Better Decisions: The CSA model catches on with small farms and customers alike
Thursday, June 4, 2009
Community supported agriculture programs are proving a great way to test market products on a small scale with little capital investment – just a lot of sweat equity and passion
by DORENE COLLINS
A recent review of the 2006 Agriculture Census reveals just how much farm size is changing. In Ontario, the number of farms under 70 acres is growing (see Figure 1). In fact, the small farm movement across North America is expanding because of the increasing trend in direct-to-consumer sales. This consumer interest in buying local food directly from the farm gate or at a farmers' market has prompted an increase of 1,477 new small farms in Ontario between 2001 and 2006 as small farm operations step up to meet the demand.
Over the winter months, I met many farmers excited about farming a small acreage. Many are involved in growing fruits, vegetables and meat products for consumers via community supported agriculture programs (CSAs) supplying niche markets such as restaurants and speciality shops, selling from the farm gate through roadside stands, farm shops and pick-your-own operations, or by attending farmers' markets.
From a farm business perspective, the CSA model is a wonderful way to test market products on a small scale with little capital investment – just a lot of sweat equity and passion.
The majority of operators involved in Community Supported Agriculture come to farming with very few capital resources in the way of land, buildings and machinery. Some have purchased small acreages or set up an arrangement with existing farmers to farm just a few acres, 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 what products the consumer is looking for, and follow up by building clientele and launching into a CSA operation.
The CSA model involves selling shares to consumers at the beginning of the year in return for which containers of fresh food are delivered weekly during the growing season, depending on yield and variety. CSA farmers consider the relationship of trust they have with their customers the most important part of their business model. If it is a "bad" year (for example, too dry or too wet), both the farmer and the customer share the results of the harvest.
Many CSA farmers have monthly newsletters or email their customers to inform them of what crops they intend to plant, how the crops are progressing, and what the delivery and payment arrangements are. CSA farmers report that their clients are very loyal and feel connected to a farm operation, even though they often live in an urban area.
At a recent CSA workshop, I learned that meat producers are also trying out the CSA model. These producers have found that consumers want their share deliveries geared to the seasons – stewing beef, hamburger and roasts for winter shares and steaks and patties for summer orders. Given what value-added attributes are offered as part of your beef share (corn-fed, grass-fed, etc.), the farmer will often be able to charge a premium.
With payment coming in ahead of delivery, the producer has the necessary finances to cover input supplies, feed, slaughter, butchering and delivery charges.
CSAs are producing a new crop of farmers, including many who did not grow up on farms. Some are gaining practical farm experience through such programs as 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.
To learn more about the CSA model and obtain a directory of CSA farms, visit: http://csafarms.ca/ BF
Dorene Collins is Marketing and Customer Service Program Lead with the Ontario Ministry of Agriculture, Food and Rural Affairs. Email:dorene.collins@ontario.ca