Establishing a Farmers’ Market
Section
1: Initial Procedural Considerations
I.
Local Ordinances
A. Zoning laws
B. Food vendors' licensing. Some towns/cities require local licensing,
even if vendor is licensed by the state.
C. Traffic control regulations. Are police required for traffic control; is
there a threshold volume?
D. Local policy regarding
not-for-profit organizations
II.
Local Authorities: Is there a governing agency for your location (e.g. parks
and recreation)?
III.
Determine Status of Your Market
A. Independent. Permits decisions by
members without having to consult other organizations.
B. Join local organization related
to town/city (e.g., Main Street Program)
1.
Administrative expertise and personnel may be available for assistance.
2.
Insurance coverage possibly included in membership.
3.
Grant applications may be facilitated; may represent unique grant
opportunities.
4.
Promotional advantages likely.
5.
Problems with issues related to items I and II less likely
6.
Enhances early credibility
7.
May be constrained by rules and policies
C. Integrate with local Not-For
Profit (NFP).
1.
Increase your circle of influence
2.
Insurance coverage a possibility
3.
It is possible to come under NFP's 501 C-3 status.
(Obtaining 501 C-3 status is costly and time
consuming)
4.
Possibly enhances opportunity for grants; expertise in grant application may
exist in the NFP
IV.
Registration of Farmers' Market with Secretary of State
A. Simple and inexpensive ($50)
B. Can register as not-for-profit
1.
This NOT recognized by the IRS. Filing for 501 C-3 status and approval by
the IRS is the only approved NFP status. This is important because most, if not
all, grants require 501 C-3 status for recipients.
2.
You can, however, apply for a Federal Tax ID number so that an account can be
opened and receipts are not applied to an individual Social Security number.
V.
Organization of Farmers' Market
A. Governance
1.
Bylaws (available from NHMA)
2.
Rules*
3.
Board of Directors
4.
Officers
B. Meetings
1.
Successful markets hold regular meetings - during winter and early spring.
2.
There is no time for a substantive meeting at the market
3.
*Anticipate problems and develop rules (e.g., poor attendance, late arrival,
etc. -it is important to have rules in place, rather than having to make
rulings when a problem has developed.)
C. Rules for Vendors
1.
Consider whether to have a designated mix of ag vs non ag vendors.
Customers associate farmers' markets with fresh produce, flowers,
etc.
2.
Consider regulating the minimum % of vendor's product that must be produced by
vendor.
3.
Develop a policy regarding "buying in" produce. Suggest considering if none of the growers
has a particular crop (e.g. sweet corn), buying in may be permitted if agreed
upon by growers and sign is required to document source. If a vendor has grown
a crop available, other vendors would not be able to buy in that crop.
4.
Licensing: food vendors should be required to be licensed by the state. RSA 143-A:3, V.
"Occasional food service establishment' means any food service
establishment operated by a private or public organization or institution,
whether profit or nonprofit, which prepares food or drink for sale or for
service, and any other eating or drinking establishment or operation where food
is served or provided for the public with or without charge, no more than 4
days during a 30-day period.
5.
Labeling: ingredients. Food allergies
are prevalent.
6.
Pricing policy and price signs are important to a successful market.
a.
Suggest utilizing the Market Bulletin for guidance in pricing. Customers come
for the quality and freshness of your product. Selling produce below market
value sends the wrong message - that you are discount vendors rather than what
you are - sellers of the freshest and highest quality produce available. There
is also the issue that a grower has to receive fair market value for his crop,
and undercutting the fair price denies this.
b.
Require prices be posted by all vendors. You will do them a favor, increasing
their sales. Customers are frequently reluctant to ask prices, resulting in
lost sales and dissatisfied customers.
7.
Establish realistic fees for vendors. You will have expenses, and vendors
should have a "stake" in the market.
8.
Consider requiring volunteer labor (otherwise two or three do all the
work). Examples: set up,
clean up, parking, promotion, coordination of NFP tables, music and demonstrations.
9.
Establish a policy regarding vendors of non ag product. These can enhance your market, but a
balance is required. (See discussion
regarding
10.
Establish firm rules regarding attendance and on time arrival. We suggest vendors be in place 30 minutes
before opening.
a.
Vendors arriving at or after opening are a safety hazard, to customers and
vendors.
b.
Prohibit sales before opening (providing signs will avoid hard feelings).
Again, having customers in the area while vehicles are moving is a safety
issue, and it is only fair to have all vendors begin selling at the same time.
D. Policy for Not-For-Profit
organizations (churches, fire departments, scouts, etc.)
1.
Develop a policy in advance regarding inviting organizations. Have a rotation
in place to ensure fairness and designate a coordinator to oversee these
groups. This is an excellent opportunity to enhance community relations.
2.
Establish a policy to prevent these groups from competing with your vendors and
make this policy clear to organizations before the market season.
E.
Funding:
1.
Fees: annual; annual plus daily; annual plus percentage of daily gross, etc.
2.
Grants:
a.
NHDAMF mini-grant program is offered every January.
b.
501(c)3 organizations, local businesses, etc.
c.
See V.C. above regarding not-for-profit status
3.
Fundraisers: cookbooks, raffles, donations, etc.
Section
2: Promoting Farmers' Markets
I.
Identify individuals, organizations (advocates for open space, Land Trusts,
etc) and elected officials likely to support the market. Request their assistance
and advice. Broaden your base.
II.
Seek sponsors
A. Local ag related businesses, restaurants, etc.
Sponsorship can be monetary, posting signs on business sites or providing material.
B. List any business or individual
who assist in any way as a sponsor. Give
feedback via thank you letters ("Many customers report seeing our sign at
your store")
C. Invite local elected officials to
events at the market and invite press coverage.
D. Meet with local newspapers and
radio outlets. Explain your market and what it means to local farmers and how
it is helping preserve the rural character of NH.
III.
Learn how to send out press releases. Learn the different kinds of press releases
and how to follow up.
IV.
Advertise
A. Decide on a budget
B. Decide which outlet best reaches
your prospective customers: traditional newspapers, free papers with paid
advertising.
C. Signage: (potential for
sponsorship)
D. Public service opportunities:
e.g., local cable channel.
E. Pass out flyers at town meeting
and other local events.
V.
Events
A. Demonstrations (local chefs,
blacksmith, flower arranging, herbalist, etc.) Use press release announcing
these events.
B. Farmers' Market Week: notify
press, radio, local cable, etc. Invite
celebrities, plan events. (Last year Commissioner Taylor visited two markets
led to several newspaper stories, including one on the front page of the Sunday
edition of the Manchester Union Leader!)
VI.
WIC Program
A. Educate your vendors about the
WIC program and encourage participation.
B. Promote your market to WIC
recipients.
C. Attempt to arrange transportation
for seniors (church groups and other volunteers frequently will transport
residents of elderly housing).
D. Have facilities for elderly
(seating, shelter, assistance with carrying purchases, etc)
E. Educate on nutrition; give
recipes, offer samples.
VII.
Food Stamps
A. Paper method is doable, but
somewhat cumbersome.
B
NHFMA working with UNHCE Nutrition Connections on a SARE grant to test
using a terminal via a kiosk concept.
Section
3: "Nuts and Bolts" for Site Management
I.
Identify potential problems.
A. Drainage: will your market turn
into a pond after a thunderstorm?
B. Terrain: are there ditches or
other features likely to cause the elderly a fall?
C. Hazards: open water likely to
attract children, busy highway to cross from parking lot, etc.
D. Neighbors: will your activity
interfere with them and vice versa.
E. Parking, parking, parking! They
won't come if they can't park.
II.
Expansion: will you have to move if your market grows. The easiest site may not
be the best in the long run.
II.
Weather Policy: will you stay at your location "rain or shine", or
should you consider an alternate site in wet weather. Item I, A may answer this
question for you.
III.
Vendors
A. Review your decision regarding
mix of vendors after your first year. You may need two bakers, etc.
B. Policy regarding determining the
market layout (not all locations may be equal - we all want to be nest to the
entrance or the "anchor store")
1. Lottery
2. First come, first
choose. (Not a good idea)
3. Charter members have
preference
4. Part time vendors (if
allowed) should be last in order).
C. Policy for single crop growers
-If a grower has a crop which covers only part of your season, do you
accommodate that grower?
1. Fee:
? Same as other
vendors?
2. Does that crop add to
your market's appeal?
3. Do you admit this
grower if the crop is offered by a full time vendor.
4. Make your policy
before the issue arises so that your answers will be objective and perceived as
fair.
IV.
Sanitation
A. Toilet facility?
B. Hand washing.
C. Live animals. Touching animals, then touching produce
should not be allowed.
V.
Transportation: the elderly love farmers' markets. Again, try to arrange
transportation.
VI.
Entertainment. (musicians,
puppet shows, etc.)
A. Designate a coordinator,
preferably one familiar with local entertainers.
B. Target children and the elderly.
Section
4: "Keys" to a successful Market (in no particular order)
I.
ALL of the Above!
II.
Key Vendors. Farmers' Markets = fresh,
high quality produce in customers' minds (surveys show this is much more important
than price). You need growers.
A. Leave posters seeking growers at
post office, local stores, Agway and similar ag businesses.
B. Approach farms and farm stands
("We are not your competition; we are your best marketing opportunity to
show new customers to your farm")
C. Organizations: NOFA, Beginner
Farmers, etc.
III.
Complementary Vendors: your goal is to be a "
A. Baker: first on the list.
B. Meat: poultry, venison, beef,
pork. We would not consider these competitors.
C. Cheese: start with one, perhaps
adding a second if demand permits or if product is sufficiently different.
D. Fish Monger: one of the most
popular vendors at markets we've observed.
E. Smoke House
F. Cut flowers: very popular
G. Eggs
H. Perennials
IV.
Promoting NH Enterprises Broadens Your Market
A. Coffee Roaster: a success at
Sanbornton FM (great coffee, too)
B.
V.
Other Good Ideas (at least Jack & Charlie think so)
A. Partnerships of Farmers' Markets
(by region)
1. Coordinate dates
2. Common vendors
3. Joint advertising:
info regarding each market, with a message to visit them all.
B.* Ad hoc Farmers' Markets: Fairs, parades, old home week, etc.
C. Relationships with restaurants
1. Ask restaurant to
have a meal or menu featuring locally grown products.
2. Have signs made, such
as, "The New Boston Farmers' Market thanks Mom's restaurant for buying
fresh local produce from our growers”.
These can be placed at the restaurant and at market.
D.* Offer to run FM at fundraisers:
the market pays a vendor fee and runs market as usual.
*These activities more feasible through a partnership
of markets or through NHFMA.
Jack Potter, President
Charlie Burke, Vice-President
603-528-1990
info@nhfma.org
nhfma.org
** Sponsored in part by grants from:
Stonyfield Farm and
The New Hampshire
Department of Agriculture, Markets and Food
and administrative
support from
NH Stories, Inc., (nhmade.com)