WISCONSIN

2811 Agriculture Drive, PO Box 8911, Madison, WI 53708

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THIRD EDITION

Wisconsin Local Food Marketing Guide Publication Number: MK-DM-17 (rev.8/14)

WISCONSIN LOCAL FOOD MARKETING GUIDE

Wisconsin Department of Agriculture, Trade & Consumer Protection

Division of Agricultural Development

Buy Local, Buy Wisconsin

W I SCONSI N

LOCAL FOOD MARKETING GUIDE

A Producer¡¯s Guide to Marketing Locally Grown Food

Third Edition

Introduction

The Wisconsin Local Food Marketing Guide

publication was made possible through the

Wisconsin Department of Agriculture, Trade

and Consumer Protection and the Buy Local,

Buy Wisconsin program, which strives to

increase the sale of Wisconsin food products to

local buyers.

This publication builds upon the research

and efforts of the Minnesota Institute

of Sustainable Agriculture (MISA) and

their publication, Marketing Local Food.

This project¡¯s first installment was also

made possible by the north Central Risk

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 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

DATCPBLBW@

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.

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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.

HIGHLIGHTS OF ADDITIONS

Chapter 1:

New business development section

New section on social media and marketing

New section on registration and business contracts

Introduction

The first edition garnered the Wisconsin Library Association Government Roundtable¡¯s

Distinguished Document Award, and was one of twelve documents to receive the American

Library¡¯s Association¡¯s Notable State Government Document award.

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¡ªits farmers¡ªare 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.

Introduction

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

farm-fresh produce but also a connection to

the land on which it is grown. Studies have

shown that consumers are increasingly looking

for food diversity, freshness, and ties to food

producers.1

Consumers are rediscovering the bounty

grown in Wisconsin. From garden vegetables

to fruit trees; from honey and maple syrup

to meat products; from restaurant creations

sourcing local foods to simple, home-cooked

meals, a new food landscape is appearing on

Wisconsin¡¯s tables. As Wisconsin witnesses

and participates in this expansion of local

food production, a resurgence of textures and

flavors is surfacing to benefit both producers

and consumers.

The timing has never been better to enter the

local food production systems in Wisconsin.

Increased consumer demand, interest

in preparing healthy meals, information

availability, and expertise willingly shared with

new producers have changed the dynamics so

that small- and large-scale farmers, alike, can

thrive in the marketplace.

Recent polls and studies reveal the local food

trend. Nearly everyone, from local consumers

to large chain stores, is taking part at some

level. A 2008 survey found that 82 percent of

American consumers had purchased local food,

while only seven percent had not.2 According

to an analysis conducted by the U.S.

Food Marketing Institute. 2009. U.S. Grocery Shopper

Trends, Food Marketing Institute: Arlington, VA.

2

Onozaka, Y., Nurse, G., and D. Thilmany McFadden.

2010. ¡°Local Food Consumers: How Motivations and

Perceptions Translate to Buying Behavior.¡± Choices,

Vol. 25.

1

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WISCONSIN LOCAL FOOD MARKETING GUIDE

Department of Agriculture, many large retail

chains have made efforts to locally source their

products.3

This expanding demand has shown itself in

both direct and indirect markets. Between

2009 and 2010, the number of farmers markets

in the United States grew by 16 percent,

to 6,132 from 5,274.4 The 2007 Census of

Agriculture found that Wisconsin is home to

437 farms that market their products through

Community Supported Agriculture, ranking

seventh out of all fifty states. Restaurants

are also a large purchaser of local food: the

National Restaurant Association¡¯s 2008 ¡°fine

dining¡± operator survey found that 89 percent

of operators offered locally grown or locally

made items, and 90 percent believed local food

would become more popular in the future.

The range of local agricultural products

available has expanded as farmers have

responded to the public¡¯s interest in the food

appearing on their plates. As consumers¡¯ desire

to reconnect to their food drives their buying

choices, farmers are presented not only with

new opportunities to meet that demand, but

also an opportunity to tell the stories of their

farms, lifestyles, and philosophies.

These expanding markets provide excellent

potential for new and existing producers.

The scope of Wisconsin¡¯s production diversity

covers many areas, and each new producer

brings a unique set of skills and perspective to

the table.

Martinez, S. et al. 2010. ¡°Local Food Systems: Concepts, Impacts, and Issues.¡± U.S. Department of Agriculture Economic Research Report 97.

4

U.S. Department of Agriculture. 2010. ¡°USDA Announces that National Farmers Market Directory Totals

6,132 Farmers Markets In 2010.¡± News Release 0390.10.

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Table of Contents

WISCONSIN LOCAL FOOD MARKETING GUIDE

Introduction

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

Farmers Markets............................................................................................................ 42

Community Supported Agriculture ............................................................................ 47

Agritourism.................................................................................................................... 53

On-Farm Stores and Pick Your Own............................................................................ 58

Chapter 3....................................................................................................................... 62

Selling To Intermediate Buyers.................................................................................... 62

Restaurants and Grocery Stores................................................................................... 68

Institutional Food Service............................................................................................. 71

Distributors.................................................................................................................... 75

Chapter 4.................................................................................................................................. 78

Regulations.................................................................................................................... 78

Licensing, Labeling, and Regulation Requirements................................................... 79

State Requirements By Product and Market.......................................................... 83-96

What Is GAP/GHP?....................................................................................................... 97

Taxation, Insurance, Labor and Employement........................................................... 99

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