The Internet and other forms of electronic communication can open doors to a direct farm business for customers otherwise unable to visit the retail operation due to distance, time, or other factors.  Potential customers can discover new businesses, access information, and shop at their own convenience using the web and many small businesses consider an Internet presence an essential part of their business strategy.  A 2007 study by the Small Business Research Board of 550 small businesses representing numerous industries found that more than 57% had at least one website.  Of those small businesses with a website, 32% sold a product or service via the website.  Business websites range from displaying static information (e.g., location, store hours) to interactive forums that allow users to complete their shopping online. No matter where a particular website fits on this spectrum, a direct farm business can gain immense value from the Internet.

USDA's Agriculture and Marketing Service (AMS) has published a helpful brochure explaining many issues related to internet marketing of farm products.

The following summarizes and provides further information for many of these subjects contained in the AMS brochure.

Plan and Research

Before setting up your own website, you should develop a marketing plan to identify your internet marketing objectives. Possible objectives may be to save time, labor, money, materials, or to provide a new venue to advertise or to sell product.¹ Although each of these objectives can be achieved through the Internet, it is important to consider the uniqueness of agricultural internet marketing. Shipping is more difficult for farm products then most other goods sold on-line. Farmers must also keep seasonality in mind, as consumers generally spend more on the Internet during the winter months when many agricultural goods are out of season.² Another important consideration is the personal connection to the consumer. Many consumers at farmers markets, farm stands, or pick-your-own operations enjoy the direct interaction with the farmer and learning the origin of their food and production practices. Online shopping loses this personal connection,³ but careful website design and incorporation of pictures of the farm and employees can establish a virtual connection between farmer and consumer.

Researching your market is another important step. If you currently sell at a farmers market or farm stand, you could conduct an informal survey among your customers regarding their internet usage and whether there is anything (i.e. information, pictures, product) you could offer on the internet that would be interesting or particularly helpful to them.⁴

Setting Up Your Website

Setting up your own website for your business can be done quickly and with little expense. Basic information could include your business’s address and contact information, product availability, hours of operation, upcoming events and related news. Although there are countless books on internet marketing, one should consult only the most recent publications as Internet-based marketing and website development is a constantly changing forum. Hiring a professional to construct your website will save you time, but less expensive alternatives are available. Some internet providers offer basic website design. In addition, friends and family members may have sufficient understanding of website construction to build a basic site that would meet your needs at a lower cost.

When choosing a domain name for you website, ensure it is short, easy to remember, spell, meaningful, professional, and sends a marketing message.⁵ You can find out if a domain name is available on websites that offer domain names for sale.  There are billions of websites on the internet and it is hard for a user to decide if a site is trustworthy.  Advertising your certification or enrollment in a program like the Illinois Chamber of Commerce or Department of Agriculture could help reassure users. Prominently display your policies regarding returns, pricing, privacy issues, and consumer information protection as those are internet users’ primary concerns.⁶ Keep your website interesting by adding pictures and updating the site often. Those relatively minor efforts will keep users coming back again and again to learn what is new.

Shipping

If your products are capable of shipping via the mail, a website that allows customers to place orders online can be an important aspect of the direct farm business. Sending perishable goods through the mail, however, can be costly and requires careful packaging. The USDA provides a useful guide in ensuring that food sent through the mail is delivered to the recipient quickly and in a safe condition. The USDA also provides a handy guide of safe handling times for a large variety of mail order foods.

Online Farm Business Directories

In addition to a dedicated website for the specific direct farm business, several online directories (both local and national) provide farms the ability to post key information such as location and product offerings. LocalHarvest is one example of a national online directory through which consumers can search for particular farm products. The LocalHarvest website provides locations and descriptions of registered farm businesses in the consumer’s area for the particular product.

Illinois Market Maker

A prominent local directory is Market Maker, where not only can consumers find information about local farm businesses, but farm businesses can access extensive demographic and business data to identify potential customers. Market Maker started as a collaboration between the University of Illinois Extension, the Initiative for the Development of Entrepreneurs in Agriculture, the Illinois Department of Agriculture, and the Illinois Council of Food and Agricultural Research. Since its inception in 2004, Market Maker has expanded rapidly. As of this writing, it has partnered with the Departments of Agriculture in ten other states and secured funding support from other organizations, such as the National Ag Marketing Resource Center, the Leopold Center, and the Allied Food Marketers.⁷

Market Maker is a resource for all businesses in the food supply chain including producers, processors, wholesalers, retailers, and farmers markets. For example, grocery stores can use Market Maker to find specialty produce or local goods. Farmers, likewise, can identify potential retail outlets for their products. Users can query searches for businesses or markets. Business searches provide results in a map format. Market searches, on the other hand, provide census data for a particular area for household type, education, foreign born, race, income, and income by race. More importantly, there is a buy/sell forum where businesses can post ads for services, transportation, and inventory.

Legal Issues Specific To Internet Businesses

If conducting business transactions online, your business should be aware of some federal rules concerning e-commerce. The Federal Trade Commission (FTC) regulates various aspects of internet business.

Delivery

The FTC’s Mail or Telephone Order Merchandise Rule applies to sales made over the internet. The Rule regulates shipment promises, unexpected delivery delays and customer refunds. To comply with the Rule, you must have a reasonable basis for promising shipment within a certain time frame. If your online advertising does not specify the shipment period, you must have a reasonable basis for believing that you can ship within 30 days. If you cannot make a shipment within the promised time period, then you must notify the customer of the delay and provide the customer with the option of cancelling the order and receiving a full refund. If you cannot fill an order, you have the right to cancel the order, but you must notify the customer of the cancellation and refund the customer in full.

Protecting Customers' Personal Information

If your business allows consumers to enter personal information into your website, the FTC requires that your business have a plan to safeguard consumers’ personal information. There are no specific requirements that a business’ information security plan must follow. Adequate safeguard measures depend on various factors such as the size and nature of the business, and the amount and type of information collected on the internet. The FTC maintains a website to further assist you in making sure personal information is protected.

Email Marketing

If you decide that a website would provide less advantage than the efforts required, email could still be a beneficial alternative. Emailing a weekly, monthly or annual newsletter costs little in time or money, and avoids the hassle of printing and sending documents via the mail. Short email updates concerning revised hours of operation or seasonality may be a convenient method of communication between the direct farm business and its customers.⁸

All commercial email from a business to a consumer is regulated by the FTC’s CAN-SPAM Act. As a general rule, emails concerning an agreed-upon business transaction or updating the customer on that business relationship are allowed under the Act.

According to the CAN-SPAM act, a commercial email must not contain false or misleading header information or deceptive subject lines. The email must give the recipient an opt-out method if they do not wish to receive any more commercial emails from the business. The email must also be identified as an advertisement and include the sender’s valid physical postal address. Violations of the rules in this act can cost your business steep fines.

¹ Jennifer-Claire V. Klotz, How To Direct-Market Farm Products on the Internet, 4 (2002)

² Id. at 4.

³ Id.at 5

⁴ Id. at 10

⁵ Id. at 19

⁶ Id. at 15.

⁷ See the Cooperative State Research, Education and Extension Service (CREES) Marketmaker website.

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