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market-farming - RE: [Market-farming] charging what the market will bear

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  • From: "Rick Williams" <mrfarm AT frontiernet.net>
  • To: <market-farming AT lists.ibiblio.org>
  • Subject: RE: [Market-farming] charging what the market will bear
  • Date: Tue, 4 Feb 2003 14:48:15 -0600

Errol Castens wrote:
> One of the things I'd like to see happen in our local farmers' market this
> year is for growers to realize how important it is to charge prices that
> reflect the value in their food and flowers. One back yard grower with a
> shirttail full of produce or a few bouquets who undercuts everybody else
> under the philosophy of "Oh, I'm not trying to make a profit -- I
> just enjoy
> it!"

Which goes to show that niche markets are no different than "conventional"
markets in that the lowest price does dilute the overall price. Hopefully
not too much;)

We definitely see this with beef producers. Most of the beef in the U.S. is
initially raised on small farms. The typical beef operation is perhaps 50
cows. This is a supplementary living at best and sometimes more of a hobby.
I personally know a number of these folks and no matter what the price, they
will continue to produce their yearly crop.

Do they affect the market? Profoundly. If you only allowed those who were
making their living from farming/ranching, there would be very few and the
prices would rise to meet the lower production that would result ... until
equilibrium was reestablished, but at a higher price point.

Farmers can "price fix" in a way, in that they are exempt from some of the
laws that govern other entities since they can form cooperatives that set
the price collectively without going to jail, due to the Capper Volstad Act.
But even with this power, farmers have not been able to succeed in
overcoming the market forces.

> I'm not aiming at price fixing, just encouraging realistic (read
> "profitable") pricing. We have the clientele to support it. Any
> ideas how we
> can approach it -- perhaps while we do our preseason farm/garden
> visits? Any
> specifics that we can "preach" at our growers?

This would be very risky business indeed to "suggest" that someone sell at a
certain price point and charges could be brought toward those who try any
hint of coercion. Even if you did not consider it coercion, it could easily
be construed as coercion. So you would want to use extreme care.

Imagine if some people came to your table or to your farm to "talk" to you
about your prices and how they did not feel they were appropriate.

Some farmers might be contacting the Sheriff after that "visit."

Sincerely,

Rick Williams
Misty Ridge Farm
Direct marketed dairy beef and produce
(also dairy heifers and beef stockers)
Viroqua, WI






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