Journal of the NACAA
ISSN 2158-9429
Volume 4, Issue 1 - June, 2011

Editor:

Variation between Urban And Rural Farm Direct Market Customers

Coffin, D. R., Extension Professor, University of Maine Cooperative Extension
Cheng, HT, Associate Professor, University of Maine

ABSTRACT

A survey of 393 people provided an overview of consumers’ accessibility, opinions and behaviors towards farm direct marketing outlets in rural and urban areas. The maximum distance consumers are willing to travel to farm direct market is 12 miles.  These consumers learn about farm direct markets primarily though newspaper, roadside signs or word of mouth. Urban respondents favor farmers’ markets over farm stands and tailgate markets. Rural respondents favor farm stands and pick-your-own direct markets over farmers’ markets. Urban consumers tend to spend more at farmers’ markets than rural consumers.  Quality, freshness, locally grown and desire to help local farmers are the top reasons for shopping at farmers’ markets and other farm-direct markets.  More urban consumers identified convenience as reason for shopping at tailgate and farmers’ markets than that of rural respondents. The major findings of this study indicate that farmers’ markets located in an area where a large number of consumers have easy access and opens in regular hours is more likely to succeed.  The directions to farm direct market outlets and open hours should be provided in the ads as clear as possible. In addition, the acceptance of other payment methods (such as personal checks and food stamps) and readily available information about the market add convenience to consumers. 


Method

In 2003, a survey of consumers in a rural county and its adjacent urban area was conducted to gather information on a number of farm direct market issues and characteristics of consumers visiting the farm direct markets.

Four types of farm direct markets were considered in this survey: farm stand, tailgate market, pick-your-own market, and farmers’ market.

The questionnaires were mailed to a random sample of four thousand households (2000 rural and 2000 urban residents) in the fall of 2003.

There were 393 usable responses for a 9.8% return rate. The length (21 questions and 8 pages) of the mailed questionnaire could have contributed to the lower response rate. Rural residents contributed 5.2% of responses while urban respondents contributed 4.7%.

6.1% of total respondents reported there was someone in their household who participated in the Senior Farm Share program (participant able to purchase up to $100 fresh produce from participating farmer through a voucher.) A statistically significant higher proportion of rural consumers (10.4%) reported someone in their household participated in this program than that of the urban respondents (1.61%). 2% of the respondents reporting someone in their household participated in the WIC program (rural 1.45%, urban 2.69%).

Results

How they find farm direct markets

Table 1 shows that consumers got farm-direct market information mainly from newspapers, roadside signs and word-of-mouth. The following statistically significant observations were found: more urban consumers reported that they learned about farmers’ markets from roadside signs, word-of-mouth, television and newspaper than rural respondents. More rural consumers reported that they learned about farmer stands from roadside sign word-of-mouth, radio, and newspaper than urban respondents. Also, more rural residents learned about pick-your-own from roadside signs than that of urban respondents. More urban respondents learned about tailgate markets from roadside signs and word-of mouth than rural respondents. 

Table 1: Information source of farm-direct markets

Media

Farmer’s Market

Farm Stand

Rural

Urban

Chi. Sq.

Rural

Urban

Chi. Sq.

Newspaper

23%

39%

11.89*

38%

23%

10.53*

Radio

6%

10%

1.56

11%

4%

5.56*

Roadside Sign

24%

50%

28.27*

71%

56%

9.67*

Television

4%

11%

7.02*

6%

5%

0.15

Direct Mail Piece

2%

1%

1.52

0%

2%

1.24

Word of Mouth

17%

46%

38.08*

57%

40%

11.63*

Internet Site

0%

0%

 

0%

0%

 

Restaurant Placement

3%

2%

0.22

1%

1%

0.11

Farmer to Consumer Directory

1%

2%

0.28

3%

1%

1.63

Don’t know of any

7%

2%

5.53*

3%

7%

3.56

Other

0%

1%

2.24

1%

1%

0.81

Media

Pick-Your-Own

Tailgate Market

Rural

Urban

Chi. Sq.

Rural

Urban

Chi. Sq.

Newspaper

33%

38%

1.21

2%

5%

2.59

Radio

17%

13%

1.16

0%

1%

0.45

Roadside Sign

43%

27%

12.93*

14%

26%

7.88*

Television

11%

14%

0.74

0%

2%

2.17

Direct Mail Piece

2%

2%

0.06

0%

0%

 

Word of Mouth

34%

28%

1.83

8%

14%

4.01*

Internet Site

0%

0%

 

0%

0%

 

Restaurant Placement

2%

1%

1.52

0%

0%

 

Farmer to Consumer Directory

0%

1%

2.24

0%

0%

 

Don’t know of any

2%

6%

5.12*

7%

11%

2.47

Other

0%

2%

1.24

0%

1%

0.45

* indicates statistical significance at .05 probability level.

 

How far they will travel to farm direct markets

 Table 2 shows the maximum average distance respondents were willing to travel to farm-direct markets was 12 miles. The following statistically significant observations were found: More urban consumers (73%) reported their distance to farmers’ markets than that of rural respondents (28%), but the distance of urban consumers was 3.54 miles compared to that of rural respondents at 15.41 miles.  More rural consumers (82%) reported distance to farm stands than that of urban respondents (56%). More urban consumers (32%) reporting the distance to tailgate markets than that or rural respondents (20%).  The proportions of rural (50%) and urban (49%) consumers reporting the distance to pick-your-our farms were statistically the same. 

There was a statistically significant higher proportion of urban consumers (92%) reporting the maximum distance they were willing to travel to farm direct markets than that of the rural respondents (90%).  But rural consumers (13.85 miles) were willing to travel further than urban consumers (10.55 miles). 

Table 2: Distance to outlets and maximum distance willing to travel

 

Rural

Urban

Chi-square

All

Average distance (miles)

Response rate

Average distance (miles)

Response rate

Average distance (miles)

Response rate

Farmers’ market

15.41

28%

3.54

73%

152.45*

7.07

49%

Farm stand

7.49

82%

7.27

56%

64.52*

7.52

70%

Pick-your-own

11.48

50%

12.74

49%

34.16

11.95

49%

Tailgate market

10.71

20%

4.23

32%

45.38*

6.87

26%

Max. millage to travel

13.85

90%

10.55

92%

43.97*

12.27

91%

* indicates statistical significance at .05 probability level.

 

Why they buy from farm direct markets

A larger proportion of urban consumers responded to reasons for shopping at farmers’ markets (65%), and tailgate markets (30%).  A larger proportion of rural consumers responded to reasons for shopping at farm stands (84%) and pick-your-own operations (46%.)

Table 3 is consistent with previous studies, showing consumers top reasons for shopping at farmers’ markets by were “freshness”, chosen by 79% of respondents. The second reason was “locally grown”, chosen by 76% of respondents. These were followed by “quality” and “help local farmers,” chosen by 72% and 71% respondents respectively. There were significantly higher proportions of urban consumers who chose the reasons “convenience” and ”volume” as reasons for shopping at farmers’ market than that of rural respondents.

Top reasons for shopping at pick-your-own markets were “freshness,” “quality,” “locally grown,” “value for money.” Significantly more urban respondents chose “special events,” “help local farmers,” “locally grown,” and “atmosphere” as reasons for purchasing at pick-your-own operations than rural residents.

Table 3: Reasons for shopping at farm-direct markets (percentage of respondents)

Criteria

Farmer’s Market

Farm Stand

Pick-Your-Own

Tailgate Market

Rural

Urban

Rural

Urban

Rural

Urban

Rural

Urban

Convenience

15*

34*

36

34

17

19

23*

45*

Value for the money

48

35

47

44

61

62

38

52

Quality

65

75

71

79

64

65

63

70

Selection

31

40

28

23

14

21

18

20

Volume

4*

14*

9

13

26

27

8

13

Appearance of products

43

50

47

50

29

40

38

46

Help Local Farmers

67

73

73

77

49*

71*

63

68

Nutrition

56

55

55

55

42

49

55

50

Freshness

72

82

82

82

66

77

73

73

Locally Grown

70

79

78

82

53*

73*

63

73

Canning/Freezing

17

14

24

16

35

32

13

20

Atmosphere

30

37

22

29

19*

35*

18

18

Special Event

19

17

5

10

4*

25*

5

11

Homemade Foods

22

26

13*

23*

6

10

10

18

Crafts

13

13

3

7

0

3

3

11

Flowers

24

21

11

18

7

6

15

11

Precut/Packaged Produce

4

4

2

4

0

4

3

5

Shrubs

15

8

7

8

3

3

3

4

* indicates statistically significant difference between rural and urban response at a .05 probability level.

 

Why they don’t buy from farm direct markets

Table 4 shows the top reasons for not shopping at farmers’ markets were “limited hours” chosen by 36% of respondents, followed by “high price” chosen by 24% respondents. Next reason chosen was “inconvenient location”. 

Table 4: Top four reasons for not shopping at farm direct markets (percentage)

Farmer’s Market

Farm Stand

Rural

Urban

Rural

Urban

Don’t know any in my area

29

Limited hours

54

Raise my own garden produce

30

Don’t know any in my area

27

Raise my own garden produce

25

High Prices

36

High prices

25

Limited hours

27

Inconvenient location

22

Inconvenient location

18

Limited variety

22

Inconvenient location

22

Too far

15

Don’t accept food stamps

16

Limited hours

18

Limited variety

20

Pick-Your-Own

Tailgate Market

Rural

Urban

Rural

Urban

Raise my own garden produce

37

Too far

28

Don’t know any in my area

32

Don’t know any in my area

41

Inconvenient location

23

Raise my own garden produce

22

Raise my own garden produce

32

Limited hours

23

Too far

15

Don’t accept credit/debit cards

21

Inconvenient location

17

Don’t accept credit/debit cards

16

Limited hours

12

Don’t know any in my area

19

Limited hours

14

Raise my own garden produce

16

 

What they buy at farm direct markets

Table 5 indicates that fruits & vegetables are the most popular items chosen by consumers at farm direct markets. A statistically significant higher proportion of rural consumers were more likely to purchase fruits (61%) and vegetables (80%) from farm stands than that of urban consumers.  And a higher proportion of urban consumers were more likely to purchase these from farmers’ markets (54% & 64%) and tail gate markets (26% & 30%) than rural respondents. Organic produce and flowers were popular items consumers purchased from farm stands and farmers’ markets.

Table 5:  Top four items more likely to be purchased from farm-direct markets

Farmer’s Market

Farm Stand

Rural

Urban

Rural

Urban

Vegetables

22*

Vegetables

64*

Vegetables

80*

Vegetables

64*

Fruits

15*

Fruits

54*

Fruits

61*

Fruits

49*

Organic produce

11*

Organic produce

29*

Eggs

25

Flowers

23

Eggs

9*

Homemade foods

27*

Flowers

24

Organic produce,

Eggs

20

Pick-Your-Own

Tailgate Market

Rural

Urban

Rural

Urban

Fruits

47

Fruits

47

Vegetables

15*

Vegetables

30*

Vegetables

14

Vegetables

16

Fruits

10*

Fruits

26*

Organic produce

4

Organic produce

5

Organic produce

5

Organic produce

10

Flowers

3

Flowers

4

Flowers

5

Flowers

8

* indicates statistically significant difference between rural and urban response at a .05 probability level.

Table 6 shows the top items respondents indicated that they purchased directly from farmers were apples (70%), sweet corn (64%), berries (50%), squash & pumpkin (44%), potatoes (40%), tomatoes (37%) and cucumbers (32%). A statistically significant higher proportion of urban consumers were most likely to purchase tomatoes (47%) directly from farmers than that of rural respondents and a higher proportion of rural respondents were more likely to purchase sweet corn (69%), dry beans (14%), and milk (8%) directly from farmers than urban respondents. 

Table 6: Five products most likely to purchase directly from farmers (percentage)

Rural

Urban

Apples

74

Apples

67

Sweet Corn

69*

Sweet Corn

58*

Berries

50

Berries

51

Potatoes

45

Tomatoes

47*

Squash & Pumpkin

44

Squash & Pumpkin

44

Tomatoes

29*

Potatoes

35

Cucumber

29

Cucumbers

35

Maple Syrup

25

Fresh Beans

22

Bedding Plants

21

Beet Greens

20

Fresh Beans

18

Maple Syrup

18

Beet Greens

17

Eggs

18

* indicates statistically significant difference between rural and urban response at a .05 probability level.

 

How much they spend at farm direct markets

Table 7 shows that a statistically significant difference in the number of urban consumers reporting expenditures at farmers’ market.  Double the number of urban consumers responded on all three levels of spending than that of rural respondents. And a higher number of urban respondents is noted on expenditures of less than $10 at tailgate market than that of rural respondents. There were a higher proportion of rural consumers who reported their expenditure from $10 to $19.99 at farm stands than that of urban respondents. 

43% of respondents reported spending less than $10 at farm stands, 30% reported spending between $10 and $19.99 and 4% spent over $20 at farm stands. At farmers’ markets 24% reported spending less than $10, 20% between $10 and $19.99 and 8% over $20. 

Table 7: Fresh food expenditure at farm-direct markets (percentage)

 

 

Less than $10

$10 to $20

Over $20

Farmers’ market

Rural

14.5*

9.7*

4.8*

Urban

33.9*

30.6*

12.9*

Farm stand

Rural

46.4

34.8*

4.3

Urban

38.7

23.7*

4.3

Pick-you-own

Rural

16.4

27.1

10.6

Urban

16.7

22.0

8.1

Tailgate market

Rural

12.1*

5.3

0.5

 

Urban

22.0*

9.1

1.1

* indicates statistically significant difference between rural and urban response at a .05 probability level.

Table 8 no statistically significant difference was found between urban and rural consumers reported seasonal expenditures on fruits & vegetables or meats. 20% of consumers reported spending less than $10 per week for fruits & vegetables, 35% consumers reported spending $10 to $20 per week during the growing season and 27% reported this spending level the rest of the year.  36% reported spending over $20 per week on fruits & vegetables.

This is compared to 15% of consumers reporting spending less than $10 per week for meat, 31% who reported spending $10 to $20 per week and an average of 33% who reported spending over $20 per week on meat. 

Table 8: Family average weekly expenditure on food

Expenditure per week

Fruits and Vegetables

Up to $10

$10 to $20

Over $20

Rural

Urban

Rural

Urban

Rural

Urban

During Growing Season

(June to October)

23

16

35

35

32

41

During the rest of the year

(November to May)

19

20

23

31

37

38

 

Meat

Up to $10

$10 to $20

Over $20

Rural

Urban

Rural

Urban

Rural

Urban

During Growing Season

(June to October)

15

16

28

35

31

30

During the rest of the year

(November to May)

15

13

28

34

36

31

 

Livestock Products

Up to $10

$10 to $20

Over $20

Rural

Urban

Rural

Urban

Rural

Urban

During Growing Season

(June to October)

20

26

16

16

13

15

During the rest of the year

(November to May)

19

24

13

15

18

16

Differences between rural and urban respondents are not statistically significant at a 5 percent significance level.

 

Other product attributes

Table 9 showed no statistically significant difference was found between urban and rural respondents with respect to willingness to buy and/or pay more for special foods. 49% would be likely to purchase organic foods and 32% reported a willingness to pay more for organic foods. 40% would be likely to purchase hormone free foods, 30% GMO[1] free foods and 33% items raised on range.  24% were willing to pay more for hormone free foods, 19% GMO foods and 22% would pay more for foods raised on range.

Table 9: Would like to buy and would be willing to pay more for special foods (percentage of respondents)

 

Organic

Hormone Free

Rural

Urban

Rural

Urban

Would likely purchase

47

51

39

41

Would be willing to pay more

33

30

25

23

 

GMO Free

Raised on Range

Rural

Urban

Rural

Urban

Would likely purchase

28

32

31

34

Would be willing to pay more

18

19

23

20

  

Factor Analysis

Consumers’ Reasons for Shopping

Factor analysis was used to analyze the underlying consumers’ reasons for going to farm stands and farmers’ markets using the 18 reasons for shopping in table 10.  Factor analysis was used to reduce the number of these criteria and find the common factors that influence consumer decision to shop or not shop at farm direct marketing outlets. 

 Urban respondents clearly have two primary reasons in mind for shopping at farm stands and farmers’ markets: “locally grown” and “help local farmers.” The “local choice” factor has different meaning and importance to rural and urban consumers. 

The first factor does not always include the highest response reasons for shopping.  The first common factor affecting respondents’ choices for shopping at farmers’ markets is “Specialty products” instead of Quality or Local choice factors that have high responses. Possibly the specialty products are really the one most attractive to consumers.  Further analysis is needed to determine the most important underlying reason for shopping at farmers’ markets. 

Table 10:  Reasons for shopping at farm stand and farmers’ markets—factor analysis

Farm Stand

Farmers’ Market

Rural

Urban

Rural

Urban

Factor 1: Local choice  

   Locally grown

Factor 1: Quality

    Freshness

Factor 1: Local choice

    Freshness

Factor 1: Specialty products

   Freshness

Nutrition

Locally grown

Crafts

   Nutrition

Appearance of

Help local farmers

Shrubs

   Help local farmers

   Atmosphere

products

Quality

Nutrition

Appearance of

Flowers

Homemade foods

 

Value for the money

   products

 

 

 

Quality

Factor 2: Quality

Factor 2: Specialty product 1

Factor 2: Specialty & convenience

 

Freshness

Quality

Flowers

Shrubs

Selection

Convenience

Factor 2: Specialty products

 

Crafts

Volume

Flowers

Factor 3: Local choice

 

 

Shrubs

Help local farmers

Factor 3: Specialty product 2

Factor 3: Atmosphere & specialty products

Crafts

Locally grown

Precut packaged produce

Atmosphere

Crafts

Factor 3: Special choice

   Special Event

Factor 4: Special choice & Convenience

Homemade foods

Homemade foods

Selection

Volume

Factor 4:

 

   Precut packaged

Selection

Volume

Canning/Freezing

Factor 4: Specialty products

       produce

   Canning/Freezing

Appearance of products

Appearance of products

Shrubs

Flowers

 

Canning/Freezing

Convenience

 

 

Factor 4: Convenience

 

Factor 5: convenience

Factor 5: Special choice

Convenience

Factor 5: Nutrition

Convenience

Canning/Freezing

Value for the money

Value for the money

Value for the money

Special event

Factor 5: Atmosphere

Nutrition

Factor 6: Quality

    Selection

Precut packaged produce

Atmosphere

Homemade foods

Factor 6: Atmosphere & choice

Quality

Factor 6: Local choice

 

Atmosphere

Special event

Help local farmers

Factor 6: Volume

Special event

 

Locally grown

Volume

Precut packaged produce

  

Consumers’ reasons for not shopping

Consumers were asked to choose reasons for not shopping at farm stands and farmers’ markets from 15 reasons in tables 11 and 12. 

The factors for not shopping at each market by rural and urban consumers share similarities and also differences. There are basically five factors “Payment terms,” “Inconvenience,” “Other,” “Poor Quality,” and “Special choice.”

Payment method is the factor recognized by respondents as a reason not to shop at farm direct markets.

“Inconvenience” is a factor for most subgroups.  Factors for rural respondents not shopping at farm-direct outlets, “Too far” was always in the same factor with “inconvenient location,” which implies the distance is more concerned by rural residents when considering convenience of the market.

Factor analysis presents another way to explain the variance and correlation of the observed variables. Maybe the unacceptable payment methods of farmers’ markets are the most troublesome to consumers.  Further analysis is in need to determine the most important underlying reasons for not shopping at farmers’ market. 

Table 11: Reasons for not shopping at farm stand—factor analysis

Rural

Urban

Factor 1—other reasons

Factor 1—Poor quality

    Other

Don’t feel safe

    Don’t Feel Safe

Poor Quality

    Raise my own livestock

Not clean

Factor 2—Payment terms

Factor 2—Payment terms

Don’t accept credit/debit cards

Don’t accept checks

Don’t accept checks

Don’t accept credit/debit cards

Don’t accept food stamps

Don’t accept food stamps

Factor 3—Special choice

Factor 3--

Limited hours

Limited Variety

Limited Variety

Limited hours

Don’t know of any in my area

Don’t know of any in my area

Prefer buying at supermarkets

Factor 4--

Raise my own garden produce

Inconvenient location

Factor 4—Poor quality

High prices

High prices

Other

Poor quality

Raise my own garden produce

Factor 5—Inconvenience

Factor 5--

Inconvenient location

Too far

Too far

Prefer buying at supermarkets

Not clean

 

 

Table 12: Reasons for not shopping at farms’ market—factor analysis

Rural

Urban

Factor 1—other reasons

Factor 1—Payment terms

    Other

Don’t accept checks

    Don’t Feel Safe

Don’t accept credit/debit cards

    Raise my own livestock

Don’t accept food stamps

Factor 2—Payment terms

Factor 2—Quality

Don’t accept food stamps

Poor quality

Don’t accept credit/debit cards

Don’t feel safe

Limited variety

High prices

Factor 3—Quality & Special choice

Factor 3—Convenience

Don’t accept checks

Too far

Limited hours

Don’t know of any in my area

Not clean

Inconvenient location

Poor quality

Factor 4—Other

Prefer buying at supermarkets

Limited variety

Factor 4—Convenience

Not clean

Too far

Other

Inconvenient location

Factor 5—Special choice

Raise my own garden produce

Raise my own garden produce

Factor 5—

Prefer buying at supermarkets

Don’t know of any in my area

Limited hours

High prices

 

Conclusions

This study provides an overview of consumers’ accessibility, opinions and behaviors towards farm direct marketing outlets in rural and urban areas. 

The maximum distance consumers are willing to travel to farm direct markets is 12 miles (11 miles for urban consumers and 15 miles for rural consumers.) 

“Quality,” “freshness,” “locally grown” and “help local farmers” are top reasons for shopping at farmers’ markets and other farm-direct markets.  There is a statistically significant higher proportion of urban consumers who chose “convenience” as reason for shopping at tailgate and farmers’ markets than that of rural respondents.

The top reasons for not shopping at the farm direct markets are “high price,” “limited hours,” “inconvenient location,” “don’t know any in my area,” and “raise my own garden produce.”

The major findings of this study indicate what consumers prefer in a farmers’ market and what farmers and operators of farmers’ markets should apply in the operation of their markets: convenient location and regular open hours, promotion through suitable media, local products with good quality, specialty products, competitive prices and target the urban consumer segment.

The factor analysis suggests that convenience is the most important factor influencing consumers’ purchase at farmers’ market.  Farmers’ market located in an area where a large number of consumers have easy access and opens in regular longer hours is more likely to succeed.  The directions to outlets and open hours should be provided in the ads as clear as possible. In addition, the acceptance of other payment methods (such as personal checks and food stamps) and readily available information about the market add convenience to consumers. 

Choice of media to promote farmers’ market should include newspaper, roadside signs or word of mouth.  This study found that urban consumers are more likely to shop at farmers’ market, since they look for fresher and locally grown foods and also enjoy the atmosphere at farmers’ market.

In addition to providing locally grown fresh and high quality produce farmers’ markets should differentiate themselves by offering specialty goods (i.e. homemade foods, crafts, shrubs and flowers,) and create a perception of quality in the physical attributes as well as the uniqueness of the products sold at the market.
 

[1] Genetically Modified Organism.