The Common Market, a nonprofit regional wholesale food distributor based in the United States is aiming to shift the paradigm of institutional food procurement. By advancing forward purchasing commitments to small and mid-scale farms, the organization hopes to rebuild regional food systems in the Mid-Atlantic, Southeast, Texas, and Great Lakes.
“The current norm in institutional purchasing is to require products to be purchased for the lowest dollar amount,” Bill Green, the Executive Director of the Common Market Southeast tells Food Tank. But cheap food often has “hidden costs not paid by the institution,” he says, including underpaid workers, natural resource exploitation, and negative health outcomes.
Institutions that have conventional procurement models often place orders from farms on a week-to-week or even daily basis. “This model is laced with uncertainty and risk for farmers,” says Green, noting that with such little notice farmers cannot plan their production in advance and do not have the security of a guaranteed market.
With forward commitments, institutions pledge to purchase products from a local producer for an entire growing season or calendar year. The Common Market facilitates these commitments and aggregates and delivers products from farms to public schools, hospitals, universities, and more.
This helps provide greater security to producers like Jonathon Green, a co-owner of Cornucopia Farms in Georgia, who has no relation to the Common Market’s Executive Director. Jonathon says this model mimics the financial infrastructures used by large, profitable growing operations, allowing his small farm to operate with similar security and efficiency.
“The large corporate farms—they don’t put anything into the ground until it has a home. That’s what a lot of independent farms struggle with,” Jonathon says. “What we’ve been able to do with The Common Market is go to companies like Aramark and Morrison’s Healthcare…and demonstrate our ability to provide the product they’re looking for.”
Small-scale farmers are often blocked from conventional markets such as retail grocery stores, which contract with large, industrial suppliers, according to Jonathon.
The number of small and mid-sized farms in the United States is decreasing as agricultural markets become increasingly consolidated. Between 2017 to 2022, the U.S. lost 141,733 farms, a 7 percent decline, according to the 2022 Census of Agriculture.
Former U.S. Department of Agriculture (USDA) Secretary Tom Vilsack says that, while 2022 was the most profitable year for agriculture in the history of the U.S., 89 percent of that wealth went to just 7.5 percent of the farms.
But forward commitments can help smaller operations get a foothold in the market. Howard James, owner of Jibb’s Vineyard Quality Fruits and Vegetables in Georgia, says, “When we know there’s a buyer for what we plant, we can invest in our future with confidence. We can balance our income, cover expenses, and keep our farm sustainable.”
These commitments also offer institutions a more resilient and dependable supply chain. “If weather or equipment failure leads to a product shortage, our ability to substitute for similar products grown by a producer in a neighboring town or state becomes a reliable safety net,” says Bill.
Thomas Sewell, a Division Chef for Morrison’s Healthcare, says that “when we’re serving something local, it’s always going to be better…the fresher a product, the less you have to do it.”
Since 2008, The Common Market has distributed local foods from over 300 sustainable family farms and producers to over 1,800 partner institutions, contributing to an estimated 58 million meals.
The organization also provides financial assistance to farmers and supports product planning and marketing. Rachel Terry, the National Partnership Director at The Common Market, tells Food Tank that their Farmer Loan Fund has provided over US$1.4 million in financing since its launch in 2022. 82 percent of that went to Black, Indigenous and women-led farms. “These loans help level the playing field,” says Terry.
Federal programs like Local Food for Schools (LFS) and the Local Food Purchase Assistance (LFPA) Program also helped level the playing field, according to Caitlin Honan, Communications Director at The Common Market. “They have helped [our] small and mid-scale family farms gain new market access to schools and food banks,” she tells Food Tank.
As a result of the USDA cuts, these programs no longer exist. “With this funding coming to an end, the future is uncertain for many family farmers,” says Honan.
But she adds that the uncertain environment only highlights the value of their work. “It underscores the importance of [having] a diverse ecosystem of consumers and institutions willing to make investments in their local food economies and the health and well-being of their communities.”
Articles like the one you just read are made possible through the generosity of Food Tank members. Can we please count on you to be part of our growing movement? Become a member today by clicking here.
Photo courtesy of The Common Market
