Opportunities to buy food directly from farmers, in urban and rural areas, have increased considerably in recent years. The number of farms that sold food at roadside stands, farmers’ markets, pick-your-own farms, onfarm stores, and community-supported agricultural arrangements increased 24 percent between 2002 and 2012. Economists at the Economic Research Service (ERS) have found that farmers who market goods directly to consumers are more likely to remain in business than those who market only through traditional channels.
Farmers face many business risks, including fluctuations in prices and yields. ERS looked at Census of Agriculture data showing that 61 percent of farms with direct-to-consumer (DTC) sales in 2007 were in business under the same operator in 2012, compared with 55 percent of farms without DTC sales. In a comparison of farms across four size categories (defined by annual sales in 2007), farmers with DTC sales had a higher survival rate in each category. The difference in survival rates ranged from 10 percentage points among the smallest farms to about 6 percentage points among the largest.
