WISCONSIN LOCAL FOOD MARKETING GUIDE WISCONSIN LOCAL FOOD MARKETING GUIDE Wisconsin Department of Agriculture, Trade & Consumer Protection Division of Agricultural Development Buy Local, Buy Wisconsin 2811 Agriculture Drive, PO Box 8911, Madison, WI 53708 [email protected] datcp.wi.gov THIRD EDITION A Producer’s Guide to Marketing Locally Grown Food Wisconsin Local Food Marketing Guide Publication Number: MK-DM-17 (rev.8/14) Third Edition The Wisconsin Local Food Marketing Guide This publication builds upon the research publication was made possible through the and efforts of the Minnesota Institute Introduction Wisconsin Department of Agriculture, Trade of Sustainable Agriculture (MISA) and and Consumer Protection and the Buy Local, their publication, Marketing Local Food. Buy Wisconsin program, which strives to This project’s first installment was also increase the sale of Wisconsin food products to made possible by the north Central Risk local buyers. Management Education Center and continued through the Buy Local, Buy Wisconsin program funding. Copyright 2014, Wisconsin Department of Agriculture, Trade and Consumer Protection, Publication MK-DM-17 The publication is also available online at http://datcp.wisconsin.gov Search “Local Food Marketing Guide” Additional copies of the publication can be obtained by contacting: Wisconsin Department of Agriculture, Trade and Consumer Protection- Buy Local, Buy Wisconsin Program 2811 Agriculture Drive, PO Box 8911, Madison, WI 53708-8911 [email protected] This information and content is provided for educational purposes only. Reference to any commercial products, trade names or specific individuals is made with the understanding that no discrimination is intended and no endorsement by the Wisconsin Department of Agriculture, Trade and Consumer Protection is implied. Sections on Other Considerations for Setting up a Local Farm Business; Intellectual Property; and Taxation, Insurance, Labor, and Employment credited to and copyright shared with Rachel Armstrong- Executive Director and Attorney, Farm Commons and A. Bryan Endres- Professor of Agricultural Law, University of Illinois. 2 WISCONSIN LOCAL FOOD MARKETING GUIDE INTRODUCTION PUTTING A FACE AND A PLACE TO FOOD: LOCAL FOOD BRINGS RESURGENCE OF NEW AGRICULTURALISTS The Wisconsin Department of Agriculture, Trade and Consumer Protection is proud to present the third edition of the award-winning Wisconsin Local Food Marketing Guide. The Wisconsin Local Food Marketing Guide is intended as a resource for farmers and producers. It will acquaint you with some of the opportunities you can use to market your food products. You will learn from those who pioneered innovative production and marketing approaches. Understanding what’s involved in local food marketing will better prepare you for success. The first edition garnered the Wisconsin Library Association Government Roundtable’s Introduction Distinguished Document Award, and was one of twelve documents to receive the American Library’s Association’s Notable State Government Document award. HIGHLIGHTS OF ADDITIONS Chapter 1: New business development section New section on social media and marketing New section on registration and business contracts Chapter 2: New information on sales tax and food sampling laws for farmers markets New section on agritourism trails Chapter 3: New information and resources in grocery section New section on farm to school Chapter 4: Updated regulations From farmers markets to community supported agriculture, from artisan cheeses to branded meats, Wisconsin’s original entrepreneurs—its farmers—are reinvigorating agriculture in the state. These progressive farmers are transforming the landscape and culture of agriculture. Their influence is affecting how food is grown and how new food systems will be built. They are an important piece of Wisconsin agriculture, complementing the successful commercial agricultural industries built in Wisconsin. In the past, more people had a connection to the land as producing food was a necessity of life. Communities created festivals around the planting and harvesting seasons, beseeching good crops and bountiful harvests. Their lives and the lives of their neighbors were intimately connected to the harvest yields produced from their efforts. In the past century, as rural populations gravitated toward urban centers, many of the WISCONSIN LOCAL FOOD MARKETING GUIDE 3 connections people traditionally had with the land became strained and even broken. Today, the average U.S. citizen is three generations removed from production agriculture. Without the direct connection to growing food themselves, consumers have begun expressing an interest in knowing where and how their food is produced and grown. This desire to make a food connection has linked food producers and consumers. Local food production is a groundswell sweeping across the state’s countryside and inside urban areas, creating opportunities for Wisconsin farmers. New customers are streaming to farmers markets, seeking not only Department of Agriculture, many large retail farm-fresh produce but also a connection to chains have made efforts to locally source their 3 the land on which it is grown. Studies have products. shown that consumers are increasingly looking This expanding demand has shown itself in for food diversity, freshness, and ties to food both direct and indirect markets. Between producers.1 2009 and 2010, the number of farmers markets Consumers are rediscovering the bounty in the United States grew by 16 percent, 4 grown in Wisconsin. From garden vegetables to 6,132 from 5,274. The 2007 Census of to fruit trees; from honey and maple syrup Agriculture found that Wisconsin is home to to meat products; from restaurant creations 437 farms that market their products through sourcing local foods to simple, home-cooked Community Supported Agriculture, ranking meals, a new food landscape is appearing on seventh out of all fifty states. Restaurants Wisconsin’s tables. As Wisconsin witnesses are also a large purchaser of local food: the and participates in this expansion of local National Restaurant Association’s 2008 “fine food production, a resurgence of textures and dining” operator survey found that 89 percent flavors is surfacing to benefit both producers of operators offered locally grown or locally and consumers. made items, and 90 percent believed local food Introduction would become more popular in the future. The timing has never been better to enter the local food production systems in Wisconsin. The range of local agricultural products available has expanded as farmers have Increased consumer demand, interest responded to the public’s interest in the food in preparing healthy meals, information appearing on their plates. As consumers’ desire availability, and expertise willingly shared with to reconnect to their food drives their buying new producers have changed the dynamics so choices, farmers are presented not only with that small- and large-scale farmers, alike, can new opportunities to meet that demand, but thrive in the marketplace. also an opportunity to tell the stories of their farms, lifestyles, and philosophies. Recent polls and studies reveal the local food trend. Nearly everyone, from local consumers These expanding markets provide excellent to large chain stores, is taking part at some potential for new and existing producers. level. A 2008 survey found that 82 percent of The scope of Wisconsin’s production diversity American consumers had purchased local food, covers many areas, and each new producer while only seven percent had not.2 According brings a unique set of skills and perspective to to an analysis conducted by the U.S. the table. 1 Food Marketing Institute. 2009. U.S. Grocery Shopper 3 Martinez, S. et al. 2010. “Local Food Systems: Con- Trends, Food Marketing Institute: Arlington, VA. cepts, Impacts, and Issues.” U.S. Department of Agricul- 2 Onozaka, Y., Nurse, G., and D. Thilmany McFadden. ture Economic Research Report 97. 2010. “Local Food Consumers: How Motivations and 4 U.S. Department of Agriculture. 2010. “USDA An- Perceptions Translate to Buying Behavior.” Choices, nounces that National Farmers Market Directory Totals Vol. 25. 6,132 Farmers Markets In 2010.” News Release 0390.10. 4 WISCONSIN LOCAL FOOD MARKETING GUIDE Table of Contents Chapter 1 ........................................................................................................................7 Gathering Information .................................................................................................. 7 Business Decisions and Planning .................................................................................. 9 Other Considerations for Setting Up a Local Farm Business ................................... 15 Farm Registration Requirements ................................................................................ 18 Environmental Issues ................................................................................................... 20 Setting Prices for Various Markets .............................................................................. 23 Business Development ................................................................................................. 26 Adding Value To Your Products .................................................................................. 35 Chapter 2 ......................................................................................................................42