New York farmers often undercharge at markets. A new pricing report could help.
New York farmers often undercharge at markets. A new pricing report could help.
On a recent weekend, customers wandered from booth to booth at the local farmers market in Potsdam, New York, checking out local maple syrups and small-batch baguettes. Some people came for weekend groceries, hustling through the crowd carrying overstuffed canvas bags.
“How much for all of that?” a customer asked as he picked out a bunch of vibrant green onions and a couple of squash. “Four,” the farmer replied.
Small-scale farmers staff the booths. They come from the surrounding rural communities. Their produce is painstakingly grown, and when they come to the market, they have to figure out how to price it.
“Usually, I talk to the other vendors. I almost hate to say it, but I’ll go to Walmart and see what their prices are, too,” said Greg Hargrave. Hargrave grows vegetables in Madrid, NY.
“I do have to be competitive on things,” Hargave said. “But I’d like to think we have a better quality product than Walmart or whatever.”
Hargrave’s farm, Brandy-View Farm, is a small operation. It’s not Walmart-scale.
“A lot of this stuff is really labor intensive and it’s tough to try to figure everything out,” he said.
There are a lot of factors that go into pricing the colorful heirloom tomatoes or the bright green arugula that farmers like Hargrave bring to the market.
They weigh the cost of the equipment at the farm, the time it takes to weed and harvest, the gas to get produce to market and the commitment to run a booth, along with the competition from grocery stores.
Oftentimes, it leads to local farmers undercharging at the farmers market. Now, researchers want to help by giving farmers more data to make pricing decisions.
“[Farmers] can be nervous about setting the prices up where they really need to be,” said Matt LeRoux, an extension associate at Cornell University.
LeRoux and a team of researchers have created weekly pricing reports for farmers. Producers can look up items like honeynut squash, cherry tomatoes or eggs and see how much they’re selling for at farmers markets around New York State.
“The goal with all these price supports is to serve as a reference point for farmers who might be struggling with price setting,” he said. “[They’re] seeing what’s going on out in the marketplace, seeing what the prices are in stores, seeing what’s happening at other farmers markets in the state and using that to inform pricing.”
Farmers can sign up to be part of the project, and researchers connect to their point-of-sales system, Square.
Researchers collect the data and create weighted average prices for each item, and then post the reports online for free.
For farmers, these markets are not usually the way they pay their bills. They often rely on wholesale orders or community-supported agriculture subscriptions, LeRoux said.
But the markets are often great for connecting with the community. So, earning a little more could make them a better investment, he said.
“In other words, to give them a better day at the farmers market, because they’re going to be there for eight hours or six hours whether they make $400 or $800. So, we’re looking for how can we help them earn more in those hours?” LeRoux said.
These pricing reports pool the business experience of a lot of farmers across the state, and that can be especially helpful for beginners.
Morgan Leeson sells certified organic produce at a couple of markets in northern New York. She’s only been farming for a few years. Leeson said she’s relied on the advice of more seasoned farmers to help set her prices.
She asked the farmer in the booth next to her for his opinion on setting prices for individual items.
“I’ll look [at him] like, ‘What do you think I should charge for this pound of grapes? I’m thinking like $1 or $2,’ he’s like, ‘$5 dollars.’ He’s experienced, he knows what he’s talking about,” Leeson said.
Leeson said her prices are a bit higher than they were last year.
“I want to stay really fair to the people who are buying from me and keep it affordable, but also make sure I’m making enough to keep myself going, so I can keep serving the community,” she said.
Leesons said Cornell’s pricing tool will be of real help, especially over the winter when she hunkers down to work on her business plans.
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