Survey gives snapshot of healthy CSAs in Midwest

In 1986, the first two Community Supported Agriculture (CSA) projects began delivering harvest 'shares' from farms to homes in Massachusetts and New Hampshire, with similar enterprises launched in Iowa during the mid-1990s.

It didn't take long for the idea to catch on. Viewed as a way to get farm-fresh produce and build urban-rural partnerships, CSAs now total more than 1,000 nationwide, including 60 in Iowa.

How are these businesses faring?

The Leopold Center recently analyzed data collected from a 2002 survey of 144 CSAs in nine Midwestern states. The new report paints a picture of viability and commitment among CSA operators.

The report is entitled, "Community Supported Agriculture in the Midwest United States: A regional characterization." It was written by Leopold Center associate director Mike Duffy, who also leads the Center's Policy Initiative, and Erin Tegtmeier, director of the Experiment in Rural Cooperation located at Kasson, Minnesota.

"Although more than half of the respondents do not feel their share prices provide them with a fair wage, almost all claim to be satisfied at least most of the time with their operations," the report states. "Nearly half of these farmers anticipate continuing their CSA operations and over half expect the operations to expand."

Duffy and Tegtmeier suspect that the intangibles of environmental stewardship and community involvement continue to sustain the outlook of these farmers, however, the average financial return also may make CSAs attractive.

The average net return per acre for the CSA farmers surveyed was $2,467, which is high compared to return per acre of corn ($172.11), soybeans ($134.46) and wheat ($38.10) in the United States. But this does not consider differences in labor requirements, or the opportunity costs of land and labor. CSA income as a percentage of total farm income is nearly 50 percent, even though CSA land as a percentage of total land farmed averages only 37 percent.

The survey also showed that CSA farmers were involved in a variety of agricultural enterprises. Only 18 percent report the CSA as their only farming operation; 73 percent have market gardens, 31 percent raise livestock, and only 10 percent raise a grain crop. As a group, CSA farmers are more educated and younger than farmers nationally. Many respondents said their CSA operations were beginning their sixth season at the time of the survey and had grown in membership and land area since inception.

Almost all of the respondents (98 percent) reported that they farm organically for the CSA operation, and most of these (92 percent) have used organic methods since start-up.

On average, the CSA farms in the survey provide 30 types of vegetables, three fruit products and eight types of herbs. Most (81 percent) also offer flowers or value-added items. Animal products are offered by just over one-third of the farms: 38 percent provide eggs or dairy products and 35 percent offer meat products. Processed products, such as honey, syrup and jams are provided by 35 percent, and 29 percent include grains or beans. Most CSAs in the survey use drop sites or have on-farm pick up and over a third provide home delivery.

Some CSA farms offer members the option to work on the farm in exchange for some of the share price; 53 percent of the respondents offer working shares. However, this labor source does not seem to meet labor needs to any great extent. For 70 percent of those responding to the question, members provide 5 percent or less of their labor needs. Most respondents (79 percent) indicated that family members participate in CSA work.

For a copy of the report, contact the Leopold Center at (515) 294-3711, or access it on the web at: http://www.leopold.iastate.edu/pubs/staff/files/csa_0105.pdf.

Surveys were mailed to 144 CSA farmers in Iowa, Illinois, Kansas, Michigan, Minnesota, Missouri, North Dakota, Nebraska and Wisconsin. The March 2002 mailing yielded 62 responses, of which 55 (38 percent) were usable.

The survey showed:

Sometimes known as "subscription farming," farmers contract directly with customers (called "members" or "shareholders") who agree to buy a minimum amount of produce and/or other foods at a fixed price throughout the growing season.