Posts Tagged ‘market value’

Fair Pricing

I know this is one issue that a lot of small farmers have dealt with, particularly those that sell at farmers’ markets and directly to the public in some way.  As direct-sellers, we are in the unique position of being able to set our own prices.  Obviously, we must work within a given range, or if we go much higher, there must be a really good reason for it.  So, we can go for Wal-Mart “organic” produce prices (which would be low, and, being in Wal-Mart, affordable), or, we can go for Whole Foods “organic” prices; or anywhere in between.

This year, I didn’t set out to tell people what they should be paying for produce; at least, I didn’t say it loudly.  At the markets, I set my price, lower if supply was relatively high, and vice-versa. Also, the other farmers price goes into the equation, inevitably.

Especially during these economic times, people are looking for a good deal.  I want to give that to them, but because I had a relatively small supply this year, I had to keep my prices a little higher.  So be it.

So, I’m going to 10 acres to increase supply and offer the vegetables at lower prices next year.  Supply-demand economics rule in this industry, as they do in any.  Listen, I’m no global capitalist, but I understand basic economics.  In farming, at least in the past 50 years, the bigger you are, the more money you make (kind of).  One acre…it’s hard to do it on one acre, although there are some stellar examples.

However, if you want to keep prices lower, and not feel, like I have felt, that you are gouging your community members, then you have to have more acreage, plain and simple.

Now, when I talk about lower prices, it’s not $1/lb for tomatoes.  No, that’s ridiculous, unfair to the farmer and the workers.  $2/lb.  That’s fair, in my eyes.  In fact, that’s more than fair in our long season in California (tomatoes prices should vary by region).  Anyway, somewhere in between Wal-Mart and Whole Foods “organic” prices should suffice.  Good luck to all the farmers out there.  I hope you can feel comfortable setting your prices.

Andrew