This arrangement provides farmers with the needed capital to purchase spring planting inputs. In addition, by paying in advance of delivery, customers share the financial risk of farming with the growers. Shareholders' one-time seasonal investment is not refundable should adverse weather conditions, such as last year's flood in the Midwest, result in reduced crop yields. Mail-order marketing is a third direct marketing option practiced by family farmers. Like other businesses, some farm families have started selling products, like cheese, fruits and cereals, through the mail.
Catalogues are now available from family farmers throughout the country.
These retail outlets are often eager to purchase directly from family farmers who can guarantee prompt delivery of fresh, locally grown or organic produce. Farmers who sell directly to restaurants can earn a premium above normal crop prices. In addition, farmers who produce organically can gain a premium above wholesale prices for providing fresh organic products that accommodate restaurant and shopper food preferences. This form of direct marketing allows farmers to capture an even greater share of the food dollar by providing customers with the ultimate convenience of having fresh fruits, vegetables, and milk and other dairy products delivered to their doorstep. Although direct marketing has helped thousands of family farmers attain a higher percentage of the food dollar, it is not the solution for all farmers.