by this committee will become
the foundation for the market’s operating budget, so it is
important to gather data with which to make the most accu-
rate projections possible.
Sources of Funding
There are a number of potential sources of funding for a new
market, including sponsorship, grants, and fees. If the market
is sponsored by a single organization or a coalition of orga-
nizations, the founding organization(s) will likely provide
some funding for start-up. In that case, the fnancial-analysis
committee should include representatives of the sponsoring
organizations who can accurately project funds available for start-up.
Depending on the purpose and mission envisioned for the market, the market
organization or its sponsoring organization may be eligible for grants through gov-
ernment agencies or nonprofts. A search of available grants related to nutrition,
agricultural marketing, and community development can yield potential sources
of funding. Local funding may be available through the chamber of commerce,
United Way, and service organizations and religious groups.
Another source of funding is vendor payments of stall fees and/or membership
dues. Managers of established markets that are not in direct competition with the
proposed market may be willing to share information about their stall fees, mem-
bership dues, and other sources of income. The committee should check with more
than one manager to elicit a set of strategies and choose the ones that will work
for the proposed market.
48
Starting a New Farmers Market
Projected Expenses
To establish the fnancial feasibility of the market, you need to anticipate and
project the market’s expenses. List anticipated costs, such as wages, benefts,
insurance, permits, and ofce overhead. Also, list planned start-up costs such as a
deposit on ofce space and creation of a logo, as well as ongoing planned activi-
ties that can include special events and advertising and their projected costs.
Check with managers of other markets, preferably in areas with similar demo-
graphics and costs of doing business (for example, similar costs for ofce space
and employee compensation), to gauge expenses as accurately as possible.
Working with Other Commitees
If the feasibility study indicates that a new market would be viable, then the work
of the fnancial-analysis committee will have a strong impact on future activities.
If, for example, the cost of designing a logo and purchasing promotional materi-
als is not included in the initial cost projections, then the options open to those
assigned the task of promoting the new market will be constrained. It is important
that all of the committees maintain communication with each other and that the
activities involved in the feasibility study and start-up be organized and coherent
so that nothing is assumed or overlooked. With organization and communication,
the results of the initial fnancial analysis can become a cornerstone of future mar-
ket development.
49
This chapter will enable
you to:
? Assess vendor interest
in a new market.
? Match vendors with
consumer demand.
? Recruit vendors.
8
Conducting the Feasibility Study:
Vendor Recruitment
T
he vendor-recruitment committee’s main responsibility
is to assess the availability and interest of area growers
in joining a new market. Through this committee’s work, the
market contacts growers and begins to develop vendor mem-
bership requirements.
It will take some time to make contact with a sufcient num-
ber of farmers, secure their involvement, and provide them
with the information they need to prepare for a successful
market season.
Finding the Niche
The vendor-recruitment committee must work closely with the market-analysis
committee to match potential vendors with consumer demand. Using preliminary
results from the market-analysis committee’s study of consumer demand and
preferences, the vendor-recruitment committee can determine the initial product
mix the market should ofer, the number and types of vendors they need to recruit,
and, ultimately, whether vendor recruitment for this market is successful.
To analyze vendor and product availability and interest in selling at the market, a
survey specifc to producers can be conducted. Surveys can determine the vendors’
level of interest and willingness to sell at the market. The survey can ask farmers for
their reasons for selling products at farmers markets and rank those reasons on a
scale of one to ten with one being most important and ten being least important.
The following characteristics are useful: convenience of direct marketing, receiving
retail value for products, interaction with customers, ability to advertise value-
added products, and ability to sell excess products not sold through other outlets.
Determine if other vendors in the area are selling vegetables, fruit, fowers, or
baked goods. If so, who are their customers? How do they set prices? What makes
them successful? Instead of attempting to outperform them, fnd an area in which
they are lacking that can provide the new market with an obvious niche to fll. The
market can then diferentiate its products by branding the market as a unique
complement to existing competitors. Ideally, a market does not want to be in
50
Starting a New Farmers Market
direct competition with anybody. Look for ways to complement existing resources,
fnd new areas in which to specialize, and build relationships that are mutually
benefcial.
One of the principal competitors for produce and value-added products is local
supermarkets. However, supermarkets do not necessarily have to be viewed in a
negative way. One market manager reported that, when his market was forced to
leave its traditional site, the town’s grocery store ofered its parking lot. The new
location worked out well, and the market has since been held there for many years.
Customers purchase their nonproduce groceries at the supermarket and then shop
at the farmers market for fresh, seasonal produce.
To keep this cooperative arrangement run-
ning smoothly, relations must be maintained
between the supermarket and the farmers
market’s manager. Often, the supermarket
manager comes from an agricultural back-
ground and sees slight losses in produce sales
one day a week as worthwhile in return for
supporting local farmers, building good com-
munity relations, and attracting additional
customers on market day for nonproduce
items.
Other Atractions and Vendors
Special events, tourism, and other nearby attractions can draw customers to the
area from long distances, though not necessarily on a consistent basis. Some of
these events may be seasonal or of short-term duration. Determine what the area
has to ofer:
? Is this community the gateway to a popular recreation area or national
park?
? On what days does the market attract the most tourists, and during what
peak hours? Work with local hotels, chambers of commerce, and other
attractions that can share information or can beneft from the farmers mar-
ket.
? Are there weekend craft fairs, famous historic buildings, or special down-
town events that bring tourists to the area?
? Could these oferings add to the customer base or will they have the
opposite efect—keeping away local residents?
51
The Feasibility Study: Vendor Recruitment
8
Agritourism
Agritourism is a new approach used by some farmers to attract customers to their
farming operations. By ofering tours, roadside stands, you-pick operations, and
bed and breakfast accommodations and by listing their sites on farm trail maps,
these farmers are creating new identities as destination areas for urbanites who
have a desire to experience rural life. For farmers market managers, some of these
agritourism operations can represent competition while others can be benefcial.
Do these agritourism operations ofer very specifc, seasonal types of products,
such as market-pick blueberries or Christmas trees? Would they draw from the
market’s desired customer base? School tours to a pumpkin patch probably would
not attract the same crowd that the market is targeting, but it is possible. Do area
agritourism operations/events confict with the days and/or hours that the market
will be held?
One way to strengthen collaboration among diferent agricultural producers and
increase their accessibility to consumers is to incorporate all of them into the
farmers market, building a network of support for local agriculture. If a farm that
hosts students can say, “We will be at the farmers market on Saturday if you want
to show your parents our pumpkins,” that word of mouth provides free advertising
for the market. A local blueberry grower could fnd it worthwhile to close her farm
stand on market days to sell at the market instead.
Contact all of the farm stands, you-pick operations, and agritourism operators in
the area and ask if they are interested in joining the market. If they are already
participating in direct marketing, there is a strong possibility that they will be inter-
ested in the opportunity to sell at a farmers market. However, make sure that their
operations are compatible with the market’s vendor policies and state regulations.
Finding the “Right” Vendors
Town councils and downtown business groups organizing a new farmers market
have at times underestimated the complexity and efort involved in getting farm-
ers to join a new market. Finding farmers who are growing the right products for
direct marketing or that are interested in new farmers markets can be a challenge
even in an agricultural area. The vendor-recruitment committee must spread the
word widely and talk to many farmers to develop a base membership of growers
with sufcient product diversity and volume to make the market successful.
Even more important than fnding growers is fnding the right growers. Consumers
prefer markets with a well-rounded selection of produce. Keeping a wide variety
throughout the season is a key factor for successful markets.
52
Starting a New Farmers Market
One good way to go about providing diversity is by starting with a core group
of growers who can ofer a wide array of produce. Specialty items and seasonal
favorites can then build on that foundation. Diversity in products at the market is
as important to farmers as it is to consumers. Too much overlap among growers
reduces their individual sales and is a frequent complaint to managers. Getting an
early start on developing the right market mix is critical to the success of a market
and its growers’ businesses.
Where to Find Vendors
Recruitment of vendors should begin six to eight months before the opening
of the market, preferably in fall or early winter when farmers have more time to
participate in planning. Contacting farmers at this time also allows them ample
opportunity to prepare crops for the market. If they know which products they
want to sell the following spring and summer, they can place seed orders and
develop planting schedules accordingly.
Personal contacts and phone calls are the most efective ways to get the
word out about a new farmers market. If there are other markets in area, it
may be helpful to visit those markets and talk to their managers and ven-
dors. Farmers often will be interested in selling at more than one market,
but be careful not to steal vendors from other markets. Also visit you-pick
operations and roadside stands in the area, as these farmers may be eager to try
another form of direct marketing.
It is helpful to talk with interested growers to determine how serious they are
about the market. If they want the market to work, they may talk to other growers
about it. An increase in the number of growers and the resulting diversity of prod-
ucts makes for a larger, more stable, and more interesting market that can attract
and serve more consumers.
Growers’ associations and cooperatives can be helpful in informing potential
vendors about a planned market. Organizations that may be helpful in identifying
local growers include the Cooperative Extension Service (located in most counties),
the county agricultural commissioner’s ofce, the state’s agriculture department,
and the local Farm Bureau ofce.
If these organizations have upcoming workshops, a representative from the ven-
dor-recruitment committee can make presentations about the proposed market.
Networking with experienced marketers at these events can also provide an
invaluable source of information about the process of starting and running a mar-
ket.
53
The Feasibility Study: Vendor Recruitment
8
Reviewing the Findings of the Working Commitees
When the market-analysis, site-analysis, fnancial-analysis, and vendor-
recruitment committees have completed their tasks in assessing the
feasibility of starting a new market, the organizing committee should
meet to review the fndings and decide whether to move forward.
Agenda for the Organizing Commitee
Market Decision Meeting
Objectives
1) Review fndings from the committee analyses.
a) Is there sufcient consumer demand to support a market?
b) Is there sufcient vendor interest and commitment to
meet consumer demand?
c) Are there viable potential sites?
d) Is there a way to fnance the market and can it
be fnancially viable?
2) Financial options.
a) Budget, cash fow, and cash needs.
b) Financing options.
3) Decision: Is it feasible to start a new market? Will the process
move forward or stop?
4) If the decision is to proceed, discuss creation of the board
of directors.
a) How many of the organizing committee members will
serve on the frst board of directors and what skills do they
bring?
b) What skill areas or areas of representation are missing?
Who still needs to be recruited? See Chapter Ten for more
on creating the board of directors.
54
Starting a New Farmers Market
55
This chapter will enable
you to:
? Choose an
organizational
structure that will
meet your needs
and position you to
become a certifed
farmers market.
9
Establishing the Market
as an Organization
O
nce the committees have completed their analyses and established the feasi-
bility of a new farmers market in the community, it is time for the organizing
committee to create the organizational structure.
An Overview of Organizational Structures
The extent of the organizational structure required for a market
depends largely on the size of the market. Every market requires
performance of basic administrative and group decision-mak-
ing tasks. Building a framework in advance to facilitate those
tasks simplifes operation of the market and helps to identify
structural needs. In California, farmers markets must be certifed
by the county in which they operate; because the produce sold
at farmers markets is exempt from certain packing and labeling
requirements, both the vendors and the market must be certi-
fed.
Several forms of market administration and organization are used in farmers
markets, each with advantages and disadvantages. As farmers markets continue to
gain in popularity and sophistication, their management becomes more compli-
cated and demanding. In response, more markets are beginning to adopt formal
business models or to seek sponsorship through larger administrative organiza-
tions such as business associations and municipal organizations.
Here we present several organizational models as examples of alternative
frameworks. These options should be weighed in terms of their advantages and
disadvantages in light of the market’s immediate needs and its potential for
growth.
56
Starting a New Farmers Market
Three Common Models for Farmers Market Organizations
? An unofcial agreement among producers rather than
an ofcial business.
? A private for-proft or nonproft business runs the
market.
? A public sponsorship wherein the market is run by a
public authority such as a city government.
Agreement among Producers
An agreement among producers is a common type of farmers market organization.
Although it does not carry the same bureaucratic requirements as more formal
business models of market management, successful applications for certifcation
will mean that permits and licenses must be in order.
Private Sponsorship: The Market as an Independent Ofcial Business
Many markets operate as independent businesses, either as nonproft or for-proft
operations. Which form is most appropriate for the market depends on the size of
the proposed market, the people involved, and the level of tax and legal liability
key members are willing to assume. Resources are available to help the organizing
team with this decision and with other questions related to starting and running a
small business.
Within the private-sponsorship model, there are several options for ownership of
the market. To obtain a business license, you will need to defne the ownership
structure of your enterprise. Following is a list of the four general types of owner-
ship for businesses.
Sole Proprietorship
? One person owns all assets and profts and is responsible for running
the business.
? The proprietor assumes complete responsibility for liabilities and debts.
? There is no legal distinction between the business and owner.
57
Establishing the Market as an Organization
9
Partnership
? Two or more people own the business.
? A legal partnership is involved, which should include agreements about
decision-making, proft sharing, dispute resolution, and dissolution of
the business.
? Types of partnerships are general, limited, partnerships with limited liabil-
ity, and joint ventures.
Corporation
? Corporations are chartered by the state.
? There is a legal distinction between the business and its owners, which are
its shareholders.
? Corporations can be taxed and sued.
Limited Liability Companies (LLCs)
? LLCs have the limited liability of corporations and the tax efciencies and
operational fexibilities of partnerships.
? There are stipulations about what may be defned as an LLC.
Some of the advantages of organizing a market as an independent entity include
retaining control of the market, having full decision-making abilities, and identify-
ing liability and taxation issues in advance. A disadvantage to having the market
as an independent entity is the pressure of all of the costs and responsibilities for
running and promoting the market falling to a single individual or small group of
individuals. Gaining sponsorship from a larger, well-established organization (as
discussed in the next section) is one way to reduce
this level of direct responsibility.
Resources for Businesses
In addition to information provided in this guide, you
can acquire a wealth of information from the Small
Business Administration (SBA). SBA is a great source of general information about
starting and running small businesses, much of which can be found at its website:
www.sba.gov/starting_business. There also may be a small business development
center in your area. These ofces often provide hands-on training and advice about
setting up and managing a small business.
58
Starting a New Farmers Market
Business laws: Complying with business laws and regulations can be a burden
on small businesses. To help businesses overcome a lack of information,
SBA, in cooperation with multiple federal agencies, developed Busines-
sLaw.gov, an online resource designed to provide legal and regulatory
information to America’s small businesses (www.sba.gov/starting_business/
legal/buslaws.html).
Business licenses: To operate a farmers market ofcially in most areas, you
must obtain a business license and register your business name (also called
a “fctitious name”).
The Market as a Nonproft Organization
Another option for structuring a new market as an independent organization is to
form a nonproft organization. Advantages to nonproft status include eligibility for
grants, tax-exempt status, and some protection from liability. However, the paper-
work involved can be a disadvantage and the ability of farmers markets to obtain
nonproft status is in fux. A good source of general information on legal require-
ments for nonprofts is Nolo Press (www.nolo.com).
Public Sponsorship: The Market Run through
a Larger Business or Public Agency
Market sponsorship through an overseeing organization has become one of the
more popular approaches to organization for farmers markets. This alternative
follows several diferent models and the level of involvement of the sponsor varies.
Some local service organization sponsorships require very little involvement as
the sponsors are simply interested in bringing a farmers market to the community,
whereas private and public agencies may require more involvement in terms of
management and/or organizational structure. Sponsors may be responsible for
running one or more markets and can legally categorize themselves as a for-proft
or nonproft business. The level of control that market sponsors require varies con-
siderably and depends largely on the agreement made between the market and
the sponsor.
While this model may appear complicated, many markets have found great bene-
fts from this type of sponsorship because administrative costs and responsibilities
(such as insurance and promotion) are shared and further reduce business risks.
In turn, surplus revenues generated from stall and membership fees can be used
to start other related community projects such as support for a teen center or
improving awareness about environmental and open spaces. Arrangements such
59
Establishing the Market as an Organization
9
as these strengthen community support for the market and beneft not only the
vendors but the consumers as well.
Examples of Public Market Sponsorship
The Greenmarket Program of the Council on the Environment of New York City
(CENYC) is an example of market sponsorship through a larger organization. CENYC
is a privately funded citizen-owned organization that operates in partnership with
the mayor’s ofce. CENYC promotes awareness of food systems and solutions to
environmental problems. In addition to its other projects, CENYC manages the
Greenmarket Program, which operates thirty-eight weekly open-air farmers mar-
kets in twenty-eight locations at peak season in New York. Sixteen of these markets
are open year round.
Another example of an organization that has been sponsoring farmers markets is
the Economics Institute in New Orleans, Louisiana. Housed at Loyola University’s
Twomey Center for Peace through Justice, the Economics Institute initiates and
promotes ecologically sound economic development in the greater New Orleans
region. Since 1995, it has helped to establish a number of strong markets in
partnership with farmers, citizens, business and government leaders, chefs, and
nutrition advocates. In addition to assisting with the establishment and operation
of several markets, the Economics Institute provides information and training to
farmers and other small business owners on sound agricultural, processing, and
business practices.
There are many other ways that organizations can provide support to farmers mar-
kets through sponsorship. In addition to providing logistical support, such as ofce
space, staf, and umbrella insurance coverage, such a relationship often supplies
educational resources and training materials as well as advocacy on a regional or
state level.
Before seeking sponsorship from an umbrella organization, make sure that the
goals of potential sponsors are aligned with the overall goals of the farmers
market. Some markets have run into difculties as a result of partnerships with
organizations that did not share the same vision as the vendors or surrounding
community. Therefore, it is important to fully discuss these issues with all of the
concerned parties before agreeing to sponsorship.
Finding an organization or association in the area that is already involved with
farmers market sponsorship helps to ensure that various goals are likely be in
alignment. The state’s farmers market association and direct-marketing contacts in
this feld can provide additional suggestions about possible sponsoring organiza-
tions.
60
Starting a New Farmers Market
What Structure Is Right for Your Organization?
As you read through this chapter, you may have recognized the structure that best
suits the farmers market you are developing. If several of your organizing commit-
tee members have nonproft afliations, or if the market is being organized by a
nonproft such as a community development organization, then structuring the
market as part of a sponsoring organization may be a logical choice. If, however,
the market is being organized by farmers, creating an independent organization
might be best. Organizers must weigh the pros and cons of each type of structure
and choose based on the unique needs and characteristics of the vendors, the new
market, and the community in which it will operate.
61
This chapter will enable
you to:
? Establish an efective,
productive board of
directors.
? Write a mission
statement that
refects the identity
of the market you are
creating.
? Understand the
steps involved in
seting up the market
organization, including
articles of incorporation
and bylaws.
10
Establishing the Market’s Management
O
nce an organizational structure has been chosen, the organizing commit-
tee must create a board of directors. Once that has been done, the board
becomes the decision-making entity for the remainder of the
activities involved in creating the market’s organization.
Establishing the First Board of Directors
Unless the market is a sole proprietorship, the answer to the
question “who makes key decisions about market activities?”
should be the board of directors. Some organizational struc-
tures for farmers markets, such as those that are sponsored by
an umbrella nonproft, do not require a separate board. The
board of directors oversees many aspects of a market’s opera-
tion and is a required organizational component of a nonproft
corporation. If a farmers market is a nonproft, tax-exempt cor-
poration, otherwise known as a 501(c)(3), it must have a board
of directors that is responsible for directing the organization.
Guidelines for how the board shall conduct itself should be
clearly stated in the organization’s articles of incorporation
and bylaws. These rules difer from the market rules (Chapter
Fifteen) in that they pertain solely to operation of the board
and oversight of the organization. If the market seeks incorpo-
ration, it will have to fle these documents with the appropriate
state authority. This authority is usually the secretary of state or the state’s corpora-
tion commission.
Because these documents establish the internal legal functions of the organization
and are as binding as any other law passed by Congress or the state’s legislature,
they should be carefully drafted to ensure that they meet the group’s needs. Refer
to the articles of incorporation and bylaws of other markets in the state for guid-
ance. The National Center for Nonproft Boards and the Internet Nonproft Center
are also good resources for creating board guidelines.
62
Starting a New Farmers Market
Who Are the Directors?
The board of directors is responsible for the overall vision and for governance of
the market. Once the board and the market are established, directors are generally
elected by the market’s membership on an annual basis. The frst board, however,
will be established by the organizing committee and may include organizing com-
mittee members who are willing to continue providing leadership and direction
for the market. There also may be additional community members who are desir-
able candidates.
The members of a board of directors have inherent obligations to represent:
?
The public, ensuring that their best inter-
ests are represented.
?
The government, ensuring that the
organization’s funds are used for organiza-
tional nonproft purposes rather than for
the fnancial gain of board or staf mem-
bers.
?
The donors, ensuring that their funds are
spent for maximum impact in accordance with the stated purpose of the
organization.
Many farmers markets have a board of directors even if they have not obtained
nonproft status. The board is a valuable asset that ofers essential guidance in
starting and developing the market.
Roles and Responsibilities of the Board of Directors
The purpose of the board of directors is to provide vision, direction, and gover-
nance to an organization. The board is responsible for shaping the market and its
success in many ways, including providing direction in strategic planning, moni-
toring, evaluation, public relations, and promotional activities. Boards of directors
generally consist of several ofcers (chairperson, co-chairperson, secretary, trea-
surer) that are defned in the bylaws. The manager may or may not be a voting
member of the board as defned by the bylaws.
In theory, the board works closely with the market manager to assist in develop-
ment and implementation of long-range plans as well as with day-to-day activities.
In reality, the level of board involvement for a farmers markets depends on the way
the board is structured, its relationship to the manager, and the time, assets, and
strengths that individual members bring to the board.
63
Establishing the Market’s Management
10
Responsibilities assumed by the board fall into two general categories: governance
and support. Governance refers to broad-based policy-making activities that
address the benefts and services the organization provides. Support refers to day-
to-day activities, conducted through committees or on an individual basis, that
further the goals of the organization.
The exact responsibilities of the board will vary from market to market, but they
may include some of the following:
?
Long-range planning and goal-setting.
?
Setting policies and fees for the year.
?
Developing market rules.
?
Establishing an annual budget.
?
Providing direction to the market manager.
?
Supporting the manager in confict situations and intervening if necessary.
?
Making major stafng decisions.
?
Overseeing promotions and marketing.
?
Developing fundraising strategies.
?
Acquiring liability insurance.
?
Recruiting new vendors.
The board is responsible for drafting the market’s rules. Market rules are a set of
guidelines that establish policies specifc to vendor membership fees and other
such conditions that potentially afect activities at the market that are otherwise
unregulated by local or state law.
Types of Farmers Market Boards
The organizing committee may choose from several diferent models of board
leadership in establishing the frst board. While there is no single “right” way to
organize and recruit for the board, it is important to assemble a governing body
that has the time, energy, and skills to assist in key eforts of the market. Many
farmers market managers believe that the most efective market board is one that
refects the diverse interests of the surrounding community as well as the geo-
graphic region in which the market is situated. The three typical types of boards
employed by farmers markets are vendor-only boards, vendor/community mem-
ber boards, and organizationally driven boards.
64
Starting a New Farmers Market
Vendor-Only Boards
Vendor-only boards are boards whose members are exclusively market vendors.
This type of board ensures that all members have a strong interest in the market,
as each member has a primary stake in the market’s success and proftability.
The policies and procedures set by this type of board more accurately refect the
realities of the market since vendor-members have a frsthand familiarity with its
day-to-day operations. At a minimum, a few board members will always be present
at the market to assist, particularly in situations of confict.
Vendor involvement on the board can create conficts of interest. The division of
roles must be clearly defned at the outset. A board member may be personally
involved in a dispute with another vendor, for example, and may have difculty
separating his or her roles as a board member and as a vendor. Conficts of this
nature may arise if board members perceive themselves to be in competition with
other vendors or if they are good friends with other vendors who are not board
members. Such situations cause misunderstandings and make it difcult for
boards to make decisions that are in the best interest of the market as a whole.
Vendor-only boards also may be weakened by peak-season market periods (sum-
mers) and/or vendors who sell at more than one market, which results in vendors
being too busy to attend to board-related issues. In some cases, these mem-
bers may rarely attend the market, sending an employee instead, which renders
them less connected to day-to-day issues at the market. As one manager stated,
“Farmers are not bureaucrats. I have a hard enough time getting them to fll out
paperwork, let alone attend meetings and engage in strategic planning.” Boards
comprised entirely of vendors may rely more on the manager to build community
relations since most vendors will not live in town or have nonproft management
skills. In these cases, the manager may end up directing the board rather than the
other way around. With no community representation, the board also may have a
difcult time understanding and responding to the issues and needs of the com-
munity in which the market operates.
Vendor/Community Member Boards
The vendor/community board is one that is comprised of a mix of market vendors
and community representatives. This is a common structure for many small-town
farmers markets. Board members each bring various strengths, including legal or
fnancial expertise, ties to the business or political community, and strong market-
ing and public relations skills. A board can maximize its efectiveness by building
on the individual strengths of its members in ways that complement rather than
compete with each other.
65
Establishing the Market’s Management
10
Vendor/community boards have direct access to an awareness of vendors’ issues
and also refect the interests of the community. Board members who are local resi-
dents may be more in tune with issues that afect the market and consumers and
may be more connected to resources that can assure the market a strong position
in the community.
On the other hand, board members who are less familiar with the realities of farm-
ing and direct marketing must pay extra attention to the concerns of vendors. They
should understand the importance of working to serve the interests of the vendors
as well as those of consumers and the larger community. As one board chairperson
said, “The diversity of the board is our greatest strength and our greatest weakness.
The challenge is to live with the confict that diversity brings.”
Organizationally Driven Boards
The organizationally driven board is usually the choice of nonprofts or local busi-
ness organizations that sponsor farmers markets, such as downtown improvement
districts and community development organizations. Markets sponsored by these
types of organizations may have boards that have less connection to the people
involved in the market. For example, a market board may be made up of business
owners from the downtown area where the market is located, providing no ven-
dor representation. As one manager said, “Our board members connect us to the
downtown district really well, although they do not shop at our market.”
Organizationally driven boards can ofer substantial business expertise through
their members, as well as strong ties to the local business community. In such a
case, the market manager must ensure that vendor interests are well represented
and may act as a liaison for communication between board members and vendors.
Closed communications will lead to a closed market. If you choose to have an
organizationally driven board, keep in mind that strong communication and man-
agement skills, which are always essential for market managers, will be an even
higher priority when it comes time to hire the manager. With this type of board,
vendors may feel that too much of the decision-making process is beyond their
control. Vendor investment in the market may be more difcult to achieve later if
the infrastructure does not include vendors in the larger context of the organiza-
tional structure.
Establishing the First Board of Directors
The type of board that the organizing committee establishes depends on the
organizational structure and the committee’s view of the board’s role. If the orga-
nizing committee decides to pursue an informal agreement among producers, or
to structure the market as a private for-proft business, there may be no need for
66
Starting a New Farmers Market
a formal board of directors. If the committee pursues or arose out of sponsorship
by a larger organization, whether a public agency like the mayor’s ofce or a pri-
vate nonproft such as the Urban League, the board will likely be organizationally
driven. If the committee decides to establish the market as an independent, non-
proft organization, any of the types of boards described here might be created,
according to the committee’s view of the board’s role in the market.
The organizing committee should consider potential board members with the fol-
lowing questions in mind. This process is most efective if each member considers
the questions individually and then the group discusses and resolves diferences in
a meeting to nominate potential board members.
?
Using the information in the preceding section, what will be included in
the “job description” for board members? What level of commitment does
the committee anticipate (e.g., two hours per week, fve hours per week)?
?
Who are the organizing committee members who want to continue on the
board and what qualities and skills do they bring to the board?
?
What qualities and skills are missing?
?
How important are the missing qualities and skills to the committee mem-
bers?
?
Can the market compensate for the lack of those skills on the board by
prioritizing them in hiring a market manager?
Once the organizing committee has achieved a level of agreement that allows it
to make a decision about the answers to the preceding questions, it can establish
criteria for evaluating anyone who is suggested as a possible board member. If all
members of the organizing committee know the types of board members needed,
it will be easier to evaluate candidates based on whether they meet the criteria
rather than on more personal factors. Using the criteria for skills and characteristics
needed on the board, the committee can identify individuals as potential board
members and evaluate the nominees.
Before making a decision about potential board members, take another look at
the vision statement for the market. Are the nominees likely to value and agree
with this vision? Will they work to support it? If you do not know, you can ask the
nominee to look at the vision statement and indicate his or her willingness to sup-
port it. If the nominee cannot support it, you should probably look for a nominee
who is more likely to commit to the market’s vision. Once the nominees have been
chosen, the committee should appoint someone to either contact or write a letter
of invitation to each nominee to serve on the board. Before ofcially establishing
the board, the organizing committee can hold an orientation session for potential
67
Establishing the Market’s Management
10
or new board members that reviews the vision for the market and expectations for
the skills and commitment of time required of board members. If, after the orienta-
tion, anyone opts out, the committee can then fnd someone to take that person’s
place before the board begins its term.
68
Starting a New Farmers Market
Establishing the Market’s Structure and Organization
Once the board of directors is established, it will need to create much of the formal
structure and rules for the market. The frst issues for the board to address are:
? Establishing the articles of incorporation and bylaws.
? Choosing a name for the market and for any other organizations and
associations that the vendors contemplate forming (e.g., “Alpine Tuesday
Farmers Market” or “The Alpine County Farmers Market Association”).
? Developing the mission statement. What is the purpose of the market
and the organization? Examples: “To provide consumers with ________ and
farmers with _________.” “The association is created to provide an orga-
nized body to __________.” The mission statement plays an important role
in establishing the character of the market as well as
the rules that will guide its daily operation.
? Establishing commitees. Many market founders
fnd it useful to allocate some of the more challeng-
ing responsibilities to subcommittees. For example, a
safety committee and an appeals committee are two
groups that can help in the process of making deci-
sions, evaluating problem situations objectively, and
enforcing the bylaws.
? Developing the bylaws by which the market as an organization and the
board of directors will operate.
? Implementing provisions of the bylaws, such as designating the board
ofcers.
? Covering board member liabilities. Depending on how it is organized,
the association of vendors may or may not be liable in case of accidents.
Research this issue with a local attorney. Example: “No person who is now
or who later becomes a member of this association shall be personally
liable to its creditors for any indebtedness or liability.” This statement ofers
some protection against individual member liability.
? Determining fscal provisions. The market must determine when its fs-
cal year begins and ends and who will be authorized to act on behalf of the
organization (e.g., to open accounts and sign checks). Before the market
fnalizes the articles of incorporation and bylaws, ask a local attorney to
review them.
69
Establishing the Market’s Management
10
Developing the Mission Statement
One of the frst activities of the organizing committee was to discuss and develop a
vision statement for the market and its role in the community. The vision statement
is a broad statement of the place of the market in the community. The mission
statement is a concrete, specifc statement of the major goals of the market orga-
nization in seeking to realize the vision of its founders. Clarifying and synthesizing
the group’s purpose and beliefs in a written statement makes it easier to present
the concept to growers, the community, and others.
The answers to two questions—“What are the market’s goals?” and “What are the
market rules?”—are refected in the market’s mission statement and in the bylaws.
Even if the market will not incorporate or have nonproft tax status, it is a good
idea to put the market’s goals in writing. The mission statement should:
?
identify the market’s goals, and
?
provide philosophical direction for developing the market’s objectives.
A clearly defned mission statement gives the market a starting point for long-
range planning and major decision-making.
The organizational mission statement should be agreed upon and supported by
everyone on the board.
Step 1. To defne your market’s mission and develop a mission statement, frst
look back at the vision statement created by the organizing committee at
the beginning of the start-up process. Board members should have seen
and committed to working toward this vision when they were recruited,
either for the organizing committee or for the board of directors. The
mission statement should grow from and be consistent with the vision
statement. Write the vision statement on a large piece of paper or a white-
board with plenty of room around it for ideas about the mission.
Step 2. With the vision statement on a large piece of paper or whiteboard, start
brainstorming actions that would be most efective in achieving the vision.
Brainstorming simply means getting all ideas on paper without judging,
censoring, or evaluating them.
Step 3. When everyone’s ideas have been listed, begin to evaluate them. Which
ideas are not actions or cannot be turned into actions? Set those ideas
aside (they may be great ideas, just not mission statement material). Which
would be the most efective actions (big steps versus little steps—the mis-
sion involves giant steps)?
70
Starting a New Farmers Market
Developing the Articles of Incorporation and Bylaws
Articles of incorporation should be written with legal guidance. The bylaws of the
market establish the rules by which the board will operate and typically address
the following items.
? The name of the market.
? The market’s purpose and mission.
? Rules that govern membership and membership fees.
? The composition and powers of the board of directors, committees, and
ofcers.
? How and when meetings are held and how decisions are made.
? Fiscal matters such as the beginning and end of the fscal year.
? Accounting practices.
? Access to records.
? A process for amending the bylaws.
Consult bylaws established by other farmers markets for templates.
Final Thoughts on the Structure of the Market
Establishing the market structure may involve a need for legal advice and certainly
requires detailed foresight and planning. However, once a well-planned structure
is established, the market will be solidly positioned for the future, and the manager
and succeeding boards of directors will be able to attend to the maintenance and
growth of the market.
71
11
Hiring a Market Manager
O
nce the organizing committee has chosen the organizational structure and
created the board of directors, it is the responsibility of the board to hire a
manager for the market. This section ofers some guidance about the responsibili-
ties of a market manager, the qualities to look for in a manager,
and how to proceed in hiring one.
Hiring a Market Manager
The role of the market manager varies from market to market
based on the community in which the market is located, the
type of market, the role the board plays, and the particular
manager’s personality, skills, and interests. As the market
development process evolves, the type of manager that fts
the specifc market will begin to form in the minds of board
members. Some managers hold full-time paid positions; some are vendors who
annually rotate the volunteer responsibility of manager.
Randii MacNear, manager of the Davis Farmers Market in Davis, California, believes
it is important that market organizers hire a manager as early in the planning
process as possible. This enables the manager to develop a better understanding
of what goes into creating the market and get a clear picture of the market’s goals.
The manager then will be more likely to be invested in making the market a suc-
cess. Moreover, the experience that a manager brings to the organizational process
is quite valuable and can help the board avoid many frst-time market difculties.
If the board of directors can create a paid manager position, the market will have
a committed worker with time allocated specifcally to market management as
opposed to trying to ft those responsibilities into what is likely already a busy
schedule.
Manager Responsibilities
Managers have equated their jobs with parenting. While trying to nurture, sup-
port, and promote their “child’s” life, they simultaneously must help it conform to
external codes of conduct and to communicate values of sharing, patience, and
teamwork. The following outline describes typical duties for a manager. Note,
This chapter will enable
members of the board of
directors to:
? Hire a market manager.
? Create new working
commitees.
72
Starting a New Farmers Market
however, that the job varies somewhat from market to market and from manager
to manager.
Market Start-up Duties
?
Recruit new vendors.
?
Monitor compliance with relevant regulations and
codes.
?
Secure necessary permits and licenses.
?
Track food, store, and wholesale prices to guide
pricing for the market and vendors.
?
Keep farmers updated regarding competition.
?
Make stall assignments.
?
Review the budget and maintain records of market expenses and income.
?
Make sure all vendor forms are completed properly and retained.
Daily Tasks and Responsibilities
?
Coordinate opening and closing of the market.
?
Assist at stalls when necessary.
?
Enforce the bylaws.
?
Handle emergencies and complaints.
?
Serve as the quality control person for produce and craft items, as well as
for the market’s general appearance and cleanliness.
?
Collect food stamps and WIC coupons from vendors.
?
Maintain an information booth, guest book, recipe postings, etc.
?
Keep a daily market log.
?
Hold vendor meetings as necessary.
Communication and Networking Tasks
?
Represent the market in meetings with community members and growers.
?
Develop a positive relationship with vendors.
?
Educate and assist vendors with merchandising, pricing, and other market-
ing and business skills.
73
Hiring a Market Manager
11
?
Coordinate and encourage volunteerism from sponsors and
community groups.
?
Build positive customer relations.
?
Maintain communications with city and county ofcials, the health depart-
ment, the site owner, and others connected with the market.
?
Follow instructions from and maintain communications with the board
of directors.
?
Work with the board and vendors to develop strategic plans.
Promotion and Advertising Duties
?
Create an annual calendar of events.
?
Develop new promotional ideas.
?
Arrange for media coverage and represent the market to the media.
?
Establish an advertising budget.
?
Review logos and other marketing tools with a committee as necessary.
Evaluation Duties
?
Conduct periodic surveys to assess customer opinions and satisfaction.
?
Invite, listen to, and use input from vendors and others to improve the mar-
ket.
?
Lead in monitoring and, when necessary, revision of the market’s mission,
goals, and strategies.
?
Evaluate and improve the efectiveness of meetings and other team activi-
ties.
?
Debrief participants after board meetings, workshops, and retreats.
Qualities of a Good Manager
The market manager is crucial to the market’s success. As evidenced by the respon-
sibilities just described, market managers must be leaders who possess a complex
blend of skills that are both interpersonal and organizational. Following are some
qualities to consider in a potential manager.
Interest and skills in sustainable/local agriculture. The manager does not
need to know everything about local crops or food production practices,
74
Starting a New Farmers Market
but he or she must learn how to rate produce quality and know when
certain foods are local and when they mature and become available. He or
she also must be interested in understanding the concerns, lifestyles, and
needs of growers.
Communication skills. The manager will need to be in communication with
many diferent types of people—growers, regulatory authorities, the
media, and the community. He or she must be able to relate well with oth-
ers, feel comfortable addressing groups, and write well.
Leadership. The manager should be decisive but not domineering. He or she
must be able to ask for input from many sources and coordinate feedback
to make the best decision for the market. Ideally, managers should be
secure, mature individuals who can accept feedback and grow from it. They
should also be able to remain fair when in managing conficts among ven-
dors and between vendors and customers.
Community connections. A manager who is already connected to the com-
munity will know how the community functions and have a sense of where
to go for support and resources. Since many of the vendors may come from
outside of the area, it is helpful to have a manager who is an insider.
Organizing skills. The manager must keep many records, comply with regula-
tions, and keep track of people.
Creativity. The manager largely creates the market’s atmosphere, so the
market needs someone who has a good aesthetic sense and can create an
upbeat atmosphere. Catchy logos, innovative events, and efective promo-
tional ideas all come from creativity.
Commitment. The manager must be committed to the market and believe
in the value of local, fresh food and direct marketing. She or he also must
have the time to commit fully to the job.
Knowledge of farmers market management: The manager will need to have,
or quickly gain, an understanding of regulations pertaining to the farmers
market and how those regulations afect its operation and performance.
The manager also must keep up to date as regulations are modifed and
new ones are imposed.
Writing a Job Description
Once the board knows the type of individual the market needs and the respon-
sibilities for which the manager will be accountable, members can use that
75
Hiring a Market Manager
11
knowledge to create a job description and evaluate candidates. The hiring process
for a farmers market manager is much the same as for any other job. First, the
board or top management must determine the time commitment that the mar-
ket will require—full time or part time—and also estimate how much money is
available for compensation. They can then develop a job announcement and an
application process, which should include realistic qualifcations, the manager’s
responsibilities, and the salary range. When determining the salary range, remem-
ber to leave room in the budget for benefts such as health insurance, annual leave,
and retirement. Benefts include the employer’s share of Social Security taxes even
if the position is part-time and will not include medical or other benefts.
Next, get the word out to potential candidates. Look for applicants within local
community groups—colleges with agriculture, nutrition, or community develop-
ment departments; local food stores; neighboring farmers markets. Post the job
description in the local paper, with the state’s employment development depart-
ment, in nonproft employment magazines, and on appropriate websites. You
may be able to take advantage of statewide farmers market or direct-marketing
associations to help spread the word. Also, be sure to encourage applications from
community members who helped to organize the market. But remember to evalu-
ate them based on competence, not on qualities unrelated to the job. In some
cases, this is a matter of law as it is illegal to evaluate and discriminate on the basis
of matters unrelated to the job such as age, sex, parenthood, or disability.
Conduct the interviews in a professional manner and be sure to provide candidates
with all necessary information about the market. Make sure that the people who
conduct the interviews represent the diverse interests of the market. For example,
try to have a farmer, an involved community member, and a local business owner
on the hiring panel.
Compensation
Ideally, the person who promotes, organizes, manages, and dedicates himself or
herself to the market will earn a livable wage in return for that commitment. The
pitfalls of an unpaid, volunteer manager include having a manager who cannot do
very much beyond basic daily coordination.
Collecting stall fees and directing trafc are day-to-day tasks that a volunteer
manager can tackle, but planning promotions, utilizing the media, and building
community connections all require substantial time and attention. A volunteer
manager’s position is likely to be short-term as most people need a paying job that
can support them and their families. This can lead to a lack of continuity from year
76
Starting a New Farmers Market
to year or, worse still, to the potential that the manager must leave for a paying job
in mid-season.
For some smaller markets, vendors have shared the market manager’s responsi-
bilities by rotating duties from week to week or from year to year. While smaller
markets may have few options, in the long run this alternative can lead to a less
successful market. Respecting the hard work of a manager by providing incen-
tives may enable the market, and therefore the vendors, to be more successful and
proftable.
The manager’s salary can be based on an hourly rate, a fat fee, a percentage of
gross market receipts, or a combination of any or all of these arrangements. The
manager’s salary should be taken into account when making other budget deci-
sions, such as stall fees.
In the short term, management may try recruiting a volunteer or request assis-
tance from the city government or department of agriculture. However, remember
that these options are not optimal. Develop a strategic plan to grow the market to
the point where you can aford at least a part-time paid manager.
Creating New Working Commitees
Once the manager has been hired, the board, with the new manager’s help, will
need to create working committees to focus on various aspects of start-up. These
committees may be continuations of the original working committees that con-
ducted the feasibility study. Now, however, their attention turns from assessment
to implementation. Committees can be set up to create market rules, continue
vendor recruitment, assist the manager in attaining necessary licenses and permits,
design the market’s layout and arrangement of stalls, create an advertising and
promotion strategy, and prepare special events for opening day. The manager and
board of directors may be responsible for setting up the market’s fnances, budget,
and accounting system or the task of assisting the manager can be designated to
another working committee. However, the manager and board of directors are
ultimately responsible for the market’s fnances and accounting. The next section
of this manual is devoted to the various categories of start-up activities.
77
This chapter will enable
you to:
? Understand the role
and responsibilities of
the fnance commitee.
? Be aware of issues
involved in moving
toward fnancial self-
sufciency.
? Create a budget and
bookkeeping system.
12
Creating the Budget and
Bookkeeping System
A
working committee devoted to the fnances of the market has two major
responsibilities: day-to-day fnancial management and planning for the future
of the market. One of the committee’s tasks will be to create a
budget and bookkeeping system to present to the manager
and board of directors. The other is to work with the board
and manager to develop a plan for the fnancial stability of the
market, including start-up funding and a pathway to fnancial
self-sufciency. The details of this work will depend on the
particulars of the individual market; however, this chapter
provides an overview and information that the committee,
manager, and board of directors can use to guide their actions.
An Overview of Market Finances
If the market relies on external funding such as a grant to
begin operations, the manager and board will need to estab-
lish a timeline and process by which it will become fnancially
self-supporting. A timetable should be established for imple-
menting the goals and projected activities. The extent of these plans will depend
on the type of budget the market will have or can generate.
Funding and the Budget
An annual budget is a plan of the market’s projected
income and expenses with an itemized list of allo-
cations to each activity for the budgeting period.
Creating the frst annual budget can be a challenge
since the market does not yet have a previous year’s
expenses available as a guide, but the committee
should use data gathered from other markets and sources during the feasibility
study. The committee can begin to develop a budget by listing the current year’s
or season’s expected income from stall fees, membership dues, donations, promo-
tions, and sponsorships. The committee then lists planned activities such as special
78
Starting a New Farmers Market
Davis Farmers Market: Tips on Developing a Budget
– Randii MacNear, Davis Farmers Market Manager
The fnancial budget should be the most important tool of a farmers market
organization. It is the “brain” of the organization. Developed and reviewed ofen, it
becomes the primary guiding document for organizational analysis, program devel-
opment, and fnancial accountability. The budget is part of a larger organizational
fnancial plan and documentation process that the governing body of a farmers mar-
ket reviews and makes available to its participants for perusal. This keeps market
participants informed and educated about market operations, keeps the board
accountable for sustainable and efective fnancial management, and minimizes the
possibility of unfounded claims of fnancial misinformation.
The optimal goal for an organization would be to develop a budget template that would
remain stable and transferable year afer year throughout the long-term development
of the organization. That way, trends of income and expenses are easy to recognize
and accommodate.
When evaluating and reviewing the budget during the course of the year, keep in mind
that most year-round markets do not begin to operate in the black until midway through
the budget year. For example, a market that uses a calendar-year budget (January to
December) will most likely be in the red on fnancial statements until June or July.
Our organization has been using the same budget format for more than twenty years
with only minor fne-tuning of budgetary categories, comparative information, and
percentages. Our board reviews the budget (including income and expenses) monthly
and, if necessary, curtails or expands spending. Occasionally, the board and the manager
must make major adjustments in the budget midway through the organization’s fscal
year. With current and accurate fnancial statements and numbers, those adjustments
can be made with confdence and accountability.
Afer July, the market should begin to see the fnancial picture shif into the black.
Typically markets do not begin to see adequate income-to-expense ratios until the spring
and summer sales volumes occur; however, expenses such as salaries, ofce rent, and
health benefts remain constant on a monthly basis all year long. To evaluate how the
market is doing, the market manager can compare year-to-year fnancials and year-to-
date fnancials for increases or decreases or red-fag items. In other words, newcomers
to budgeting should know not to panic if the market operates in the red for six months
out of the year. This is a fairly normal occurrence for year-round markets.
Financial work can be done with a simple budget and set of books kept for the chart
of accounts; however, there are also easy-to-use sofware programs for fnancial
management. An accountant is retained for year-end taxes and the assets and liabili-
ties portion of the organizational fnancial records.
79
Creating the Budget and Bookkeeping System
12
events and advertising and their projected costs, as well as other expenses such as
wages, insurance, permits, and ofce overhead.
Review this information carefully, and if there are questions or concerns, contact
the manager of another market for an estimate of usual or comparable expenses
for various cost categories. Be conservative and plan for contingencies. Include
savings for future long-range projects in the budget if possible.
Planned income and expenses should match exactly, allowing room for unex-
pected costs. If planned expenses exceed planned income, the market must make
an appropriate adjustment.
Recordkeeping
Good recordkeeping makes management and decision-mak-
ing easier and more efective. Records allow management to
keep track of and review past sales performance, vendor and
membership information, crop availability, fnancial transactions,
and much more. This information allows management to recognize
and beneft from trends and business cycles, as well as helps with bud-
geting and strategic planning. Methods of recordkeeping vary widely. It is the job
of the market manager and the board of directors or organizing team to decide
which records are appropriate for their particular situation. There are some com-
mon records to consider adopting for the market.
Careful fnancial records must be kept for tax purposes, even by nonprofts, and
are among the most valuable aids to good business management. The manager
and the staf or board of directors should review the market’s fnancial records
regularly. The process should include comparisons with the budget to determine if
expenses are under or over the budget and to determine if and where adjustments
to the market should be made.
Minimum written records are:
? Expenses – amount, item, service paid for, and date.
? Income – amount, source, and date.
Some markets also must include accounting for liabilities (any debts to be paid
of in the future) and assets (items of value owned by the market) with their
fnancial records. This task can be time consuming even if the market manage-
ment already has some accounting experience. The services of a professional
accountant, whether volunteer or paid, are strongly recommended for medium to
large markets; small markets also may beneft from professional help at tax time.
80
Starting a New Farmers Market
Computerization of these records can signifcantly improve the efciency and
accuracy of the market’s accounting.
The market also should have procedures for handling and recording petty cash
transactions and reimbursements for out-of-pocket expenses. Cash recordkeeping
must be very accurate since there is no other written record of the transaction. A
receipt also should be issued and should include the market’s name and address,
the name of the customer and business, the date, the purpose of the payment, and
a signature. A duplicate copy of the receipt should be kept for market records.
Stall fees are another important piece of fnancial information that should be
recorded and for which a receipt should be issued. Whether the market charges a
fat fee, a percentage of gross sales, or some other type of fee, the market will be
handling cash most of the time and will need to keep careful records.
Finally, markets must establish a method for handling bank accounts, deciding
who has signature rights, and making decisions about other controls and limita-
tions. These topics should be discussed among all the principal operators before
the organization begins any fnancial activity.
81
Creating the Budget and Bookkeeping System
12
Market Records of Vendors
While vendors’ records of sales can help them to improve their
sales and marketing, the manager also needs to keep good
records. Maintaining accurate, up-to-date vendor records is
an important part of market management. The records should
include information on vendors who currently sell at the mar-
ket, previous vendors who might return, and vendors who
have expressed an interest in selling at the market in the future.
Market managers can use a variety of methods to organize and
maintain vendor information.
A handwritten index-card fling system is portable, easy to
edit, and can be sorted into diferent categories. A computer
database also can be used to maintain vendor records and, in
addition, can help generate mailing labels and perform a variety
of other functions.
Vendor information fles should include:
?
Vendor’s name (partners, family, and employees).
?
Farm or business name.
?
Mailing address.
?
Home and business phone and fax numbers.
?
Email address.
?
Farm or business location (if diferent from the mailing
address).
?
Crops grown; weeks available.
?
Crop availability schedule; weeks available.
?
Future crops planned; months and weeks available.
82
Starting a New Farmers Market
83
13
Creating Market Rules
O
ne of the most concrete and enduring legacies of the frst board of directors
and manager is the creation of a set of rules for the market. Market rules play
an important role in defning and positioning the market and in establishing its
character. They cover such issues and concerns as stall fees,
membership requirements, allowable and desirable products,
and the times and dates of operation.
The Purpose and Functions of Market Rules
The rules created by the frst board of directors will afect
the market for a long time to come. If the board chooses to
appoint a committee to draft rules for its approval, it is impor-
tant to include a diverse group of stakeholders and especially
to include vendor representation so that the rules address the
needs and concerns of all stakeholders. Vendors can be repre-
sented by some of the frst farmers to commit to the market,
and some may be found among the original organizing com-
mittee. An efective approach to creating the rules is to frst
gather input from various stakeholders, especially vendors and
consumers; develop draft rules; and then go back to the stake-
holders for further feedback before revising and fnalizing rules
for approval by the board of directors.
Market rules have a tradition in America that is as old as the
markets themselves. William Penn’s markets in Philadelphia opened in 1693 under
a proclamation that the market would open with the ringing of a bell twice a
week and that there would be no buying or selling on the way to market or before
opening. Other rules at colonial markets stated that all producers were guaran-
teed equal access and that attempting to create a monopoly to control the price
of an item and buying items to resell them at the same market were punishable
ofenses. Today, market rules cover similar issues, though, fortunately, the vendor
who breaks a rule is no longer locked into a pillory for public ridicule.
Each market must create its own set of market rules that refect the market’s par-
ticular vision and mission. Market rules help defne the who, what, when, and how
of a market.
This chapter will enable
you to:
? Be aware of issues
addressed in the market
rules.
? Understand common
controversies that arise
in farmers markets
and how the rules can
help the manager and
board avoid or handle
such issues.
? Create a workable,
useful set of market
rules.
84
Starting a New Farmers Market
?
What does the market hope to accomplish?
?
During what seasons, days, and hours will the market operate?
?
Who is eligible to sell?
?
What are the requirements to maintain membership?
?
What kinds of products can be sold?
?
Who are the decision-makers?
?
How and by whom are grievances handled?
Market rules also are important in establishing guide-
lines for relationships among and between members
of the board, the vendors, and the market manager. It
may seem tedious to go over the details of crisis management in advance, but it
is much easier to consider a problem when it is still hypothetical as opposed to
trying to be objective when friends and business partners are involved. A thorough
set of guidelines lets all of the parties know where they stand, provides a clear
understanding of what is and what is not allowed at the market, and outlines how
infractions will be handled.
Chris Wychorski of the Federation of Massachusetts Farmers Markets points out
that, at frst, vendors may think they do not need rules, which they may perceive as
an unnecessary and constricting formality. “Some new vendors may grumble, but
after they have been at the market for a while, they see that it helps to have struc-
ture, to have procedures to fall back on, and how the rules can help protect them.”
You can use the following template as a guide for developing your market’s rules.
If there is already a market in the area, you also may want to ask the manager for a
copy of its rules for review. In addition, your state’s farmers market representative
may have suggestions. When creating the market rules, be sure to address the fol-
lowing points.
Dates and times. Determine whether the market will be year round or sea-
sonal; if seasonal, determine the opening and closing days. Determine the
regular opening and closing hours. Specify the day or time when stall fees
are due, what time vendors may begin setting up, and what time they must
arrive each day to participate.
Agreement. Make it clear that, through their applications and signatures,
vendors agree to the conditions detailed in the market rules. Example: “By
signing this contract, vendors agree to allow inspection of their farms to
assure compliance with . . .”
85
Creating Market Rules
13
Products. Defne what products are to be sold at the market. Do state or local
laws control what is allowed or how products must be handled? Example:
“All agricultural products listed must comply with California’s code gov-
erning . . .” Items may have to follow guidelines regarding such things as
grading and packaging, organic certifcation, maturity, quality, labeling,
and health and safety laws.
Admission of new vendors. How will the market decide who can join and
when? Will it be a decision by the manager, the board, or vote? Example: “If
growers/vendors meet the following criteria, they will be admitted based
on the availability of space, the diversity that their products add to the mar-
ket, and their position on the waiting list.”
Market fees. State the procedure by which stall fees will be collected. Are there
seasonal rates or early-sign-up discounts? Will the market charge a fat rate
stall fee or a fee based on a percentage of gross sales?
Membership. Membership can be based on and can mean many diferent
things. Will membership be limited to local or in-state growers only? To
be voting members, must growers have participated for a certain length
of time each season? Will local supporters/ofcials be allowed to vote on
some larger issues but not be considered regular members? Example:
“There will be two categories of members in this association, the frst
referred to as . . . and the second as . . .”
Responsibilities of members. These guidelines cover issues such as con-
sistency and timetables at the market, product quality, and overall
expectations regarding stall areas, including behavior and cleanliness.
Example: “Vendors are required to maintain their stands in a neat and
orderly fashion, ensuring safety by . . .”
Assignment of stall space. Stall assignments can be based on seniority, prod-
ucts, history of consumer/producer relationships, and the size of the space.
More than likely, assignment of stalls will involve a mixture of all those
conditions. How will vendors apply for new spaces?
Grievances. Complaints are a fact of life at every farmers market, so begin
with a good plan for dealing with them. Alex Hitt of the Carrboro Farmers
market in North Carolina said that his market has a strict rule of accepting
written grievances only. This rule allows him to avoid unofcial verbal argu-
ments and deal objectively with ofcial written complaints.
Enforcement. Market rules must have established courses of action for dealing
with infractions. Will vendors be allowed one, two, or three chances before
86
Starting a New Farmers Market
they are expelled from the market? Will the expulsion be temporary or
permanent? How may vendors submit appeals if they disagree with expul-
sion? What legal rights do managers have to investigate complaints and
enforce market rules?
WIC coupons and food stamps. Management will have to decide whether to
participate in the USDA FMNP and Food Stamp Programs. If so, vendors will
be afected in terms of postings, turning in coupons, etc. For more informa-
tion, see the Chapter Three on organizing a farmers market in a low-income
area.
Miscellaneous: Do you want to establish sign requirements for each vendor?
For example: “Any product not grown by the vendor requires a sign indi-
cating the farm and county from which the product came” would be a
requirement for a local-vendors-only market.
Being Proactive in Making the Market’s Rules
The preceding list outlines issues commonly addressed in rules for farmers
markets. By anticipating possible sources of controversy and dissension and
formulating rules and policies to address those issues proactively, the board of
directors and market manager may avoid problems that interfere with the market’s
establishment as a successful, stable entity. The next section describes some of the
sources of controversy that the board and manager can manage or avoid by being
proactive in writing the market rules.
Locally Grown Products
Certifed farmers markets in California exist for certifed producers to market their
produce directly. Because they sell relatively small volumes of produce direct to
consumers, vendors at farmers markets are exempt from many packing and label-
ing requirements that would otherwise apply. One of the most troublesome issues
for markets and managers derives from the possibility that a vendor may attempt
to use the market to sell something she or he has not produced.
Disputes often arise over whether or not all the vendors are selling their own
crops. Sometimes growers make honest mistakes, thinking, “Well, this is just from
my friend next door and I helped him with seeding some of it,” not realizing that
this violates the market’s contract and possibly violates state regulations as well.
Ideally, no vendor will buy produce at a wholesale outlet and claim it as his or her
own, but that is one of the major challenges facing markets, managers, and those
in county and state government agencies that oversee farmers markets. For this
87
Creating Market Rules
13
reason the board, the manager, and vendors need to prepare themselves for this
contingency by having a clearly written procedure outlined in the market rules and
understood by all vendors.
Vendors at the market need to understand that the market’s producer-only rule
is a legal requirement for certifcation. Otherwise, they may not see the danger in
misrepresenting the origin of their products. If locally grown products are what the
market promotes, then that is what customers expect.
Polls have shown that consumers who patronize farmers markets do so primarily
because they like to know who grows their food and feel that they can trust farm-
ers they see face to face. This is important to preserve the integrity of the market
and keep the trust of the public. Freshly picked foods sold by the person who grew
them are viewed as being of higher quality than ones that have been transported
long distances. Every farmer at the market should realize the value of this percep-
tion to the market’s prospects.
Quintin Carpenter of Capitol Square Market in Madison, Wisconsin, deals with a
serious complaint about a farmer bringing others’ products to market by following
the farmer home that day to see the felds for himself. His market has a producer-
only rule, and a farmer who breaks that rule can never sell at the market again.
However, in some states, farmers have questioned the market manager’s right to
set foot on their property. Therefore, managers must be careful about trespassing
suits and the board of directors should add a clause regarding the right to inspect
farms in the market’s vendor contract.
Clearly written market rules, vetted by an attorney who knows relevant laws and
regulations, can help provide managers with the legal backing they need to deal
with complaints of unfair or illegal sales. Market managers can do their best to
avoid these problems by:
?
Explaining the importance of upholding producer-only standards and
maintaining the market’s integrity.
?
Knowing what is in season in the area.
?
Being familiar with vendors and their products so that vendors are comfort-
able with the manager and the manager knows vendors’ farms well enough
to know what they can and do grow.
Stall Assignments
Another issue that often sparks dissension is allocation of stalls. Vendors know that
an ideal location can make a diference of hundreds of dollars a day. If possible,
88
Starting a New Farmers Market
begin with a market design that makes every stall space visible and easily acces-
sible to customers.
To assign spaces equitably, market managers use a variety of techniques, including
giving frst choice to the frst vendor who pays the fees, drawing straws, and basing
stall assignments on seniority. Of course the last is only feasible after the market
has been in operation long enough to have vendors with diferent tenures. Make
sure the plan is transparent, widely shared, and in place before the season starts.
Once stall assignments have been established, adhere to the rules and make sure
committees and procedures are in place to deal with disputes.
Transfer of Title
Transfer of title is another hotly debated issue. What happens if a farmer sells his or
her business to a grower who does not already have a space in the new market? Is
that grower permitted to sidestep a market’s waiting list and enter immediately?
Some markets establish detailed rules outlining the procedure by which space
and membership in the market may be transferred. Transfer is often limited only to
immediate family members or legally recognized business partners.
A Final Note about Market Rules
Market rules need to be written to ensure that they meet the market’s goals.
However, the market will not be well served by rules that are so restrictive that
only a few vendors wish to participate. A good approach to including representa-
tive opinions is to have a diverse market-rules committee. Everyone’s input and
concerns should be considered in an efort to strike a balance among the various
interests and ensure that the rules represent an optimal outcome for all of the
groups involved.
89
This chapter will enable
you to:
? Recruit growers and
orient them to the
market through a
grower meeting and
follow-up contacts.
? Develop application
materials and
information for
growers
? Share tips to enhance
growers’ success and
thus the success of the
market as a whole.
14
Recruiting and Orienting Vendors
T
he task of recruiting vendors, begun during the feasibil-
ity study, should be an ongoing efort. If possible, include
members of the frst working committee in the group that will
continue vendor recruitment, as well as any farmers who have
already agreed to sell at the market and are willing to recruit
others. The committee can use the results from the market
analysis to match consumer demand with growers to provide
an optimum product mix.
Holding a Grower Meeting
About three or four months before the market opens, the
vendor-recruitment committee should plan a meeting with
growers who have indicated a willingness or intent to become
vendors at the market. The purpose of this meeting is to:
?
obtain estimates of grower participation,
?
remind growers of the opening day’s date and time,
?
formally distribute the market rules,
?
distribute application packets to vendors and explain the process and
timeline for applying to be a market vendor,
?
give growers information about permits, and
?
provide growers with tips to enhance their success as vendors.
The meeting should begin with introductions and updates on the work of the
various committees so that participants get a sense of how the market is develop-
ing. Next, explain the market rules. Since the committee will have been in touch
with growers and already sought their input on the rules, the rules should not
contain any major surprises for growers. But this is an opportunity to ensure that
everyone understands them. Explain the application process, including the time-
line, and distribute application packets. Explain the requirements for licenses,
permits, and/or certifcates growers will need to become certifed vendors at the
market. For example, at California certifed farmers markets, all growers must be
certifed as producers by their county agricultural commissioner. At this point, the
90
Starting a New Farmers Market
market manager might formally become the “point person” for growers to contact
when they need assistance obtaining necessary licenses, permits, and certifcates.
Depending on the numbers of questions to be answered, there may or may not be
time for some informal training and tips for vendors to enhance their merchandis-
ing success at the market. The next several pages give more detailed information
about each of the major agenda items for the grower meeting—market rules,
application packets, information about licensing and permitting, and merchandis-
ing tips.
Market Rules
Vendors need to understand the market rules. Include a copy in each vendor’s
application packet. While the meeting is not the place to go over all of the fne
points of the rules, any especially important or potentially confusing parts of the
rules should be highlighted. For example, the responsibilities and obligations of
membership and procedures for confict resolution should be reviewed.
The manager and members of the board of directors should attend this meeting so
that they can meet the vendors and get feedback on the rules. If controversy arises,
time should be provided to discuss and help to clarify or amplify issues related to
the rules. Although the rules, like the market, are a group efort in which everyone
must be fexible and work for the larger goal of long-term success, the ultimate
responsibility for adding, amending, or changing the rules rests with the board of
directors.
Application Packets
Once farmers commit to the market, that agreement should be
formalized. A structured, clearly defned application procedure
for participation in the market should be formalized to:
?
Provide an opportunity to establish understanding of and agreement to
the requirements, rules, responsibilities, and rights of market participation
from the beginning.
?
Indicate to farmers and the market manager alike that they are entering
into a formal business agreement.
Each application packet should include the following items:
?
Name and contact information.
?
Information on fees.
91
Recruiting and Orienting Vendors
14
?
A listing of produce/products intended for sale.
?
A copy of the market rules.
?
An agreement form to be signed and dated.
?
Any other forms specifc to the market.
Licenses and Permits
Required licenses, permits, and/or certifcates may present growers with chal-
lenges in navigating bureaucracy. The market manager or a representative of the
board of directors should research the requirements and develop a short docu-
ment explaining them and then present an overview of the information at the
grower meeting and answer any questions.
Tips for Vendors
As the needs and preferences of the market’s customers are known in more detail,
management can begin to focus on ways to help vendors increase sales. Many
farmers are not accustomed to direct marketing and may need assistance in
displaying and promoting their products to maintain an advantage. Following are
some basic merchandising tips to pass on to vendors.
Guidelines on Pricing
?
Post prices clearly on signs or a price board. Consumers want to make
educated choices. Try to use round numbers as consistently as possible.
Calculations are easier if all products are priced in whole, half, or quarter
dollar increments. Setting prices to values that are divisible by four, such
as $1.20 per pound or $1.60 per pound, makes quarter-pound calculations
easier. Consider volume discounts, case prices, and specials. Observe how
these measures afect sales. Discounts do not always increase the volume
of sales.
?
If feasible, establish one price for all your produce. When tomatoes, pep-
pers, and eggplant are all $2 a pound, customers can mix them together in
a single bag. If your items have a few diferent prices, try displaying them
on the table in “price clumps.” Use signs to designate price ranges. While
bartering is almost mandatory when shopping at markets in other coun-
tries, consumers in the U.S. are not accustomed to this practice. For this
reason, avoid haggling over prices.
92
Starting a New Farmers Market
?
Sell frst-quality, fresh, and vine- or tree-ripened produce at premium
prices, but seconds should be discounted. Harvest, handle, and display
items carefully so they are not bruised or split in the process. If, by the end
of the day, the lettuce is wilting, the apples are picked through, and only
one variety of tomatoes is left, it may be prudent to lower prices. Again, the
price should refect the quality of the product.
Selling Suggestions
Produce sells quickly at farmers markets, often starting with an
opening rush. A study conducted in Dane County, Wisconsin,
found that by 10:15 a.m. more than half of the day’s trafc had
passed through; by 11:30 a.m. more than 80 percent of the day’s customers had
done their shopping. A USDA Agricultural Marketing Service study in Toledo, Ohio,
(Toledo Fresh Food Public Market, a Feasibility Study for Toledo City Parks) found
similarly that almost 50 percent of customers visit the market between 9:00 a.m.
and noon. For these reasons, vendors must establish efcient systems that cater to
customers and enable quick service. The following suggestions will help vendors
prepare for the opening rush:
?
Arrange the side of the table used for display or cash exchange for
efciency.
?
Avoid the need to turn around to get to the cash box for each sale.
?
Accept cash from only one customer at a time.
?
Be courteous and friendly to every shopper regardless of whether he or she
makes a purchase.
?
When possible, provide added services to customers. For greatly improved
customer relations, ofer tips on meal preparation, food-care instructions,
written recipes, and/or appropriate containers for carrying purchases
home.
If sales are low, then the vendor can beneft from asking some questions, such as:
? Is the produce display atractive? Always keep boxes and baskets full
and readjust piles frequently to keep produce looking fresh. Use a spray
bottle or ice to keep greens from wilting.
? Are customers unfamiliar with the product? Recipes, pictures, and
suggestions about how to use products help to educate customers and
inspire them to purchase unfamiliar items.
? Is this the wrong type of consumer or the wrong season for the prod-
ucts? Value-added items such as fower-pressed candles and wreaths may
93
Recruiting and Orienting Vendors
14
sell well during the holiday season but not
necessarily in June. Likewise, value-added
products may sell well in a wealthy neigh-
borhood but not in a low-income area.
Using Samples for Promotion
Produce samples allow consumers to taste your
wares before purchasing them and allow sellers
to introduce new and uncommon varieties as well
as demonstrate the quality, taste, and freshness of
their products. Before a vendor passes out samples,
make sure that the county or city health depart-
ment approves it. The market manager should post
sampling regulations.
Professionalism
Vendors who are not attentive, who are busy smoking a cigarette, or who appear
unkempt lose business. While customers like to see a farmer outftted in customary
farm attire, they do not necessarily want to see sweaty, torn t-shirts and manure-
covered work boots. Other customer turn-ofs include belittling other vendors and
their products, leaving the booth unattended, hawking products too aggressively,
and inconsistent attendance.
Communication with Customers
Customers will have questions about varieties’ names, food preparation, grow-
ing practices, etc. Employees who cannot answer these questions or do not try to
communicate well with shoppers will lose business.
Product Quality
Do not indulge in the notion that the farmers market is a place to bring the culls
that a distributor would not purchase. Customers recognize and are attracted by
quality and good business is developed from repeat buyers.
Display
Booths that are crowded, unattractive, or poorly set up for the buyer hurt sales. Do
not make customers face the sun, stoop over, or elbow each other to buy.
Gauging Quantity
Bringing too little and selling out prematurely or bringing too much and taking
home large amounts of unsold products are mistakes that vendors can learn to
avoid by keeping good records and using them to improve their ability to gauge
94
Starting a New Farmers Market
appropriate quantities to bring to market. In the early days, while vendors are
learning, it is better to bring too much to market as customers may not return to a
vendor who runs out of produce well before the end of the market day.
Conclusion
By the end of the grower meeting, you should have a group of vendors committed
to and excited about a new market for their products. Make sure everyone has an
application packet, knows who to ask for help completing it accurately, and knows
when and where to turn it in. Also, be sure you have contact information for all the
vendors so that you can keep in touch with them and maintain their commitment
between the meeting and opening day.
95
15
Promoting and Advertising
Your New Market
T
he market manager and board of directors will need to develop a promotion
strategy and logo that refect the market’s identity and mission. Building com-
munity awareness and commitment to the market involves such tasks as designing
a logo, developing an advertising strategy, and undertaking a
sequence of organized promotion activities. The new market
will need to be publicized, especially for opening day.
Creating the Logo
Developing an identity that people quickly and easily associate
with the market will improve the efectiveness of both adver-
tising and promotion eforts. An attractive logo is an efective
tool for creating a positive, professional image and can be
used throughout the market’s publicity program. Through
repeated association, the logo becomes a symbol that is easily
recognizable.
The earlier the market is able to develop this symbol, the
sooner it can use the logo on buttons, bumper stickers, letter-
head, posters, t-shirts, and other publicity tools and the sooner people will become
familiar with it. The following points are important to consider when developing
the logo. They should be discussed at the early market organization meetings, but
be aware of the pitfalls of art by consensus. It is a challenge to please everyone and
still produce an efective logo in a timely manner. To save time and energy, assign
this task to an ad hoc committee and suggest that they provide several options to
choose from by some future meeting.
Logo Design: Professional Artist or Artistic Volunteer?
The subject matter depicted by the logo should be representative of the market
and/or the host community. The logo should be clear and attractive and must be
reproducible at various scales—from business cards to billboards. Consider use
of agricultural imagery such as fruits, vegetables, farm animals, and farm equip-
ment. Public-domain clip art can be useful, but original artwork may enhance
This chapter will enable
you to:
? Create a logo for
use throughout the
market and in market
materials.
? Design and implement
a promotion strategy
for a successful
opening day and
beyond.
96
Starting a New Farmers Market
the chances of producing a logo that belongs unmistakably and uniquely to the
market. Efective logos often use bold text and simple color schemes that provide
sharp contrast to increase their visibility. The logo should certainly include the
market’s name and perhaps a very brief slogan or the name of the host community
if it is not already part of the market’s name.
Hiring a professional artist to design the logo may be somewhat costly but has
several advantages. A professional graphic artist should be experienced in the
technical requirements associated with developing an efective logo and have the
creative ability to make it attractive. While there is some initial cost involved, it rep-
resents a one-time investment that will continue to pay dividends for many years.
However, a hired artist may not have the same vision of the market as stakeholders
do. Without clear guidance from market management or the
committee the market has assigned to the task, the artist’s logo
may not appropriately refect management or vendor senti-
ments.
Regardless of who does the work, that person will need super-
vision and input. If the market chooses to use a professional,
be sure to shop around. Check with other area organizations
whose logos you admire and ask them for artist recommen-
dations. If the market has chosen a regional association or
sponsor, consult with them for artist recommendations as well.
They might even help cover the logo
development costs. Be sure to obtain
several bids and logo samples to
compare and discuss with the orga-
nizing group before choosing the
fnal design.
An alternative is to ask a volunteer
or amateur artist to design the logo.
This obviously has the advantage of lower or no cost. There may be someone in the
organizing group that has artistic talents. If not, consider approaching local high
school or community college art and design programs and ofer to set up a logo
development contest. Sponsoring such a contest also generates publicity for the
market and gives the community an opportunity to participate. Be sure to set clear
guidelines regarding the themes in which the market is interested. While there are
many advantages to this low or no cost approach, be aware that the market may
end up with a logo that is technically inappropriate—too busy or too difcult to
read at various scales.
97
Promoting and Advertising Your New Market
15
Advertising versus Promotion
Diferent interpretations exist regarding the defnitions and scope of advertis-
ing and promotion activities. There is room for a considerable amount of overlap
between the two activities.
In this manual, we defne an advertisement as a verbal or visual message delivered
to the public through a variety of paid, commercial media. Examples of adver-
tisements include paid ads on local radio stations and advertisements in local
newspapers and magazines.
Promotions, on the other hand, cover a wider range of possibilities. In general,
though, a promotion is an event or activity that highlights the image of the mar-
ket, its vendors, and their products and services. Examples of promotion activities
include special events, rafes, and public appearances at other community events.
Public relations activities also involve promotion. Some managers have found
promotions to be more cost efective than advertisements. Sponsoring a fun and
colorful event such as a pumpkin-carving competition elicits customer interest and
loyalty more than a thirty-second spot on television.
Promotions often require logistical planning but do not necessarily have to be
costly. The market’s budget and its needs will determine the extent to which
the market invests in paid advertising and/or promotions. Careful research and
planning will ensure that advertising and promotion activities are time- and cost-
efective. Before proceeding with any advertising or promotion activities, be sure
to identify and focus on the customers and their interests.
Beginning the Promotion Campaign
Even though the market has not yet opened, it is important to begin building
awareness so that the opening day is a success. The earlier a market begins to culti-
vate this awareness, the sooner it will spread by word of mouth. At the same time,
the market must bring the publicity campaign to a crescendo around opening
day rather than spending all of its advertising and promotion budget in the early
months.
Planning promotions and advertisements for a year in advance will help set this
pace and estimate the cost.
First Announcement
The frst step in publicizing the market should be an informational announcement
letter or postcard that is distributed to community organizations and businesses
that might provide support. This letter should provide as much information as
98
Starting a New Farmers Market
possible about the upcoming market opening, including when and where it is
scheduled to take place. Diferent versions can be tailored to suit particular goals
in reaching out to community groups and businesses. Mail-merge word processing
functions allow each letter to be personalized.
For example, a letter to a community service club might include an invitation
to volunteers to assist with some aspect of the market in exchange for space at
the market where the group can, in turn, promote its activities. A letter to a local
printer might include an opportunity to trade advertisement space at the market
for a discount on printing services. Consider inviting a gardening or cooking club
to set up a display or demonstration on opening day. Be sure to communicate with
these groups precisely the conditions that apply and how long the arrangement
will last. This is a good time to begin using the new logo, which can be printed on
the market’s letterhead.
Signs and Banners
Placing a sign or banner on streets approaching the market’s site will help custom-
ers locate the market and also draw street trafc. The market should have durable,
weatherproof signs or banners made before opening day. They should include
notifcation that the market is now operational and, if possible, the hours and dates
of operation. Include the logo but keep banners and signs clear and sufciently
simple so that they can be easily read by someone driving past. Temporary, move-
able sandwich boards and cloth banners also work well, but obtain permission to
put up permanent signs if possible, at least at the market location, thus saving the
time required to set up each day as well as gaining publicity even when the market
is closed.
Posters and Fliers
For several weeks to a month before the market opens, be sure to have posters,
fiers, and postcards distributed to strategic places around the community. Place
posters in well-trafcked public places and in the store windows of businesses that
permit such activities. Fliers and postcards can be distributed door to door by vol-
unteers, through local businesses, and through direct mail. Drop some of at hotels,
visitor centers, and city ofces as well.
Check with local organizations and city and public utilities to see if they are willing
to include a fier with their mailings. A bookmark is a useful format for distributing
market information at the local public library. All these materials should include
the market’s logo and name, dates and times of operation, the market’s location,
and a small map.
99
Promoting and Advertising Your New Market
15
Events: Rafes, Music, Food Demonstrations
One of the more important elements of farmers market success is creation of a fun
and festive atmosphere. Even a gravel parking lot can be transformed into a richly
exciting place on market day when customers are surrounded by an abundance of
colors, favors, smells, and sounds. Plan in advance to have decorations, including
balloons and colorful banners, placed throughout the market. Musicians, school
and choir groups, and entertainment specifcally geared towards children also can
be scheduled in advance.
Organize rafes or drawings for baskets of produce and other market products.
Cooking demonstrations that feature local chefs and tantalizing smells and tastes
also are popular events that draw people’s attention to vendors’ products. A pleas-
ant, cheerful atmosphere will keep people coming back and generate invaluable
word-of-mouth publicity.
Press Releases
Several press releases should be sent during the course of organizing the market.
The most important release is sent several weeks to a month prior to opening day.
For added efect, deliver the release and a basket of produce in person to local
media outlets, including newspapers and radio and television stations. Tourist
information centers and community groups that publish newsletters also should
receive press releases.
Public Events
Use any opportunity available to promote the market’s opening day. Attend other
community events and meetings where the market manager has an opportunity
to talk about the market or at least be seen wearing a button, t-shirt, or hat with
the market’s logo. This type of publicity should be ongoing, but it is especially
important when the market is frst getting started.
100
Starting a New Farmers Market
101
16
Preparing for Opening Day
M
ost markets take about a year to develop and involve countless hours of vol-
unteer work by many people. The day the market opens is the culmination of
a long period of hard work, and it is an exciting event for everyone.
Following are suggestions from managers who have opened
markets throughout the United States to help ensure a smooth
and successful frst day.
Send Invitations
Everyone who has helped in developing the market should
be invited to participate in opening day activities. Also invite
local ofcials, community leaders, local church and religious
organization leaders, and local celebrities. Board members and
vendors also should invite their friends and families.
At least one month prior to opening day, send out press
releases to local newspapers and to radio and television
stations. Be sure to mention any planned special events in
addition to the market’s opening and emphasize the bounty of fresh, locally grown
produce that will be available. Always highlight the potential for media photo
opportunities.
Local newspapers are always interested in positive community events to cover,
and the colorful richness and abundance of farmers tables piled high with produce
create excellent photo opportunities. If the market plans to have cooking dem-
onstrations or other food-related activities, make sure the food editor of the local
paper receives an invitation. Events involving children also are popular with the
media. As is always the case in promoting the market, delivering press releases in
person, along with a basket of produce, is a great way to create a positive impres-
sion and ensure coverage.
The goal of opening day, however, is not necessarily to have all those who are
invited attend the event. You want a good number of people to attend. That num-
ber is largely based on the number of vendors participating in the market. Martin
Barnes, who helped organize the Davis Farmers market in Davis, California, points
out that “the market has to try and get the mix just right. Too many vendors, and
This chapter will enable
you to:
?
Choose from
suggestions and tips
from managers who
have opened farmers
markets throughout the
United States.
? Make your market’s
opening day a success.
102
Starting a New Farmers Market
they go away with leftover produce and are not excited to come back. Too many
shoppers, and they will be frustrated that stall after stall is sold out or has only slim
pickings.”
It may take a few weeks, a few months, or even a few seasons for the market to
grow into itself and fnd the right balance of vendors and shoppers. In organizing
the opening day, it is important to strive for a balance between the two, but do
not expect perfection. Alice Whitlatch, a vendor and manager at the Cedar County
Farmers Market in Tipton, Iowa, says that it took an entire summer before people
in town became accustomed to the market and regularly remembered to attend it.
But that market is now in its ffteenth year.
Confrm with Growers
Stay in touch with the vendors! While the manager may have seen growers at a
recent grower meeting, they all will defnitely need a confrmation call at least a
week or so before opening day. Farmers have to deal with shifting weather, con-
stantly changing market prices, and many other unpredictable elements. They
have learned to be fexible and keep their options open. Simply because there is a
schedule to keep and the market is expecting their participation does not neces-
sarily mean that they see it the same way. Calling just one week in advance will
help to give the manager a more realistic vendor count while still allowing time to
contact alternates.
The phone calls are also important components of making vendors feel more com-
fortable. Make sure they are clear about the produce they can bring, the stall space
they will have, and other pertinent details. Make sure they have reviewed the
grower’s checklist. Ask if they have any fnal questions. Ask if they know when to
arrive and how to get to the market. It might be wise to ask them to plan to arrive
at least a half an hour early to allow for unexpected delays.
Check Permits and Licenses
As early as a month before the opening day, check to make sure all permits and
licenses are in order. This will allow time to follow up on anything that might
have been overlooked. It also might be wise to call local ofcials and run through
the list of local requirements one last time. These calls will serve as a reminder of
the market’s presence to emergency service agencies such as the police and fre
departments.
Coordinate Staf and Volunteer Support
Plan well in advance to have sufcient staf members and volunteers to help
coordinate opening day. In addition to helping with placement of signs, markers,
103
Preparing for Opening Day
16
Organizing
Entertainment
Whatever you
decide, try to work
with themes that
unify diferent
activities and
connect them
to the market.
Enlist both vendor
and customer
participation
whenever possible. But, realistically, do not try to do too much on
opening day. There will be many opportunities in the future to expand
these types of promotional activities.
and barriers, you
may need vol-
unteers to direct
vendors to their
stalls and to par-
ticipate in crowd
control and cus-
tomer assistance.
Larger markets can
especially beneft
from having extra
sets of eyes at each
entrance. These
volunteers can help
direct trucks to
their parking places
and keep custom-
ers out of harm’s
way. During the market, they can answer customer questions, assist with enforcing
market rules, and expedite urgent or emergency needs.
Be sure to make confrmation calls to all the volunteers. In addition to confrming
participation, check to make sure that everyone has appropriate transporta-
tion, especially if they are expected to transport bulky or heavy items such
as barricades, tables, or chairs. If there is not already a staf/volunteer contact
list, put one together and distribute copies. Ease of communication facilitates
smooth operations.
Prepare for Surplus Produce
Inevitably, some farmers will bring more produce than they can sell. Often, this
excess produce cannot be marketed elsewhere. Whether leftovers consist of only
a few bunches of greens or several cases of ripe tomatoes, it represents useful
produce that can be donated to community organizations. There are organizations
called gleaners that range from a local soup kitchen to a regional collector/distrib-
utor of surplus products from farms, bakeries, and grocery stores.
Vendors usually are willing to support these organizations through donations of
leftover produce. It provides them with a sense of charitable good will and also
saves them the hassle of hauling leftovers back to the farm where they must be
discarded.
104
Starting a New Farmers Market
Opening Day
The Big Day—Keep It Fun!
As opening day approaches, make
sure everything is in place to make
it a smooth operation. Assemble
sufcient people to help the
market with set-up and manage-
ment of opening day activities. The
manager and volunteers should
arrive at the market at least a few
hours before opening time to put
up planned decorations such as
banners, signs, fags, and streamers. Set up the information booth and make sure
it is stafed at all times. Remember that opening day is the most important promo-
tional event of the year.
Vendors should arrive an hour to an hour and a half early, especially on opening
day. This gives them sufcient time to locate and set up their stalls. Be sure that all
the growers fnd the spaces assigned to them. Check that they have ample room
to maneuver their vehicles and keep an eye out for unforeseen difculties. It may
become apparent after opening day, for example, that Vendor X and Vendor Y
need to switch stalls due to factors that could not be foreseen. Let the vendors
know ahead of time that stall assignments may change as long as a month or two
after the opening.
When the local media arrive, be prepared
to show them around and talk about
the market. Think of sites, activities, and
events that can provide particularly good
photo opportunities. As mentioned ear-
lier, it is a good idea to send reminders or
stop by media ofces with gift baskets.
Above all, try to remain calm regardless
of how chaotic this frst day appears. You
cannot expect the frst day to come of
without at least a few hitches, and there
will be plenty of time to make adjust-
ments as the season unfolds. An organized, business-like approach and an upbeat
attitude will provide everyone at the market with a sense of confdence and profes-
sionalism that will help launch the market into a successful season.
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UC Small Farm Center
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Davis, CA 95616
916.752.8136
www.sfc.ucdavis.edu
The Farmers Market Management Series
S
everal years ago, having observed trends in the
evolution of food marketing, I decided it would
be a good idea to professionalize management of
farmers markets by, among other things, developing
and making available a Farmers Market Management
professional development curriculum. I approached
the U.S. Department of Agriculture’s Agricultural
Marketing Service (USDA AMS) for seed money to
launch the project, and the agency was supportive in
helping the UC Small Farm Center get the project of
the ground.
The project has proceeded deliberately since its
inception with support from the Small Farm Center.
Happily, the center has now produced three primary volumes as a foundation for
the curriculum: Starting a New Farmers Market, Farmers Market Management Skills,
and Growing Your Farmers Market.
I wish to acknowledge the early support of this project by Errol Bragg of USDA
AMS and, more recently, by USDA’s Risk Management Agency. Also, farmers
market managers throughout the country were extremely cooperative in sharing
their experiences and insights regarding the many aspects of their work.
The UC Small Farm Program and Small Farm Center were early advocates
of farmers markets and facilitated education in this regard. This series is part of
the Small Farm Program’s contribution to the 21st Century’s evolution of farmers
markets. Please read also our companion farmers market publications, Managing
Risks and Liability at California Certifed Farmers Markets and Food Safety at Farmers
Markets and Agritourism Venues.
Desmond Jolly
Project Director and Editor
doc_823168833.pdf
Trading and food markets are probably as old as agriculture itself, likely developing in ancient Mesopotamian and Nile Valley civilizations. As soon as communities of people moved away from subsistence farming and began specializing in agriculture and engaging in trade, the marketplace became an essential feature of community life.
Desmond Jolly, Editor
The Farmers Market Management Series • Volume 1
Starting a New Farmers Market
Series Editor and Project Developer
Desmond Jolly
Director, UC Small Farm Center and Series Editor
Extension Economist, University of California Dept. of Agricultural and Resource Econom-
ics
Educational Consultant
Eileen Eckert
Project Coordinator, UC Small Farm Center
Contributing Project Staf
Suzanne Ashworth
Eileen Eckert
Danielle LeGrand
Chris Lewis
Production
Natalie Karst
UC Small Farm Center
One Shields Avenue
Davis, CA 95616
916.752.8136
www.sfc.ucdavis.edu
© 2005 UC Small Farm Center
This publication was partially supported
by the U.S. Department of Agriculture Risk
Management Agency.
1
1
An Introduction to Farmers Markets
Farmers Markets and
Communities—Past and Present
T
rading and food markets are probably as old as agriculture
itself, likely developing in ancient Mesopotamian and Nile
Valley civilizations. As soon as communities of people moved
away from subsistence farming and began specializing in
agriculture and engaging in trade, the marketplace became an
essential feature of community life. In the United States, Gov-
ernor John Winthrop of Boston established the frst recorded
market in the English colonies in 1634 and President Thomas
Jeferson is reported to have attended a market in Georgetown
in 1806 to buy beef, eggs, and assorted vegetables. Like most
other people of his time, he relied on farmers markets for his
daily supply of fresh food.
Farmers markets reached their peak of popularity in the
nineteenth century before beginning a decline that continued
through much of the twentieth century. After World War II, the
development of suburbia and the ascendancy of supermarkets, chain stores, and
convenience shopping were especially damaging to farmers markets. However,
even during this time, many towns maintained their markets, preserving the close
tie between their communities and local
farmers. For example, in Lancaster, Penn-
sylvania, the Central Market has been held
in the same location since the 1730s.
During the 1970s and 1980s, the United
States witnessed a nationwide resurgence
of interest in local farmers markets that
stemmed in part from the “Back to the
Land” movement of the 1960s and 1970s.
This movement favored self-sufciency
and local food production. Cities, com-
This chapter will enable
you to:
? Understand the history
of farmers markets and
their past and present
roles in communities.
? Be aware of the ways
farmers markets can
beneft consumers,
farmers, and
communities.
? Begin thinking about
the kind of farmers
market you want for
your community.
2
Starting a New Farmers Market
munity groups, and farmers began to establish marketplaces for selling farm prod-
ucts directly to consumers.
Currently, farmers markets are enjoying an upsurge in popularity. The number of
markets in the U.S. has grown rapidly. The markets’ rapid growth and success has
impressed community planners, historic preservationists, town council members,
economic developers, and farmers alike.
Farmers markets are seen as one solution to the multifaceted problem of our
culture’s growing isolation—from other people, from the environment, and from
the sources of our food. People perceive farmers markets as gathering places
where families can bond with neighbors and visit with friends. Farmers markets
also provide a medium by which people can get closer to their food sources. Many
consumers feel good about supporting local farmers. They also tend to distinguish
the produce ofered at farmers markets as higher in quality, more favorful, fresher,
and more healthy than the produce typically found in other outlets. Farmers, in
turn, can interact directly with their customers, building relationships and fostering
customer loyalty while potentially generating greater profts than if they sell their
produce wholesale.
Types of Markets
Today’s farmers markets come in a variety of types and sizes. The
essential meaning of “farmers market” has become somewhat
diluted as many supermarket chains and fea markets have adopted
the term and closely follow the same design concept. Certifed farmers
markets, by defnition, are sites where local farmers participate in selling direct
to consumers. Certifcation means that a government agency or ofcial—in Cali-
fornia, it is the county agriculture commissioner—has certifed that the market’s
vendors have grown what they sell at the market and that the market includes
only farmers who are certifed producers. The National Farmers Market Association
recognizes only farmers markets that:
? ofer locally grown produce (grown within a thirty- to ffty-mile radius of
the market);
? are sold by “principal producers” (the stall is operated by someone directly
involved in production);
? are operated in accordance with trading standards, environmental health
regulations, licensing, charters, and other relevant legislation; and
? have criteria for market rules and policies that do not confict with the main
principles set by the National Farmers Market Association.
3
Introduction
1
At a certifed farmers market, all vendors sell “direct from the farm” items such as
fruits, vegetables, nuts, herbs, and fowers. Some farmers markets include meat,
eggs, and dairy products. Farmers market managers often encourage the sale of
value-added items such as salsas, jams, specialty oils, and nut butters and incor-
poration of local handicrafts and artisans. Depending on state regulations and
the market bylaws, vendors may be required to grow all of what they sell or they
may be able to bring in a percentage of items that they did not produce but sell
on behalf of other growers. During the start-up process, it will be necessary to
research and follow the regulations that apply in your state, region, and locality.
Some smaller markets can be informal afairs consisting of a small group of farm-
ers selling produce straight from the backs of their trucks. Other markets are open
year round and have permanent buildings with more than a hundred vendors. In
California, certifed farmers markets vary in size and numbers of vendors, and farm-
ers are required to produce what they sell. California certifed farmers markets are
the focus of this book. However, most of the information is pertinent to markets
throughout the United States.
Benefts of Farmers Markets
There are many reasons why farmers markets have been successful and why so
many communities support them. Farmers markets provide signifcant benefts to
consumers, farmers, and the communities they serve.
Benefts to Consumers
Consumers fock to farmers markets for two main reasons: the wide selection of
fresh, afordable produce and specialty food items such as honey and artisanal
cheeses and the opportunity to gather with friends. Maureen Kelley, a customer
who shops at the Sonora, California,
farmers market says, “Oh, I get food.
But mainly I go to see my friends. It
has become sort of a tradition to meet
there and it is the only chance in the
week I have to talk with people I do not
otherwise see.”
At many markets, buying direct from
the farmer means lower prices and a
large variety and selection of produce,
as well as access to primary producers
4
Starting a New Farmers Market
who can answer questions about their growing methods and food preparation.
Farmers markets also make it easier for people interested in home processing to
purchase large quantities of produce at afordable prices.
Benefts to Farmers
Selling direct to consumers through farmers markets allows farmers to produce
and sell in a way that provides more income and consumer contact than would
be possible selling through other channels. Farmers markets are particularly good
outlets for small-scale farmers who have relatively small volumes of produce.
Many growers also use farmers markets as an opportunity to experiment with
small amounts of exotic or new products that would be risky to produce in large
quantities for wholesale distribution. Farmers markets allow them to develop their
product marketing methods according to consumer needs and buy-
ing behavior and get feedback on new products directly
from consumers.
Farmers markets can also serve as launching pads for
farm-based small businesses. A recent study of California
farmers markets found that, from 2000 to 2003, approxi-
mately 21 percent of vendors had expanded their operations to ofer produce to
secondary and tertiary farmers markets, community supported agriculture (CSA)
groups, and/or direct sales to restaurants. Half of the market managers polled had
seen an increase in the amount of value-added products ofered. Farmers markets
have acted as a vehicle by which farmers can increase their proftability by diversi-
fying their product base, expanding direct marketing eforts, and developing their
business skills.
Vendors have the opportunity to set their own prices and may receive other mar-
ket-related benefts as well. Benefts can include market-generated promotional
materials and exemptions from certain marketing requirements. After a day of
selling at a farmers market, they have the satisfaction of seeing the immediate cash
return with no accounts receivables pending. Above all, by selling direct, farmers
have the opportunity to interact with their customers.
Benefts to Communities
Farmers markets can serve as building blocks for stronger communities and also
encourage and enhance the preservation of farmland. A well-planned market
can create a safe, festive, and healthy atmosphere in which all members of the
community can participate. In urban areas, farmers markets provide a link between
5
Introduction
1
food consumption and production, allowing residents to get a better sense of their
foods’ origins.
Farmers markets address the needs of many low-income communities, where
access to quality produce is severely limited. Corner markets and convenience
stores in low-income communities oftentimes are the primary providers of fresh
produce. Quality at these markets is mostly poor and prices are often higher than
those in retail grocery stores. Families are subsequently left with very few options
for creating a balanced, healthy diet without spending considerable time and
money to travel outside their neighborhoods.
Farmers markets are an excellent way for these communities to address their
nutritional needs by making available a more diverse and afordable selection
of fresh produce. In Hartford, Connecticut, the Latino population comes largely
from predominantly rural Puerto Rican backgrounds. However, living in a large
city makes it nearly impossible to maintain their agricultural traditions. For these
people, old and young, meeting farmers at the market and eating farm-fresh foods
are thus an important relationship between this community and its agricultural
heritage.
Farmers markets contribute to local food security and agricultural diversity. In
today’s agriculture, vast areas of the country specialize in only one or two crops. At
the same time, more American farmers increasingly depend on transportation and
expensive technologies to compete in the global marketplace.
Farmers markets draw consumers into cen-
tral downtown areas, local malls, and store
parking lots. This, in turn, generates sales and
exposure for local businesses. Some mar-
kets provide a time and place for nonproft
groups, community organizations, city of-
cials, and University of California Cooperative
Extension specialists to provide information
on topics such as local classes, health issues,
and summer activities. Some markets, such
as the Capitol Square Market in Madison,
Wisconsin, and the Eighth and Oak Street
Market in Eugene, Oregon, are famous for
their public forums and free-speech sites.
Farmers markets contribute to local food security and agricultural diversity. A
number of political and economic factors are converging to give a signifcant
competitive edge to large agribusinesses and to reduce the number of small and
6
Starting a New Farmers Market
family farms. The entire food system has become so large and complex that many
consumers feel powerless to infuence it. Farmers markets empower consumers
and make communities more interdependent. The local population can support its
local farmers, who in turn get more money to invest in local businesses. As a result,
communities as a whole develop a more secure economic base and food system.
The Purpose of this Manual
Anyone can start a farmers market—city governments, farmers, community
groups, business associations, individuals—but becoming a certifed farmers
market in California involves certain requirements and conditions. Our focus here
is particularly on certifed farmers markets and markets organized by and with
farmers as owners. Every market comes together diferently according to vari-
ables such as local demographics, politics, and site availability. The combination of
goals, resources, and organizational challenges are unique to each market. How-
ever, many markets have similar needs when they frst get going. This manual is
designed to guide users through the process of starting a farmers market. It covers
successful methods and innovative strategies developed by many experienced
market managers and professionals. These approaches should be carefully tailored
to ft an individual market’s needs. By using this manual as a companion to your
start-up activities, you can avoid many common pitfalls of the start-up process and
lay a solid foundation for a viable and successful market.
The next chapter will guide you through setting up an organizing committee and
conducting a feasibility study to determine your potential for success in starting a
farmers market in your community.
7
2
Envisioning the Farmers Market
in Your Community
T
he previous chapter provided a history of farmers markets
so that you could see their origins and purposes from the
early days of European settlement of North America to the
present. This chapter will help you to look forward and use the
rich history of farmers markets to create a vision of the farmers
market you would like to see developed in your community.
The idea for a farmers market can originate with farmers,
consumers, a community organization, or a combination
of groups. One person may wish for a source of fresh local
produce and work to make that wish a reality. Or an urban
development group may see a farmers market as part of
a larger plan to revitalize a neighborhood. The starting
points difer but the development process follows a pattern:
articulate a vision, gain community support, and create and
implement a plan. The start-up process generally takes about a
year.
An Overview of the Start-up Process
The year that is typically devoted to start-up activities is a busy
one. It involves frst articulating your vision and then bringing
together a core group of partners and assessing the feasibility
of starting a farmers market in your community. Once the feasibility of the mar-
ket is established and you decide to move ahead, you develop the organizational
structure and begin forming the board of directors. The board then hires the mar-
ket manager and oversees the remaining start-up activities. Start-up activities can
be categorized as organization building; assessment, planning, and infrastructure
building; and preparation for opening day and beyond.
Establishing and developing the organization begins with an organizing com-
mittee made up of members who actively work to make the market a reality.
Identifcation of potential partners and supporters, initial outreach, and meetings
of organizers and of farmers and other potential vendors are key activities for suc-
This chapter will enable
you to:
? Articulate your vision
for a new farmers
market in your
community.
? Understand the steps
involved in creating a
new farmers market.
? Identify individuals
and organizations as
potential partners or
supporters.
? Establish an efective
organizing commitee
and working commitees
to conduct a feasibility
study.
8
Starting a New Farmers Market
cess. It is important to create working committees of committed, results-oriented
individuals and to establish an efective, productive board of directors. These are
the people who will make decisions and establish the bylaws and policies for the
market, and their eforts will be crucial to the market’s success.
Assessment and planning includes gauging community support, analyzing con-
sumer demand, preparing a written plan and budget, establishing the business
and fnancial structure of the market, writing rules and bylaws, choosing a site, and
researching and complying with permitting requirements and other regulations.
Preparation for opening day consists of promoting the opening of the market,
planning special events for open-
ing day, and ensuring that all the
participants—from vendors to volun-
teers—know what to expect and are
adequately prepared.
Articulating Your Vision
The frst step in starting a farmers
market is getting your ideas on paper.
You probably have a mental picture
of the farmers market you want to
create or of the problem to be solved
with the addition of a market in your
community. But to make your vision
a reality, you need to put that vision
into words so that others can under-
stand it and share it.
Following are descriptions of several
farmers markets. Each one is success-
ful and refects a unique vision. Read
the descriptions and highlight the attributes of each market that appeal to you.
You also can note things that do not appeal to you or that do not seem relevant
to your community. You can then use these notes to describe your vision for your
farmers market.
9
Envisioning a Farmers Market in Your Community
2
Market 1
Greenmarket – New York City
Greenmarket in New York City runs open-air seasonal farmers markets in neighbor-
hoods throughout the city. According to the Greenmarket website, “Greenmarket,
a program of the Council on the Environment of New York City, promotes regional
agriculture and ensures a continuing supply of fresh, local produce for New York-
ers. Greenmarket has organized and managed open-air farmers markets in New
York City since 1976. By providing regional small family farmers with opportu-
nities to sell their fruits, vegetables, and other farm products to New Yorkers,
Greenmarket supports farmers and preserves farmland for the future.” Some mar-
ket facts from the website illustrate
the Greenmarket vision and how it
is put into action:
? Forty-seven markets in
thirty-three locations in
Manhattan, Brooklyn,
Queens, the Bronx, and
Staten Island.
? Twenty-three of the markets
in sixteen locations operate
year round.
? More than 250,000 custom-
ers frequent the markets
each week during the
peak season.
? Coupons ofered by the Farmers Market Nutrition Program worth more
than $800,000 were redeemed at Greenmarket in 2000.
? More than 105 restaurants obtain ingredients from Greenmarket farmers
each week.
? Three thousand students from eighty-two schools participate in
Greenmarket’s educational tours.
? Greenmarket farmers donate about 500,000 pounds of food to City Harvest
and other hunger relief organizations each year.
To ensure an adequate supply of farm products for New York City consumers,
Greenmarket collaborates with Cornell University Cooperative Extension in the
10
Starting a New Farmers Market
New Farmer Development Project, an efort that helps immigrants with farming
experience to become farmers in the New York metropolitan region.
Market 2
Dane County Farmers Market – Madison, Wisconsin
The mission of the Dane County Farmers Market refects another vision. Dane
County Farmers Market, Inc. is an organization founded to pursue the following
goals:
? To give growers and producers of Wisconsin agricultural commodities and
other farm-related products alternative marketing opportunities.
? To promote the sale of Wisconsin-grown farm products.
? To improve the variety, freshness, taste, and nutritional value of produce
available in the Madison area.
? To provide an opportunity for farmers and people from urban communities
to deal directly with each other rather than through third parties and to
thereby get to know and learn from one another.
? To provide an educational forum for consumers to learn about the uses and
benefts of high-quality, locally grown or prepared food products.
? To provide educational opportunities for producers to test and refne their
products and marketing skills.
? To enhance the quality of life
in the greater Madison area
by providing a community
activity that fosters social
gathering and interaction.
? To preserve Wisconsin’s
unique agricultural heritage
and the historical role that
farmers markets have played
in it.
The market’s website (www.dcfm.
org/aboutmkt.asp) ofers the follow-
ing details:
? The Dane County Farmers Market on the Square is a Saturday and Wednes-
day tradition in Madison.
11
Envisioning a Farmers Market in Your Community
2
? You will fnd the season’s best bounty of vegetables, fowers, and specialty
products from approximately 300 vendors. All of the agriculturally related
items are produced in Wisconsin. The market is reported to be the largest
producer-only farmers market in the country!
? Both the Saturday and Wednesday locations are easily accessible by bike,
bus, or car. Dogs (except service dogs) are NOT ALLOWED on the Square
during the Saturday Market—it is a safety issue.
? The Saturday Scene on the Square is really four diferent events going on
at once.
? The Dane County Farmers Market is the heart of the activities on the
square. Our vendors line the outside edge of the state capitol grounds.
They sell agriculturally related producer-only products from Wisconsin. The
market has strict rules and a three-year waiting list for new vendors.
? The interior of the state capitol grounds is used for nonproft, political, and
public information booths and for various entertainment activities. All per-
mits are handled through the capitol police.
? The arts and crafts vendors are located across the street on city property.
Permits for this market are handled through the City of Madison.
? Also, many street musicians play across the street on city property and add
to the festivities.
? Enjoy the market as often as possible. It is about fun, food, and friendly
vendors. Early arrivals get frst choice of the fne selection. It is a great place
for people watching too.
After reading the descriptions of these two markets, it is easy to see the diferent
visions of the markets’ founders and directors. Greenmarket’s vision is oriented
toward building a healthy, nutritious food supply that is accessible and afordable
to low-income consumers and that protects the region’s agricultural heritage and
capacity. Dane County Farmers Market includes agricultural preservation as well,
but it also includes quality of life, interactions between farmers and consumers,
and education. Dane County Farmers Market is a “destination” market, while Green-
markets are “stop and shop” markets; one entices consumers to linger and enjoy
the area, while the other is designed for convenient access.
12
Starting a New Farmers Market
Market 3
Urban Oaks – New Britain, Connecticut
Yet another vision is demonstrated in the case of Urban Oaks farmers market
in New Britain, Connecticut. Urban Oaks is a small organic farm in the heart of
industrial New Britain. When farmland in rural Bolton was being gobbled up by
suburban housing development, Tony Norris and his partner gave up their rented
Bolton farmland and returned to Tony’s hometown of New Britain, where they
converted an abandoned lot into an organic farm. Urban Oaks is a fnancially self-
supporting nonproft organization. Tony hires local youth who can work on the
farm as long as they keep up their grades in school. He also helps young employ-
ees to navigate the admissions and fnancial aid systems to attend college, many as
the frst in their families to do so. In addition to supplying restaurants and univer-
sity dining halls, Urban Oaks is the source of healthy organic fruits and vegetables
in its neighborhood, and it has become a distributor for organic farms throughout
the region. One day a week Urban Oaks ofers a farmers market that makes high-
quality produce available to the largely immigrant community in its New Britain
neighborhood as part of its larger commitment to contributing to the neighbor-
hood and to the viability of organic farming.
What is Your Vision?
The markets described here ofer just a few of many possible variations for a vision
of a farmers market.
Now that you have
read them, which
ones appeal to you?
What would you
include in your vision
of the farmers market
you want to create?
List the characteristics
you envision for your
farmers market on
the next page. You
can use the elements
shown in the boxes to
help you defne your
vision and check the
ones that interest you.
13
Envisioning a Farmers Market in Your Community
2
? Afordable produce
? Accessible by public transporta-
tion
? Lots of variety
? Individuals/families as customers
? Neighborhood-based
? Downtown
? Convenient
? Community gathering place
? Cultural forum
? Information dissemination
? Free speech
? Gourmet products
? Meat, fsh, dairy, eggs, honey
? Restaurants as customers
? Entertainment
? Family friendly
? Arts and crafts products
? Value-added products
? Education
? Product demonstrations
? Fundraising
? Agricultural heritage
? Sustainable agriculture
My vision includes:
Vision statement:
Desirable Characteristics for your Farmers Market
14
Starting a New Farmers Market
Using Your Vision to Create an Efective Organizing Commitee—
Forming Partnerships and Building Community Support
Your vision for the farmers market will direct your search for partners and sup-
porters. There are many possible sources of collaboration and support, and your
venture will be most successful if you involve the organizations and people who
share your vision and will work with you to make it a reality.
Some potential partners and supporters are listed on the following page. Put a
check next to those whose work seems most closely aligned with your vision for
the farmers market.
Once you have identifed potential partners and supporters, you should share your
vision with them and invite their participation in making that vision a reality. This
happens through the initial contact, by an invitation to an organizing meeting, and
during the meeting.
15
Envisioning a Farmers Market in Your Community
2
? 4-H Clubs ? Town, city, and county governments
? Chambers of commerce ? Food buying clubs
? High school or university
agriculture departments
? County economic opportunity
commissions
? Commodity boards and
marketing orders
? Downtown improvement districts
and development associations
? Community development
corporations
? Community development programs
at local colleges
? Community gardens ? Garden clubs
? Consumer cooperatives ? Cooking classes/clubs
? County farm bureau ofces ? Food pantries/soup kitchens
? Economic development ? Ethnic organizations
? Food banks ? Local U.S. Department of Agriculture ofce
? Sustainable or organic farm-
ing
? State departments of food and
agriculture
? Direct marketing programs
and organizations
? Farmers market associations or
federations
? County nutrition programs ? Herb societies
? Restaurants ? Master gardeners
? Health clubs ? Local Grange
? Religious groups (churches,
synagogues, mosques, etc.)
? Service organizations (Elks, Lions,
Rotary Club, etc.)
? County agricultural
commissioner’s ofce
? County farm advisors/Cooperative
Extension ofces
? Elected ofcials ? Local production or marketing coopera-
? Future Farmers of America ? Local farm trails
16
Starting a New Farmers Market
Reaching Out to Potential Partners and Supporters
Outreach to potential partners and supporters can happen formally or informally.
One approach is to begin with people you already know who are involved in any
of the organizations you would like to recruit. Call and ask them to participate and
for an introduction to their colleagues in other organizations. Another approach is
to write a letter that accomplishes both the introduction and the invitation to an
initial meeting. In your letter, describe your vision for a new farmers market and
any partners or other details that have been determined and outline the roles and
responsibilities you foresee for partners.
As you recruit organizations and individuals, consider the following characteristics:
? The organization’s goals, activities, and approach to partnerships add
an important quality to your organizing committee and the individual
recruited is willing and able to represent the organization.
? The individual representative has the authority to make commitments on
behalf of the organization or is in communication with those who have the
authority.
? The individual has the time and energy to participate actively in the
start-up process.
? The individual will work positively and collaboratively with other individu-
als and organizations in the group.
If any of these criteria are not met, you may need to reconsider the commitment
you are requesting, the role you want that organization or individual to play,
the suitability of that individual representative, or even whether to invite the
organization’s participation. Consider your organizing committee members care-
fully because they are the people whose work will determine whether you move
forward with starting a market. If you are planning a market for a low-income area,
you should read through Chapter Three, Organizing a Market in a Low-Income Area,
so that you can address issues specifc to such neighborhoods from the beginning.
The Organizing Meeting
When you bring together potential partners and supporters for an initial organiz-
ing meeting, you can have a basic framework prepared so that all participants can
form a realistic idea of the commitment and activities involved in starting a new
farmers market and decide whether they can make a commitment to the project.
17
Envisioning a Farmers Market in Your Community
2
Before the Meeting
? Send out invitations three to four weeks in
advance of the meeting.
? Secure a functional, comfortable,
accessible space.
? Plan your agenda.
? Send reminder emails or make reminder calls
to ensure good attendance.
Write a leter of invitation to the meeting. The frst meeting is an opportu-
nity to bring prospective partners and supporters together to share information
and ideas. To establish a small group of active partners, you need to reach out
to a somewhat larger group. Introduce the idea of the farmers market and invite
people to the organizational meeting with a brief letter that includes:
? A one-sentence description of the purpose of the meeting, which is the for-
mation of an organizing committee and working committees to establish
the feasibility of starting a farmers market.
? The meeting date, time, and location.
? The benefts that markets bring to farmers and producers, consumers, and
communities.
? Your vision for a local farmers market.
? Any people and organizations that are already involved in the efort to
establish the market.
? Contact information.
? A request that they RSVP.
The next two pages contain a sample letter of invitation and a sample agenda.
18
Starting a New Farmers Market
Sample Letter of Invitation
Your Name
Address
Recipient’s Name
Recipient’s Organization
Address
March 1, 2006
Dear _________________________:
I am writing to invite you to a meeting to discuss starting a farmers market
in our town and to create an organizing commitee and working commitees
that will assess the feasibility of creating a farmers market. The meeting will
be held in the Public Library Community Room on Tuesday, March 23, from
4:30–5:30 p.m.
Starting a farmers market in our town could bring many benefts to farmers,
consumers, and communities. For farmers, a market means the opportunity
to sell directly to consumers, thereby earning a larger share of the price than
when selling wholesale. It also means the opportunity to hear consumers’
preferences directly and to test new and specialty products. For consumers,
a farmers market means access to high-quality, locally grown produce and
other farm products. For communities, a farmers market can have both social
and economic benefts. Farmers markets can be popular gathering places,
strengthening a sense of community. They also can bring economic benefts
as people come to buy at a farmers market and stay to shop at neighbor-
ing businesses. We envision a farmers market that is an enjoyable gathering
place, a source of healthy local food, and a strong contributor to the social
and economic vitality of our town and surrounding agricultural communi-
ties.
The Chamber of Commerce and the Grange Hall have both expressed an
interest in supporting the project, and they join me in inviting you to this
organizational meeting. Please contact me at 555.123.4567 by March 15 to
RSVP and if you have questions or would like to discuss the project. We look
forward to seeing you on March 23rd at 4:30.
Sincerely,
______________________
19
Envisioning a Farmers Market in Your Community
2
Create an Agenda for the
Meeting. Create an agenda
so that you will use the
meeting time productively.
The meeting should achieve
three objectives: Share your
vision, gain commitments
from a sufcient number of
people to form an organizing
committee, and create work-
ing committees to take on
the tasks involved in assess-
ing the feasibility of starting
a market. The sample agenda
at right includes agenda
items to support each of
the meeting’s objectives,
along with an estimate of
the amount of time to spend
on each item. Try to balance
time for discussion with the
need to keep the meeting
manageable in length so that
people do not start leaving
before committing to work-
ing on making the market a
reality.
Running a
Successful Meeting
Especially in an initial organizing meeting, it is crucial that interest and commit-
ment not be undermined by poor meeting facilitation. Everyone has been to
meetings that do not start on time, continue well past the expected adjournment,
or do not accomplish anything because they are poorly run. The worst possible
outcome is that people who could be instrumental in the success of a new market
simply do not want to be part of your project. If you are not an experienced and
confdent meeting organizer, you might want to use the information that follows
to help make sure your meeting is a success.
Farmers Market
Organizational Meeting Agenda
Place:
Date:
Time:
1. Welcome and introductions.
(ten minutes)
2. PowerPoint presentation: What is a
farmers market and what would it mean
to our community?
(ten to ffeen minutes)
3. Questions and answers.
(twenty to thirty minutes)
4. Outline of the start-up process.
(ffeen minutes)
5. Next steps: Establishing the organizing
commitee, forming working commitees,
and recruiting commitee members
and chairs.
(thirty minutes)
6. Next meeting date.
(fve to ten minutes)
7. Adjourn.
20
Starting a New Farmers Market
Beginning the Meeting
? Provide name tags at the entrance area. All attendees should have name
tags, as this makes it easier to start conversations with new people.
? Begin on time.
? Start by clearly defning the roles of the facilitator, notetaker, timekeeper,
and any others participating in running the meeting.
? Ask participants to introduce themselves to those near them and briefy
describe why they are there.
? Set ground rules, such as clear time limits for each item and the amount of
time available for questions and discussion.
Facilitating the Meeting
? Follow the agenda and stick to time limits. If any new
issues come up that are obviously important to people,
add them to the agenda or schedule them for the next
meeting. But do not let these other issues distract you from the agenda item at
hand.
? Distribute a mailing list sign-up for attendees to fll out during the meeting.
Concluding the Meeting
? Give a quick summary of the discussions and the decisions that were made
at the meeting. Re-establish action items: who, what, when.
? Read the list of people and organizations that have committed to joining
the organizing committee.
? Take a count of potential volunteers for working committees.
? Set the date and place of the next meeting and develop a preliminary
agenda.
? Close the meeting on a positive note and on time.
Afer the Meeting
? Evaluate the meeting with the other organizers.
? Clean up and rearrange the room.
? Prepare the group memo for the next meeting and send out thank-you
cards to key community members for their participation.
21
Envisioning a Farmers Market in Your Community
2
? Follow up on action items and begin planning for the next meeting.
Commitees and Their Roles and Responsibilities
The Organizing Commitee
The organizing committee has several major responsibilities. First, in working com-
mittees, this group conducts the assessment and analysis necessary to establish
the feasibility of starting a market. Second, the organizing committee analyzes
the fndings of the working committees and decides whether to proceed. Third,
the organizing committee determines the organizational structure of the market
and creates the board of directors, which then writes bylaws and hires the market
manager.
The importance of the organizing committee and the working committees can-
not be overstated. The individuals who comprise the organizing committee must
be eager, action oriented, and keenly focused on completing the early tasks of
assessing the feasibility of the market and creating an efective board of directors.
Gaining the commitment of this core group is critical. Team members should be
aware that starting a farmers market requires hard work, excellent communication
skills, and superior organizational abilities.
If a sufcient level of commitment is not achieved at the frst meeting, it may be
necessary to seek individuals who are especially interested in helping to start the
market and have the time to commit to the project. Continue to network with
established committee members, city ofcials, and key community activists to
recruit people so you can build a solid team.
Once an organizing committee is in place, the next step is to create working com-
mittees to assess the feasibility of starting a new market. If farmers themselves
initiate the market, their views will be strongly represented in the working com-
mittees. However, if community organizers are starting the market, they need to
ensure that grower interests are represented on all committees.
Designate teams of volunteers and/or members of the organizing committee to
serve on the following key committees.
? Market Analysis—This committee assesses the need
and potential support for the market in the community.
Part of this committee’s work may involve consumer
education to strengthen demand for the locally grown
products available at a farmers market.
22
Starting a New Farmers Market
? Site Analysis—This committee assesses potential sites for a new farmers
market.
? Financial Analysis—This committee assesses potential revenue and costs to
evaluate the fnancial self-sufciency or proftability of the market and the
potential for proftability for vendors.
? Vendor Recruitment—This committee’s work involves not only assessing
whether there is a sufcient number of local farmers for a successful market
but also recruiting farmers to sell at the market.
Chapters Three and Four deal with special considerations for starting a farmers
market in a low-income area, including some issues that afect the feasibility study.
Those chapters are followed by several chapters that outline how to conduct a
feasibility study to determine whether to move forward with a market.
23
This chapter will enable
you to:
? Be aware of special
issues associated with
starting a market in a
low-income area.
? Be aware of
characteristics
of markets that
successfully serve
low-income areas.
3
Organizing in a Low-Income Area
L
ow-income communities ofer many opportunities for
direct marketing of fresh produce and other agricultural
products. Some of the largest and most successful markets
in the United States are situated in low-income, inner-city
neighborhoods. And many smaller rural markets also serve
communities with limited incomes. These markets provide
benefts such as a community focal point, entrepreneurial
development opportunities, and a reliable, afordable source of
fresh produce.
Why Start a Market in a Low-Income Area
Farmers markets play an important role in delivering fresh
produce directly from farmers to consumers. In low-income city
neighborhoods, a weekly farmers market is sometimes the only source of fresh,
nutritious, economically priced food. Because large grocery chains sometimes fnd
it unproftable to locate in these areas, produce and meat sales are often left to
convenience and liquor stores that do not focus on freshness, quality, or selection.
Grocery stores are often few and far between in low-income areas, so people
frequently rely on fast food outlets for meals. According to information presented
at the November 1999 Community Food Security Workshop in Chicago, for
example, “in one neighborhood in East Los Angeles, there were approximately 700
liquor stores and only one grocery store within a twenty-mile area. That grocery
store stocked its meat and produce sections with the lowest-quality product, ofer-
ing wilted vegetables and meat with sell-by dates that had expired.” The lack of
supermarkets creates a vacuum in supply that leaves much of the local demand for
fresh produce unmet. In 2002, the Center for Food and Justice reported that there
are typically three times as many supermarkets per capita in upper- and middle-
income neighborhoods as in low-income neighborhoods. In some areas, where
access is severely limited, many residents are considered to be food insecure.
But food shortages and nutritional defciencies are not problems only for inner cit-
ies. Rural communities often face similar dilemmas. In 2001, more than 32 million
24
Starting a New Farmers Market
Americans lived at or below the poverty threshold. Many of those people had to
rely on food banks, soup kitchens, and other food assistance programs on a regular
basis. Farmers markets play a vital role in delivering fresh produce directly from
farmers to consumers.
Considerations for
Markets in Low-Income
Areas
When considering starting a
market in a low-income neighbor-
hood, the working committees
discussed in Chapter Two will
have to address needs and issues
particular to such areas. Each of
the following considerations can
be addressed during the process
of analyzing the feasibility of starting a new market.
Special Considerations
? The product mix must be geared to demographic and cultural charac-
teristics of the market’s customers, which is sometimes a challenge to
determine. (Market Analysis Committee)
? Finding farmers who can provide appropriate products may require some
organizing efort. (Vendor Recruitment Committee)
? Customer education on how to prepare fresh produce may be challenged
by language or other cultural diferences. (Market Analysis Committee)
? Limited incomes decrease customers’ purchasing power. (Market Analysis
Committee, Financial Analysis Committee)
? Farmers are usually looking for the highest price they can command and
may resist committing to a low-income market. (Vendor Recruitment Com-
mittee)
? The cumulative, limited purchasing power of a market’s area may not be
adequate to keep farmers and the market in business. (Financial Analysis
Committee)
25
Organizing in a Low-Income Area
3
? Many low-income individuals hold multiple jobs and may not have the
fexibility to shop during the market’s limited hours. (Market Analysis
Committee)
? Transportation options to and from the market may be limited. (Site Analy-
sis Committee)
? Individuals may have difculty carrying bulky produce purchases on public
transportation. (Market Analysis Committee)
? In large urban areas, some neighborhoods have access to sources of inex-
pensive, culturally appropriate produce that is available year-round from
chain discount stores. (Market Analysis Committee)
? Large chain discount markets such as Food for Less, Sam’s Club, and Costco
may ofer prices that are lower than those at a farmers market. (Market
Analysis Committee)
? If price is the overriding issue, a farmers market may not succeed. However,
freshness, quality, availability, and ambience can add extra attributes to the
product mix and support a willingness to pay slightly higher prices. (Market
Analysis Committee)
Elements of Successful Markets in Low-Income Areas
Successful markets in low-income areas are supported, endorsed, and developed
as vital components of their communities. The desire for a farmers market should
be broad-based with support that is not limited to a single nonproft group, reli-
gious organization, or merchant association. A community-organizing approach
to establishing a new market is more fruitful than a publicity-based strategy. Other
successful market strategies include:
? Involve as many people as possible in the organizing process.
? Create a farmers market advisory committee with members from nonproft
groups, religious organizations, merchant associations, and other stake-
holders.
? Determine that transportation is available via bus or other local means and
that adequate parking space also is available.
? Create a market publicity plan, which is vital to the survival of the mar-
ket. The plan should include community organizing, media work, special
events, and local merchant tie-ins. Research the marketing strategies that
already are being used for previous successful events in the community.
26
Starting a New Farmers Market
? Consider consumer income levels and ethnicities when identifying poten-
tial products and recruiting farmers. Conduct surveys of consumers in the
community to determine product preferences.
? Make sure that market organizers are well connected to local political
representatives.
? Meet with city and county representatives at the beginning of the market’s
organizing process. Market organizers will run into regulatory problems
that require political assistance. Inform political leaders about the farmers
market that you are organizing in their district before you need their assis-
tance.
? Consider locating the market in a “transition” neighborhood—one that
draws both low- and middle-income customers. This type of location may
have a better chance of success than a market located in a strictly low-
income area.
? Accept food stamps. Individual farmers or the market in general can be
certifed to accept food stamps. (See details about food stamps in Chapter
Four.)
? Participate in the Women, Infant and Children (WIC) and Senior Farmers
Market Nutrition Programs (SFMNP) at the farmers market. Some markets
are open only for the duration of the program (May 1–November 30) with
80 percent of their clienteles being WIC participants. (See details about
these programs in Chapter Four.)
? Guarantee that customers feel safe while shopping at the market. It may be
necessary to hire security or ask for police assistance to ensure that custom-
ers feel secure while at the site.
? Suggest that farmers use multitier pricing that provides discounts for vol-
ume purchases.
Alternatives to Farmers Markets for Low-Income Areas
Some of the challenges of operating a farmers market in a low-income area have
led to development of alternative marketing strategies that still take advantage of
federal food assistance programs while improving access to local farm products.
Subscription farming enterprises such as CSAs (community-supported agriculture)
provide these opportunities, as do farm stands and you-pick direct-marketing
venues.
27
Organizing in a Low-Income Area
3
Case Study: Growing Power’s Market Basket Program
In 1995, Will Allen began to develop an alternative marketing
venture for the produce he grew on his urban farm. His idea was
to form a cooperative community-supported agriculture (CSA) or
subscription marketing agreement with several other local small
farms. The project would also work with local youth to provide
education on sustainable agriculture and marketing. The target
market was low-income residents of Milwaukee.
Today, the program has grown to serve 300 subscribers throughout
Wisconsin at more than thirty-fve drop-of points. It has become
known as the Market Basket Program and is run through Growing
Power, a nonproft organization working in Milwaukee, Chicago,
and Homer, Alaska, to provide high-quality, healthy, afordable
food in those communities. Growing Power develops “community
food centers” that ofer training, active demonstrations, outreach,
and technical assistance. Community food centers are local places
where people learn sustainable practices to grow, process, market,
and distribute food.
Will is now the director of Growing Power. He says that 50 percent
of Market Basket subscribers pick up their produce at the Mil-
waukee community food center, where they can use both Farmers
Market Nutrition Program coupons and Food Stamp EBT cards
to pay. According to Will, other features of the program that con-
tribute to its success with low-income people are its convenient
ordering procedures and afordable prices. Customers place orders
for the produce weekly, unlike most CSAs, which require monthly,
seasonal, or even annual subscriptions. The program ofers two
options: a $12 box of conventional produce packed to contain a
retail value of about $24 and a “Sustainably Grown” box at $24 that
features organic products.
Growing Power works with Wisconsin Shares to make Wiscon-
sin deliveries outside of Milwaukee and has recently expanded
through Growing Power’s Chicago food center to include six more
delivery points.
28
Starting a New Farmers Market
Several markets have experimented with programs modeled on the subscrip-
tion or CSA marketing structure. These programs are often called “market basket”
programs because they feature a basket or box of market produce. The produce is
supplied by vendors and packed by the market’s staf or volunteers for home deliv-
ery or pick-up at a more convenient location such as a local WIC ofce. Participants
in the program use the same benefts they would have used at the market to pay
for the produce.
These programs can help markets, vendors, and customers overcome some acces-
sibility barriers such as electronic benefts transfer (EBT) implementation and
transportation issues inherent to regular farmers markets. Some programs have
succeeded in becoming sustainable; others have not. For an example of one of the
more successful programs of this type, see the case study titled “Growing Power’s
Market Basket Program” on the preceding page.
Conclusion
Once the organizing committee has conducted the feasibility study and chosen to
move ahead in organizing a farmers market, the next step will be to form a board
of directors and hire a market manager. While the cost of hiring a market manager
may be more of an issue for a market in a low-income area than for a market in
a more afuent community, the additional bureaucracy involved in federal food
assistance programs means that it is vital to have someone at the helm who has
the necessary knowledge, skills, and time to devote to start-up activities. For more
on federal food assistance programs and processes, see the next chapter.
29
4
Federal Food Assistance Programs
B
efore choosing to move ahead with starting a farmers
market in a low-income area, you will need to establish the
feasibility of the market by adapting the feasibility study pro-
cess outlined in Chapters Five through Eight. If the prospects
for a new market’s success are positive, then the organizing
committee needs to establish a board of directors, hire a mar-
ket manager, and follow the same process outlined in Chapters
Nine through Sixteen.
Additional considerations apply to markets in low-income
areas. The U.S. Department of Agriculture’s (USDA’s) Food
and Nutrition Service (FNS) now operates several programs
that help low-income people obtain better access to food
and nutrition. Three of these services—Women, Infants and
Children (WIC), Senior Farmers Market Nutrition Programs
(SFMNP), and Food Stamps—can be used at farmers markets
with benefts to consumers as well as vendors. During the
feasibility study, the fnancial-analysis committee can assess the potential of the
market to work with various food assistance programs and how doing so would
afect the fnancial viability of the market.
Farmers Market
Nutrition Programs
Two of USDA’s Food and Nutrition Service
programs directly involve farmers markets—
the WIC Farmers Market Nutrition Program
(FMNP) and SFMNP. WIC provides supple-
mental food, health care referrals, and
nutrition education at no cost to women
who are pregnant or postpartum and to
infants and children up to fve years old
who are at nutritional risk. SFMNP awards
grants to states, U.S. territories, and feder-
ally-recognized Indian tribal governments
This chapter will enable
you to:
? Be aware of various
programs specifc to
markets and consumers
in low-income
communities.
? Make informed
decisions about
participation in
federal food assistance
programs.
30
Starting a New Farmers Market
to provide low-income seniors with coupons that can be exchanged for approved
foods at farmers markets, roadside stands, and CSA programs.
Both programs provide only a limited value of coupons per year to each partici-
pant (typically $20) per season, but the cumulative income can still be signifcant
for vendors. In addition, the educational components of the programs promote
the health benefts of eating fresh produce and expose potential new customers
to farmers markets. A California survey of WIC FMNP participants showed that they
consumed an average of about one extra serving of fruits and vegetables per day
after participating in the program. Eighty-fve percent reported that their frst visit
to a farmers market was through the program.
A 1997 random survey of 2,000 participants in the USDA WIC FMNP found that
the program helped motivate low-income . . . mothers to buy and eat fresh
fruits and vegetables from farmers markets.
Farmers who receive the coupons generally exchange them with farmers market
management for cash or as payment for their stall fees. The issuing state agency
then reimburses the market for the value of the coupons. Farmers also may redeem
the coupons as they would cash checks at local banks.
The farmers market nutrition programs are popular with vendors because of the
additional sales generated by the program’s coupons. Marcia Veldman, manager
of the Bloomington Community Farmers Market in Bloomington, Indiana, reports
that, when the WIC FMNP coupons were frst introduced at her market, only a few
vendors chose to participate. But other vendors quickly signed on when they saw
how many additional sales were generated for farmers at booths that accepted
them. Her vendors found that signing up was simple, and they enjoyed being able
to sell their products to the women participating in the program, which has grown
signifcantly. In 1998, it accounted for $13,245 in sales at the Bloomington market.
At New York City’s Greenmarkets, FMNP purchases accounted for
$800,000 in sales in 2000.
Successful FMNP projects have included educational components
that result in signifcant benefts such as increased consumption of
fresh vegetables and a greater awareness of local sources of fresh
produce. Markets that have participated in FMNP projects that did
not successfully convey information to customer-participants found mixed success
with the program. The case study at the end of this chapter illustrates an example
of this concern.
Many state agencies and tribal organizations participate in FMNP. To fnd out if
your state is involved, visit the USDA website for updates and additional informa-
tion or call the local USDA Food and Nutrition Service feld ofce.
31
Federal Food Assistance Programs
4
USDA and Congress have received assistance in FMNP promotion from the
National Association of Farmers Market Nutrition Programs. This organization
is made up of representatives from participating states, tribes, and territories in
addition to the markets involved. The association produces an annual report that
analyzes how the coupons are used and provides details on their impact in each
state.
Food Stamp Program
Nineteen million people received food stamp assistance in 2002. The Food Stamp
Program serves U.S. citizens and qualifying noncitizens who have been determined
to be in need of food assistance. The program’s goal is to help low-income house-
holds purchase the food they need for a nutritionally adequate diet. State and local
welfare ofces operate the program under the administration of the federal gov-
ernment.
The Food Stamp Program enables low-income families to buy nutritious food
with coupons and electronic benefts transfer (EBT) cards. Food stamp recipients
spend their benefts to buy eligible foods from authorized retail food stores and
farmers markets.
Many farmers markets are authorized to accept food stamps. As with FMNP, the
benefts are transferred, either by an authorized vendor or the market manage-
ment, directly into the retailer’s bank account. To learn more about the Food Stamp
Program, visit the USDA Food Stamp Program website at www.fns.usda.gov/fsp,
email [email protected], or call 800.221.5689 for contact information.
Electronic Beneft Transfer
An important change in the method in which the Food Stamp Program is being
administered is currently being implemented. The Welfare Reform Act of 1996
required that all states eventually switch to issuing Food Stamp Program benefts
via electronic beneft transfer or EBT. EBT is intended to replace paper stamps.
What is EBT?
Forty-nine of the ffty-one EBT systems currently in operation use magnetic strip
cards similar to bank debit cards. Food stamp recipients are given an account,
choose a personal identifcation number, and then use the cards at points of sale to
purchase food. Transactions are completed online, usually via a telephone connec-
tion.
32
Starting a New Farmers Market
When the cards are swiped through a transaction machine, the online system
authorizes the identifcation number, examines the available balance, and, upon
approval, transfers the government benefts from the consumer’s account to the
retailer’s account. Instead of picking up food stamps at the local ofce, food stamp
recipients are given their regular monthly benefts by an automatic addition to
their EBT accounts.
Two states, Ohio and Wyoming, are implementing alternative EBT systems that
use an ofine “smart card” technology instead of online magnetic strip cards. The
“smart cards” are embedded with microprocessor chips that manage account
transactions at the point of sale without the need for a network connection.
Monthly balances are reset when a participant visits the local benefts ofce.
All the equipment required to implement these systems is provided free of cost
to retailers by the state or a state-contracted supplier. Retailers still must acquire
authorization from the local USDA Food and Nutrition Service feld ofce to par-
ticipate. To fnd the most current information on EBT, visit the USDA Food and
Nutrition Service website at www.fns.usda.gov/fsp/ebt/default.htm.
How EBT Impacts Farmers Markets
EBT appears to be a more efcient and secure system for providing welfare recipi-
ents with their benefts while helping to reduce fraud. All states are either using
the system or planning its implementation. Most businesses are already familiar
with the technology to process EBT cards since they accept credit and debit cards.
Unfortunately for farmers markets, most of those cards require online transaction
machines. The machines communicate over telephone lines with a host computer
to perform the balance transfer. Most markets do not have this type of technology
currently available and there is considerable speculation about how to implement
it.
Eighty-fve percent of food stamp benefts were issued via EBT in 2002. Contact the
local Food Stamp Program feld ofce for more information on how food stamp
purchases are handled in your state. For a brief description of projects involving
EBT and farmers markets, visit www.fns.usda.gov/fsp/ebt/ebt_farmers_markstatus_
4_01.htm.
Farmers markets can play a vital role in the food systems of low-income commu-
nities. The Food Stamp and Farmers Market Nutrition Programs support this role,
providing links between farmers and low-income communities through farm-
ers markets. Facilitating the use of noncash purchases through EBT and similar
programs enhances the services a farmers market provides to its vendors and its
customers.
33
Federal Food Assistance Programs
4
The Role of EBT Participation in Market Competition and Success
In 2002, the average value of food stamp benefts was about $80 a month. Any
portion of those benefts could have been redeemed at a farmers market. When
EBT cards are issued in an area in which farmers markets are not prepared to
process them, the markets lose their share of that potential revenue. For farmers
markets to retain these customers, they must be able to accept the same govern-
ment aid programs that are accepted at grocery stores and supermarkets.
The farmers market immediately experienced a large drop in sales when EBT
was implemented in a pilot project. Albuquerque was one of the frst places
where EBT was introduced and the farmers market was not prepared to process
the EBT cards.
– Pam Roy, executive director of the Santa Fe Area
Farmers Market in Albuquerque, New Mexico
Implementing EBT at Farmers Markets
Markets around the country are working on a variety of methods for adopting EBT
technology with various degrees of success. Some markets are experimenting with
automated teller kiosks that accept EBT cards and issue “market dollars,” a currency
that is accepted only at the farmers market. Several slower-paced rural markets
have also tried handling EBT transactions with a single machine at the manager’s
stand. The manager debits the card for a requested amount in exchange for market
vouchers of equal value.
For fast-paced urban markets that handle large volumes of customers, such a
system is likely to be too slow to be efective. These markets need several machines
and potentially one machine per vendor. Just setting up the phone lines for such a
system presents a challenge. People have tried cellular and radio technology trans-
action devices when they cannot hook up to a phone line, but these technologies
are expensive and have not yet become cost efective.
In Wyoming and Ohio, the food stamp program is changing over to EBT through
the use of the smart cards that have a microprocessor chip inside. The transaction
machines, called “smart wallets,” can authorize the user’s identifcation number and
debit the amount of the purchase through the chip, which eliminates the need for
online communication with a host computer. Then, by going online once at the
end of the business day, all of the accounts are settled and confrmed. Smart cards
are commonly used in Europe but relatively unknown in the United States.
34
Starting a New Farmers Market
Case Study: Education as a Part of Assistance Programs
With new customers at farmers markets, education about seasonal
availability and ways to prepare fresh produce contributes greatly
to a market’s success. Alice Whitlatch with the Cedar County
Farmers market in Tipton, Iowa, found that accepting Farmers
Market Nutrition Program (FMNP) coupons was challenging
because participants were not familiar with farmers markets and
the seasonal availability of items sold there. She discovered a
great need for education and communication, not only for FMNP
recipients but also for Women Infant and Children (WIC) Program
personnel and farmers market vendors.
Whitlatch found that the women participating in WIC FMNP
would not come to the market until the end of the season when
they realized they had to use the coupons, which could not be
redeemed elsewhere. At the market, they found few stalls and a
sparse selection of produce. Frustrated, the women ended up buy-
ing large quantities of produce that they did not necessarily know
how to prepare simply because it was the last chance to use the
coupons before the season ended.
For vendors, it was upseting to see the women’s disappointment
and frustrating to see the FMNP coupons used so inefectively.
Market employees realized that the participants were not familiar
with farmers markets and did not always fnd them accessible.
As a result, the Cedar County Farmers Market has begun to ofer
outreach and education to the women on how the markets work,
why the availability and diversity of produce is seasonal, and the
stalls at which the coupons can be used. Market members also
work with the WIC ofce, encouraging the staf there to explain
the process to new WIC recipients.
Whitlatch and her fellow vendors hope that in the coming years
more and more WIC participants will recognize how much the
farmers market ofers and more ofen use their coupons in a way
that benefts everyone involved.
35
Federal Food Assistance Programs
4
Marcia Veldman, manager of the
Bloomington Community Farmers
Market in Bloomington, Indiana,
reports that her state’s Health Depart-
ment makes the annual sign-up for her
market vendors straightforward. Each
year at a meeting before the market
season opens, the state representa-
tive comes to sign up new members,
hand out signs for stalls, and give each
vendor a stamp to put on the coupons
they accept.
Involving the Market in Food Assistance Programs
The importance of food assistance programs to a market depends on the market’s
mission, clientele, and available resources. Questions to be addressed by market
management, the board of directors, and vendors during an assessment of the
programs’ importance include:
?
How important are food assistance programs to customers in the area?
?
Will the market as a whole participate in the Food Stamp Program, the WIC
FMNP program or both or will the decision be left to individual vendors?
?
Are Food Stamp Program recipients using EBT in the area?
?
What is the process by which vendors and/or the market can be authorized
to participate in these programs?
Participation in the Food Stamp Program requires a transition to EBT, but there is
no such mandate for WIC. WIC intends to develop a technology that can do more
than simply authorize personal identifcation numbers and check balances. WIC
would like to establish a system that can provide food, prescriptions, and health
information in addition to payments. The implication for farmers markets? While
FMNP coupons are likely to stay around for a few more years, new technology is on
the horizon.
Shoppers may be confused if only some vendors at a market accept federal assis-
tance programs. Vendors’ stalls should clearly display signs stating the methods
of payment that are accepted. Generally, participation in both of the programs is
left up to individual vendors rather than made by market management. However,
some markets have added a rule to the
bylaws dictating that all vendors must
accept food stamps and FMNP coupons.
For markets operating in low-income
neighborhoods, acceptance of gov-
ernment program payment systems is
essential.
How to Sign Up
Acquiring authorization to accept food
stamps, EBT payments, and FMNP cou-
pons is generally easy but does vary from
location to location. The process is free
but may require an in-person interview
36
Starting a New Farmers Market
or training session and up to thirty days may be required for processing of the
application for authorization. Contact the local USDA Food and Nutrition Service
feld ofce for more information or visit www.fns.usda.gov/fns.
37
This chapter will enable
you to:
? Outline the tasks
involved in the
market-analysis portion
of the feasibility study.
? Collect and analyze
data to determine the
market’s feasibility.
5
Conducting the Feasibility Study:
Market Analysis
Conducting the Market Analysis
T
his chapter covers issues that are specifc to analyzing
the feasibility of a new market. Market feasibility refers
to the potential customer base and demand for farmers
market products and the level and types of competition a
new market will face.
Potential Customer Base
The frst task for the market-analysis committee is collecting
demographic data. The committee should develop a profle
of the local market that considers the age, gender, ethnicity,
languages used, income, and education levels of potential customers. This type of
demographic information can be found at www.census.gov or from sources such
as the local chamber of commerce. Census data are available for census tracts
and zip codes, which are relatively small areas, as well as for cities, counties, and
states. These surveys also include information such as the number of children per
household and the size and number of schools within the trade area. Important
information about potential customers for a farmers market could include gender,
age, household income, education level, neighborhood, ethnicity, the presence of
children, and how many times a week households typically prepare home-cooked
meals. This data is useful for estimating the number of potential customers.
Analyzing the Target Clientele
Who are the market’s potential customers? Market analyses generally include
determining who potential customers are and how many the market will serve. If
the population is large enough and there is considerable interest in local produce
and value-added goods, then the market and other businesses in the area will
38
Starting a New Farmers Market
likely thrive. However, it still is necessary to profle prospective customers to ensure
that the market meets their needs. The market’s target audience afects many
aspects of the market, including the product mix, advertising, and promotional
activities. Get to know who your target customers are and their preferences. Is the
target market an upper-income or a lower-income group? Are they of a particular
ethnic group or more of a cross-section of demographic groups?
Defne your market area (your region or community). In the case of a farmers
market business, your primary market is localized and may be restricted to custom-
ers who come to the market from within a fve-mile radius. Your secondary market
might be chefs who work at local restaurants and require specialty products and
high-quality produce for their menus. Members of Chef’s Collaborative, for exam-
ple, are concerned with sustainable agriculture and buy only fresh produce from
farmers.
Once the committee has collected demographic data and established a profle of
target customers in the community, the next step is to survey a sample of poten-
tial customers to get a better description of their demand for particular items at
the market. Surveys can ask respondents to check of or list products they usually
purchase, such as fruits, cheese, eggs, meat, nuts, cofee, fowers, and handicrafts,
as well as items they would like to purchase from a farmers market that have not
been available. For example, consumers might be interested in buying locally pro-
duced honey or eggs from free-range chickens, items that they cannot fnd at local
supermarkets.
To get a better idea of desirable market features, your survey also could ask
respondents to rank other farmers markets they have attended and their local gro-
cery retailer, cooperative, or supermarket.
Assessing Market Feasibility
Unearth the following kinds of information when assessing a market’s feasibility:
? Is the community interested? How much community
support can be generated or already exists?
? Is there another market nearby? What is the level of
competition? Does the competition have the potential
to impede success?
?
Can the market generate sufcient revenue to make it
worthwhile for farmers and management?
The details of these issues will need to be explored further as the market research
team develops a solid market feasibility study.
39
The Feasibility Study: Market Analysis
5
Conclusion
In addition to competing farmers markets in the area, there are other types of
businesses that present competitive forces. For example,
there may be nearby roadside farm stands or you-pick oper-
ations. There also may be a retail grocery store in the area.
The committee can conduct most of the farmers market
research and analysis with committee members contribut-
ing according to their areas of expertise. If additional help is
needed with the feasibility study, consider consulting with a
Cooperative Extension agent or other appropriate experts.
Another way to complete a feasibility study is to recruit a
local college marketing student or students who are interested in doing a case
study or class project on your potential market. If you have the budget, you could
hire a professional market researcher.
The market-analysis committee’s report should address the questions previously
discussed. The resulting market feasibility study can be used to gather support
from community groups, local businesses, producers, and government ofcials.
40
Starting a New Farmers Market
41
6
Conducting the Feasibility Study:
Site Assessment
T
his chapter covers issues specifc to the potential site of the new market. The
site-assessment committee’s primary responsibility is to look further into the
analysis of all potential market sites. The committee should create a list of the pros
and cons for each site and various ideas to present as fndings
to the organizing committee or board of directors. A recent
USDA study (“Farmers Markets Survey Report”) found that the
two primary reasons for market failure are location and compe-
tition; that is, in-season dominance by alternative vendors.
Site Factors
Several factors should be considered when undertaking this
assessment. Initially, you need to have some basic idea of
where the market could be held. Important points to con-
sider include centrality, parking, visibility, ease of access, and environment. It may
be necessary to compromise on a site if a location that meets all of the desired
attributes cannot be found. Outline all potential and alternative market loca-
tions, listing their positive and negative characteristics. Be aware that the market’s
location and the demographic profle of its clientele will greatly infuence product
oferings and economic viability.
Permanent versus Temporary
When choosing a market site, an important consideration is whether or not the site
will likely be used on a temporary or permanent basis. A permanent site is one that
the market either owns or has secured a long-term lease that enables the market
to remain on the site for the foreseeable future (such leases last from seven to ten
years). A temporary site is contracted for a year at a time, which can be a good
option if you want to test the location before entering into a long-term arrange-
ment.
This chapter will enable
you to:
? Identify potential sites
for a new market.
? Determine the
suitability of each
potential site.
42
Starting a New Farmers Market
Permanent Site
A truly permanent location can be secured only through purchase or permanent
deed. Cities or towns occasionally have sites that may be donated for the exclusive
use of a market. Long-term agreements with the city, or long-term leases with
private landowners, are also fairly dependable ways to establish a semi-permanent
location for the market without an outright purchase. It may be possible to secure
a free site. Look in the area for
vacant parking lots, churches,
synagogues, city ofces, court-
houses, malls, parks, athletic
felds, vacant lots, county
fairgrounds, school grounds,
blocked city streets, and town
squares.
A major advantage of a per-
manent marketplace is that
it can be made more secure.
Storage facilities can be built
in, allowing vendors to leave
their setup materials at the site.
Fences, stalls, and displays can
be built into the market structure, further reducing the time needed for setup and
breakdown. A permanent shelter also may be constructed to provide year-round
protection from the elements. The Davis, California, market pictured here began on
sidewalks adjacent to the central park. Later, however, the city built a permanent
structure for the market, allowing it to evolve into the central feature of the core
area of the city. The market, its vendors, and its customers all reap the benefts of
long-term investment.
Long-term sites ofer many benefts. A permanent home allows consumers to
become familiar with the location and establish regular, long-term shopping pat-
terns. It also allows for permanent improvements over time to suit the evolving
needs of management and vendors.
The main disadvantage to a permanent location is its initial purchase cost. The
costs of insurance, upkeep, and taxes are additional expenses. In temporary sites,
the landlord, as a part of the rental contract, often absorbs these costs. Another
thing to consider is whether the site is appropriate for a permanent location. A
good alternative may be to start with a short-term commitment until the market
has demonstrated success in the location.
43
The Feasibility Study: Site Assessment
6
Assessing a Temporary Site
The main advantage of a temporary location is fexibility. The fexibility provided
by a short-term commitment allows the market to relocate to a better location
as needed. As a market gains in popularity, public or private organizations may
be more willing to provide the market with access to a more centralized location
and could end up ofering a long-term arrangement. Also, as the market grows, it
may be necessary to relocate for more space or better customer access. Satisfac-
tion with this sort of arrangement often depends on how comfortable the board,
manager, and vendors are with the costs and logistics of re-establishing the market
in a new location.
There are disadvantages, however, to a temporary site. Often, an ideal downtown
location may be available only briefy, until alternative development is approved.
The market is then faced with moving to another location and disrupting its
customer base when it has not yet taken root in the community. This could be like
starting the market all over again if the market must move a considerable distance.
Another drawback to temporary sites is possible multiple uses that must share
the site. If the location is used for other purposes during nonmarket
days, there may be no way for vendors to leave stalls and display items
at the site. Occasionally, temporary markets can make site
enhancements or erect semi-permanent structures, but it is
difcult to justify the large investment required when tenure at a
location is uncertain. Because of this, markets at temporary sites
do not usually beneft from the same improvements for vendors
and customers that are possible at more permanent locations.
Site Selection Criteria
There are two key areas on which to focus when choosing a location for a farmers
market. The frst is narrowing the number of possible sites using visible aspects of
each potential site as a determining factor. The second is researching the logistical
aspects of potential sites:
Size: Ideally, the site should accommodate two rows of vendor stalls and be at
least 40,000 square feet in size.
Centrality: An ideal site for a farmers market is a central location close to areas
where potential customers live, work, and shop. The market should be in
an area that appeals to a wide cross-section of customers, both culturally
and economically. Bus and train stops nearby are a major advantage. Other
activities (e.g., sports, shopping, attractions for children) located in the
44
Starting a New Farmers Market
vicinity of the market also are a plus for attracting potential customers. The
area should be perceived as a safe area for customers to visit.
Visibility and access: The site should be easily visible from the main thor-
oughfare or adjacent streets. If not, additional signs may be necessary to
attract customers’ attention. Markets that are visible in heavily travelled
areas enjoy the beneft of curious people who stop on impulse. If the
market is not easily visible, it cannot attract this kind of interest, which
limits the customer base to those who are already aware of its existence.
Consumers should be able to locate the
market easily with a few simple direc-
tions. The harder it is to fnd, the harder
it is for new people to attend.
Environment: The market should interface
well with the neighborhood. Litter
caused by the market’s set-up and
breakdown should be removed. The
market should enhance, not detract,
from its surroundings. Seating and pic-
nic areas, parks, fountains, and gardens
can provide shoppers with inviting
places to relax and enjoy the farmers market experience.
Transportation: The site should be easily and conveniently accessible by public
transportation such as a bus or light rail route.
Parking: The market should be convenient for customer access. The site man-
ager for the Marin County Farmers Market in San Rafael, California, says,
“Parking is very important. Customers are not going to want to shop if it is
inconvenient to fnd a space or if they have to walk far between their cars
and the market.” Consider the vendors’ needs as well. They need room to
move their vehicles into a stall or area, turn around, unload, and situate
themselves for selling.
Water: Water must be available. Hose spigots can provide water for keeping
produce cool and the area clean. To conform to health regulations, vendors
will likely need to use water at their stalls. In addition, water fountains for
customers and vendors help to keep people cool and hydrated on hot sum-
mer days.
Restrooms: Restroom access in the immediate vicinity of the market is another
necessity. Restrooms are important for vendors as well as for customers.
Vendors will be onsite anywhere from three to ten hours. Onsite restrooms
45
The Feasibility Study: Site Assessment
6
also may be a health department requirement. If no restrooms are available
onsite, consider renting a portable service that can be left at the site and
locked after market hours.
Surface cover: A site’s surface makes a diference aesthetically as well as
functionally. Wood chips, pavement, gravel, and grass each have diferent
advantages and disadvantages. A shady grass-covered park is inviting on a
hot summer day but probably requires farmers to park their vehicles some
distance from the stalls. Grass also may not withstand heavy foot trafc
and can become difcult to negotiate in rainy weather. Pavement, on the
other hand, will surely withstand heavy foot and vehicle trafc but can be
blistering hot on a sunny summer afternoon. Consider the geographic area
and the weather conditions likely to be experienced during the market
season. Is rain likely? Will temperatures soar into the nineties or above? If
the market operates during the rainy season, make sure that the surface
is graded and has adequate drainage. A gentle or moderate grade is ideal.
A grade that is too steep will make parking and set-up awkward and may
also restrict handicapped access. If heat is a likely issue, look for a location
with some shade, such as a parking lot with trees, or consider starting the
market early in the day. Above all, make sure the surface the market plans
to use is even and free of holes and other obstructions that put customers
and vendors at risk.
Shelter: Protection from sun and rain creates a more comfortable and appeal-
ing market. Customers are more likely to venture out during hot, cold, or
wet weather if the market area is covered and protected from the elements.
Stall layout: Visualize how the stalls would likely ft on the site. How many
vendors will ft in the space? Will the market have room for potential expan-
sion? Keep in mind that the market also will need room for customer trafc,
including those with special access needs (e.g., wheelchairs). A circular fow
creates easy passage and helps balance visibility for all of the stalls. The
evaluators also should visualize where the market would establish a central
location for the information booth, which can be made easily identifable
with colorful fags or banners.
Ownership: The owner may be a business, person, church, city, or other entity.
The terms and tenure of a contract depend on the nature of the property’s
ownership and prospects for alternate uses or for development.
Cost: Some owners may require rent; others may be willing to forego rent for
the beneft of increasing foot trafc or providing a community service.
46
Starting a New Farmers Market
Zoning: The site must be zoned for business. If not, it may be necessary to
obtain a variance.
Fire regulations: Most farmers markets will require at least a fre lane.
Law enforcement regulations: Be aware of any law enforcement concerns
and regulations.
Property taxes: The market’s presence may afect the tax owed for the site.
Insurability: The site will need to be insured and appropriate groups must be
covered for liability risks.
Final Thoughts on Choosing a Site
Ideally, you want the market to be situated in a place where vendors, manag-
ers, and especially customers will enjoy their time there. Ofer your customers an
organic environment, a place where shopping for fresh food seems natural. Studies
have found that consumers patronize farmers markets frst because of the farm-
fresh produce and then for the ambience. A pleasurable shopping experience is
very important in attracting and retaining customers.
Even if the only location available to you seems dismal and undesirable, you can
take steps to create an inviting atmosphere. If the site is under a highway overpass,
for instance, as it is for the Oakland Lake Merritt Farmers Market, you can use the
cement structures to your advantage. You can have bands play music under the
overpass, using the concrete caving as an amplifer to drown out the sounds of
trafc above. You also may want to consider creating some large decorations (for
instance, hand painted murals by local schoolchildren) that can easily be attached
and removed for each market. These are not extravagant or expensive ideas, but
they help to brighten up a site.
Food quality, customer relations, and good management are very important, but
without a positive, upbeat atmosphere, even a well-run market will lack the appeal
that gives people delight in their shopping experiences. If the market is in a vacant
lot, for example, try to add landscaping features. Perhaps some of the growers
could donate perennial fowers and herbs. Consider involving neighborhood
gardeners who may want to form a committee to help beautify the market site.
The pleasure that customers and vendors take in the market will have a signifcant
impact on its longevity.
47
This chapter will enable
you to:
? Be aware of potential
sources of start-up and
operating funding.
? Collect data to project
income and expenses.
? Determine the fnancial
feasibility of a new
market.
7
Conducting the Feasibility Study:
Financial Analysis
T
he fnancial-analysis committee has two important tasks: determine possible
sources of funding the start-up of a new farmers market and develop a pro-
jection of income and expenses to determine whether it is
feasible to start a new market. If opening a new market goes
forward, the budget generated by this committee will become
the foundation for the market’s operating budget, so it is
important to gather data with which to make the most accu-
rate projections possible.
Sources of Funding
There are a number of potential sources of funding for a new
market, including sponsorship, grants, and fees. If the market
is sponsored by a single organization or a coalition of orga-
nizations, the founding organization(s) will likely provide
some funding for start-up. In that case, the fnancial-analysis
committee should include representatives of the sponsoring
organizations who can accurately project funds available for start-up.
Depending on the purpose and mission envisioned for the market, the market
organization or its sponsoring organization may be eligible for grants through gov-
ernment agencies or nonprofts. A search of available grants related to nutrition,
agricultural marketing, and community development can yield potential sources
of funding. Local funding may be available through the chamber of commerce,
United Way, and service organizations and religious groups.
Another source of funding is vendor payments of stall fees and/or membership
dues. Managers of established markets that are not in direct competition with the
proposed market may be willing to share information about their stall fees, mem-
bership dues, and other sources of income. The committee should check with more
than one manager to elicit a set of strategies and choose the ones that will work
for the proposed market.
48
Starting a New Farmers Market
Projected Expenses
To establish the fnancial feasibility of the market, you need to anticipate and
project the market’s expenses. List anticipated costs, such as wages, benefts,
insurance, permits, and ofce overhead. Also, list planned start-up costs such as a
deposit on ofce space and creation of a logo, as well as ongoing planned activi-
ties that can include special events and advertising and their projected costs.
Check with managers of other markets, preferably in areas with similar demo-
graphics and costs of doing business (for example, similar costs for ofce space
and employee compensation), to gauge expenses as accurately as possible.
Working with Other Commitees
If the feasibility study indicates that a new market would be viable, then the work
of the fnancial-analysis committee will have a strong impact on future activities.
If, for example, the cost of designing a logo and purchasing promotional materi-
als is not included in the initial cost projections, then the options open to those
assigned the task of promoting the new market will be constrained. It is important
that all of the committees maintain communication with each other and that the
activities involved in the feasibility study and start-up be organized and coherent
so that nothing is assumed or overlooked. With organization and communication,
the results of the initial fnancial analysis can become a cornerstone of future mar-
ket development.
49
This chapter will enable
you to:
? Assess vendor interest
in a new market.
? Match vendors with
consumer demand.
? Recruit vendors.
8
Conducting the Feasibility Study:
Vendor Recruitment
T
he vendor-recruitment committee’s main responsibility
is to assess the availability and interest of area growers
in joining a new market. Through this committee’s work, the
market contacts growers and begins to develop vendor mem-
bership requirements.
It will take some time to make contact with a sufcient num-
ber of farmers, secure their involvement, and provide them
with the information they need to prepare for a successful
market season.
Finding the Niche
The vendor-recruitment committee must work closely with the market-analysis
committee to match potential vendors with consumer demand. Using preliminary
results from the market-analysis committee’s study of consumer demand and
preferences, the vendor-recruitment committee can determine the initial product
mix the market should ofer, the number and types of vendors they need to recruit,
and, ultimately, whether vendor recruitment for this market is successful.
To analyze vendor and product availability and interest in selling at the market, a
survey specifc to producers can be conducted. Surveys can determine the vendors’
level of interest and willingness to sell at the market. The survey can ask farmers for
their reasons for selling products at farmers markets and rank those reasons on a
scale of one to ten with one being most important and ten being least important.
The following characteristics are useful: convenience of direct marketing, receiving
retail value for products, interaction with customers, ability to advertise value-
added products, and ability to sell excess products not sold through other outlets.
Determine if other vendors in the area are selling vegetables, fruit, fowers, or
baked goods. If so, who are their customers? How do they set prices? What makes
them successful? Instead of attempting to outperform them, fnd an area in which
they are lacking that can provide the new market with an obvious niche to fll. The
market can then diferentiate its products by branding the market as a unique
complement to existing competitors. Ideally, a market does not want to be in
50
Starting a New Farmers Market
direct competition with anybody. Look for ways to complement existing resources,
fnd new areas in which to specialize, and build relationships that are mutually
benefcial.
One of the principal competitors for produce and value-added products is local
supermarkets. However, supermarkets do not necessarily have to be viewed in a
negative way. One market manager reported that, when his market was forced to
leave its traditional site, the town’s grocery store ofered its parking lot. The new
location worked out well, and the market has since been held there for many years.
Customers purchase their nonproduce groceries at the supermarket and then shop
at the farmers market for fresh, seasonal produce.
To keep this cooperative arrangement run-
ning smoothly, relations must be maintained
between the supermarket and the farmers
market’s manager. Often, the supermarket
manager comes from an agricultural back-
ground and sees slight losses in produce sales
one day a week as worthwhile in return for
supporting local farmers, building good com-
munity relations, and attracting additional
customers on market day for nonproduce
items.
Other Atractions and Vendors
Special events, tourism, and other nearby attractions can draw customers to the
area from long distances, though not necessarily on a consistent basis. Some of
these events may be seasonal or of short-term duration. Determine what the area
has to ofer:
? Is this community the gateway to a popular recreation area or national
park?
? On what days does the market attract the most tourists, and during what
peak hours? Work with local hotels, chambers of commerce, and other
attractions that can share information or can beneft from the farmers mar-
ket.
? Are there weekend craft fairs, famous historic buildings, or special down-
town events that bring tourists to the area?
? Could these oferings add to the customer base or will they have the
opposite efect—keeping away local residents?
51
The Feasibility Study: Vendor Recruitment
8
Agritourism
Agritourism is a new approach used by some farmers to attract customers to their
farming operations. By ofering tours, roadside stands, you-pick operations, and
bed and breakfast accommodations and by listing their sites on farm trail maps,
these farmers are creating new identities as destination areas for urbanites who
have a desire to experience rural life. For farmers market managers, some of these
agritourism operations can represent competition while others can be benefcial.
Do these agritourism operations ofer very specifc, seasonal types of products,
such as market-pick blueberries or Christmas trees? Would they draw from the
market’s desired customer base? School tours to a pumpkin patch probably would
not attract the same crowd that the market is targeting, but it is possible. Do area
agritourism operations/events confict with the days and/or hours that the market
will be held?
One way to strengthen collaboration among diferent agricultural producers and
increase their accessibility to consumers is to incorporate all of them into the
farmers market, building a network of support for local agriculture. If a farm that
hosts students can say, “We will be at the farmers market on Saturday if you want
to show your parents our pumpkins,” that word of mouth provides free advertising
for the market. A local blueberry grower could fnd it worthwhile to close her farm
stand on market days to sell at the market instead.
Contact all of the farm stands, you-pick operations, and agritourism operators in
the area and ask if they are interested in joining the market. If they are already
participating in direct marketing, there is a strong possibility that they will be inter-
ested in the opportunity to sell at a farmers market. However, make sure that their
operations are compatible with the market’s vendor policies and state regulations.
Finding the “Right” Vendors
Town councils and downtown business groups organizing a new farmers market
have at times underestimated the complexity and efort involved in getting farm-
ers to join a new market. Finding farmers who are growing the right products for
direct marketing or that are interested in new farmers markets can be a challenge
even in an agricultural area. The vendor-recruitment committee must spread the
word widely and talk to many farmers to develop a base membership of growers
with sufcient product diversity and volume to make the market successful.
Even more important than fnding growers is fnding the right growers. Consumers
prefer markets with a well-rounded selection of produce. Keeping a wide variety
throughout the season is a key factor for successful markets.
52
Starting a New Farmers Market
One good way to go about providing diversity is by starting with a core group
of growers who can ofer a wide array of produce. Specialty items and seasonal
favorites can then build on that foundation. Diversity in products at the market is
as important to farmers as it is to consumers. Too much overlap among growers
reduces their individual sales and is a frequent complaint to managers. Getting an
early start on developing the right market mix is critical to the success of a market
and its growers’ businesses.
Where to Find Vendors
Recruitment of vendors should begin six to eight months before the opening
of the market, preferably in fall or early winter when farmers have more time to
participate in planning. Contacting farmers at this time also allows them ample
opportunity to prepare crops for the market. If they know which products they
want to sell the following spring and summer, they can place seed orders and
develop planting schedules accordingly.
Personal contacts and phone calls are the most efective ways to get the
word out about a new farmers market. If there are other markets in area, it
may be helpful to visit those markets and talk to their managers and ven-
dors. Farmers often will be interested in selling at more than one market,
but be careful not to steal vendors from other markets. Also visit you-pick
operations and roadside stands in the area, as these farmers may be eager to try
another form of direct marketing.
It is helpful to talk with interested growers to determine how serious they are
about the market. If they want the market to work, they may talk to other growers
about it. An increase in the number of growers and the resulting diversity of prod-
ucts makes for a larger, more stable, and more interesting market that can attract
and serve more consumers.
Growers’ associations and cooperatives can be helpful in informing potential
vendors about a planned market. Organizations that may be helpful in identifying
local growers include the Cooperative Extension Service (located in most counties),
the county agricultural commissioner’s ofce, the state’s agriculture department,
and the local Farm Bureau ofce.
If these organizations have upcoming workshops, a representative from the ven-
dor-recruitment committee can make presentations about the proposed market.
Networking with experienced marketers at these events can also provide an
invaluable source of information about the process of starting and running a mar-
ket.
53
The Feasibility Study: Vendor Recruitment
8
Reviewing the Findings of the Working Commitees
When the market-analysis, site-analysis, fnancial-analysis, and vendor-
recruitment committees have completed their tasks in assessing the
feasibility of starting a new market, the organizing committee should
meet to review the fndings and decide whether to move forward.
Agenda for the Organizing Commitee
Market Decision Meeting
Objectives
1) Review fndings from the committee analyses.
a) Is there sufcient consumer demand to support a market?
b) Is there sufcient vendor interest and commitment to
meet consumer demand?
c) Are there viable potential sites?
d) Is there a way to fnance the market and can it
be fnancially viable?
2) Financial options.
a) Budget, cash fow, and cash needs.
b) Financing options.
3) Decision: Is it feasible to start a new market? Will the process
move forward or stop?
4) If the decision is to proceed, discuss creation of the board
of directors.
a) How many of the organizing committee members will
serve on the frst board of directors and what skills do they
bring?
b) What skill areas or areas of representation are missing?
Who still needs to be recruited? See Chapter Ten for more
on creating the board of directors.
54
Starting a New Farmers Market
55
This chapter will enable
you to:
? Choose an
organizational
structure that will
meet your needs
and position you to
become a certifed
farmers market.
9
Establishing the Market
as an Organization
O
nce the committees have completed their analyses and established the feasi-
bility of a new farmers market in the community, it is time for the organizing
committee to create the organizational structure.
An Overview of Organizational Structures
The extent of the organizational structure required for a market
depends largely on the size of the market. Every market requires
performance of basic administrative and group decision-mak-
ing tasks. Building a framework in advance to facilitate those
tasks simplifes operation of the market and helps to identify
structural needs. In California, farmers markets must be certifed
by the county in which they operate; because the produce sold
at farmers markets is exempt from certain packing and labeling
requirements, both the vendors and the market must be certi-
fed.
Several forms of market administration and organization are used in farmers
markets, each with advantages and disadvantages. As farmers markets continue to
gain in popularity and sophistication, their management becomes more compli-
cated and demanding. In response, more markets are beginning to adopt formal
business models or to seek sponsorship through larger administrative organiza-
tions such as business associations and municipal organizations.
Here we present several organizational models as examples of alternative
frameworks. These options should be weighed in terms of their advantages and
disadvantages in light of the market’s immediate needs and its potential for
growth.
56
Starting a New Farmers Market
Three Common Models for Farmers Market Organizations
? An unofcial agreement among producers rather than
an ofcial business.
? A private for-proft or nonproft business runs the
market.
? A public sponsorship wherein the market is run by a
public authority such as a city government.
Agreement among Producers
An agreement among producers is a common type of farmers market organization.
Although it does not carry the same bureaucratic requirements as more formal
business models of market management, successful applications for certifcation
will mean that permits and licenses must be in order.
Private Sponsorship: The Market as an Independent Ofcial Business
Many markets operate as independent businesses, either as nonproft or for-proft
operations. Which form is most appropriate for the market depends on the size of
the proposed market, the people involved, and the level of tax and legal liability
key members are willing to assume. Resources are available to help the organizing
team with this decision and with other questions related to starting and running a
small business.
Within the private-sponsorship model, there are several options for ownership of
the market. To obtain a business license, you will need to defne the ownership
structure of your enterprise. Following is a list of the four general types of owner-
ship for businesses.
Sole Proprietorship
? One person owns all assets and profts and is responsible for running
the business.
? The proprietor assumes complete responsibility for liabilities and debts.
? There is no legal distinction between the business and owner.
57
Establishing the Market as an Organization
9
Partnership
? Two or more people own the business.
? A legal partnership is involved, which should include agreements about
decision-making, proft sharing, dispute resolution, and dissolution of
the business.
? Types of partnerships are general, limited, partnerships with limited liabil-
ity, and joint ventures.
Corporation
? Corporations are chartered by the state.
? There is a legal distinction between the business and its owners, which are
its shareholders.
? Corporations can be taxed and sued.
Limited Liability Companies (LLCs)
? LLCs have the limited liability of corporations and the tax efciencies and
operational fexibilities of partnerships.
? There are stipulations about what may be defned as an LLC.
Some of the advantages of organizing a market as an independent entity include
retaining control of the market, having full decision-making abilities, and identify-
ing liability and taxation issues in advance. A disadvantage to having the market
as an independent entity is the pressure of all of the costs and responsibilities for
running and promoting the market falling to a single individual or small group of
individuals. Gaining sponsorship from a larger, well-established organization (as
discussed in the next section) is one way to reduce
this level of direct responsibility.
Resources for Businesses
In addition to information provided in this guide, you
can acquire a wealth of information from the Small
Business Administration (SBA). SBA is a great source of general information about
starting and running small businesses, much of which can be found at its website:
www.sba.gov/starting_business. There also may be a small business development
center in your area. These ofces often provide hands-on training and advice about
setting up and managing a small business.
58
Starting a New Farmers Market
Business laws: Complying with business laws and regulations can be a burden
on small businesses. To help businesses overcome a lack of information,
SBA, in cooperation with multiple federal agencies, developed Busines-
sLaw.gov, an online resource designed to provide legal and regulatory
information to America’s small businesses (www.sba.gov/starting_business/
legal/buslaws.html).
Business licenses: To operate a farmers market ofcially in most areas, you
must obtain a business license and register your business name (also called
a “fctitious name”).
The Market as a Nonproft Organization
Another option for structuring a new market as an independent organization is to
form a nonproft organization. Advantages to nonproft status include eligibility for
grants, tax-exempt status, and some protection from liability. However, the paper-
work involved can be a disadvantage and the ability of farmers markets to obtain
nonproft status is in fux. A good source of general information on legal require-
ments for nonprofts is Nolo Press (www.nolo.com).
Public Sponsorship: The Market Run through
a Larger Business or Public Agency
Market sponsorship through an overseeing organization has become one of the
more popular approaches to organization for farmers markets. This alternative
follows several diferent models and the level of involvement of the sponsor varies.
Some local service organization sponsorships require very little involvement as
the sponsors are simply interested in bringing a farmers market to the community,
whereas private and public agencies may require more involvement in terms of
management and/or organizational structure. Sponsors may be responsible for
running one or more markets and can legally categorize themselves as a for-proft
or nonproft business. The level of control that market sponsors require varies con-
siderably and depends largely on the agreement made between the market and
the sponsor.
While this model may appear complicated, many markets have found great bene-
fts from this type of sponsorship because administrative costs and responsibilities
(such as insurance and promotion) are shared and further reduce business risks.
In turn, surplus revenues generated from stall and membership fees can be used
to start other related community projects such as support for a teen center or
improving awareness about environmental and open spaces. Arrangements such
59
Establishing the Market as an Organization
9
as these strengthen community support for the market and beneft not only the
vendors but the consumers as well.
Examples of Public Market Sponsorship
The Greenmarket Program of the Council on the Environment of New York City
(CENYC) is an example of market sponsorship through a larger organization. CENYC
is a privately funded citizen-owned organization that operates in partnership with
the mayor’s ofce. CENYC promotes awareness of food systems and solutions to
environmental problems. In addition to its other projects, CENYC manages the
Greenmarket Program, which operates thirty-eight weekly open-air farmers mar-
kets in twenty-eight locations at peak season in New York. Sixteen of these markets
are open year round.
Another example of an organization that has been sponsoring farmers markets is
the Economics Institute in New Orleans, Louisiana. Housed at Loyola University’s
Twomey Center for Peace through Justice, the Economics Institute initiates and
promotes ecologically sound economic development in the greater New Orleans
region. Since 1995, it has helped to establish a number of strong markets in
partnership with farmers, citizens, business and government leaders, chefs, and
nutrition advocates. In addition to assisting with the establishment and operation
of several markets, the Economics Institute provides information and training to
farmers and other small business owners on sound agricultural, processing, and
business practices.
There are many other ways that organizations can provide support to farmers mar-
kets through sponsorship. In addition to providing logistical support, such as ofce
space, staf, and umbrella insurance coverage, such a relationship often supplies
educational resources and training materials as well as advocacy on a regional or
state level.
Before seeking sponsorship from an umbrella organization, make sure that the
goals of potential sponsors are aligned with the overall goals of the farmers
market. Some markets have run into difculties as a result of partnerships with
organizations that did not share the same vision as the vendors or surrounding
community. Therefore, it is important to fully discuss these issues with all of the
concerned parties before agreeing to sponsorship.
Finding an organization or association in the area that is already involved with
farmers market sponsorship helps to ensure that various goals are likely be in
alignment. The state’s farmers market association and direct-marketing contacts in
this feld can provide additional suggestions about possible sponsoring organiza-
tions.
60
Starting a New Farmers Market
What Structure Is Right for Your Organization?
As you read through this chapter, you may have recognized the structure that best
suits the farmers market you are developing. If several of your organizing commit-
tee members have nonproft afliations, or if the market is being organized by a
nonproft such as a community development organization, then structuring the
market as part of a sponsoring organization may be a logical choice. If, however,
the market is being organized by farmers, creating an independent organization
might be best. Organizers must weigh the pros and cons of each type of structure
and choose based on the unique needs and characteristics of the vendors, the new
market, and the community in which it will operate.
61
This chapter will enable
you to:
? Establish an efective,
productive board of
directors.
? Write a mission
statement that
refects the identity
of the market you are
creating.
? Understand the
steps involved in
seting up the market
organization, including
articles of incorporation
and bylaws.
10
Establishing the Market’s Management
O
nce an organizational structure has been chosen, the organizing commit-
tee must create a board of directors. Once that has been done, the board
becomes the decision-making entity for the remainder of the
activities involved in creating the market’s organization.
Establishing the First Board of Directors
Unless the market is a sole proprietorship, the answer to the
question “who makes key decisions about market activities?”
should be the board of directors. Some organizational struc-
tures for farmers markets, such as those that are sponsored by
an umbrella nonproft, do not require a separate board. The
board of directors oversees many aspects of a market’s opera-
tion and is a required organizational component of a nonproft
corporation. If a farmers market is a nonproft, tax-exempt cor-
poration, otherwise known as a 501(c)(3), it must have a board
of directors that is responsible for directing the organization.
Guidelines for how the board shall conduct itself should be
clearly stated in the organization’s articles of incorporation
and bylaws. These rules difer from the market rules (Chapter
Fifteen) in that they pertain solely to operation of the board
and oversight of the organization. If the market seeks incorpo-
ration, it will have to fle these documents with the appropriate
state authority. This authority is usually the secretary of state or the state’s corpora-
tion commission.
Because these documents establish the internal legal functions of the organization
and are as binding as any other law passed by Congress or the state’s legislature,
they should be carefully drafted to ensure that they meet the group’s needs. Refer
to the articles of incorporation and bylaws of other markets in the state for guid-
ance. The National Center for Nonproft Boards and the Internet Nonproft Center
are also good resources for creating board guidelines.
62
Starting a New Farmers Market
Who Are the Directors?
The board of directors is responsible for the overall vision and for governance of
the market. Once the board and the market are established, directors are generally
elected by the market’s membership on an annual basis. The frst board, however,
will be established by the organizing committee and may include organizing com-
mittee members who are willing to continue providing leadership and direction
for the market. There also may be additional community members who are desir-
able candidates.
The members of a board of directors have inherent obligations to represent:
?
The public, ensuring that their best inter-
ests are represented.
?
The government, ensuring that the
organization’s funds are used for organiza-
tional nonproft purposes rather than for
the fnancial gain of board or staf mem-
bers.
?
The donors, ensuring that their funds are
spent for maximum impact in accordance with the stated purpose of the
organization.
Many farmers markets have a board of directors even if they have not obtained
nonproft status. The board is a valuable asset that ofers essential guidance in
starting and developing the market.
Roles and Responsibilities of the Board of Directors
The purpose of the board of directors is to provide vision, direction, and gover-
nance to an organization. The board is responsible for shaping the market and its
success in many ways, including providing direction in strategic planning, moni-
toring, evaluation, public relations, and promotional activities. Boards of directors
generally consist of several ofcers (chairperson, co-chairperson, secretary, trea-
surer) that are defned in the bylaws. The manager may or may not be a voting
member of the board as defned by the bylaws.
In theory, the board works closely with the market manager to assist in develop-
ment and implementation of long-range plans as well as with day-to-day activities.
In reality, the level of board involvement for a farmers markets depends on the way
the board is structured, its relationship to the manager, and the time, assets, and
strengths that individual members bring to the board.
63
Establishing the Market’s Management
10
Responsibilities assumed by the board fall into two general categories: governance
and support. Governance refers to broad-based policy-making activities that
address the benefts and services the organization provides. Support refers to day-
to-day activities, conducted through committees or on an individual basis, that
further the goals of the organization.
The exact responsibilities of the board will vary from market to market, but they
may include some of the following:
?
Long-range planning and goal-setting.
?
Setting policies and fees for the year.
?
Developing market rules.
?
Establishing an annual budget.
?
Providing direction to the market manager.
?
Supporting the manager in confict situations and intervening if necessary.
?
Making major stafng decisions.
?
Overseeing promotions and marketing.
?
Developing fundraising strategies.
?
Acquiring liability insurance.
?
Recruiting new vendors.
The board is responsible for drafting the market’s rules. Market rules are a set of
guidelines that establish policies specifc to vendor membership fees and other
such conditions that potentially afect activities at the market that are otherwise
unregulated by local or state law.
Types of Farmers Market Boards
The organizing committee may choose from several diferent models of board
leadership in establishing the frst board. While there is no single “right” way to
organize and recruit for the board, it is important to assemble a governing body
that has the time, energy, and skills to assist in key eforts of the market. Many
farmers market managers believe that the most efective market board is one that
refects the diverse interests of the surrounding community as well as the geo-
graphic region in which the market is situated. The three typical types of boards
employed by farmers markets are vendor-only boards, vendor/community mem-
ber boards, and organizationally driven boards.
64
Starting a New Farmers Market
Vendor-Only Boards
Vendor-only boards are boards whose members are exclusively market vendors.
This type of board ensures that all members have a strong interest in the market,
as each member has a primary stake in the market’s success and proftability.
The policies and procedures set by this type of board more accurately refect the
realities of the market since vendor-members have a frsthand familiarity with its
day-to-day operations. At a minimum, a few board members will always be present
at the market to assist, particularly in situations of confict.
Vendor involvement on the board can create conficts of interest. The division of
roles must be clearly defned at the outset. A board member may be personally
involved in a dispute with another vendor, for example, and may have difculty
separating his or her roles as a board member and as a vendor. Conficts of this
nature may arise if board members perceive themselves to be in competition with
other vendors or if they are good friends with other vendors who are not board
members. Such situations cause misunderstandings and make it difcult for
boards to make decisions that are in the best interest of the market as a whole.
Vendor-only boards also may be weakened by peak-season market periods (sum-
mers) and/or vendors who sell at more than one market, which results in vendors
being too busy to attend to board-related issues. In some cases, these mem-
bers may rarely attend the market, sending an employee instead, which renders
them less connected to day-to-day issues at the market. As one manager stated,
“Farmers are not bureaucrats. I have a hard enough time getting them to fll out
paperwork, let alone attend meetings and engage in strategic planning.” Boards
comprised entirely of vendors may rely more on the manager to build community
relations since most vendors will not live in town or have nonproft management
skills. In these cases, the manager may end up directing the board rather than the
other way around. With no community representation, the board also may have a
difcult time understanding and responding to the issues and needs of the com-
munity in which the market operates.
Vendor/Community Member Boards
The vendor/community board is one that is comprised of a mix of market vendors
and community representatives. This is a common structure for many small-town
farmers markets. Board members each bring various strengths, including legal or
fnancial expertise, ties to the business or political community, and strong market-
ing and public relations skills. A board can maximize its efectiveness by building
on the individual strengths of its members in ways that complement rather than
compete with each other.
65
Establishing the Market’s Management
10
Vendor/community boards have direct access to an awareness of vendors’ issues
and also refect the interests of the community. Board members who are local resi-
dents may be more in tune with issues that afect the market and consumers and
may be more connected to resources that can assure the market a strong position
in the community.
On the other hand, board members who are less familiar with the realities of farm-
ing and direct marketing must pay extra attention to the concerns of vendors. They
should understand the importance of working to serve the interests of the vendors
as well as those of consumers and the larger community. As one board chairperson
said, “The diversity of the board is our greatest strength and our greatest weakness.
The challenge is to live with the confict that diversity brings.”
Organizationally Driven Boards
The organizationally driven board is usually the choice of nonprofts or local busi-
ness organizations that sponsor farmers markets, such as downtown improvement
districts and community development organizations. Markets sponsored by these
types of organizations may have boards that have less connection to the people
involved in the market. For example, a market board may be made up of business
owners from the downtown area where the market is located, providing no ven-
dor representation. As one manager said, “Our board members connect us to the
downtown district really well, although they do not shop at our market.”
Organizationally driven boards can ofer substantial business expertise through
their members, as well as strong ties to the local business community. In such a
case, the market manager must ensure that vendor interests are well represented
and may act as a liaison for communication between board members and vendors.
Closed communications will lead to a closed market. If you choose to have an
organizationally driven board, keep in mind that strong communication and man-
agement skills, which are always essential for market managers, will be an even
higher priority when it comes time to hire the manager. With this type of board,
vendors may feel that too much of the decision-making process is beyond their
control. Vendor investment in the market may be more difcult to achieve later if
the infrastructure does not include vendors in the larger context of the organiza-
tional structure.
Establishing the First Board of Directors
The type of board that the organizing committee establishes depends on the
organizational structure and the committee’s view of the board’s role. If the orga-
nizing committee decides to pursue an informal agreement among producers, or
to structure the market as a private for-proft business, there may be no need for
66
Starting a New Farmers Market
a formal board of directors. If the committee pursues or arose out of sponsorship
by a larger organization, whether a public agency like the mayor’s ofce or a pri-
vate nonproft such as the Urban League, the board will likely be organizationally
driven. If the committee decides to establish the market as an independent, non-
proft organization, any of the types of boards described here might be created,
according to the committee’s view of the board’s role in the market.
The organizing committee should consider potential board members with the fol-
lowing questions in mind. This process is most efective if each member considers
the questions individually and then the group discusses and resolves diferences in
a meeting to nominate potential board members.
?
Using the information in the preceding section, what will be included in
the “job description” for board members? What level of commitment does
the committee anticipate (e.g., two hours per week, fve hours per week)?
?
Who are the organizing committee members who want to continue on the
board and what qualities and skills do they bring to the board?
?
What qualities and skills are missing?
?
How important are the missing qualities and skills to the committee mem-
bers?
?
Can the market compensate for the lack of those skills on the board by
prioritizing them in hiring a market manager?
Once the organizing committee has achieved a level of agreement that allows it
to make a decision about the answers to the preceding questions, it can establish
criteria for evaluating anyone who is suggested as a possible board member. If all
members of the organizing committee know the types of board members needed,
it will be easier to evaluate candidates based on whether they meet the criteria
rather than on more personal factors. Using the criteria for skills and characteristics
needed on the board, the committee can identify individuals as potential board
members and evaluate the nominees.
Before making a decision about potential board members, take another look at
the vision statement for the market. Are the nominees likely to value and agree
with this vision? Will they work to support it? If you do not know, you can ask the
nominee to look at the vision statement and indicate his or her willingness to sup-
port it. If the nominee cannot support it, you should probably look for a nominee
who is more likely to commit to the market’s vision. Once the nominees have been
chosen, the committee should appoint someone to either contact or write a letter
of invitation to each nominee to serve on the board. Before ofcially establishing
the board, the organizing committee can hold an orientation session for potential
67
Establishing the Market’s Management
10
or new board members that reviews the vision for the market and expectations for
the skills and commitment of time required of board members. If, after the orienta-
tion, anyone opts out, the committee can then fnd someone to take that person’s
place before the board begins its term.
68
Starting a New Farmers Market
Establishing the Market’s Structure and Organization
Once the board of directors is established, it will need to create much of the formal
structure and rules for the market. The frst issues for the board to address are:
? Establishing the articles of incorporation and bylaws.
? Choosing a name for the market and for any other organizations and
associations that the vendors contemplate forming (e.g., “Alpine Tuesday
Farmers Market” or “The Alpine County Farmers Market Association”).
? Developing the mission statement. What is the purpose of the market
and the organization? Examples: “To provide consumers with ________ and
farmers with _________.” “The association is created to provide an orga-
nized body to __________.” The mission statement plays an important role
in establishing the character of the market as well as
the rules that will guide its daily operation.
? Establishing commitees. Many market founders
fnd it useful to allocate some of the more challeng-
ing responsibilities to subcommittees. For example, a
safety committee and an appeals committee are two
groups that can help in the process of making deci-
sions, evaluating problem situations objectively, and
enforcing the bylaws.
? Developing the bylaws by which the market as an organization and the
board of directors will operate.
? Implementing provisions of the bylaws, such as designating the board
ofcers.
? Covering board member liabilities. Depending on how it is organized,
the association of vendors may or may not be liable in case of accidents.
Research this issue with a local attorney. Example: “No person who is now
or who later becomes a member of this association shall be personally
liable to its creditors for any indebtedness or liability.” This statement ofers
some protection against individual member liability.
? Determining fscal provisions. The market must determine when its fs-
cal year begins and ends and who will be authorized to act on behalf of the
organization (e.g., to open accounts and sign checks). Before the market
fnalizes the articles of incorporation and bylaws, ask a local attorney to
review them.
69
Establishing the Market’s Management
10
Developing the Mission Statement
One of the frst activities of the organizing committee was to discuss and develop a
vision statement for the market and its role in the community. The vision statement
is a broad statement of the place of the market in the community. The mission
statement is a concrete, specifc statement of the major goals of the market orga-
nization in seeking to realize the vision of its founders. Clarifying and synthesizing
the group’s purpose and beliefs in a written statement makes it easier to present
the concept to growers, the community, and others.
The answers to two questions—“What are the market’s goals?” and “What are the
market rules?”—are refected in the market’s mission statement and in the bylaws.
Even if the market will not incorporate or have nonproft tax status, it is a good
idea to put the market’s goals in writing. The mission statement should:
?
identify the market’s goals, and
?
provide philosophical direction for developing the market’s objectives.
A clearly defned mission statement gives the market a starting point for long-
range planning and major decision-making.
The organizational mission statement should be agreed upon and supported by
everyone on the board.
Step 1. To defne your market’s mission and develop a mission statement, frst
look back at the vision statement created by the organizing committee at
the beginning of the start-up process. Board members should have seen
and committed to working toward this vision when they were recruited,
either for the organizing committee or for the board of directors. The
mission statement should grow from and be consistent with the vision
statement. Write the vision statement on a large piece of paper or a white-
board with plenty of room around it for ideas about the mission.
Step 2. With the vision statement on a large piece of paper or whiteboard, start
brainstorming actions that would be most efective in achieving the vision.
Brainstorming simply means getting all ideas on paper without judging,
censoring, or evaluating them.
Step 3. When everyone’s ideas have been listed, begin to evaluate them. Which
ideas are not actions or cannot be turned into actions? Set those ideas
aside (they may be great ideas, just not mission statement material). Which
would be the most efective actions (big steps versus little steps—the mis-
sion involves giant steps)?
70
Starting a New Farmers Market
Developing the Articles of Incorporation and Bylaws
Articles of incorporation should be written with legal guidance. The bylaws of the
market establish the rules by which the board will operate and typically address
the following items.
? The name of the market.
? The market’s purpose and mission.
? Rules that govern membership and membership fees.
? The composition and powers of the board of directors, committees, and
ofcers.
? How and when meetings are held and how decisions are made.
? Fiscal matters such as the beginning and end of the fscal year.
? Accounting practices.
? Access to records.
? A process for amending the bylaws.
Consult bylaws established by other farmers markets for templates.
Final Thoughts on the Structure of the Market
Establishing the market structure may involve a need for legal advice and certainly
requires detailed foresight and planning. However, once a well-planned structure
is established, the market will be solidly positioned for the future, and the manager
and succeeding boards of directors will be able to attend to the maintenance and
growth of the market.
71
11
Hiring a Market Manager
O
nce the organizing committee has chosen the organizational structure and
created the board of directors, it is the responsibility of the board to hire a
manager for the market. This section ofers some guidance about the responsibili-
ties of a market manager, the qualities to look for in a manager,
and how to proceed in hiring one.
Hiring a Market Manager
The role of the market manager varies from market to market
based on the community in which the market is located, the
type of market, the role the board plays, and the particular
manager’s personality, skills, and interests. As the market
development process evolves, the type of manager that fts
the specifc market will begin to form in the minds of board
members. Some managers hold full-time paid positions; some are vendors who
annually rotate the volunteer responsibility of manager.
Randii MacNear, manager of the Davis Farmers Market in Davis, California, believes
it is important that market organizers hire a manager as early in the planning
process as possible. This enables the manager to develop a better understanding
of what goes into creating the market and get a clear picture of the market’s goals.
The manager then will be more likely to be invested in making the market a suc-
cess. Moreover, the experience that a manager brings to the organizational process
is quite valuable and can help the board avoid many frst-time market difculties.
If the board of directors can create a paid manager position, the market will have
a committed worker with time allocated specifcally to market management as
opposed to trying to ft those responsibilities into what is likely already a busy
schedule.
Manager Responsibilities
Managers have equated their jobs with parenting. While trying to nurture, sup-
port, and promote their “child’s” life, they simultaneously must help it conform to
external codes of conduct and to communicate values of sharing, patience, and
teamwork. The following outline describes typical duties for a manager. Note,
This chapter will enable
members of the board of
directors to:
? Hire a market manager.
? Create new working
commitees.
72
Starting a New Farmers Market
however, that the job varies somewhat from market to market and from manager
to manager.
Market Start-up Duties
?
Recruit new vendors.
?
Monitor compliance with relevant regulations and
codes.
?
Secure necessary permits and licenses.
?
Track food, store, and wholesale prices to guide
pricing for the market and vendors.
?
Keep farmers updated regarding competition.
?
Make stall assignments.
?
Review the budget and maintain records of market expenses and income.
?
Make sure all vendor forms are completed properly and retained.
Daily Tasks and Responsibilities
?
Coordinate opening and closing of the market.
?
Assist at stalls when necessary.
?
Enforce the bylaws.
?
Handle emergencies and complaints.
?
Serve as the quality control person for produce and craft items, as well as
for the market’s general appearance and cleanliness.
?
Collect food stamps and WIC coupons from vendors.
?
Maintain an information booth, guest book, recipe postings, etc.
?
Keep a daily market log.
?
Hold vendor meetings as necessary.
Communication and Networking Tasks
?
Represent the market in meetings with community members and growers.
?
Develop a positive relationship with vendors.
?
Educate and assist vendors with merchandising, pricing, and other market-
ing and business skills.
73
Hiring a Market Manager
11
?
Coordinate and encourage volunteerism from sponsors and
community groups.
?
Build positive customer relations.
?
Maintain communications with city and county ofcials, the health depart-
ment, the site owner, and others connected with the market.
?
Follow instructions from and maintain communications with the board
of directors.
?
Work with the board and vendors to develop strategic plans.
Promotion and Advertising Duties
?
Create an annual calendar of events.
?
Develop new promotional ideas.
?
Arrange for media coverage and represent the market to the media.
?
Establish an advertising budget.
?
Review logos and other marketing tools with a committee as necessary.
Evaluation Duties
?
Conduct periodic surveys to assess customer opinions and satisfaction.
?
Invite, listen to, and use input from vendors and others to improve the mar-
ket.
?
Lead in monitoring and, when necessary, revision of the market’s mission,
goals, and strategies.
?
Evaluate and improve the efectiveness of meetings and other team activi-
ties.
?
Debrief participants after board meetings, workshops, and retreats.
Qualities of a Good Manager
The market manager is crucial to the market’s success. As evidenced by the respon-
sibilities just described, market managers must be leaders who possess a complex
blend of skills that are both interpersonal and organizational. Following are some
qualities to consider in a potential manager.
Interest and skills in sustainable/local agriculture. The manager does not
need to know everything about local crops or food production practices,
74
Starting a New Farmers Market
but he or she must learn how to rate produce quality and know when
certain foods are local and when they mature and become available. He or
she also must be interested in understanding the concerns, lifestyles, and
needs of growers.
Communication skills. The manager will need to be in communication with
many diferent types of people—growers, regulatory authorities, the
media, and the community. He or she must be able to relate well with oth-
ers, feel comfortable addressing groups, and write well.
Leadership. The manager should be decisive but not domineering. He or she
must be able to ask for input from many sources and coordinate feedback
to make the best decision for the market. Ideally, managers should be
secure, mature individuals who can accept feedback and grow from it. They
should also be able to remain fair when in managing conficts among ven-
dors and between vendors and customers.
Community connections. A manager who is already connected to the com-
munity will know how the community functions and have a sense of where
to go for support and resources. Since many of the vendors may come from
outside of the area, it is helpful to have a manager who is an insider.
Organizing skills. The manager must keep many records, comply with regula-
tions, and keep track of people.
Creativity. The manager largely creates the market’s atmosphere, so the
market needs someone who has a good aesthetic sense and can create an
upbeat atmosphere. Catchy logos, innovative events, and efective promo-
tional ideas all come from creativity.
Commitment. The manager must be committed to the market and believe
in the value of local, fresh food and direct marketing. She or he also must
have the time to commit fully to the job.
Knowledge of farmers market management: The manager will need to have,
or quickly gain, an understanding of regulations pertaining to the farmers
market and how those regulations afect its operation and performance.
The manager also must keep up to date as regulations are modifed and
new ones are imposed.
Writing a Job Description
Once the board knows the type of individual the market needs and the respon-
sibilities for which the manager will be accountable, members can use that
75
Hiring a Market Manager
11
knowledge to create a job description and evaluate candidates. The hiring process
for a farmers market manager is much the same as for any other job. First, the
board or top management must determine the time commitment that the mar-
ket will require—full time or part time—and also estimate how much money is
available for compensation. They can then develop a job announcement and an
application process, which should include realistic qualifcations, the manager’s
responsibilities, and the salary range. When determining the salary range, remem-
ber to leave room in the budget for benefts such as health insurance, annual leave,
and retirement. Benefts include the employer’s share of Social Security taxes even
if the position is part-time and will not include medical or other benefts.
Next, get the word out to potential candidates. Look for applicants within local
community groups—colleges with agriculture, nutrition, or community develop-
ment departments; local food stores; neighboring farmers markets. Post the job
description in the local paper, with the state’s employment development depart-
ment, in nonproft employment magazines, and on appropriate websites. You
may be able to take advantage of statewide farmers market or direct-marketing
associations to help spread the word. Also, be sure to encourage applications from
community members who helped to organize the market. But remember to evalu-
ate them based on competence, not on qualities unrelated to the job. In some
cases, this is a matter of law as it is illegal to evaluate and discriminate on the basis
of matters unrelated to the job such as age, sex, parenthood, or disability.
Conduct the interviews in a professional manner and be sure to provide candidates
with all necessary information about the market. Make sure that the people who
conduct the interviews represent the diverse interests of the market. For example,
try to have a farmer, an involved community member, and a local business owner
on the hiring panel.
Compensation
Ideally, the person who promotes, organizes, manages, and dedicates himself or
herself to the market will earn a livable wage in return for that commitment. The
pitfalls of an unpaid, volunteer manager include having a manager who cannot do
very much beyond basic daily coordination.
Collecting stall fees and directing trafc are day-to-day tasks that a volunteer
manager can tackle, but planning promotions, utilizing the media, and building
community connections all require substantial time and attention. A volunteer
manager’s position is likely to be short-term as most people need a paying job that
can support them and their families. This can lead to a lack of continuity from year
76
Starting a New Farmers Market
to year or, worse still, to the potential that the manager must leave for a paying job
in mid-season.
For some smaller markets, vendors have shared the market manager’s responsi-
bilities by rotating duties from week to week or from year to year. While smaller
markets may have few options, in the long run this alternative can lead to a less
successful market. Respecting the hard work of a manager by providing incen-
tives may enable the market, and therefore the vendors, to be more successful and
proftable.
The manager’s salary can be based on an hourly rate, a fat fee, a percentage of
gross market receipts, or a combination of any or all of these arrangements. The
manager’s salary should be taken into account when making other budget deci-
sions, such as stall fees.
In the short term, management may try recruiting a volunteer or request assis-
tance from the city government or department of agriculture. However, remember
that these options are not optimal. Develop a strategic plan to grow the market to
the point where you can aford at least a part-time paid manager.
Creating New Working Commitees
Once the manager has been hired, the board, with the new manager’s help, will
need to create working committees to focus on various aspects of start-up. These
committees may be continuations of the original working committees that con-
ducted the feasibility study. Now, however, their attention turns from assessment
to implementation. Committees can be set up to create market rules, continue
vendor recruitment, assist the manager in attaining necessary licenses and permits,
design the market’s layout and arrangement of stalls, create an advertising and
promotion strategy, and prepare special events for opening day. The manager and
board of directors may be responsible for setting up the market’s fnances, budget,
and accounting system or the task of assisting the manager can be designated to
another working committee. However, the manager and board of directors are
ultimately responsible for the market’s fnances and accounting. The next section
of this manual is devoted to the various categories of start-up activities.
77
This chapter will enable
you to:
? Understand the role
and responsibilities of
the fnance commitee.
? Be aware of issues
involved in moving
toward fnancial self-
sufciency.
? Create a budget and
bookkeeping system.
12
Creating the Budget and
Bookkeeping System
A
working committee devoted to the fnances of the market has two major
responsibilities: day-to-day fnancial management and planning for the future
of the market. One of the committee’s tasks will be to create a
budget and bookkeeping system to present to the manager
and board of directors. The other is to work with the board
and manager to develop a plan for the fnancial stability of the
market, including start-up funding and a pathway to fnancial
self-sufciency. The details of this work will depend on the
particulars of the individual market; however, this chapter
provides an overview and information that the committee,
manager, and board of directors can use to guide their actions.
An Overview of Market Finances
If the market relies on external funding such as a grant to
begin operations, the manager and board will need to estab-
lish a timeline and process by which it will become fnancially
self-supporting. A timetable should be established for imple-
menting the goals and projected activities. The extent of these plans will depend
on the type of budget the market will have or can generate.
Funding and the Budget
An annual budget is a plan of the market’s projected
income and expenses with an itemized list of allo-
cations to each activity for the budgeting period.
Creating the frst annual budget can be a challenge
since the market does not yet have a previous year’s
expenses available as a guide, but the committee
should use data gathered from other markets and sources during the feasibility
study. The committee can begin to develop a budget by listing the current year’s
or season’s expected income from stall fees, membership dues, donations, promo-
tions, and sponsorships. The committee then lists planned activities such as special
78
Starting a New Farmers Market
Davis Farmers Market: Tips on Developing a Budget
– Randii MacNear, Davis Farmers Market Manager
The fnancial budget should be the most important tool of a farmers market
organization. It is the “brain” of the organization. Developed and reviewed ofen, it
becomes the primary guiding document for organizational analysis, program devel-
opment, and fnancial accountability. The budget is part of a larger organizational
fnancial plan and documentation process that the governing body of a farmers mar-
ket reviews and makes available to its participants for perusal. This keeps market
participants informed and educated about market operations, keeps the board
accountable for sustainable and efective fnancial management, and minimizes the
possibility of unfounded claims of fnancial misinformation.
The optimal goal for an organization would be to develop a budget template that would
remain stable and transferable year afer year throughout the long-term development
of the organization. That way, trends of income and expenses are easy to recognize
and accommodate.
When evaluating and reviewing the budget during the course of the year, keep in mind
that most year-round markets do not begin to operate in the black until midway through
the budget year. For example, a market that uses a calendar-year budget (January to
December) will most likely be in the red on fnancial statements until June or July.
Our organization has been using the same budget format for more than twenty years
with only minor fne-tuning of budgetary categories, comparative information, and
percentages. Our board reviews the budget (including income and expenses) monthly
and, if necessary, curtails or expands spending. Occasionally, the board and the manager
must make major adjustments in the budget midway through the organization’s fscal
year. With current and accurate fnancial statements and numbers, those adjustments
can be made with confdence and accountability.
Afer July, the market should begin to see the fnancial picture shif into the black.
Typically markets do not begin to see adequate income-to-expense ratios until the spring
and summer sales volumes occur; however, expenses such as salaries, ofce rent, and
health benefts remain constant on a monthly basis all year long. To evaluate how the
market is doing, the market manager can compare year-to-year fnancials and year-to-
date fnancials for increases or decreases or red-fag items. In other words, newcomers
to budgeting should know not to panic if the market operates in the red for six months
out of the year. This is a fairly normal occurrence for year-round markets.
Financial work can be done with a simple budget and set of books kept for the chart
of accounts; however, there are also easy-to-use sofware programs for fnancial
management. An accountant is retained for year-end taxes and the assets and liabili-
ties portion of the organizational fnancial records.
79
Creating the Budget and Bookkeeping System
12
events and advertising and their projected costs, as well as other expenses such as
wages, insurance, permits, and ofce overhead.
Review this information carefully, and if there are questions or concerns, contact
the manager of another market for an estimate of usual or comparable expenses
for various cost categories. Be conservative and plan for contingencies. Include
savings for future long-range projects in the budget if possible.
Planned income and expenses should match exactly, allowing room for unex-
pected costs. If planned expenses exceed planned income, the market must make
an appropriate adjustment.
Recordkeeping
Good recordkeeping makes management and decision-mak-
ing easier and more efective. Records allow management to
keep track of and review past sales performance, vendor and
membership information, crop availability, fnancial transactions,
and much more. This information allows management to recognize
and beneft from trends and business cycles, as well as helps with bud-
geting and strategic planning. Methods of recordkeeping vary widely. It is the job
of the market manager and the board of directors or organizing team to decide
which records are appropriate for their particular situation. There are some com-
mon records to consider adopting for the market.
Careful fnancial records must be kept for tax purposes, even by nonprofts, and
are among the most valuable aids to good business management. The manager
and the staf or board of directors should review the market’s fnancial records
regularly. The process should include comparisons with the budget to determine if
expenses are under or over the budget and to determine if and where adjustments
to the market should be made.
Minimum written records are:
? Expenses – amount, item, service paid for, and date.
? Income – amount, source, and date.
Some markets also must include accounting for liabilities (any debts to be paid
of in the future) and assets (items of value owned by the market) with their
fnancial records. This task can be time consuming even if the market manage-
ment already has some accounting experience. The services of a professional
accountant, whether volunteer or paid, are strongly recommended for medium to
large markets; small markets also may beneft from professional help at tax time.
80
Starting a New Farmers Market
Computerization of these records can signifcantly improve the efciency and
accuracy of the market’s accounting.
The market also should have procedures for handling and recording petty cash
transactions and reimbursements for out-of-pocket expenses. Cash recordkeeping
must be very accurate since there is no other written record of the transaction. A
receipt also should be issued and should include the market’s name and address,
the name of the customer and business, the date, the purpose of the payment, and
a signature. A duplicate copy of the receipt should be kept for market records.
Stall fees are another important piece of fnancial information that should be
recorded and for which a receipt should be issued. Whether the market charges a
fat fee, a percentage of gross sales, or some other type of fee, the market will be
handling cash most of the time and will need to keep careful records.
Finally, markets must establish a method for handling bank accounts, deciding
who has signature rights, and making decisions about other controls and limita-
tions. These topics should be discussed among all the principal operators before
the organization begins any fnancial activity.
81
Creating the Budget and Bookkeeping System
12
Market Records of Vendors
While vendors’ records of sales can help them to improve their
sales and marketing, the manager also needs to keep good
records. Maintaining accurate, up-to-date vendor records is
an important part of market management. The records should
include information on vendors who currently sell at the mar-
ket, previous vendors who might return, and vendors who
have expressed an interest in selling at the market in the future.
Market managers can use a variety of methods to organize and
maintain vendor information.
A handwritten index-card fling system is portable, easy to
edit, and can be sorted into diferent categories. A computer
database also can be used to maintain vendor records and, in
addition, can help generate mailing labels and perform a variety
of other functions.
Vendor information fles should include:
?
Vendor’s name (partners, family, and employees).
?
Farm or business name.
?
Mailing address.
?
Home and business phone and fax numbers.
?
Email address.
?
Farm or business location (if diferent from the mailing
address).
?
Crops grown; weeks available.
?
Crop availability schedule; weeks available.
?
Future crops planned; months and weeks available.
82
Starting a New Farmers Market
83
13
Creating Market Rules
O
ne of the most concrete and enduring legacies of the frst board of directors
and manager is the creation of a set of rules for the market. Market rules play
an important role in defning and positioning the market and in establishing its
character. They cover such issues and concerns as stall fees,
membership requirements, allowable and desirable products,
and the times and dates of operation.
The Purpose and Functions of Market Rules
The rules created by the frst board of directors will afect
the market for a long time to come. If the board chooses to
appoint a committee to draft rules for its approval, it is impor-
tant to include a diverse group of stakeholders and especially
to include vendor representation so that the rules address the
needs and concerns of all stakeholders. Vendors can be repre-
sented by some of the frst farmers to commit to the market,
and some may be found among the original organizing com-
mittee. An efective approach to creating the rules is to frst
gather input from various stakeholders, especially vendors and
consumers; develop draft rules; and then go back to the stake-
holders for further feedback before revising and fnalizing rules
for approval by the board of directors.
Market rules have a tradition in America that is as old as the
markets themselves. William Penn’s markets in Philadelphia opened in 1693 under
a proclamation that the market would open with the ringing of a bell twice a
week and that there would be no buying or selling on the way to market or before
opening. Other rules at colonial markets stated that all producers were guaran-
teed equal access and that attempting to create a monopoly to control the price
of an item and buying items to resell them at the same market were punishable
ofenses. Today, market rules cover similar issues, though, fortunately, the vendor
who breaks a rule is no longer locked into a pillory for public ridicule.
Each market must create its own set of market rules that refect the market’s par-
ticular vision and mission. Market rules help defne the who, what, when, and how
of a market.
This chapter will enable
you to:
? Be aware of issues
addressed in the market
rules.
? Understand common
controversies that arise
in farmers markets
and how the rules can
help the manager and
board avoid or handle
such issues.
? Create a workable,
useful set of market
rules.
84
Starting a New Farmers Market
?
What does the market hope to accomplish?
?
During what seasons, days, and hours will the market operate?
?
Who is eligible to sell?
?
What are the requirements to maintain membership?
?
What kinds of products can be sold?
?
Who are the decision-makers?
?
How and by whom are grievances handled?
Market rules also are important in establishing guide-
lines for relationships among and between members
of the board, the vendors, and the market manager. It
may seem tedious to go over the details of crisis management in advance, but it
is much easier to consider a problem when it is still hypothetical as opposed to
trying to be objective when friends and business partners are involved. A thorough
set of guidelines lets all of the parties know where they stand, provides a clear
understanding of what is and what is not allowed at the market, and outlines how
infractions will be handled.
Chris Wychorski of the Federation of Massachusetts Farmers Markets points out
that, at frst, vendors may think they do not need rules, which they may perceive as
an unnecessary and constricting formality. “Some new vendors may grumble, but
after they have been at the market for a while, they see that it helps to have struc-
ture, to have procedures to fall back on, and how the rules can help protect them.”
You can use the following template as a guide for developing your market’s rules.
If there is already a market in the area, you also may want to ask the manager for a
copy of its rules for review. In addition, your state’s farmers market representative
may have suggestions. When creating the market rules, be sure to address the fol-
lowing points.
Dates and times. Determine whether the market will be year round or sea-
sonal; if seasonal, determine the opening and closing days. Determine the
regular opening and closing hours. Specify the day or time when stall fees
are due, what time vendors may begin setting up, and what time they must
arrive each day to participate.
Agreement. Make it clear that, through their applications and signatures,
vendors agree to the conditions detailed in the market rules. Example: “By
signing this contract, vendors agree to allow inspection of their farms to
assure compliance with . . .”
85
Creating Market Rules
13
Products. Defne what products are to be sold at the market. Do state or local
laws control what is allowed or how products must be handled? Example:
“All agricultural products listed must comply with California’s code gov-
erning . . .” Items may have to follow guidelines regarding such things as
grading and packaging, organic certifcation, maturity, quality, labeling,
and health and safety laws.
Admission of new vendors. How will the market decide who can join and
when? Will it be a decision by the manager, the board, or vote? Example: “If
growers/vendors meet the following criteria, they will be admitted based
on the availability of space, the diversity that their products add to the mar-
ket, and their position on the waiting list.”
Market fees. State the procedure by which stall fees will be collected. Are there
seasonal rates or early-sign-up discounts? Will the market charge a fat rate
stall fee or a fee based on a percentage of gross sales?
Membership. Membership can be based on and can mean many diferent
things. Will membership be limited to local or in-state growers only? To
be voting members, must growers have participated for a certain length
of time each season? Will local supporters/ofcials be allowed to vote on
some larger issues but not be considered regular members? Example:
“There will be two categories of members in this association, the frst
referred to as . . . and the second as . . .”
Responsibilities of members. These guidelines cover issues such as con-
sistency and timetables at the market, product quality, and overall
expectations regarding stall areas, including behavior and cleanliness.
Example: “Vendors are required to maintain their stands in a neat and
orderly fashion, ensuring safety by . . .”
Assignment of stall space. Stall assignments can be based on seniority, prod-
ucts, history of consumer/producer relationships, and the size of the space.
More than likely, assignment of stalls will involve a mixture of all those
conditions. How will vendors apply for new spaces?
Grievances. Complaints are a fact of life at every farmers market, so begin
with a good plan for dealing with them. Alex Hitt of the Carrboro Farmers
market in North Carolina said that his market has a strict rule of accepting
written grievances only. This rule allows him to avoid unofcial verbal argu-
ments and deal objectively with ofcial written complaints.
Enforcement. Market rules must have established courses of action for dealing
with infractions. Will vendors be allowed one, two, or three chances before
86
Starting a New Farmers Market
they are expelled from the market? Will the expulsion be temporary or
permanent? How may vendors submit appeals if they disagree with expul-
sion? What legal rights do managers have to investigate complaints and
enforce market rules?
WIC coupons and food stamps. Management will have to decide whether to
participate in the USDA FMNP and Food Stamp Programs. If so, vendors will
be afected in terms of postings, turning in coupons, etc. For more informa-
tion, see the Chapter Three on organizing a farmers market in a low-income
area.
Miscellaneous: Do you want to establish sign requirements for each vendor?
For example: “Any product not grown by the vendor requires a sign indi-
cating the farm and county from which the product came” would be a
requirement for a local-vendors-only market.
Being Proactive in Making the Market’s Rules
The preceding list outlines issues commonly addressed in rules for farmers
markets. By anticipating possible sources of controversy and dissension and
formulating rules and policies to address those issues proactively, the board of
directors and market manager may avoid problems that interfere with the market’s
establishment as a successful, stable entity. The next section describes some of the
sources of controversy that the board and manager can manage or avoid by being
proactive in writing the market rules.
Locally Grown Products
Certifed farmers markets in California exist for certifed producers to market their
produce directly. Because they sell relatively small volumes of produce direct to
consumers, vendors at farmers markets are exempt from many packing and label-
ing requirements that would otherwise apply. One of the most troublesome issues
for markets and managers derives from the possibility that a vendor may attempt
to use the market to sell something she or he has not produced.
Disputes often arise over whether or not all the vendors are selling their own
crops. Sometimes growers make honest mistakes, thinking, “Well, this is just from
my friend next door and I helped him with seeding some of it,” not realizing that
this violates the market’s contract and possibly violates state regulations as well.
Ideally, no vendor will buy produce at a wholesale outlet and claim it as his or her
own, but that is one of the major challenges facing markets, managers, and those
in county and state government agencies that oversee farmers markets. For this
87
Creating Market Rules
13
reason the board, the manager, and vendors need to prepare themselves for this
contingency by having a clearly written procedure outlined in the market rules and
understood by all vendors.
Vendors at the market need to understand that the market’s producer-only rule
is a legal requirement for certifcation. Otherwise, they may not see the danger in
misrepresenting the origin of their products. If locally grown products are what the
market promotes, then that is what customers expect.
Polls have shown that consumers who patronize farmers markets do so primarily
because they like to know who grows their food and feel that they can trust farm-
ers they see face to face. This is important to preserve the integrity of the market
and keep the trust of the public. Freshly picked foods sold by the person who grew
them are viewed as being of higher quality than ones that have been transported
long distances. Every farmer at the market should realize the value of this percep-
tion to the market’s prospects.
Quintin Carpenter of Capitol Square Market in Madison, Wisconsin, deals with a
serious complaint about a farmer bringing others’ products to market by following
the farmer home that day to see the felds for himself. His market has a producer-
only rule, and a farmer who breaks that rule can never sell at the market again.
However, in some states, farmers have questioned the market manager’s right to
set foot on their property. Therefore, managers must be careful about trespassing
suits and the board of directors should add a clause regarding the right to inspect
farms in the market’s vendor contract.
Clearly written market rules, vetted by an attorney who knows relevant laws and
regulations, can help provide managers with the legal backing they need to deal
with complaints of unfair or illegal sales. Market managers can do their best to
avoid these problems by:
?
Explaining the importance of upholding producer-only standards and
maintaining the market’s integrity.
?
Knowing what is in season in the area.
?
Being familiar with vendors and their products so that vendors are comfort-
able with the manager and the manager knows vendors’ farms well enough
to know what they can and do grow.
Stall Assignments
Another issue that often sparks dissension is allocation of stalls. Vendors know that
an ideal location can make a diference of hundreds of dollars a day. If possible,
88
Starting a New Farmers Market
begin with a market design that makes every stall space visible and easily acces-
sible to customers.
To assign spaces equitably, market managers use a variety of techniques, including
giving frst choice to the frst vendor who pays the fees, drawing straws, and basing
stall assignments on seniority. Of course the last is only feasible after the market
has been in operation long enough to have vendors with diferent tenures. Make
sure the plan is transparent, widely shared, and in place before the season starts.
Once stall assignments have been established, adhere to the rules and make sure
committees and procedures are in place to deal with disputes.
Transfer of Title
Transfer of title is another hotly debated issue. What happens if a farmer sells his or
her business to a grower who does not already have a space in the new market? Is
that grower permitted to sidestep a market’s waiting list and enter immediately?
Some markets establish detailed rules outlining the procedure by which space
and membership in the market may be transferred. Transfer is often limited only to
immediate family members or legally recognized business partners.
A Final Note about Market Rules
Market rules need to be written to ensure that they meet the market’s goals.
However, the market will not be well served by rules that are so restrictive that
only a few vendors wish to participate. A good approach to including representa-
tive opinions is to have a diverse market-rules committee. Everyone’s input and
concerns should be considered in an efort to strike a balance among the various
interests and ensure that the rules represent an optimal outcome for all of the
groups involved.
89
This chapter will enable
you to:
? Recruit growers and
orient them to the
market through a
grower meeting and
follow-up contacts.
? Develop application
materials and
information for
growers
? Share tips to enhance
growers’ success and
thus the success of the
market as a whole.
14
Recruiting and Orienting Vendors
T
he task of recruiting vendors, begun during the feasibil-
ity study, should be an ongoing efort. If possible, include
members of the frst working committee in the group that will
continue vendor recruitment, as well as any farmers who have
already agreed to sell at the market and are willing to recruit
others. The committee can use the results from the market
analysis to match consumer demand with growers to provide
an optimum product mix.
Holding a Grower Meeting
About three or four months before the market opens, the
vendor-recruitment committee should plan a meeting with
growers who have indicated a willingness or intent to become
vendors at the market. The purpose of this meeting is to:
?
obtain estimates of grower participation,
?
remind growers of the opening day’s date and time,
?
formally distribute the market rules,
?
distribute application packets to vendors and explain the process and
timeline for applying to be a market vendor,
?
give growers information about permits, and
?
provide growers with tips to enhance their success as vendors.
The meeting should begin with introductions and updates on the work of the
various committees so that participants get a sense of how the market is develop-
ing. Next, explain the market rules. Since the committee will have been in touch
with growers and already sought their input on the rules, the rules should not
contain any major surprises for growers. But this is an opportunity to ensure that
everyone understands them. Explain the application process, including the time-
line, and distribute application packets. Explain the requirements for licenses,
permits, and/or certifcates growers will need to become certifed vendors at the
market. For example, at California certifed farmers markets, all growers must be
certifed as producers by their county agricultural commissioner. At this point, the
90
Starting a New Farmers Market
market manager might formally become the “point person” for growers to contact
when they need assistance obtaining necessary licenses, permits, and certifcates.
Depending on the numbers of questions to be answered, there may or may not be
time for some informal training and tips for vendors to enhance their merchandis-
ing success at the market. The next several pages give more detailed information
about each of the major agenda items for the grower meeting—market rules,
application packets, information about licensing and permitting, and merchandis-
ing tips.
Market Rules
Vendors need to understand the market rules. Include a copy in each vendor’s
application packet. While the meeting is not the place to go over all of the fne
points of the rules, any especially important or potentially confusing parts of the
rules should be highlighted. For example, the responsibilities and obligations of
membership and procedures for confict resolution should be reviewed.
The manager and members of the board of directors should attend this meeting so
that they can meet the vendors and get feedback on the rules. If controversy arises,
time should be provided to discuss and help to clarify or amplify issues related to
the rules. Although the rules, like the market, are a group efort in which everyone
must be fexible and work for the larger goal of long-term success, the ultimate
responsibility for adding, amending, or changing the rules rests with the board of
directors.
Application Packets
Once farmers commit to the market, that agreement should be
formalized. A structured, clearly defned application procedure
for participation in the market should be formalized to:
?
Provide an opportunity to establish understanding of and agreement to
the requirements, rules, responsibilities, and rights of market participation
from the beginning.
?
Indicate to farmers and the market manager alike that they are entering
into a formal business agreement.
Each application packet should include the following items:
?
Name and contact information.
?
Information on fees.
91
Recruiting and Orienting Vendors
14
?
A listing of produce/products intended for sale.
?
A copy of the market rules.
?
An agreement form to be signed and dated.
?
Any other forms specifc to the market.
Licenses and Permits
Required licenses, permits, and/or certifcates may present growers with chal-
lenges in navigating bureaucracy. The market manager or a representative of the
board of directors should research the requirements and develop a short docu-
ment explaining them and then present an overview of the information at the
grower meeting and answer any questions.
Tips for Vendors
As the needs and preferences of the market’s customers are known in more detail,
management can begin to focus on ways to help vendors increase sales. Many
farmers are not accustomed to direct marketing and may need assistance in
displaying and promoting their products to maintain an advantage. Following are
some basic merchandising tips to pass on to vendors.
Guidelines on Pricing
?
Post prices clearly on signs or a price board. Consumers want to make
educated choices. Try to use round numbers as consistently as possible.
Calculations are easier if all products are priced in whole, half, or quarter
dollar increments. Setting prices to values that are divisible by four, such
as $1.20 per pound or $1.60 per pound, makes quarter-pound calculations
easier. Consider volume discounts, case prices, and specials. Observe how
these measures afect sales. Discounts do not always increase the volume
of sales.
?
If feasible, establish one price for all your produce. When tomatoes, pep-
pers, and eggplant are all $2 a pound, customers can mix them together in
a single bag. If your items have a few diferent prices, try displaying them
on the table in “price clumps.” Use signs to designate price ranges. While
bartering is almost mandatory when shopping at markets in other coun-
tries, consumers in the U.S. are not accustomed to this practice. For this
reason, avoid haggling over prices.
92
Starting a New Farmers Market
?
Sell frst-quality, fresh, and vine- or tree-ripened produce at premium
prices, but seconds should be discounted. Harvest, handle, and display
items carefully so they are not bruised or split in the process. If, by the end
of the day, the lettuce is wilting, the apples are picked through, and only
one variety of tomatoes is left, it may be prudent to lower prices. Again, the
price should refect the quality of the product.
Selling Suggestions
Produce sells quickly at farmers markets, often starting with an
opening rush. A study conducted in Dane County, Wisconsin,
found that by 10:15 a.m. more than half of the day’s trafc had
passed through; by 11:30 a.m. more than 80 percent of the day’s customers had
done their shopping. A USDA Agricultural Marketing Service study in Toledo, Ohio,
(Toledo Fresh Food Public Market, a Feasibility Study for Toledo City Parks) found
similarly that almost 50 percent of customers visit the market between 9:00 a.m.
and noon. For these reasons, vendors must establish efcient systems that cater to
customers and enable quick service. The following suggestions will help vendors
prepare for the opening rush:
?
Arrange the side of the table used for display or cash exchange for
efciency.
?
Avoid the need to turn around to get to the cash box for each sale.
?
Accept cash from only one customer at a time.
?
Be courteous and friendly to every shopper regardless of whether he or she
makes a purchase.
?
When possible, provide added services to customers. For greatly improved
customer relations, ofer tips on meal preparation, food-care instructions,
written recipes, and/or appropriate containers for carrying purchases
home.
If sales are low, then the vendor can beneft from asking some questions, such as:
? Is the produce display atractive? Always keep boxes and baskets full
and readjust piles frequently to keep produce looking fresh. Use a spray
bottle or ice to keep greens from wilting.
? Are customers unfamiliar with the product? Recipes, pictures, and
suggestions about how to use products help to educate customers and
inspire them to purchase unfamiliar items.
? Is this the wrong type of consumer or the wrong season for the prod-
ucts? Value-added items such as fower-pressed candles and wreaths may
93
Recruiting and Orienting Vendors
14
sell well during the holiday season but not
necessarily in June. Likewise, value-added
products may sell well in a wealthy neigh-
borhood but not in a low-income area.
Using Samples for Promotion
Produce samples allow consumers to taste your
wares before purchasing them and allow sellers
to introduce new and uncommon varieties as well
as demonstrate the quality, taste, and freshness of
their products. Before a vendor passes out samples,
make sure that the county or city health depart-
ment approves it. The market manager should post
sampling regulations.
Professionalism
Vendors who are not attentive, who are busy smoking a cigarette, or who appear
unkempt lose business. While customers like to see a farmer outftted in customary
farm attire, they do not necessarily want to see sweaty, torn t-shirts and manure-
covered work boots. Other customer turn-ofs include belittling other vendors and
their products, leaving the booth unattended, hawking products too aggressively,
and inconsistent attendance.
Communication with Customers
Customers will have questions about varieties’ names, food preparation, grow-
ing practices, etc. Employees who cannot answer these questions or do not try to
communicate well with shoppers will lose business.
Product Quality
Do not indulge in the notion that the farmers market is a place to bring the culls
that a distributor would not purchase. Customers recognize and are attracted by
quality and good business is developed from repeat buyers.
Display
Booths that are crowded, unattractive, or poorly set up for the buyer hurt sales. Do
not make customers face the sun, stoop over, or elbow each other to buy.
Gauging Quantity
Bringing too little and selling out prematurely or bringing too much and taking
home large amounts of unsold products are mistakes that vendors can learn to
avoid by keeping good records and using them to improve their ability to gauge
94
Starting a New Farmers Market
appropriate quantities to bring to market. In the early days, while vendors are
learning, it is better to bring too much to market as customers may not return to a
vendor who runs out of produce well before the end of the market day.
Conclusion
By the end of the grower meeting, you should have a group of vendors committed
to and excited about a new market for their products. Make sure everyone has an
application packet, knows who to ask for help completing it accurately, and knows
when and where to turn it in. Also, be sure you have contact information for all the
vendors so that you can keep in touch with them and maintain their commitment
between the meeting and opening day.
95
15
Promoting and Advertising
Your New Market
T
he market manager and board of directors will need to develop a promotion
strategy and logo that refect the market’s identity and mission. Building com-
munity awareness and commitment to the market involves such tasks as designing
a logo, developing an advertising strategy, and undertaking a
sequence of organized promotion activities. The new market
will need to be publicized, especially for opening day.
Creating the Logo
Developing an identity that people quickly and easily associate
with the market will improve the efectiveness of both adver-
tising and promotion eforts. An attractive logo is an efective
tool for creating a positive, professional image and can be
used throughout the market’s publicity program. Through
repeated association, the logo becomes a symbol that is easily
recognizable.
The earlier the market is able to develop this symbol, the
sooner it can use the logo on buttons, bumper stickers, letter-
head, posters, t-shirts, and other publicity tools and the sooner people will become
familiar with it. The following points are important to consider when developing
the logo. They should be discussed at the early market organization meetings, but
be aware of the pitfalls of art by consensus. It is a challenge to please everyone and
still produce an efective logo in a timely manner. To save time and energy, assign
this task to an ad hoc committee and suggest that they provide several options to
choose from by some future meeting.
Logo Design: Professional Artist or Artistic Volunteer?
The subject matter depicted by the logo should be representative of the market
and/or the host community. The logo should be clear and attractive and must be
reproducible at various scales—from business cards to billboards. Consider use
of agricultural imagery such as fruits, vegetables, farm animals, and farm equip-
ment. Public-domain clip art can be useful, but original artwork may enhance
This chapter will enable
you to:
? Create a logo for
use throughout the
market and in market
materials.
? Design and implement
a promotion strategy
for a successful
opening day and
beyond.
96
Starting a New Farmers Market
the chances of producing a logo that belongs unmistakably and uniquely to the
market. Efective logos often use bold text and simple color schemes that provide
sharp contrast to increase their visibility. The logo should certainly include the
market’s name and perhaps a very brief slogan or the name of the host community
if it is not already part of the market’s name.
Hiring a professional artist to design the logo may be somewhat costly but has
several advantages. A professional graphic artist should be experienced in the
technical requirements associated with developing an efective logo and have the
creative ability to make it attractive. While there is some initial cost involved, it rep-
resents a one-time investment that will continue to pay dividends for many years.
However, a hired artist may not have the same vision of the market as stakeholders
do. Without clear guidance from market management or the
committee the market has assigned to the task, the artist’s logo
may not appropriately refect management or vendor senti-
ments.
Regardless of who does the work, that person will need super-
vision and input. If the market chooses to use a professional,
be sure to shop around. Check with other area organizations
whose logos you admire and ask them for artist recommen-
dations. If the market has chosen a regional association or
sponsor, consult with them for artist recommendations as well.
They might even help cover the logo
development costs. Be sure to obtain
several bids and logo samples to
compare and discuss with the orga-
nizing group before choosing the
fnal design.
An alternative is to ask a volunteer
or amateur artist to design the logo.
This obviously has the advantage of lower or no cost. There may be someone in the
organizing group that has artistic talents. If not, consider approaching local high
school or community college art and design programs and ofer to set up a logo
development contest. Sponsoring such a contest also generates publicity for the
market and gives the community an opportunity to participate. Be sure to set clear
guidelines regarding the themes in which the market is interested. While there are
many advantages to this low or no cost approach, be aware that the market may
end up with a logo that is technically inappropriate—too busy or too difcult to
read at various scales.
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Promoting and Advertising Your New Market
15
Advertising versus Promotion
Diferent interpretations exist regarding the defnitions and scope of advertis-
ing and promotion activities. There is room for a considerable amount of overlap
between the two activities.
In this manual, we defne an advertisement as a verbal or visual message delivered
to the public through a variety of paid, commercial media. Examples of adver-
tisements include paid ads on local radio stations and advertisements in local
newspapers and magazines.
Promotions, on the other hand, cover a wider range of possibilities. In general,
though, a promotion is an event or activity that highlights the image of the mar-
ket, its vendors, and their products and services. Examples of promotion activities
include special events, rafes, and public appearances at other community events.
Public relations activities also involve promotion. Some managers have found
promotions to be more cost efective than advertisements. Sponsoring a fun and
colorful event such as a pumpkin-carving competition elicits customer interest and
loyalty more than a thirty-second spot on television.
Promotions often require logistical planning but do not necessarily have to be
costly. The market’s budget and its needs will determine the extent to which
the market invests in paid advertising and/or promotions. Careful research and
planning will ensure that advertising and promotion activities are time- and cost-
efective. Before proceeding with any advertising or promotion activities, be sure
to identify and focus on the customers and their interests.
Beginning the Promotion Campaign
Even though the market has not yet opened, it is important to begin building
awareness so that the opening day is a success. The earlier a market begins to culti-
vate this awareness, the sooner it will spread by word of mouth. At the same time,
the market must bring the publicity campaign to a crescendo around opening
day rather than spending all of its advertising and promotion budget in the early
months.
Planning promotions and advertisements for a year in advance will help set this
pace and estimate the cost.
First Announcement
The frst step in publicizing the market should be an informational announcement
letter or postcard that is distributed to community organizations and businesses
that might provide support. This letter should provide as much information as
98
Starting a New Farmers Market
possible about the upcoming market opening, including when and where it is
scheduled to take place. Diferent versions can be tailored to suit particular goals
in reaching out to community groups and businesses. Mail-merge word processing
functions allow each letter to be personalized.
For example, a letter to a community service club might include an invitation
to volunteers to assist with some aspect of the market in exchange for space at
the market where the group can, in turn, promote its activities. A letter to a local
printer might include an opportunity to trade advertisement space at the market
for a discount on printing services. Consider inviting a gardening or cooking club
to set up a display or demonstration on opening day. Be sure to communicate with
these groups precisely the conditions that apply and how long the arrangement
will last. This is a good time to begin using the new logo, which can be printed on
the market’s letterhead.
Signs and Banners
Placing a sign or banner on streets approaching the market’s site will help custom-
ers locate the market and also draw street trafc. The market should have durable,
weatherproof signs or banners made before opening day. They should include
notifcation that the market is now operational and, if possible, the hours and dates
of operation. Include the logo but keep banners and signs clear and sufciently
simple so that they can be easily read by someone driving past. Temporary, move-
able sandwich boards and cloth banners also work well, but obtain permission to
put up permanent signs if possible, at least at the market location, thus saving the
time required to set up each day as well as gaining publicity even when the market
is closed.
Posters and Fliers
For several weeks to a month before the market opens, be sure to have posters,
fiers, and postcards distributed to strategic places around the community. Place
posters in well-trafcked public places and in the store windows of businesses that
permit such activities. Fliers and postcards can be distributed door to door by vol-
unteers, through local businesses, and through direct mail. Drop some of at hotels,
visitor centers, and city ofces as well.
Check with local organizations and city and public utilities to see if they are willing
to include a fier with their mailings. A bookmark is a useful format for distributing
market information at the local public library. All these materials should include
the market’s logo and name, dates and times of operation, the market’s location,
and a small map.
99
Promoting and Advertising Your New Market
15
Events: Rafes, Music, Food Demonstrations
One of the more important elements of farmers market success is creation of a fun
and festive atmosphere. Even a gravel parking lot can be transformed into a richly
exciting place on market day when customers are surrounded by an abundance of
colors, favors, smells, and sounds. Plan in advance to have decorations, including
balloons and colorful banners, placed throughout the market. Musicians, school
and choir groups, and entertainment specifcally geared towards children also can
be scheduled in advance.
Organize rafes or drawings for baskets of produce and other market products.
Cooking demonstrations that feature local chefs and tantalizing smells and tastes
also are popular events that draw people’s attention to vendors’ products. A pleas-
ant, cheerful atmosphere will keep people coming back and generate invaluable
word-of-mouth publicity.
Press Releases
Several press releases should be sent during the course of organizing the market.
The most important release is sent several weeks to a month prior to opening day.
For added efect, deliver the release and a basket of produce in person to local
media outlets, including newspapers and radio and television stations. Tourist
information centers and community groups that publish newsletters also should
receive press releases.
Public Events
Use any opportunity available to promote the market’s opening day. Attend other
community events and meetings where the market manager has an opportunity
to talk about the market or at least be seen wearing a button, t-shirt, or hat with
the market’s logo. This type of publicity should be ongoing, but it is especially
important when the market is frst getting started.
100
Starting a New Farmers Market
101
16
Preparing for Opening Day
M
ost markets take about a year to develop and involve countless hours of vol-
unteer work by many people. The day the market opens is the culmination of
a long period of hard work, and it is an exciting event for everyone.
Following are suggestions from managers who have opened
markets throughout the United States to help ensure a smooth
and successful frst day.
Send Invitations
Everyone who has helped in developing the market should
be invited to participate in opening day activities. Also invite
local ofcials, community leaders, local church and religious
organization leaders, and local celebrities. Board members and
vendors also should invite their friends and families.
At least one month prior to opening day, send out press
releases to local newspapers and to radio and television
stations. Be sure to mention any planned special events in
addition to the market’s opening and emphasize the bounty of fresh, locally grown
produce that will be available. Always highlight the potential for media photo
opportunities.
Local newspapers are always interested in positive community events to cover,
and the colorful richness and abundance of farmers tables piled high with produce
create excellent photo opportunities. If the market plans to have cooking dem-
onstrations or other food-related activities, make sure the food editor of the local
paper receives an invitation. Events involving children also are popular with the
media. As is always the case in promoting the market, delivering press releases in
person, along with a basket of produce, is a great way to create a positive impres-
sion and ensure coverage.
The goal of opening day, however, is not necessarily to have all those who are
invited attend the event. You want a good number of people to attend. That num-
ber is largely based on the number of vendors participating in the market. Martin
Barnes, who helped organize the Davis Farmers market in Davis, California, points
out that “the market has to try and get the mix just right. Too many vendors, and
This chapter will enable
you to:
?
Choose from
suggestions and tips
from managers who
have opened farmers
markets throughout the
United States.
? Make your market’s
opening day a success.
102
Starting a New Farmers Market
they go away with leftover produce and are not excited to come back. Too many
shoppers, and they will be frustrated that stall after stall is sold out or has only slim
pickings.”
It may take a few weeks, a few months, or even a few seasons for the market to
grow into itself and fnd the right balance of vendors and shoppers. In organizing
the opening day, it is important to strive for a balance between the two, but do
not expect perfection. Alice Whitlatch, a vendor and manager at the Cedar County
Farmers Market in Tipton, Iowa, says that it took an entire summer before people
in town became accustomed to the market and regularly remembered to attend it.
But that market is now in its ffteenth year.
Confrm with Growers
Stay in touch with the vendors! While the manager may have seen growers at a
recent grower meeting, they all will defnitely need a confrmation call at least a
week or so before opening day. Farmers have to deal with shifting weather, con-
stantly changing market prices, and many other unpredictable elements. They
have learned to be fexible and keep their options open. Simply because there is a
schedule to keep and the market is expecting their participation does not neces-
sarily mean that they see it the same way. Calling just one week in advance will
help to give the manager a more realistic vendor count while still allowing time to
contact alternates.
The phone calls are also important components of making vendors feel more com-
fortable. Make sure they are clear about the produce they can bring, the stall space
they will have, and other pertinent details. Make sure they have reviewed the
grower’s checklist. Ask if they have any fnal questions. Ask if they know when to
arrive and how to get to the market. It might be wise to ask them to plan to arrive
at least a half an hour early to allow for unexpected delays.
Check Permits and Licenses
As early as a month before the opening day, check to make sure all permits and
licenses are in order. This will allow time to follow up on anything that might
have been overlooked. It also might be wise to call local ofcials and run through
the list of local requirements one last time. These calls will serve as a reminder of
the market’s presence to emergency service agencies such as the police and fre
departments.
Coordinate Staf and Volunteer Support
Plan well in advance to have sufcient staf members and volunteers to help
coordinate opening day. In addition to helping with placement of signs, markers,
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Preparing for Opening Day
16
Organizing
Entertainment
Whatever you
decide, try to work
with themes that
unify diferent
activities and
connect them
to the market.
Enlist both vendor
and customer
participation
whenever possible. But, realistically, do not try to do too much on
opening day. There will be many opportunities in the future to expand
these types of promotional activities.
and barriers, you
may need vol-
unteers to direct
vendors to their
stalls and to par-
ticipate in crowd
control and cus-
tomer assistance.
Larger markets can
especially beneft
from having extra
sets of eyes at each
entrance. These
volunteers can help
direct trucks to
their parking places
and keep custom-
ers out of harm’s
way. During the market, they can answer customer questions, assist with enforcing
market rules, and expedite urgent or emergency needs.
Be sure to make confrmation calls to all the volunteers. In addition to confrming
participation, check to make sure that everyone has appropriate transporta-
tion, especially if they are expected to transport bulky or heavy items such
as barricades, tables, or chairs. If there is not already a staf/volunteer contact
list, put one together and distribute copies. Ease of communication facilitates
smooth operations.
Prepare for Surplus Produce
Inevitably, some farmers will bring more produce than they can sell. Often, this
excess produce cannot be marketed elsewhere. Whether leftovers consist of only
a few bunches of greens or several cases of ripe tomatoes, it represents useful
produce that can be donated to community organizations. There are organizations
called gleaners that range from a local soup kitchen to a regional collector/distrib-
utor of surplus products from farms, bakeries, and grocery stores.
Vendors usually are willing to support these organizations through donations of
leftover produce. It provides them with a sense of charitable good will and also
saves them the hassle of hauling leftovers back to the farm where they must be
discarded.
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Starting a New Farmers Market
Opening Day
The Big Day—Keep It Fun!
As opening day approaches, make
sure everything is in place to make
it a smooth operation. Assemble
sufcient people to help the
market with set-up and manage-
ment of opening day activities. The
manager and volunteers should
arrive at the market at least a few
hours before opening time to put
up planned decorations such as
banners, signs, fags, and streamers. Set up the information booth and make sure
it is stafed at all times. Remember that opening day is the most important promo-
tional event of the year.
Vendors should arrive an hour to an hour and a half early, especially on opening
day. This gives them sufcient time to locate and set up their stalls. Be sure that all
the growers fnd the spaces assigned to them. Check that they have ample room
to maneuver their vehicles and keep an eye out for unforeseen difculties. It may
become apparent after opening day, for example, that Vendor X and Vendor Y
need to switch stalls due to factors that could not be foreseen. Let the vendors
know ahead of time that stall assignments may change as long as a month or two
after the opening.
When the local media arrive, be prepared
to show them around and talk about
the market. Think of sites, activities, and
events that can provide particularly good
photo opportunities. As mentioned ear-
lier, it is a good idea to send reminders or
stop by media ofces with gift baskets.
Above all, try to remain calm regardless
of how chaotic this frst day appears. You
cannot expect the frst day to come of
without at least a few hitches, and there
will be plenty of time to make adjust-
ments as the season unfolds. An organized, business-like approach and an upbeat
attitude will provide everyone at the market with a sense of confdence and profes-
sionalism that will help launch the market into a successful season.
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The Farmers Market Management Series
S
everal years ago, having observed trends in the
evolution of food marketing, I decided it would
be a good idea to professionalize management of
farmers markets by, among other things, developing
and making available a Farmers Market Management
professional development curriculum. I approached
the U.S. Department of Agriculture’s Agricultural
Marketing Service (USDA AMS) for seed money to
launch the project, and the agency was supportive in
helping the UC Small Farm Center get the project of
the ground.
The project has proceeded deliberately since its
inception with support from the Small Farm Center.
Happily, the center has now produced three primary volumes as a foundation for
the curriculum: Starting a New Farmers Market, Farmers Market Management Skills,
and Growing Your Farmers Market.
I wish to acknowledge the early support of this project by Errol Bragg of USDA
AMS and, more recently, by USDA’s Risk Management Agency. Also, farmers
market managers throughout the country were extremely cooperative in sharing
their experiences and insights regarding the many aspects of their work.
The UC Small Farm Program and Small Farm Center were early advocates
of farmers markets and facilitated education in this regard. This series is part of
the Small Farm Program’s contribution to the 21st Century’s evolution of farmers
markets. Please read also our companion farmers market publications, Managing
Risks and Liability at California Certifed Farmers Markets and Food Safety at Farmers
Markets and Agritourism Venues.
Desmond Jolly
Project Director and Editor
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