Reaching High Value Markets

Over half of American consumers report that they will pay a premium for food produced in environmentally and socially responsible ways. We can help farmers and ranchers build the cooperatives to reach those consumers.

High Value Markets

High value products offer a means for the small-to-moderate sized farm or ranch to remain economically viable despite low commodity prices. Such enterprises can also provide the income to support a second family or new generation on the farm. Farm-related enterprises can buffer risks of volatile crop prices or weather extremes. Many such businesses build on the resources and skills of the farm and family to make more complete use of people, land and facilities.

Many consumers are seeking to find a more wholesome product that reflects their values in the conventional markets where they shop. In fact, a nationwide Roper poll found that, by a 2:1 margin, consumers trust small farms more than large industrial farms to produce safe food responsibly.

With the right setup, small farms can put their products within easy reach of these consumers. Joint marketing to reach consumers, in the form of farm-based businesses, farmer-owned cooperatives and other groups, offers the means to overcome obstacles of low volume, seasonality, shipping costs, and supply interruptions faced by individual family farms in order to maintain the steady supply of the high-value products consumers want. And, these marketing and distribution networks build more profitable markets for environmentally and socially responsible family farmers and ranchers.

Alternative markets that support environmental stewardship, reward humane production, and relate the story of those who produced the product are critical to the future of family farming and ranching. To survive in the 21st century, family farmers and ranchers need access to new production systems and to information and skills that enable them to capture a larger share of the consumer food dollar.


Resources to Reach High Value Markets

Click here for our list of resources and grants for cooperatives.

Click here for information on Value Added Producer Grants, a competitive grants program administered by the Rural Business Cooperative Service at USDA to help producers move into value-added agricultural enterprises.


 
Our Work with Entrepreneurial Farmers and Ranchers

The Center for Rural Affairs has helped dozens of ag entrepreneurs and new cooperatives to organize in Nebraska, obtain grant funds for their development, and overcome the legal barriers to selling products. Products include natural and grassfed meat, ostrich byproducts, grapes, dairy products, plant-based soap, farm-raised trout, ecotourism, compost, meat processing facilities, and buffalo. Groups ranged from single farmers/ranchers to multi-state organizations. Our expertise resulted in shortened development time for organization startup, legal procedures and product development.


For more information on our work to create high-value markets, contact Wyatt Fraas, wyattf@cfra.org.