Abstract
In order to differentiate their products, agricultural producers are expanding and diversifying their use of marketing channels. Increasingly, these channels convey farm-level information to the final purchaser. However, the Census of Agriculture, the longest-running U.S. farm survey, tracks only three forms of market differentiation: direct-to-consumer sales, organic sales, and the number of community supported agriculture farms. Current Congressional proposals to increase data collection on market channel diversification rely on "follow-on" surveys and the Agricultural Resource Management Survey (ARMS) conducted by the U.S. Department of Agriculture. Both of these surveys are more limited than the Census of Agriculture in observing farm-level trends; the follow-on survey is particularly limited in providing results that are comparable to all farms and even farms within the same sector. This paper will show that administrative reporting changes in the 2012 census and the introduction of new questions for the 2017 census can improve both farm-level and sector-level observations on marketing channel usage — with greater precision than tracking local and regional food systems. Such data is needed to assist policy-makers, technical assistance providers, and farm lenders in providing resources to the relatively high portion of young, beginning, and full-time producers involved in market channel differentiation.
Highlights
We indicate the limits of current USDA data collection practices, limits of the proposed expansion of the Agricultural Resource Management Survey (ARMS) and the use of the local food system follow-on study, and make recommendations for the 2012 and 2017 Censuses of Agriculture and related USDA data-collection activities
Several analysts have indicated that farmers who are younger than average are pursuing diverse strategies in relatively high proportions (Bureau of Labor Statistics, 2009; Hunt, 2006; Hunt & Matteson, 2010/2012; Low & Vogel, 2011)
The perception of marketing channel diversification as a “small” trend is based upon analyses using sales data and is reinforced by a lack of other indicators
Summary
There is significant evidence that producers involved in organic agriculture, farmers’ markets, community supported agriculture (CSAs), directto-retail (e.g., direct sales to restaurants and schools), and other marketing activities are responding to increasingly diverse consumer preferences (Blisard, Lin, Cromartie, & Ballenger, 2002; Dimitri & Oberholtzer, 2008, 2009; Harris, Kaufman, Martinez, & Price, 2002; Martinez, 2007, 2010; Martinez & Davis, 2002; Martinez et al, 2010; 2002; Sherrick, Barry, Ellinger, & Schnitkey, 2004; Steidtmann, 2005; Stewart & Martinez, 2002). Since direct-to-consumersales was added in 1978, the USDA has introduced only one new question regarding marketing channels: community supported agriculture in 2007 (Low & Vogel, 2011; National Agricultural Statistics Service, 2009a). A substitute focus, that of marketing channels, would capture much of local and regional marketing activity (e.g., direct-to-consumer, farmers’ markets, farm-to-school, etc.) with less complicated methods — replacing methods with which even USDA analysts have had difficulty (Low & Vogel, 2011). We use the term “marketing channel differentiation” to characterize how agricultural producers, at the farm level, seek to distinguish their products from commodities through marketing and distribution practices. A key advantage to using the term marketing channel is that it meshes with the existing business and agricultural economics terminology used in the Census of Agriculture and USDA (Low & Vogel, 2011)
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of Agriculture, Food Systems, and Community Development
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
