The local farmer’s market is now in vogue. Farmers market surveys from across North America are uncovering surprising findings – the local farmers market has become a mecca for produce sales. Iowa Department of Agriculture’s 2009 Farmers Market Economic Impact Survey shows a 92 percent increase in sales over the last five years at Iowa’s farmers markets. That’s $59.4 million in sales for 2009 alone.

Adding to the good news is the number of jobs associated with the rise in popularity of the farmers markets. In Iowa alone, a surge in farmers markets consumers resulted in 374 direct jobs and 200 indirect jobs last year.

Selling produce or meat products at the local farmers market is an attractive business option for farmers looking to secure more avenues to get their products in front of consumers. However, before setting up shop in the local parking lot, understand the risks of selling in an uncontrolled environment. Six things to consider:

Are your meat or produce products protected? Do you have a process in place that reduces the risk of product loss, product contamination, or consumer injury claims?

What are your storage and transportation methods? Do they conform to federal, state, or local regulations?

Does your local regulatory body require permits to sell produce or meat products? What are the requirements for setting up a temporary shop?

Do you have adequate refrigeration and protection for your meat products? How do you safeguard consumers and your products?

Does your current insurance policy cover the risks associated with selling at and transporting to and from farmers markets? Are these types of sales and locations included or excluded from coverage?

Do you need an endorsement or an increase in your coverage capacity to sell at farmers markets?

When in doubt, talk with your farm insurance broker. Make sure you have adequate coverage and risk management processes in place before setting up shop.

Flickr photo credit: NatalieMaynor

Filed under: Agribusiness by afis blogger