My group and I decided to look at the different Marketing Strategies used by farmers in the state of Connecticut. Our findings concluded that the implementation of micro loans by farmers would help them to make small investments to increase operations while maximizing profits by leveraging low interest rates.

1. Marketing Strategies in the
Agricultural Industry to Help Farmers
in the State of Connecticut
Agricultural Statistics Hotline (800) 727-9540
Brian McCann,Christopher Murphy, Jennie Deering,
Caitlin DeAngelis, Rachel Corbett &
November 2015
Consumer Behavior 212: Section A

2. Our Purpose
We believe that farmers in the state of Connecticut are
struggling to keep up with the high demands for local and
sustainably produced food. Today, we will present marketing
strategies for the Connecticut agricultural industry through the
implementation of micro-loans.

3. Our Purpose
Large numbers of people are eating local, sustainably produced food.
Farmers in Connecticut can greatly benefit from small, low interest
business loans. Micro-financing will allow these individuals to make
small investments to increase their operations while maximizing
profits by leveraging low interest rates.

4. Introduction
Purpose
Consumer Segment
Industry Analysis
Marketing Strategies
Consumer Behavior Problem
Recommendations
Conclusion
Questions
Agenda

5. Consumer Segment

6. Principal Operators by sex:
Male: 4,472
Female: 1,505
Average Age of principal operator: 58.7
"USDA/NASS 2014 State Agriculture Overview for Connecticut." USDA/NASS 2014 State Agriculture Overview for Connecticut. STATE AGRICULTURE OVERVIEW, 2014. Web. 17 Nov. 2015.
<http://www.nass.usda.gov/Quick_Stats/Ag_Overview/stateOverview.php?state=CONNECTICUT>.
Who Are Farmers?

7. Farms in CT are only big enough to do some
standard farming, or even engage in
commercial operations.
Connecticut led all of New England with a
22% increase in the number of farms
created since 2007, for a total of 5,977.
Land included in those farms totaled 436,406
acres, up 8%.
Grant, Steve. "Let It Grow: Connecticut Leads Farm Growth In New England." Tribunedigital-thecourant. Hartford Courant, 23 Mar. 2014. Web. 17 Nov. 2015.
<http://articles.courant.com/2014-03-23/news/hc-farm-survey-results-ct-20140322_1_new-farmers-agriculture-census-andy-billipp>.
Farming is on the Rise

8. As of 2012, an average Connecticut farm is 73
acres.
CT is small in area at only 3.18 million acres,
and agriculture accounts for approximately
13% of that acreage.
According to Mark Zotti of the Connecticut
Department of Agriculture, there are 130
farmers’ markets statewide, with 300
participating farmers, up from just 66 in
2002.
Farming on the Rise continued...
http://www.connecticutmag.com/Connecticut-Magazine/July-2013/Connecticut-Farmers-Markets-Farm-Fresh/

9. Manpower: In order to keep up with high production
demand, CT farms need more employees to work for
them.
Machinery: High production demand also comes high
volume of product inventory. High-tech machinery
will help farmers become more efficient.
Land: CT is losing farmland at one of the fastest rates
in the country. There are twice as many people
looking for land, as there are parcels for lease or for
sale on similar land link programs.
Slupeki, Jane. "Cornell Small Farms Program." Cornell Small Farms Program Connecting Aspiring Farmers with Existing Land Connecticut Farm Link Program Comments. Farms Programs, n.d. Web. 18 Nov. 2015. <http://smallfarms.cornell.edu/2010/04/04/connecting-aspiring-farmers-with-existing-land-connecticut-farm-link-program/>.
Necessities of the Farming Industry

10. Farmers are concerned about ever changing weather conditions and disease
Small farms have to be worried about changing petroleum prices
They are fearful of big farms and government regulations
2008, and Www.thecarrotproject.or. Are Northeast Small Farmers in a Financing Fix? Research Results on Financing Gaps and Program Opportunities (2008): n. pag. The Carrot Project. The Carrot
Project, 2008. Web. 18 Nov. 2015. <http://www.uvm.edu/wagn/resources/CarrotProjectReport.pdf>.
A Concerned Market Segment

11. "Small Farms." Small Farms. N.p., n.d. Web. 19 Nov. 2015. <http://microfarmlife.com/index.php?option=com_content&view=article&id=8&Itemid=12>.
A Day in the Life of a Farmer
"Job Descriptions, Definitions Roles, Responsibility: Farmers, Ranchers, and Agricultural Managers." Job Descriptions, Definitions Roles, Responsibility: Farmers, Ranchers, and Agricultural Managers. N.p., n.d. Web. 22 Nov.
2015. <http://www.jobbankusa.com/career_employment/farmers_ranchers_agricultural_managers/job_descriptions_definitions_roles_responsibility.html>.

12. Loyalty Status, Usage Rate of Farmers
● Farmers are not loyal to one
company when looking for loans.
● They use loans only on a need-
based time-line.
● This means that the usage for
farmers is situational.

13. Current Consumption by Farmers
Bigger farms are bullying out small farms
in terms of loans
One quarter of respondent farmers that
applied for financing were denied
short- or intermediate- term financing
13% expressed interest in equity
financing.
http://www.uvm.edu/wagn/resources/CarrotProjectReport.pdf

14. Media Consumption

15. ● All eight of Connecticut’s counties are shown
with Fairfield, New Haven, and Hartford
counties providing the greatest output.
● Movement toward small-scale farming and
locally, organically grown food for
communities across the world
Keough, Gary. "USDA Blog » Farming on the Rise in Connecticut." USDA Blog RSS 2. United States Department of Agriculture, 12 June 2014. Web. 17 Nov. 2015.
<http://blogs.usda.gov/2014/06/12/farming-on-the-rise-in-connecticut/>.
Why Farmers in Connecticut?

16. ● The markets help support
community, economy and
business, and everyone is reaping
the benefit.
● How crucial the movement toward
small-scale farming and locally,
organically grown food is for
communities across the world.
Continued...

17. Industry Analysis

18. A Billion Dollar Industry
● Connecticut agriculture contributes
$4.6 billion per year to the state’s
economy.
● The Northeast region produces $70.9
billion.
● Connecticut was ranked second in
output, with Massachusetts
outputting the highest at $13.0
billion.
http://www.ct.gov/doag/lib/doag/boards_commissions_councils/gcf/grow_ct_farms_3_6_2013_low.pdf

19. Who Else is Helping Farmers?
The United States Department of Agriculture (USDA)
offers Direct Farm Operating Loans along with
microloans for farms in America.
Operating loans may be used to purchase items
such as:
● Livestock and feed
● Farm equipment
● Fuel, farm chemicals, or insurance
● Minor improvements
● Refinance certain farm-related debts
http://www.usda.gov/wps/portal/usda/usdahome

20. Advantages of farmers in CT doing business
through our company includes:
● Guaranteed trust
● A partnership
● Working only with CT farmers
● Face-to-face interaction
● A personal touch to business
operations
Small Businesses Helping One Another

21. Current Marketing Strategies

22. ● Smaller farms are 200 to 1,000 percent more productive per unit area than
large farms.
● Partnering with the “Buy CT Grown” organization.
https://www.organicconsumers.org/old_articles/Organic/smallfarmsbetter.php
Opportunities in the Farming Industry
http://www.multinationalmonitor.org/mm2000/00july-aug/interview.html

23. ● $4.6 billion annually in economic
output.
● 28,000 jobs in Connecticut’s
communities.
● Part of a six-state region producing
$70.9 billion per year and over
378,000 jobs.
● Agriculture contributes to improving
Connecticut and its citizens.
Why the Farming Industry?
http://www.usda.gov/wps/portal/usda/usdahome

24. Main Consumer Behavior
Problem

25. Problems with the Farming Industry
● Resource depletion.
● Land management.
● Availability and price of land expansion.
● Stability, development, and fluctuations in
financial markets.
● Demographic changes.
● Microlending is a rare and underused
concept.
http://seedstock.com/2012/04/18/five-major-challenges-facing-north-american-agriculture/

26. Recommendations for
Marketing

27. ● We plan to provide microloans with
a small fixed interest rates to
operators of small farms.
● Microloans will provide the farmers
with funds to expand their
operations, purchase equipment to
increase efficiency, and bring in
more crop and livestock.
CattleCa$h

28. CattleCa$h
● With small interest rates, farmers will be able
to increase their operations while keeping a
majority of money in their pockets.
● Operating loans may be used to purchase
items such as:
○ Livestock and feed
○ Farm equipment
○ Operating costs and family living
expenses
○ Minor improvements or repairs to
buildings

29. Set interest rates at 15%. Most microlenders go from 20%, and even some to 100%+.
$5,000-$9,999 with terms of 1-3 years.
$10,000-$19,999 with terms of 3-5 years.
$20,000-$29,999 with terms of 5-10 years.
$30,000-$50,000 with terms of 10-15 years.
These rates will bring in monetary profit and value for the company, as well as
provide non-monetary value to these small farmers and the surrounding
communities.
Reasonable Pricing

30. ● Regional offices placed
strategically throughout the
state of Connecticut.
● After an initial face-to-face
meeting, existing customers
will be able to reach the offices
over the phone or through our
agents to discuss their
accounts.
Convenient Distribution of Micro-loans

31. ● Useful methods of promotion are farmers
markets, billboards/street signs and door
to door advertising.
● Digital advertising
○ Farmersonly.com
○ buyCTgrown.com
● Small Farm Today Magazine for print
advertisements.
Exposure

32. Real Life Demand: Matteo Abbruzzese
1. If you could grow your operation right now, what is the first
step?
a. “I am always looking for more land. [Then] more
livestock. Infrastructure would be along with livestock -
fencing and water.”
2. Have you, or have you thought about, taking out a traditional
bank loan?
a. “The business did take a traditional line of credit. I have
looked at other loans through farm friendly type
organizations.”
3. Are the loans offered by the farm friendly organizations smaller,
microloans?
a. “Some have ranged up to $50,000, but I would be more
in the range of of $10-15,000 just for operating expenses
or buying livestock.”

33. Conclusion

34. ● Increased opportunities for farms.
● State’s facilities and institutions access
to fresher, more nutritious meals.
● All state residents will ultimately
benefit!
○ Economic stimulus resulting in
keeping more of the money spent
by these facilities here in the state
The Revival of the Farming Industry

35. Questions?