July 25, 2003
Direct Marketing: Good investment for Washington State

Capital Press, by Scott A. Yates, Staff Writer

In these tough times for agriculture, it makes sense for the state's agricultural institutions to support marketing programs that return the highest possible percentage of the food dollar back to the farmer. It also makes sense to promote marketing programs that bring the food producer closer to the food consumer and help the public to understand the importance of preserving local agriculture. Direct marketing, in which the producer sells directly to the food consumer, is one of the best ways to accomplish both of these goals.

However, due to the cuts recently imposed by the legislative budget on the Washington State Department of Agriculture, the department has decided to cut state funding of its Small Farm & Direct Marketing Program by 75 percent.

This is the only state-funded program at WSDA that supports direct and local market development. While we realize that difficult decisions had to be made at the department, the fact that this program had to take one of the largest cuts is disturbing, particularly since the program's total state funding was just $150,000 for the past biennium.

Direct marketing is one of the brightest spots in agriculture today. Public demand for locally-grown foods has increased dramatically, as evidenced by the growth of farmers' market and farm stand sales, increased enrollment in community-supported agriculture programs and the rapid spread of farmer-direct marketing to restaurants and institutions.

As one example, according to the Washington State Farmers Market Association, sales at its member markets have increased from $8 million in 1999 to $18 million in 2002 and the number of markets has jumped from 68 to 85. Though direct marketing is a small part of overall agricultural sales, there is every reason to believe that it will continue to increase by leaps and bounds.

In a recent statewide survey of 3,700 representative farmers, Washington State University found that 62 percent of Washington producers agreed that direct marketing is an effective way to improve farm profitability.

Many direct marketers are small farmers. However, there is a growing interest on the part of larger producers to incorporate direct marketing into their marketing mix. Around one-fifth of all Washington growers report selling at least some of their products through direct-market channels. The numbers are even higher for vegetable growers, where 46 percent said they had sold some or most of their products this way. These growers are improving their profit margins by selling their crops directly to food consumers at prices well above wholesale prices.

WSDA's Small Farm & Direct Marketing Program has played an important role in helping producers to garner a higher share of the retail food dollar and to educate consumers about why they should buy local agricultural products. The program has helped many communities in Washington to start or expand local food marketing projects, such as local labeling programs, farmers' markets, processing and value-added facilities, institutional marketing programs and many others. All of these projects help to secure a dependable and healthy food supply for our communities - an important goal in an increasingly uncertain and globalized world.

Direct marketing increases all of these: farmers' profitability, food security in our communities and public support for preserving Washington agriculture. It decreases farmers' economic risk, as growers that have a mix of marketing methods increase their flexibility and thereby lower their risk. And direct marketing dollars recirculate in our communities.

Direct marketing is an excellent investment for the farmers, communities and residents of Washington state, and it deserves strong state support.

Bonnie Rice is director of the Washington Sustainable Food & Farming Network, a statewide advocacy organization for sustainable agriculture and family farms in Washington State. For more information on WSU's farmer survey, contact Dr. Marcia Ostrom at (253) 445-4514 or mrostrom@wsu.edu.