USDA - Economic Research Service

NEWS RELEASE

Contact: Lydia Oberholtzer (author), 202.694.5486; e-mail: loberholtzer@ers.usda.gov or
Bruce Mertz, Future Harvest-CASA, 410-604-2681; fhcasa@verizon.net

Innovative Marketing Approach for Small-Scale Farmers in the Mid-Atlantic Region Is Focus of New Report: Community Supported Agriculture's Key Challenges and Opportunities Described

STEVENSVILLE, MD (July 8, 2004) – A new study of community supported agriculture (CSA) in the Mid-Atlantic shows the potential of CSA to provide substantial income to small-scale producers in the region, but also the difficulties that many of these farmers need to address. One of the first studies to concentrate on CSA farming in the region, "Community Supported Agriculture in the Mid-Atlantic Region: Results from a Shareholder Survey and Farmer Interviews" provides results from interviews with 13 CSA farmers and a survey of 276 CSA consumers. The report is a product of the Small Farm Success Project, a collaborative effort to support and expand marketing opportunities for small-scale farmers in the region.

Traditionally, CSA is an arrangement whereby members or 'shareholders' of a farm pledge in advance to cover the anticipated costs of the farm operation and the farmer's salary. In return, they receive a share in the farm's harvest throughout the growing season. In the traditional model of CSA, growers and consumers provide mutual support and share the risks and benefits of food production. Another central idea is that by selling directly to members who have provided the farmer with working capital in advance, growers may receive better prices for their crops and gain some financial security.

"We studied member retention because it is a key challenge for many CSA farms. The survey reveals that short-term member retention rates seem fairly high for the farms in the study since 60 percent said they would buy a share the next season," explains the study's author, Lydia Oberholtzer, formerly of the Henry A. Wallace Center for Agricultural & Environmental Policy. "However, over the longer term, keeping members appears to be more difficult, since less than half (47 percent) said they would likely purchase a share for the next 3-5 years. Low retention rates are a major hurdle to long-term viability for these farms."

Shareholders rated as their most important reason for joining a CSA to get fresh, organic, and/or local produce and to support a local farmer or farm. The study also showed that CSA is affecting consumption and purchasing patterns in the participating households. A majority of members were able to obtain a large percentage of their vegetables during the growing season from their CSA, while almost three-quarters reported an increase the variety of produce consumed due to CSA participation and 58 percent reported an increase in the amount of produce consumed.

Shareholders rated as their most important reason for joining a CSA to get fresh, organic, and/or local produce and to support a local farmer or farm. The study also showed that CSA is affecting consumption and purchasing patterns in the participating households. A majority of members were able to obtain a large percentage of their vegetables during the growing season from their CSA, while almost three-quarters reported an increase the variety of produce consumed due to CSA participation and 58 percent reported an increase in the amount of produce consumed.

The shareholders that took part in the survey were generally satisfied with the many aspects of CSA farming. Freshness and quality of produce rated highest among shareholders. However, the survey also demonstrated the need for farmers to pay special attention to their communication with shareholders, the social aspects or activities of farm, and the variety and mix of other foods that they provide. These aspects were rated lowest by shareholders.

"Farmers are looking for high-value markets in the Mid-Atlantic region to stay competitive, and CSA is one marketing approach that many small farmers are taking," noted Dr. Jim Hanson, leader of the Small Farm Success Project and extension economist at the University of Maryland-College Park. "This important report will help farmers and others in the region assess the strategies that will allow this marketing method to succeed long-term."

"Community Supported Agriculture in the Mid-Atlantic Region" is available electronically at http://www.smallfarmsuccess.info/CSA_Report.pdf in Adobe Acrobat format. Printed reports are available from Future Harvest-CASA, 106 Market Court, Stevensville, MD 21666; (410) 604-2681; fhcasa@verizon.net.

The U.S. Department of Agriculture's Initiative for Future Agriculture and Food Systems (IFAFS) program funded the Small Farm Success Project (http://www.smallfarmsuccess.info). Educators, researchers, and other individuals representing the following organizations collaborate on the project:

• University of Maryland Cooperative Extension
• Future Harvest Chesapeake Alliance for Sustainable Agriculture (CASA)
• Pennsylvania Association for Sustainable Agriculture
• USDA Agricultural Research Service
• Henry A. Wallace Center for Agricultural & Environmental Policy at Winrock International
• Accokeek Foundation
• The Pennsylvania State University