How to Start a Farmers Market Business

Farmers markets provide direct sales opportunities for farmers and food producers.

According to Agribank, the number of farmers markets in the United States has increased from 340 in 1970 to over 4,500 in 2010. This rapid, dramatic increase has provided many opportunities for farmers and producers of quality foods to sell their products directly to customers. These exchanges help to build local economies and also ensure that the greatest proportion of our food dollars go directly to the people who have worked the hardest to produce the food. People who enjoy fresh, local foods and working with the public should find a farmers market business to be an ideal endeavor.

Things You'll Need

• Instant canopy
• Tables
• Cash box

Instructions

1. Develop a product line for a farmers market business. Farmers should choose crops that grow well in the local soil and are not heavily represented already at the local farmers markets. Food producers should develop recipes that showcase local ingredients. Develop packaging for a product that displays it effectively, keeps it fresh and includes required information such as the company's name, an ingredients list and the product weight.

2. Procure the necessary licenses for a farmers market business. Organic produce farmers should contact the state's Department of Agriculture and ask about organic certification requirements. If you produce a food product, contact the local health department about commercial kitchen licenses.

3. Purchase the equipment needed for a farmers market business, including a pop-up canopy, tables, a cash box and a vehicle large enough to carry the necessary equipment and inventory. Design attractive signs with the farm or company name. Use large lettering. Purchase or construct weights to keep the canopy from blowing away during windy days. Most markets require vendors to keep at least 25 pounds of weight attached to each canopy leg. Use sandbags, water jugs or gym weights.

4. Apply to farmers markets in your area. Most farmers markets post vendor applications on their websites. Application deadlines are usually several months before the markets start. Apply to small markets as well as large ones: New vendors may find it difficult to get into established markets but newer, smaller markets also offer excellent opportunities for to develop a niche and a customer base. When planning a market schedule, keep in mind the fact the need to continue production even while vending. Unless you are willing to hire additional staff, don't sign up for so many markets that it interferes with other company operations.

5. Develop an alternative source of income during the winter months. Many places have farmers markets that run all year, but few winter markets offer the same earning potential as summer markets. Unless you are able to earn enough during the busy season to support yourself all year, have a strategy for complementing market sales with an alternative revenue source, such as wholesale sales or holding a part-time job.

Tips & Warnings

• Keep your expectations realistic. A farmers market business will never grow into a multi-million dollar enterprise, but it can provide you with a good living, great food to eat, and a positive work environment.

References

• Agribank: Local Foods Movement Creates New Farm Credit Opportunities
• Bainbridge Farmers Market: Vendor Information
• LocalHarvest.org