Monday, April 4, 2011

Community Supported AgriBusiness Model

Direct marketing of locally grown or raised farm products is provingto be an excellent way for 'new' farmers to enter the business of farming.

CSA'sare part of the Small Farm Movement growing across Europe and North America.Those that do not wish to or have large scale agriculture production seek outopportunities on small acreages, as low as 3 acre or less. They mainly fallinto three categories - new/young farmers; lifestyle farmers; and secondcareer farmers. All these folks have different needs and expectations from afarm business perspective.
  • Source of technical expertise and practical experience: CRAFT Ontario (The Collaborative Regional Alliance for Farmer Training in Ontario); Farm Start; FarmLINK Ontario; Future Farmers Internship program; Farmers' Growing Farmers; and Incubator Farms across Ontario and North America. 
  • Who are the new farmers: Many new or soon to be farmers hadn't grown up on a farm. They were energetic and eager about obtaining farm land, often just 3 acres or less to begin a CSA program. They are passionate about environmentally sustainable agriculture, supporting their local community and growing food that directly connects them to the consumer. 
  • Economic resources used efficiently: Would be farmers have very few capital resources including land, buildings, equipment etc. Some set up unique arrangement with existing farmers to farm just a few acres on the farm which often includes the use of buildings and equipment. They start off experimenting with crops suitable for the soil type and local market. Initially, many sell at local farmers' markets to test out what products the consumer is looking for, followed by building clientele and launching into a CSA. 
  • Business model: The CSA model mostly involves fresh fruits and vegetables. Shares are sold to consumers at the beginning of the year and containers of fresh food are delivered weekly during the growing season depending on yield and variety. CSA farmers consider the relationship they have with their customers the most important part of their business model. There is a great deal of trust on the part of both the farmer and customer. If it is a 'bad' year e.g. too dry or too wet, both the farmer and the customer share the results of the harvest. 
  • Communication: Many CSA farmers have monthly newsletters or email correspondence with their customers informing them of what crops they intend to plant, how the crops are progressing, pick-up and payment arrangements, etc. CSA farmers' report that their clients are very loyal and feel connected to a farm operation even though they often live in urban areas. 
  • Lessons learnt: I came away from the conference very encouraged about a new crop of farmers emerging in the province through small farm agricultural practices. From a farm business perspective the lesson learned was the importance of marketing and customer loyalty in this type of farm model. Direct marketing comes with many challenges and opportunities, however CSA farmers are committed to facing the challenges and providing urban consumers with access to fresh farm products.
 Toread the article on www.omafra.gov.on.ca, please clickhere)

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