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Direct Marketing

Direct marketing of farm products is on the rise. As of 2017, according to the U.S. Census of Agriculture, Maryland farmers sold upward of $54 million dollars worth of food directly. The COVID-19 pandemic has also changed buying habits and created a renewed interest in purchasing farm products directly from producers. Whether its sales at farmers’ markets, through a Community Supported Agriculture (CSA), direct sales to a store or restaurant, or through an online sales platform, many Maryland farmers are adopting new direct marketing channels and with these new opportunities come associated legal issues.

To help farmers be better prepared to navigate the legalities of direct farm marketing, ALEI at the University of Maryland Francis K. Carey School of Law, created a Legal Guide to Direct Farm Marketing for Maryland Specialty Crop Growers . The Guide is laid out in three main parts to address different areas of concern for growers engaged in various stages of direct marketing.

  1. Preparing to Direct Market
  2. Contracting
  3. Taking it Online

After hearing from Maryland farmers about how the COVID-19 pandemic resulted in many folks pivoting to online sales and having to choose the best online sales platform, the ALEI team consulted existing resources and used feedback from growers to create a companion resource to the Guide, a checklist entitled Considerations for Online Sales Platforms . This checklist will help farm businesses keep track of practical questions to ask when searching for an online sales platform for their operation.

ALEI legal specialists presented the topics in A Legal Guide to Direct Farm Marketing for Maryland Produce Growers in a series of webinars. You can watch a recording of the Legal Side of Direct Farm Marketing: Liabilities, Contracting, & Taking it Online below.

ALEI legal specialists also conducted a series of webinars about Harnessing Your Farm’s Story to Build a Successful Farm Brand. The topics of discussion were Branding Strategies from BIPOC Farmers, Building & Protecting Your Intellectual Property, and Legal Considerations for Digital Marketing from BIPOC Farmers. You can watch a recording of the three webinars below.

ALEI plans to continue its efforts to educate Maryland’s farmers to help them maintain and enhance their direct marketing efforts.  Other ALEI resources that are relevant to addressing legal needs when pursuing direct marketing channels are listed below.

Farmers Market Vendor Agreement Guide

Community Supported Agriculture (CSA) Resources

Agritourism Zoning Matrix created and updated in collaboration with the Russell Brinsfield Interns

Anyone with questions about these resources and education may contact Megan Todd (motodd@law.umaryland.edu) or Sarah Everhart (severhart@law.umaryland.edu), 410-458-2475.

Funding for A Legal Guide to Direct Farm Marketing for Maryland Produce Growers and the associated education was made possible by the U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service through grant AM190100XXXXG020. Its contents are solely the responsibility of the authors and do not necessarily represent the official views of the USDA.

On-Farm Value-Added Food Production

Value-added products are products that originate on the farm and are transformed into products worth more than the originally produced commodity. Farmers’ ability to make and sell value-added products opens up new revenue streams to specialty crop producers and allows greater adaptability in uncertain markets, as many experienced during the COVID-19 pandemic. 

The 2017 Agricultural Census was the first time the United States Department of Agriculture (USDA) attempted to measure the value of processed or value-added agricultural products. In Maryland, the amount of processed or value-added products reportedly sold in 2017 was $45 million, from only 506  farms. (2017 USDA Ag Census, Maryland Table 2). According to the Grow & Fortify 2020 Value-Added Agriculture Report, “Maryland’s Value-Added Agriculture (VAA) industry supports close to 74,000 jobs and brings a total economic impact of over $20.6 billion annually to the state’s economy.” 

Adding Value to Specialty Crops: Regulatory Decision Trees for Maryland Producers is a resource ALEI developed, in collaboration with UMCP and UMES, to help growers understand and navigate the regulations and agencies involved in legally processing foods into value-added products. Download the PDF resource at the link above, or review the decision trees using the Qualtrics-based online survey tools linked below with the option to print your specific results with expanded explanations of each output and links to further resources.

  • Food Safety Modernization Rule Applicability Decision Tree (link pending)
  • Processing License Decision Tree (based on type of food produced) (link pending)
  • Labeling Requirements Decision Tree (link pending)

Other resources that growers should reference in the development of their value-added food business plans and process plans are available through the University of Maryland Extension Farm Business Planning and Food Manufacturing  pages, and the MARBIDCO business planning and grant webpage. 

Funding for Adding Value to Specialty Crops: Regulatory Decision Trees for Maryland Producers and the associated education was made possible by the Specialty Crop Block Grant Program at the U.S. Department of Agriculture through grant. Its contents are solely the responsibility of the authors and do not necessarily represent the official views of the USDA.