Published in Winter 2022
By: Melissa Fery & Lauren Gwin, Small Farms Program, Oregon State University with Pami Monnette
Last December, we asked agricultural producers across the state about their direct-to-consumer (DTC) marketing experiences in 2020, during the COVID-19 global pandemic, as well as their plans moving forward into 2021. One hundred twenty-four Oregon farmers or ranchers participated in the survey. Their farming experience included beginning farmers who have been in business less than 5 years (33%), those who had been farming for more than 10 years (43%) and many in-between. Some key findings from the survey are shared below to bring awareness of marketing changes and what may be instore for the future.
Direct-to-consumer sales in 2020
One of the most important takeaways of our project was confirmation that direct-to-consumer (DTC) sales in 2020 increased from 2019 for 61% of our respondents (Figure 1).
We also asked how their use of specific DTC strategies changed from 2019 to 2020 (Table 1). Interestingly, farmers market sales increased for many but was the strategy decreased by the highest percentage of respondents as well, illustrating how variable this was. Overall, few farmers continued to market as they did in 2019. Many tried new strategies or increased how much they sold through existing strategies. This speaks strongly to their resilience: they rapidly adapted to the limitations COVID threw at them.
When asked which of these DTC marketing strategies were most successful for them in 2020, they ranked delivery highest, followed by the farmers market (Table 2).
Plans for DTC sales in 2021 (and beyond?)
We also asked producers about their plans for 2021, if they would start, continue, increase, or decrease specific direct marketing strategies. Sixty-two percent said they would continue on-farm pick-up, 59% said they would continue delivery, and 40% said they would continue online sales. Of these, only delivery is surprising, given the cost to farmers for providing that service. The emergency of COVID could have made those costs worth absorbing in 2020, when more consumers could or would not leave home. Farmers may be charging for delivery or found other benefits that justify the cost. While online sales can also be costly in time, especially for start-up, the fact that so many respondents plan to continue or expand this suggests that once COVID forced them to try it, they found it useful.
Producer priorities for support
When asked what support they most needed and provided with a list of topics, producers ranked “Choosing the best direct marketing strategy for your farm” and “Knowing your cost to grow, setting prices, managing finances” at the top. “Finding and keeping customers” and “Collaborative marketing and distribution options” were also identified as areas where support are needed.
How OSU Small Farms plans to help
Our survey findings reveal several notable “COVID effects” for direct to consumer marketing for farmers in Oregon. We cannot assume that these effects will be long-lasting, the “new norm,” but they are worth our attention, especially as the pandemic continues to evolve. In the following discussion, we highlight four areas from our findings and offer feasible next steps to support DTC producers.
Farmers markets
The Oregon Farmers Market Association (OFMA) was and continues to be an effective advocate and reliable information source for markets, both on COVID regulations and online marketing options. We will continue our long-standing education and outreach partnership with OFMA.
Delivery
Project partners are exploring strategies, including collaborative distribution models, to serve local farmers and customers in specific regions. We can also help farmers assess the true costs of delivery and consumer willingness to pay for that service.
Online sales
COVID also prompted an increase in online sales. Many farmers already used online platforms or social media to advertise or sell. However, with the pandemic, many customers expressed a desire to be able to browse and purchase local food products online.
OFMA, Oregon Coast Visitors Association, and others have hired tech support staff to help farmers set up online marketplaces. Depending on the platform, farmers must then manage multiple inventories, communication platforms and transaction methods. As with delivery, exploring collaborative models for online sales tools may also prove beneficial for producers.
Traditional DTC channels still matter: On-farm sales
On-farm sales, both farm stands and on-farm pickup, remain important DTC channels. Farm stands are a safe and convenient way for farmers to stock and sell product on their own property, and many are “self-serve,” requiring less farm labor. Customers like farm stands for the accessible open hours, nocontact purchasing, and the opportunity to visit and experience farms more directly. Farm stands are considered part of agricultural tourism. As more people visit farms, more farmers are asking for support navigating permits, insurance, and safety concerns for farm stands, on-farm pickup, and U-pick; we are currently creating online learning modules with this information.
Thank you to our partners
Our seven nonprofit and agency partners for this project were Food Roots, High Desert Food and Farm Alliance, Rogue Farm Corps, Ecotrust, Ten Rivers Food Web, Northeast Oregon Economic Development District, Oregon Department of Agriculture, and the Oregon Farm Bureau.