Quick Facts...
- Careful organization and planning is essential in the development of a farmers' market.
- Consider various types of feasibility indicators in the market planning process.
- Compile a checklist of factors to study in organizing farmers' markets in order to help
answer pertinent questions.
Direct marketing activities, such as farmers' markets, occur when the
owner of the product assumes full direct-marketing functions in order
to complete a sale to the final consumer. Farmers' markets offer many
advantages for small-volume producers: opportunities for an increase in
income, reduced transportation and distribution costs, an outlet for products
that otherwise might not be sold or consumed, and direct interaction with
buyers.
Planning
An organized farmers' market is the result of commitment, hard work
and expertise. Contact local authorities about necessary local, state
and federal licenses. Determine what the consumer demand is. A good variety
of locally grown, high quality, fresh produce at competitive prices should
be the basis of your preliminary planning. Your local county Cooperative
Extension office is an excellent starting point. They can help with goal
setting, decision making and effective communications among farmers.
Consider the following when organizing a farmers' market:
- Location (surrounding businesses)
- Market objectives
- Expected target markets
- Management
- Raw materials
- Personnel
- Utilities
- Supporting services
- Environmental effects and protective measures
- Facilities
- Budget planning
- Fixed capital needs
- Start-up capital
- Operating capital
- Proposed financing
- Advertising
Know Your Market
The best way to contact potential growers is to make personal visits before the growing
season begins. Other methods of contact are TV and radio advertising, newsletters, newspaper
advertising and telephone contacts. Develop a mailing list to facilitate subsequent mailing of
market information.
Generally, markets for fresh Colorado produce run from early July to late September. The
market should start as soon as there is sufficient produce, and should end while product quality,
quantity and variety are still strong.
The market should be easy to find, and centrally located, with adequate
parking for farmers and customers. It should have a pleasant atmosphere,
be within easy walking distance for elderly consumers, and have shade
and rain protection.
Make yourself aware of why consumers stop at a farmers' market. Curiosity
and fresh produce are cited as the two most frequent reasons given by
consumers. Based on these reasons, choose the most effective and economical
advertising medium. Newspaper feature articles, radio public service announcements
and word-of-mouth are just a few examples of free advertising. Other ways
to advertise are paid radio and TV spots, signs, banners, posters and
flyers.
Coordination and Logistics
Start by establishing what will be sold: eggs, dairy products, fresh
produce, baked goods, and arts and crafts. Establish days and times. Decide
when to begin selling and when to stop. Allow for vendor set up and take-down.
Decide who will be allowed to sell at the market (farmers, gardeners,
wholesalers). Determine the geographical limits of the produce sold. Do
you want only in-state produce? How do you intend to enforce these limits?
Also determine a fee and pricing structure. How will taxes and food stamps
be handled? Consider cost-sharing the overall expenses of the sellers.
Finally, coordinate the upkeep of the market area and the mechanism
for handling consumer complaints.
State Laws and Local Ordinances
Sales tax: Direct marketers may need a sales tax license. The department of revenue will assist you in complying with all laws. For information on applicable Colorado sales, contact
Colorado Department of Revenue, Sales Tax Division, 1375 Sherman Street, Denver, CO 80503;
(303) 534-1208.
Health ordinances: County health laws for farmers' markets differ throughout Colorado.
For information on your area, contact the nearest county health department. The state contact is
Colorado Department of Health, 4210 East 11th Avenue, Denver, CO 80220; (303) 320-8333.
Liability laws: Inform your insurance agent in writing of your business practices, such as
allowing visitors on your property to buy products. Landowners also must warn visitors of any
potential hazardous conditions on their property.
Pesticides: All pesticide products and all applicators of such chemicals must be registered
and licensed. Contact Colorado Department of Agriculture Plants Division, 700 Kipling Street,
Lakewood, CO 80215-5894; (303) 239-4140.
Weights and measures: A licensed scale is required for items sold by weight. The license fee is based on scale capacity. For products that are packaged ahead of the sale, net weight must
be stated on the package. For information, contact Colorado Department of Agriculture,
Measurements Standards Section, 3125 Wyandot, Denver, CO 80211; (303) 866-2845.
Consider selling items by item, bag, bushel, etc., to avoid the need for licensing.
Local ordinances: Check local requirements for vendor's license, park and recreation
department relations, zoning restrictions and advertising, and sign ordinances.
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