Shop Products
Houzz Logo Print
flowermanoat

Observations on 12 years of market gardening

flowermanoat
16 years ago

Hello market farmers,

We started business 12 years ago. The first year we grossed $5000 something and that jumped to the high twenty thousands the second year. Over the succeeding years we have never been able to reach $30,000 even though we have worked harder, smarter, longer hours, invested thousands in capital improvements and maintained a subscription to "Growing for Market" and the quality of our product has continually improved.

Well, what seems to be the matter here? In a word, I would say "globalization". In the early years, on a Saturday morning, we'd stuff 30 buckets of flowers in our market van [5 bunches to the bucket] and on many Saturdays we'd bring down more in a smaller van. Today, we're lucky to sell 10 buckets at the very same market and still sell most of them for the same price--$6. We've had to expand our sales by growing plants, and some vegetables too. Expenses have leaped. Market rent has doubled from $80 a month to $160. We are now required to have $1,000,000 small business insurance policy with a [nearly] $600 annual premium.

Many have written enthusiastically about the expanding opportunities for farmers to sell directly to consumers at farmers markets and the greatly expanded numbers of markets and annual sales by them. But this is not confirmed by our experience here in the Central Valley of California--the heartland of California agriculture. The experience of other growers at different locations--particularly in the larger cities-- may be different. But what I'm telling you here would be confirmed by most of the local growers here.

Indeed, new markets have opened but, for the most part, they have pulled lots of the business away from existing markets. This has required many of us here near Fresno, California, to sell at 3 or even 4 markets per week to match the sales we formerly enjoyed from 2.

And the return to labor? Let's see . . . three full-time workers [unpaid family, of course] each working 2000 hours a year . . . comes out to 6,000 hours. Gross sales of $24,000 less $12,000 in expenses equals a net of $12,000 or a $2 an hour return to labor. Good thing it's hard for us to distinguish working and having fun.

Indeed, we've learned to love poverty. It has lots of advantages. My kids got free lunches in grade school and now that they are in college they are eligible for grants. Our electric bill is discounted substantially by a California program. [We pump a lot of water during our hot, rainless summers.] Also, no need to pay income taxes that support the questionable ethical practices of government. If we wished, we could qualify for a number of programs set up to assist the poor and these amount to a kind of safety net that those with somewhat higher incomes would be ineligible to enjoy.

And please be sure that I'm not complaining. During this same period, tens of thousands of small farms have bitten the dust. This in accordance with a trend that has gone on since the dawn of agriculture 10,000 years ago. Thousands of farmers have slaved all year only to get deeper in debt and, in the end, loose their farms. Ours is now paid for.

And as far as our $2 an hour return to labor is concerned, we spend a lot of time following our hearts and doing projects and "research" that doesn't immediately pay off at the market but greatly enhances our way of life, well-being and security. Some of our expenses reflect this too.

And we are glad to share our experience with no-tractor, no-tillage, permanent mulch growing with all who may be interested. We do this by maintaining a website at http://www.wholesystemsag.org and invite you to take a look and see if there is anything that might be helpful.



Comments (3)

  • flowermanoat
    Original Author
    16 years ago
    last modified: 9 years ago

    Somehow the link to our website at . . .

    http://www.wholesystemsag . . .

    didn't come through in the above post. Here it is again. If it won't work try a cut and paste.

    Thanks,

    Here is a link that might be useful: Whole Systems Agriculture

  • loodean
    16 years ago
    last modified: 9 years ago

    I think your observations and conclusions are absolutely correct, and they mirror what Samuel Fromartz wrote in his recent book, Organic, Inc. He related the story about a "successful" CSA couple (Pennsylvania I think) who gross $35,000 the first year. Their net profit was $20,000. Twelve years latter, they netted $250,000 but their profit was only $22,000.

    I suspect there is something deeper here that I might not be able to articulate very well, but here goes

    Many of us "country, farm, back-to-nature, all natural, etc." types seem to have an inherent distrust of big business. Indeed, some of us have headed for the country life to rid ourselves of the corporate industrial urban life. Then we start making a little bit of money selling what we grow, and think, "Wow, I could make a living doing thisÂ" As our business grow, we run into just what you have: rising insurance costs, cut throat competition, the other guyÂs cheap labor costs, escalating gasoline prices, etc.  the list is endless. What many of us fail to connect is that this is just what big business faces too. Maybe, just maybe, big business is not the evil empire that so many of us have concluded it is. It, like us small business owners, are just trying to stay even.

    In the end, market growers might do better if it is treated as a sideline or hobby. Once it becomes our only source of income, I suspect we start doing things we might have found distasteful when we were younger and more romantic. Finally, I am reminded of that old quote: "If a man is not a socialists by the time he is twenty, he has no heart. If a man is not a capitalist by the time he is 40, he has no brains."

  • anniew
    16 years ago
    last modified: 9 years ago

    Although I can't claim to make a lot of money, nor even want to as it then eats up my time, I think your location in CA may be part of your situation.
    I also think that there are other profit motive advantages to doing a farmers market, such as introducing people to your farm and perhaps guiding them there for on-farm sales, and/or to a CSA that you have.
    There are no sure-bet ways to make an income, and farmers markets allow those who are starting out, or even those who are established, to experiment with different crops or varieties of crops in a location where you don't have to have a bricks and mortar store or its inherent expenses.
    The cost of your market fees seem high, and that is a local matter, I'm sure. You have tremendous competition as well as tremendous costs (water usage) which currently is not a condition similar to a lot of market areas.
    I'd be real happy with a $22,000 profit, as I live in an area that has a low average household income and the cost of living is low. A lot also depends on what your lifestyle is.
    None of this is a complaint or argument, but rather information to those considering a farmers market so that they have a more balanced idea of what they might expect.
    Ann

Sponsored
KA Builders
Average rating: 5 out of 5 stars1 Review
Industry Leading General Contractors in Columbus