by For many years, direct-to-consumer (DTC) farming was out of reach for many small farms because buying from a farm was either too intimidating or inconvenient for most customers.
However, that’s changed. The rise of online sales and other technologies tailored for farm sales have made direct-to-consumer sales easier than ever. In turn, more farms are achieving financial independence and success by connecting directly to customers.
Is your farm ready to sell directly to customers? In this article, we’ll give you eight steps you can take to get started.
Why the Time To Jump Into Direct-to-Consumer Farming Is Now
Recent tariffs and government shakeups are creating uncertainty in the farming industry, especially for smaller, family-owned farms. However, direct-to-consumer sales provide, at least in part, some financial stability and an alternate revenue source that’s worth exploring.
Here are some of the top reasons to embrace DTC farming:
- Farms that offer DTC sales are less likely to fail and more likely to keep farming, according to the USDA.
- Farms with consistent DTC sales can create a revenue stream that weathers economic and policy uncertainty.
- Technology has made it significantly easier to reach more customers and offer a modern shopping experience.
- Farms that move into DTC instead of monocultures and other mass farming are better for the environment and more sustainable.
While changing up your business model can be intimidating, the benefits far outweigh the risks.
How To Set Up a Successful Direct-to-Consumer Farming Business in 8 Steps
Online sales, social media, and other technologies make it easier and more cost-effective for small farms to get into DTC sales. Here are eight steps to follow to find DTC success.
1. Create a Business Plan and Define Your Niche
Whether you’re starting a farm or pivoting an existing one to a new business model, it’s a good idea to have a plan.
Writing a business plan will give you a deep understanding of the industry, regulations, and financial requirements of DTC food sales. Most importantly, you can look at what other farms are doing locally and around the country and get inspired.
All of this will help you set realistic business goals and define your niche. By the end of writing a business plan, you should be able to confidently answer questions like:
- How much money will I need to start my business?
- What do I hope to achieve financially?
- What kind of technology will I need to run my business successfully?
- What makes my business different from other farms in my area?
- How will I manage my farm?
- How will I market my farm business?
In addition to being a north star for your farm business, a business plan is also a must if you plan to apply for any loans or grants.
2. Create a Website
The majority of farms sell to customers within a 100-mile radius, but that doesn’t mean your online presence isn’t important.
These days, most people find local businesses online, and just under half of all Google searches are for local information. In other words, if you’re not online, you’ll have a significantly harder time reaching new customers, whether local or otherwise.
The first step is to create a user-friendly farm website that shows people:
- Who you are and your story
- What you sell and how to buy it (along with mouth-watering pictures)
- How to find you and contact information
Make sure to update your Google Business Profile if you have a physical location to ensure you show up in local search and on Google Maps.
If you plan to sell online (more on why you should below), use an e-commerce platform that supports inventory tracking and variable weight sales.
3. Post on Social Media and/or Write a Blog
Unlike the marketing campaigns of large companies, the goal of small business marketing isn’t to create viral content or bring in huge waves of shoppers, but to give your business a relatable face that customers can trust.
Social media and farm blogs are a compelling, cost-effective way to showcase your personality and expertise.
Not sure what to post about? Here are some ideas:
- Post recipe ideas and cooking advice for different products you sell (with a link to where to buy them)
- Show your farm and your daily routine
- Introduce your staff and family to the community
- Tell people how you got into farming and what you’ve learned
- Highlight seasonal deals or short-term promotions
- Educate people on sustainable farming practices
To get the most out of your online marketing, post regularly (once a week for a blog, and two to three times a week for social). This will make you more likely to show up on searches and in people’s feeds.
4. Sell Your Products Online
While there’s nothing wrong with a physical farm store, you’ll miss huge sales opportunities if you don’t sell online.
Remember, selling online isn’t the same as not selling locally. In fact, the majority of your customers may very well be in your community. Instead, online sales just make it that much easier for people to sample your products without physically going out of their way.
Modern e-commerce tools allow farms to offer a streamlined shopping experience that rivals any major supermarket or food subscription service.
Start simple with standard cuts and products by the pound. As you get more comfortable (and if your e-commerce solution supports it), you can offer more sophisticated products like subscription boxes or curated product bundles.
5. Use Inventory Management Software
Back in the day, many people who bought directly from farms wanted custom cuts of meat or had very specific orders. However, today’s consumers are used to the convenience of a supermarket.
Instead of giving yourself more work, create standard products and track them in an inventory management system. This software will help you track how many items you have in stock, average weights, and their cost. This will help you:
- Optimize inventory levels
- Identify bestsellers and slow-moving inventory
- Build the foundation for online sales
- Keep track of perishable inventory
Modern inventory management solutions will also connect your in-store and online inventory, ensuring customers always know exactly what you have in stock.
Related Read: What Is Farm Inventory? 6 Fundamentals for Retail
6. Know Your Worth
People go to supermarkets to get meat and produce that’s just good enough. They go to farms to get high-quality and luxury products — and you should be pricing your items appropriately.
In our experience, we constantly see small farmers undervaluing their products. Now, what we don’t think you should do is simply raise the price of everything you sell. That’s a recipe for disaster, especially since the cost of living is on the rise.
Instead, you should look at what your competitors are doing (and the quality of their products, your sales data, and your cost of goods sold (COGS) to make strategic pricing decisions.
For example, you may find you can still achieve a healthy profit margin at a lower price on easy-to-prepare items like ground beef compared to T-bone steaks and more luxury items. In other words, consider prices on an item-by-item basis.
A data-driven approach to pricing strategy will ensure you maintain a healthy profit margin without putting customers off your brand.
7. Make Local Connections
Local businesses can achieve more when they work together, and there are many ways you can create recurring revenue streams while supporting other small businesses.
Reach out to local grocers, general shops, butcher shops, and restaurants to see if they’re interested in sourcing ingredients from your farm. Remember, before you make any commitments, you’ll be expected to fulfill your recurring orders before individual sales, so don’t make deals that limit your opportunities.
If you are selling to delis or restaurants, make sure to send over product labels or signage that include your logo to increase brand awareness.
8. Consider Agritourism
Agritourism (providing tours of your farm) is another method to directly connect with customers and build trust in your brand.
That said, it can be hard to find the time to show people around while you have tasks to do, shipments to fulfill, or a physical storefront to run. We recommend having certain days for tours and booking them in advance.
Balance your farm tours with education and fun. Prepare food using your fresh produce or meat, and give people a chance to see what makes you special.
Promote your tours on social media and your website to generate interest in advance. You can also give attendees exclusive discount codes to use at your store or on your website. This will give you a way to measure whether your tours are generating additional revenue.
Related Read: 6 Strategies To Retain Farm Store Customers
Simplify the Way Your Farm Store Sells Online With GrazeCart
Direct-to-consumer farming provides an exciting opportunity for independent farms to connect directly with people in their local communities, find financial independence, and promote sustainable farming practices.
However, the face of small local businesses has changed. People aren’t searching through the Yellow Pages for a farm store — the vast majority find them online. That means it’s more important than ever to build an online presence and embrace e-commerce.
GrazeCart was built specifically by farmers for farmers to simplify online food sales. Pairing the simplicity of no-code website builders with powerful sell-by-weight and subscription selling features, GrazeCart has everything farm stores need to offer a modern, seamless shopping experience.
Try your free 14-day GrazeCart trial today to see how easy it is to start your direct to consumer farming journey.