Community Supported Agriculture (csa)
University of Kentucky
College of Agriculture
New Crop Opportunities Center
Community Supported
Agriculture (CSA)
Introduction
Community Supported Agriculture (CSA) is a
term that has come to describe a variety of direct
farm marketing practices with certain common
characteristics, including:
• Emphasis on community and/or local
produce
• Shares/subscriptions that are sold prior to the
season’s beginning
• Weekly deliveries to members/subscribers
CSA is fairly new to the United States, beginning
in Massachusetts in 1986 and growing to 60 CSA
This marketing profile will frequently refer to
farms in the U.S. in 1990.1 The CSA structure grew
findings from the UK survey, including strategies
significantly in popularity among both producers
used by CSA operators to price member shares.
and consumers during the 2000s. In 2005, a CSA
The full version of the survey report is available
database reported more than 1,150 CSA farms,
on the New Crop Opportunities Center and
with 15 of these in Kentucky. In 2009, the same
the University of Kentucky Department of
database listed 20 CSAs in Kentucky and over
Agricultural Economics Web sites.
1,300 in the U.S.2 Other recent estimates have
placed the number of CSAs in the country at more
USDA Definition of a CSA
than 1,500. This marketing mechanism continues
In basic terms, a CSA consists of a community
to increase in popularity, especially among more
of individuals who pledge support to a farm
affluent consumers around urban centers.
operation so that the farmland becomes, either
legally or vicariously, the community’s farm.
UK Survey of CSAs
The growers and consumers partner together to
During the spring of 2009, the University of
share the risks and benefits of food production.
Kentucky Horticulture Council and the New
Members (or shareholders) of the farm or garden
Crop Opportunities Center sponsored a direct
pledge in advance to cover the anticipated costs of
mail survey of CSA farms and farms using the
the farm operation, including the farmer’s salary.
CSA concept. More than 300 farms in Kentucky,
In return, members receive shares in the farm’s
Illinois, Indiana, Missouri,
bounty throughout the growing
Michigan, Ohio, Pennsylvania,
season, plus the satisfaction
Tennessee, and West Virginia
gained from reconnecting to the
responded to the survey.
land. Members also share in
Agriculture & Natural Resources • Family & Consumer Sciences • 4-H/Youth Development • Community & Economic Development
Educational programs of the Kentucky Cooperative Extension Service serve all people regardless of race, color, age, sex, religion, disability, or national origin.
the risks, such as poor harvest due to unfavorable
indicated that they find Web site postings or
weather or pests.
blogs effective. While the use of the Internet
and technology has been crucial to the growth of
A number of farms operating as CSAs hold to this
CSAs, CSA operators also find that technology
“original” definition of Community Supported
cannot substitute for the “personal touch” that
Agriculture. However, the CSA concept has
happens easily in a CSA. Getting to know the
also evolved into one of a number of marketing
CSA members in person, as well as members
channels that can be used to sell a farm’s produce.
getting to know one another, builds a kind of
Many farms (and customers) find the CSA just as
community around food that customers often find
beneficial for its ability to directly deliver fresh,
well worth the price of a CSA membership.
high quality, locally grown produce from the
farm to the consumer.
ShareS/SubSCriptionS
As CSA numbers multiplied, CSA farms tended
Characteristics of CSAs
to move away from expecting subscribers to
Community
contribute labor. Many of the country’s CSA farms
Community is the premise around which the first
now operate primarily as a subscription service,
CSA emerged. Early CSA operators wished to
which is one part of their total farm marketing
forge a connection
plan. Furthermore, CSA
between
local
members
today
may
farms and local
not even visit the farm
residents. Many of
where the food is grown.
the first CSA farms
However, CSA operators
offered local organic
frequently have special field
produce in exchange
days or other farm events
for a small fee and
that will still connect CSA
the
subscriber’s
members to the land where
labor at harvest.
their food is grown. Some
farms even have “member-
While some CSA
only” days where U-pick
farms still operate
and other farm products
with their members physically participating in the
are offered exclusively to CSA members.
crop’s production, many more now operate solely
on a subscription basis. Most farms, however,
A “share” was originally the term used to describe
maintain the community-building distinctive of
a box of produce that would supply the weekly
the CSA movement. The majority of CSA farms
needs of a family of four.3 Traditionally, CSA
distribute newsletters with their weekly delivery,
customers invested in the farm before the season
sharing news of the harvest, produce-usage ideas
began, providing the CSA with operating capital
and recipes, as well as other news and opinions.
that was needed to begin production. Through
This allows CSA members to feel connected to
that investment, CSA members were subject
their food and its production.
to the risks and rhythms of the season; shares
reflected production allowed by weather and
CSA farms have also been quick to adopt the
growing conditions.
Internet as a means of building community
among their members. In the 2009 survey, more
Under the majority of current CSA arrangements,
than 85% of respondents indicated that direct
a “share” is probably better described as a
e-mail and e-mail newsletters are effective for
subscription. It represents a commitment by
their CSA. More than half of the respondents
the member/consumer to receive a certain
amount of product over a certain course of time.
of shares according to the member’s preference.
CSAs now offer
Meat and other farm products are also offered
their
members
with increasing frequency by CSAs.
numerous options
to customize their
In the 2009 survey, producers rated their
shares. As eating
“overhead and fixed costs of production” as the
locally
grown
most important factor in setting their share price.
and organic foods
In other words, many CSA producers use their
has increased in
CSA shares to cover the costs of production that
popularity with
they know for certain that they will incur during
consumers,
a
the year. Some producers that are also marketing
share has come
through other channels (farmers markets and
to represent less
restaurants are the most common) set their CSA
of an equity
share price to cover their “up-front” expenses for
commitment and
their entire crop.
more of a market
commitment from the member.
A recommended method for pricing your CSA
shares is as follows:
Delivery
• Estimate what your production expenses will
Part of the marketing appeal of a CSA is being
be for the CSA season
able to receive farm-fresh produce at a location
• Estimate the number of labor hours you will
convenient to the member. Most shares are
use (or hire) to produce for the CSA
distributed from a central location, such as a
• Estimate the hourly wage rate that you would
farmers market or church. Some CSA farms,
like to earn from your CSA production
especially those located near their membership
base, distribute shares right from the farm. Other
priCing a CSa Share—an example
CSA farms deliver straight to the member’s door.
Sally Sustainy is starting a CSA for the first time
this year. She sold various vegetables (½ acre) at
Pricing Shares
the farmers market last summer. This year, she
The sale of shares is perhaps the main compelling
will expand her vegetable production to ¾ acre,
business planning reason to consider a CSA.
primarily for a CSA. She has 20 CSA members
Selling shares pre-season allows inventory (in
signed-up for a 15-week share. She estimates
this case, produce) to be sold before production.
that she will put about 250 hours of labor into the
The producer is then able to use share fees for
¾ acre and that her costs for the ¾ acre will be:
production expenses throughout the season,
which can reduce the need for borrowed operating
Seeds & Plants
$ 500
capital. This makes the CSA an attractive
Fuel
$ 100
marketing option for first-time farmers or those
Fertilizer
$ 350
without extensive financial resources.
Pest Control
$ 300
CSA shares are typically priced between $300
Labor ($8/hr x 250 hrs)
$2,000
and $1,000 per season. CSA farms often offer
TOTAL
$3,250
variations on this concept, such as “half-shares”
or other alternatives crafted to member needs
If Sally wants to cover these costs, she needs to
and desires. Some Kentucky CSAs offer an “egg
charge her CSA members at least $165 ($3,300
share” option for members interested in free-
divided by 20 shares) per share, or $11 per week.
range eggs. Other CSAs offer various lengths
This example assumes a very minimal charge for
Sally’s labor. It also does not include the “fixed
production
costs” of production (the cost of land, equipment,
• Contracts may contain language that manages
and other things that the CSA grower uses each
a farm’s liability for food safety in cases of
year). If the distribution of shares involves a
customers mishandling or misusing CSA
significant investment in time and fuel, these costs
products
should also be factored into the total. Accounting
• Contracts can specify the type of payment
for her true cost of land, labor, and management
plan to be used
and marketing time will likely justify setting
Sally’s CSA share price well above $11 per week.
In the 2009 survey, slightly less than half of the
CSAs surveyed required their customer members
Setting CSA share prices with all your expenses
to sign a membership contract. CSAs utilizing
in mind is crucial to ensure that your CSA is
contracts were generally those just starting
profitable. Whether you choose to set your share
production or those with fewer than 25 members.
prices to cover your total costs or simply the
Businesses that are based on relationships, like
variable costs of producing your CSA market
a CSA, may move away from formal contracts
baskets, knowing your costs will help you serve
over time after building a core base of repeat
your customers more efficiently and facilitate the
customers.
growth of your CSA.
More than three-fourths of the CSAs surveyed
priCing aCCorDing to nearby CSaS
offered some form of payment plan for their
In the 2009 survey, many beginning CSA
members. The most common form of payment
producers indicated that they determined what
plan was simply to offer members the option to
nearby CSAs were charging before setting their
pay in two or more installments throughout the
CSA share price. If there are other CSAs nearby,
season. This differs from the original CSAs,
it is obviously important to price your shares
which often required members to pay up-front.
competitively. However, you still should have
Other CSAs offer members the option of making
an idea of how much it is actually costing you to
a deposit in the winter or early spring, then paying
grow the crops on a per share basis. One trait of
the balance by a certain date.
CSA consumers is that they may be more willing
to pay for quality. If there is something unique
If you choose to offer a payment plan for your
about your production system (like being certified
CSA, be sure to:
organic or offering more varieties to choose from
• Have initial payments that will adequately
than your competitors), don’t be afraid to set your
cover your earliest season expenses
prices a little higher than neighboring producers
• Have contingency plans for people that may
who may not have as much to offer. Just be sure
not complete their installment payments
to clearly explain to potential CSA members why
your prices are a little higher.
Waiting Lists
One way that CSAs, especially those offering
ContraCtS anD payment planS
“monthly” or “weekly” memberships, can
The 2009 survey of CSAs found that beginning
manage their membership and cash flow is by
CSA operators were more likely than existing
offering waiting lists. The waiting list is simply
CSAs to utilize customer contracts to help plan
a list of potential CSA members maintained by
for their CSA’s production. There are a variety
the CSA operator. Even if your CSA production
of legal and practical reasons to ask customers
and service are perfect, not everyone may
to sign a simple contract. These can include (but
return the next season. Waiting lists help you
are not limited to):
recruit more members. They may also create
• Contracts help a producer plan for length of
an air of exclusivity to your CSA—people may
actually be more interested in the quality that
A significant number of producers also indicated
you have to offer if they have to wait a short
that they added non-produce items to their CSA
period before becoming members. Waiting lists
market basket to extend the season. Eggs are at
of approximately 200 CSAs surveyed in 2009
the top of the list of popular items to add, followed
ranged in length from a few days to two years.
by meat products. Honey and dairy products have
also been added by some CSA growers. Be sure
Consistency
to follow any and all federal, state, and local laws
Since CSA farms deliver product every week
that may apply to selling these products through
to the same customers, the consistency of the
your CSA.
produce quality is very important. This may
present a challenge for beginning produce
Products that are relatively easy to add and are
growers — a CSA has to also offer a variety of
not subject to potential restrictions and liability
produce throughout the season that customers will
include flowers, soaps, and fall ornamentals.
be able to incorporate into their family’s diet. A
Many of these kinds of products may be requested
typical family does not consume large amounts of
by the shareholders in greater quantities than
radishes, kale, and other crops that may be easier
what you have included in their share, creating
to produce! Working with a production expert
opportunities for additional sales.
or your local Extension agent can be helpful in
developing a production plan. It is essential to
communicate with your customers regarding
weather conditions and other related production
concerns that affect the weekly CSA share.
One way that CSA producers can enhance the
consistency of their market basket is to expand
the diversity of the products in that basket. One
of the most common ways for growing a CSA,
according to more than 200 CSAs surveyed in
2009, was extending the produce season using
hoop houses/high tunnels, row covers, different
varieties, and other season-extension techniques.
Learning from other growers, conducting your
own research, and obtaining resources from your
One final word concerning consistency: your
local Extension service professional can help you
CSA may benefit from using products that you
determine what techniques and varieties may
may not produce yourself. In the 2009 survey,
work well to extend your CSA’s season.
almost 30% of the CSAs surveyed indicated
that they did not produce 100% of the products
Before investing in new products to offer a
contained in their shares. CSA members may
longer season, however, be sure that your CSA
enjoy the diversity that comes when you offer
membership wants a longer share. By talking
high-quality, locally grown or crafted products to
with your existing membership, you’ll be able to
complement your market basket offerings. Some
determine what crops are in greatest demand and
CSAs also offer these additional items for sale at
even how much more people would be willing
the location where members pick up their weekly
to pay for fresh, locally grown produce a little
shares.
earlier or later than your customers are used to
purchasing it. Remember: if you can’t cover the
Again, be sure that any new products you add
extra cash costs of production, it’s usually not a
are worth the time and capital used to produce
good idea to add that new enterprise to your farm.
them. Some products are easily added — it’s not
hard to add leeks when you’re already growing
Another communicating strategy is to invite your
spring onions. But some appealing products,
customers onto your farm. While many CSAs do
such as handcrafted herbal sachets or soaps, can
not follow the original CSA design of members
be labor intensive to create — especially for the
providing labor for their products, about 35% of
CSA grower that is focusing on produce quality.
the CSAs surveyed in 2009 found it effective to
You might barter raw materials for finished goods
offer an on-farm event for their members.
with a local soap maker or herbalist interested
in sourcing products from your farm. You then
Good communication also helps you connect
have a finished product to add to your CSA basket
with potential new customers. The CSA
without a large (if any) cash outlay.
operators surveyed in 2009 affirmed that their
best advertising was word-of-mouth. But good
Communication
Web sites and e-mail communication were
Good communication is a hallmark of successful
also important. CSAs also find it beneficial to
CSA farms. CSAs include recipe ideas with their
advertise at farmers markets, local community
weekly deliveries, especially early or late in the
centers (such as libraries), government offices,
season when cool-season crops (beets, turnips,
co-op or health food stores, and churches.
kale) are harvested. These crops could be
unfamiliar to consumers, who may be waiting for
CSA Consumer Characteristics
more familiar later-season crops. Members will
Like any other marketing mechanism, CSA
appreciate help with how to prepare the beets and
producers need to first identify their market.
turnips they receive early in the season!
They must then determine whether they have the
capability to market to the consumer base most
It is common for CSA farms to issue a newsletter
interested in purchasing from a CSA. Promotion
in each share. The newsletter can provide
and planning are critical to attract the necessary
facts about the farm, update members on how
volume required to cover costs.
the season is progressing, and provide updates
regarding how the various crops are shaping
CSA consumers tend to fall into the following
up for harvest. Some CSA farms offer colorful
two general categories:
commentary on farming, community, and even
• Upper-middle class consumers with above-
politics in their newsletter. Your customer base
average incomes and some interest in buying
will determine what goes in your newsletter, but
higher quality or local food
some form of communication is vitally important
• Consumers valuing the idea of local food
to the success of CSA marketing.
enough to invest a substantial amount in it
for the whole season
CSA farms have discovered that maintaining
a presence on the Internet is very important in
A farm considering becoming a CSA needs
connecting with the kinds of customers that are
to identify where it might find these kinds of
likely to be interested in CSAs. In the 2009
consumers. Larger population areas and towns
survey, more than 85% of the responding CSAs
with colleges may be two locations favorable to a
rated electronic communication as “important”
CSA. In addition, CSA farms are frequently used
or “very important” for their CSA. Web sites
by certified organic growers, whose clientele
(such as Local Harvest) allow CSA operators
may be more familiar with the CSA concept.
to maintain a presence on the Web for free or
Research has indicated that there are different
minimal costs. You can access a list of Web sites
kinds of CSA members. Some of your customers
offering CSA listings through the CSA Resources
will be extremely interested in your farm and
for Farmers on the USDA Web site.
the way that your crops are grown. For other
members, things like the end quality, product
of meeting their produce needs from a farmers
diversity and “freshness” of the produce will be
market.4
the most important factor for their patronage.
While newsletters, Web sites, and e-mail are
Prospective CSA consumers are also likely to
all important ways to communicate with your
value organic production. A potential CSA
members, one-on-one conversations and other
producer will need to consider this consumer
“personal touches” will likely help you get the
characteristic and plan for appropriate production
best idea of who your members are and what they
if necessary. Alternative sources for organic
are looking for in your product.
produce should be considered during the CSA
formation stage as the producer evaluates his or
Competition for Consumers
her competition.
Identify other CSA farms that may be operating
in your area. Since the CSA model is based on
Legal Issues
developing community, two or more farms may
Legal issues that CSA operators should be aware
choose to cooperate to supply weekly shares.
of include: whether CSA members who assist on
For example, a CSA farm primarily producing
the farm are considered employees, regulations
vegetables may cooperate with a nearby berry
about including processed food, and storage
farm or orchard, thus adding more diversity to
or refrigeration requirements at drop-off sites.
the weekly share.
These are all issues that should be addressed
by consulting the appropriate local regulatory
Some CSA members may be attracted to a CSA
agencies or officers.
where multiple farms cooperate to serve their
membership base, referred to as a collaborative
A book published in 1999, The Legal Guide for
CSA. The North Central Regional
Direct Farm Marketing by
Center for Rural Development
Neil Hamilton, is a helpful
(NCRCRD) has completed a project
starting point to identify these
on this type of CSA model in Iowa
and other legal issues for CSA
and offers its insights in an online
farms. General resources,
presentation. For this, as well as
such as this book, as well as
other information on collaborative
other direct farm marketing
CSAs, refer to their Web site (listed
guides, can provide excellent
in Selected Resources, below).
information. However, farm
operators should always be
Even if cooperating with other CSA
sure to identify the resources
farms, one must remember that the
and regulations specific to
demand for CSA and subscription-
their particular products,
based produce is still relatively limited
geographic location, and
and confined to a few specific kinds
customers.5
of consumers. Studies have shown
that farmers markets may compete
Another important issue for
with the CSA farm since both can
CSA farms is the structuring
draw similar types of consumers. In the Iowa
and wording of a membership agreement. It is
study mentioned above, the top three reasons that
always a good idea to put agreements in writing,
customers were likely to cease participation in a
and a simple, properly-worded CSA membership
cooperative CSA were: not being in town enough
agreement is no exception. Following published
to make participation worthwhile, having too
guidelines for wording membership agreements,
little produce, and having a more suitable way
as well as having your agreement reviewed by an
attorney familiar with agriculture, are wise and
Selected Resources
recommended CSA management decisions.
• Kentucky Community Supported Agriculture
Farms (CSA) (Kentucky Department of
If you plan to operate your CSA as a substantial
Agriculture)
portion of your household or farm income,
http://www.kyagr.com/marketing/farmmarket/
it may be to your advantage to investigate a
csa.htm
business structure for your CSA outside of a sole
• Survey of Community Supported Agriculture
proprietorship. This may especially be the case if
Producers (University of Kentucky, 2009)
you are relying on other farms or family members
http://www.ca.uky.edu/cmspubsclass/files/
to produce some of your products. Partnerships,
extensionpubs/departmentseries/2009-11.pdf and
limited liability companies, and limited liability
http://www.uky.edu/Ag/NewCrops/csareport.pdf
partnerships are some of the forms of business
• Community Supported Agriculture (ATTRA,
organization that the CSAs surveyed in 2009
2006)
have utilized to benefit their business.
http://attra.ncat.org/attra-pub/summaries/csa.html
• Community Supported Agriculture (Local
1 Strohlic, Ron and Crispin Shelley. 2004. “Community
Harvest)
Supported Agriculture in California, Oregon and
http://www.localharvest.org/csa/
Washington: Challenges and Opportunities.” California
• Community Supported Agriculture (NCRCRD)
Institute for Rural Studies.
http://www.ncrcrd.iastate.edu/projects/csa/
http://www.cirsinc.org/Documents/Pub0504.1.pdf
index.html
2 Robyn Van En Center for CSA Resources: CSA Database
http://www.wilson.edu/wilson/asp/content.asp?id=1567
• Community Supported Agriculture (USDA)
3 Robyn Van En Center for CSA Resources. “What is
http://www.nal.usda.gov/afsic/csa/
Community Supported Agriculture (CSA)?”
• CSA Resources for Farmers (USDA, 2009)
http://www.wilson.edu/wilson/asp/content.asp?id=1273
http://www.nal.usda.gov/afsic/pubs/csa/
4 Bregendahl, Corry and Cornelia Butler Flora. 2006. The
csafarmer.shtml
Role of Collaborative Community Supported Agriculture:
Lessons from Iowa. Ames, IA: North Central Regional
• Robyn Van En Center for CSA Resources
Center for Rural Development.
(Wilson College)
http://www.ncrcrd.iastate.edu/projects/csa/CSAReport-
http://www.wilson.edu/wilson/asp/content.
2006-LessonsFromIowa.pdf
asp?id=804
5 Neil D. Hamilton. 1999. The Legal Guide for Direct Farm
• The Role of Collaborative Community
Marketing. Drake University/SARE. p. 27, 58-60.
Supported Agriculture (cCSA): Lessons from
Iowa (NCRCRD, 2005)
http://www.ncrcrd.iastate.edu/projects/csa/
leopoldworkshop.pdf
Prepared by: Matt Ernst and Tim Woods (tawoods@uky.edu)
University of Kentucky Department of Agricultural Economics
400 Charles E. Barnhart Building, Lexington, KY, 40546-0276
The inclusion of a commercial Web site as a resource does not
Phone 859-257-5762
represent an endorsement of the company or its products by the
http://www.ca.uky.edu/agecon/index.php
University of Kentucky.
Photos courtesy of Keith Weller, USDA-ARS (p. 1);
Issued 2005; Revised August 2009
UK Ag Communications (pp. 2, 3 & 7); and Matt Ernst (p. 5)
