How to Start a Community Farmers' Market Business Co-Op

Many people are attracted to farmers' markets for locally grown fruits and vegetables.

There is a growing interest in locally produced foods, according to Garry O. Stephenson, author of the book "Farmers' Markets: Success, Failure, and Management Ecology." This has translated into a growing number of farmers' markets of various sizes in local communities in the U.S. Farmers' market organizers interested in bringing this fresh-food movement to their local community should approach it with the same level of strategic planning required of any other new business.

Instructions

1. Conduct market research. A farmers' market should only be developed in a community that can make it an economical success for the operator and vendors. Find out whether local residents have an interest in such a market and, if they do, what type of goods and merchandise they would purchase.

2. Research local rules that would apply to operating a farmers' markets in the community. Local zoning laws will dictate where your farmers' market can be located. There will also be compliance issues related to business registration and local health code agencies.

3. Attract and develop a cooperative farmers group. Advertise the call for local farmers on local print, radio and television outlets. Also, an important aspect of developing this type of co-op is to choose farmers with crops that can offer a wide selection of produce.

4. Create a co-op agreement. A farmers' cooperative is a legal entity. Depending on the applicable local laws, it can be organized as a partnership, limited partnership, corporation or limited liability company. The scope of members' duties should be clearly spelled out in a written co-op agreement that addresses issues related to shared financing of the enterprise, such as costs for leasing, energy, publicity, security and staff.

5. Find a location. A farmers' market should be easily accessible by all modes of transportation. Adequate parking should be available to visitors. Identify market competitors, such as local grocers, since being close to a supermarket may help attract shoppers looking for food. Consider the suitability of a location as it relates to the energy needs for the farmers' market.

6. Maintain sound administrations and management. This includes making sure that vendor booths are set up with appropriate displays, produce and merchandise and are properly staffed. Administrative duties also include maintaining accurate financial records and providing services to vendors, customers and the media. Special events and tastings may require hiring additional staff.

Tips & Warnings

• Obtain appropriate business insurance and keep the insurance agent in the loop when searching for a location. Insurance costs will likely be affected by the location chosen.

References

• "Farmers' Markets: Success, Failure, and Management Ecology"; Garry O. Stephenson; 2008
• "The New Farmers' Market"; Vance Corum, et al.; 2001

Resources

• UC Sustainable Agriculture Research and Education Program: Sustainable Community Food Systems