On-Farm Markets
On-Farm Markets
An on-farm market is simply a marketplace that you create on your farm to sell products. These markets are typically more than a temporary set-up; meaning they are permanent structures, either a new construction or a converted building that you already have on your farm. Many on-farm markets sell the farm’s own products (both fresh and value-added) as well as some additional products from other growers in the area. From PennState Extension: “Farms that have an on-farm market are really one farm with two businesses. One business grows the crops, the other business sells the harvest, and each requires special sets of skills. If we are considering creating a market on our farm, we need to ask ourselves if there is someone within our farm business who has the skills and desire to manage a retail business. Maybe it's an opportunity for the next generation or an in-law, but someone needs to manage the retail business.”
Key Considerations
| Marketing Time Required | High |
| Required Product Volume | Low |
| Potential Sales Volume | Low-Medium |
| Price Per Item | High |
| Difficulty of getting into this market | Low |
| Importance of Product Quality & Shelf-Life | Medium |
How do I get started with an On-Farm Market?
There are three main challenges to overcome in starting your on-farm market:
What will the building be that you sell your products out of?
You can start small or start with what you have. We have seen on-farm markets that are made from a converted shed and the corner of an existing barn. Your market does not have to be big to sell a lot of product. You want to start with what makes sense for your size and expected customer base. Something you need to keep in mind when thinking about your building: refrigeration needs.
Business Structure
Will the on-farm market operate under the same business license as the farm itself? Either can work, but you need to work through the financial planning aspect of having an on-farm retail business.
Retail logistics
Who will work the store? What will the hours be? What if a customer shows up to the farm expecting to buy something but it is outside of the retail store’s hours?
To learn more about how different Kentucky farmers got their on-farm markets started, watch our Producer Voices episodes on 3 different sizes of on-farm markets.
Challenges
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Selling face-to-face
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Stretched boundaries: How will you handle it if customers show up to your farm outside of the on-farm market’s retail hours?
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Location challenges
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Can be capital intensive to develop (depends on what kind of farm retail store you want)
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Liability: Assess risk and develop a risk management plan; talk to your insurance agent
Opportunities
- Little/no transportation costs
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No standard pack/grade- but do not overlook product presentation and attractiveness
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Experiential buying: creates a destination for your customers, adding value over a typical retail transaction
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Provides credibility for “locally grown”
Other On-Farm Market Resources
- Small Scale Farm Retail Producer Voices Episode
- Interview with Maggie Dungan of Salad Days Farm
- Mid-Scale Farm Retail Producer Voices Episode
- Interview with Sara and Jeff Pettit of Faith Acres Farm
- Large Scale Farm Retail Producer Voices Episode
- Interview with Rhonda Cornett of Cornett Farm Fresh
- Kentucky Certified Farm Market Program
- from Kentucky Farm Bureau
- Building an On-Farm Market Webinar