 |
| CLICK HERE TO VIEW CURRENT ISSUE |
|
 |
|
USDA REPORTS DIRECT-TO-CONSUMER FARM SALES REACH $10.7 BILLION, 35% INCREASE FROM 2019
Aug. 9, 2022
Source: USDA
In 2020, U.S. farms sold almost $10.7 billion of edible food commodities directly to consumer outlets and intermediary supply chains such as restaurant/grocery stores, regional distributors and local institutions-a nearly $2.8 billion (35 percent) increase from 2019. The overall increase in direct sales in 2020 occurred across most direct sales marketing channels, such as farmers markets, farm store/community supported agriculture (CSAs), restaurants/grocery stores, and regional distributors.
From 2019 to 2020, sales at farmers markets and restaurants/grocery stores increased by 11 and 13 percent, respectively, whereas sales at farm stores, CSAs and other direct-to-consumer channels increased by 79 percent and sales to regional distributors increased by 73 percent. However, sales to local institutions declined by 86 percent in 2020 relative to 2019, likely because of closures or restricted operations related to the Coronavirus (COVID-19) pandemic.
Overall, in 2020, 73 percent of total direct sales occurred through intermediary supply chains, while the remaining 27 percent were direct-to-consumer outlets. High-income direct sales farms, defined here as those with gross cash farm income (GCFI) of $350,0000 or more, increased their direct sales by $2.4 billion (38 percent) from 2019 to 2020, which accounted for 81 percent of all direct sales.
Among low-income direct sales farms, defined as those with GCFI less than $75,000, 85 percent of their direct sales were though direct-to-consumer outlets in 2020. About 7 percent of America's 2 million farms sold commodities though direct-to-consumer outlets, and almost 1 percent sold through intermediary supply chains. The other 93 percent of U.S. farms sell their commodities via other marketing channels, such as slaughterhouses, ethanol processors, grain mills, etc.
|
|
|
|
|
