About
In 2015, RAFI’s staff and NC State University embarked on a farmer interview project to better understand the barriers and opportunities for farmers selling to low-income communities. We’ve produced a short report based on these interviews.
Background
We wanted to understand farmers’ motivations for targeting low-income consumers, the revenue impact of including them in their customer base, and broader themes regarding farmers’ decisions on marketing and pricing.
We began by approaching North Carolina farmers who had identified as receiving a meaningful percentage of their income from low-income consumers. We put together a sample prioritizing regional distribution and diversity across race, age, and gender. Our total sample will include 20 to 30 farmers by the time the project is completed.
Themes
Advertising and marketing
Several farmers, particularly those selling a higher percentage to low-income customers, said they put a lot of effort into marketing but faced challenges in effectively doing so, including time, knowledge, and technical skills. Farmers told us that one thing that would help increase their sales to low-income customers was support in terms of marketing, advertising, and promotion – for their specific operation or produce stand, the farmers’ markets, or in general (regarding healthy food and local produce).
Competition within and between farmers’ markets
Farmers told us it was hard to access markets with adequate customer bases; many felt customer demand had plateaued. As the number of farmers’ markets has grown, competition among farmers for the same customers has increased. Bigger, more established markets were hard to enter, while farmers felt that smaller, newer markets were less profitable. Competition between farmers (and between markets) posed challenges in terms of having to juggle multiple markets, trying to find niche products, and creating income dependency – and thus risk- on a handful of bigger markets.
Farmers defined success by the ability to survive.
When asked about their biggest challenges and accomplishments, farmers indicated that their greatest achievement was keeping the farm running. Some farmers said that they were not yet profitable, but that goal was second to survival. One way smaller-scale farmers ensured survival or profitability was by relying on family labor.
Most farmers set their prices relative to other markets, not based on the cost of production.
The reference points for setting prices varied by market; for example, some set their prices relative to high-end supermarkets or mainstream supermarkets, while others compared themselves to other farmers in the market. One farmer specifically said that he could not compete with conventional supermarket prices because he pays a fair wage to his employees; another said that he could not “in good conscience,” charge the going rate for products, implying that the cost was out of reach for his customers. Farmers with a larger low-income customer base seemed to have lower prices, but one said people had told him his prices were too low.
Customer demographics
Several farmers described their main customer demographic as white, middle-class, educated women, often mothers or grandmothers. They described them as making household food decisions, and some specifically targeted them (in terms of how they marketed their products or the products they grew).
Defining sustainability
When asked how they defined sustainability, farmers emphasized soil health and their land, but also their physical health (their ability to provide labor for the farm) and their ability to balance economic considerations and keep their farms.
We are very grateful to the farmers who offered their time and insight to this project, and hope that our research results will find useful application in programs and policies designed to support farmers and increase food security.
Contributors
North Carolina State University
Sarah Bowen, Ph.D.
Associate Professor of Sociology
Director, Voices into Action: The Families, Food and Health Project
Dara Bloom, Ph. D.
Assistant Professor and Local Foods Extension Specialist
Dept. of Youth, Family, and Community Sciences
Angel Cruz, MS
PhD Student in Agroecology
NC Appalachian Foodshed Project Coordinator
Michele Scott, MA
Department of Sociology and Anthropology
Rural Advancement Foundation International (RAFI)
Francesca Hyatt, Former Program Director,
Beyond Hunger Relief, Come to the Table