Local markets a vital part of Oregon agriculture, Dec. 23

Farm direct marketing remains an important component of Oregon agriculture, according to a first-ever national survey on local food marketing practices released this week. More than 5,000 Oregon farms and ranches sell locally produced food through direct marketing practices, resulting in approximately $114 million in revenue for 2015, the year the survey was conducted. While Oregon ranks in the middle of the pack among reporting states, selling locally grown food products directly from the farm is very important to the state’s overall agricultural economy. “For many of these farm operations, direct marketing is a major part of their business plan and how they move their products,” says Gary Roth, Industry Development Director with the Oregon Department of Agriculture. “For some of our producers, direct marketing is just a portion of what they do, but for others, it’s a very significant piece of their revenue.” According to the results of the initial Local Food Marketing Practices Survey, released by the US Department of Agriculture’s National Agricultural Statistics Service (NASS), there were 5,227 Oregon farms that cut out the middleman and used direct marketing practices in 2015 which accounted for $114,463,453 in direct sales. The number of farms represents about 15 percent of Oregon’s total of 34,600 operations. Oregon ranks 11th of 30 states reporting in the number of farms and 18th in sales. Nationally, more than 167,000 US farms locally produced and sold food through direct marketing practices, resulting in $8.7 billion in revenue. The survey broke the numbers into various categories. Farms selling food directly to institutions and intermediates, such as wholesalers who locally brand the product or food hubs, brought in the most revenue at $3.4 billion. The next category, at $3 billion, was from about 115,000 operations with direct-to-consumer sales, such as on-farm stores and farmers’ markets. Sales directly to retailers were at $2.3 billion from more than 23,000 operations nationwide. The survey covered both fresh and value-added foods, such as meat and cheese. Not surprisingly, California ranks first in total direct food sales at $2.9 billion, accounting for a third of the US total. No other state comes close but the top five include Michigan, New York, Pennsylvania, and Wisconsin. Rounding out the top 10 are Texas, Vermont, Massachusetts, Virginia, and Iowa. Despite its mid-level ranking in the various categories, Oregon’s numbers are still impressive. “We would probably rank higher if we had a higher population base,” says Roth, noting that Oregon’s 4 million residents can’t compare to a state like California and its 39 million people. “There are also some smaller states that have a much higher population density than Oregon.” Even though approximately 80 percent of what Oregon agriculture produces is marketed outside the state, either domestically or internationally, the remaining 20 percent finds an avid local market. “Oregonians love to buy local,” says Roth. “There is a very strong interest, that continues to grow, in health and wellness, sustainability, support for local businesses, and in such areas as farm to school. All of those factors are driving the opportunity for our farmers to sell directly.” In the category of selling directly to the consumer– primarily through farmers’ markets and farm stands– Oregon also ranks 11th in the nation with 4,252 farms and is 19th in sales at approximately $53 million. The one category where the state cracks the top 10 is in direct marketing of products that are not processed or value-added. Oregon is 8th in the US in that category, suggesting that buyers– whether they are wholesalers, retailers, or direct consumers– are purchasing fresh, raw products. The NASS survey captured other interesting data on the national level, but it was not broken down by state. Among the other findings: • Only 8 percent of US farms selling directly to consumers did so via online marketplaces even though 73 percent of farms using direct marketing practices had internet access last year. • More than 80 percent of all direct market food sales occurred within 100 miles of the farm, and most farms selling to consumers were less than 20 miles from their largest grossing marketplace. • Approximately 53 percent of farms marketing food directly were located in metropolitan counties. • Only 41 percent of farms marketing food directly were operated by someone whose primary occupation was running the farm. • About 77 percent of farms that direct marketed were operated by established farmers who have been running the operation for 10 or more years. • The 167,000 farms nationwide the sold through direct marketing practices consisted of approximately 300,000 people involved in making decisions on the farm. Of those primary operators, 62 percent were men, 38 percent women. The gender statistics are available by state, and Oregon reported 10,591 operators selling directly from the farm, with 4,887 being female. The 46 percent female operator figure is much higher than the national average of 38 percent female. As Oregon’s population continues to grow, local direct marketing will likely become an increasingly attractive option for farms and ranches, according to ODA’s Roth. “I will not be surprised to see us go up in the national rankings in the years to come because there is a lot of support within the state,” he says. “We have so many advocates and so much interest by people for the movement, sale, and purchase of Oregon food and agricultural products, that I would expect direct farm marketing to significantly expand in the near and long-term future.” For additional information from the NASS survey, go to <http://go.usa.gov/x9xhM>.