Farm Participants and Agroecological Regions
Study Results
Persistence of Florida’s Small Organic Farms in the Face of Growing Demand for Organic Products Lindsay Fernandez-Salvador
Pathways to Success in Florida’s Organic Market
Characteristics of Successful Farms Definition of farm success
Aspect of Operation Farms makes net profit (on average) of $20,000 annually Farm provides half of household’s employment Farm provides full household employment I am able to expand in acreage/machinery/infrastructure Farm provides lifestyle myself and my family enjoy * This study asked participants to rate various aspects of their farm operation in terms of success Answer were averaged to give an overall “success score”
Farm and Success Score
6
Results show that farms between 1 and 10 acres and over 600 acres have the highest success. One reason this could happen is
because production on 10 acres or less is enough to satisfy the local markets, and production on 600 acres or more have the capacity to meet national and international demand. Farm operations between those size categories experience a situation in which they have too much product for the local market and not enough to successfully compete in the wholesale market.
Success Score
5 4 3 2 1 0 1� 6.00
10�
100�
1000�
Size of Farm (Acres)
Time Farming Organic
Success Score
5.00 4.00 3.00 2.00
Predictably, success increases as farmers gain experience farming organically. Some of
1.00 0.00 o�
5�
10
15
20�
the reasons for this include gaining familiarity with methods and products that work for pest issues, establishment of customer base, and brand recognition. On the other hand, results show that success decreases the more experience a grower has farming conventionally (or non-certified). One possibility for this trend could be that long-time conventional farmers encounter difficulties adjusting to the size of the organic market and the marketing strategies.
25�
Time (vrs)
Success Score
6.00
Time Farming Conventionally
5.00 4.00 3.00 2.00 1.00 0.00 o�
10�
20�
30
Time (vrs)
40�
50�
60
10000
Very Successful Direct-Retail Market Chain
Farm CSA
Farm
Farmer’s Market
Cooperative
Other Farm’s CSA
Very Successful Wholesale Market Chain Creating a value-added product through intermediate processing is another pathway to success. For
example, a pint of organic strawberries costs $2 on the market. The same pint of strawberries processed into organic jam costs $5 on the market.
Wholesale Distributors Raw product from contracted small acreage holders
On-Site Processing Plant
Farm On-Site Fresh Product Packing House
Other natural food stores ( e.g. Mother Earth)
e.g Wholefoods
Conventional Grocery Distribution Chairns
e.g Publix
e.g Wal-Mart
Characteristic
Successful Farms
Struggling Farms
Business strategy
Relies on ‘social contract’
Has no ‘social contract’
Off-farm inputs
Controls cost by minimizing use
Uses inputs regularly
Access to market
Diversifies sales outlets
Relies on one or two outlets
Years farming organic vs. conventional
More time organic
More time conventional
Type of crop
‘High end edibles’*
Mono crops (i.e. citrus)
Size of farm (acres)
<5 acres or >100 acres
Between 10 and 100 acres
Principle market strategy
Direct-retail
Wholesale
* Examples of high-end edibles include micro-greens, rare vegetables and fruits and delicate export items.
Factors that Help and Hinder Farm Success Threats and contributions to farmâ&#x20AC;&#x2122;s success
Cert Standards 16%
Inputs 36%
Labor 19%
Competition 29%
Factors Contributing to Farm Success
Consumer Preferences 42% Premiums 23%
Lindsay Fernandez-Salvador
riedlinl@ufl.edu
Study funded by Organic Farming Research Foundation. Thank you to all the participating organic farmers.