What is community sponsored agriculture?

Posted by IronPlanet on Mar 29, 2012 9:41:00 AM

Community sponsored agriculture (CSA) originally began as a way for farmers to connect with people in their local area. However, as the idea has become more popular, the definition has begun to change and evolve, reports NPR.

The original principle behind CSA was that a customer would pay a farmer for a share of their harvest. The person would give the money up front and would thus be ensured of having fresh and affordable crops delivered when the harvest arrived. The up-front money benefitted the farmer, as it allowed them to acquire capital that they could use for various needs - similar to investing in a start-up company, for example. Of course, there's some risk involved - if the harvest is bad, the customer essentially loses their money.

Yet that's begun to change, reports the news source, and some are resisting. Some farms began to take produce from larger co-ops and use this to "pay" their investors when the harvest rolled around. Customers began to form larger groups that would fund multiple farms. While many have embraced this new definition, some farmers are bemoaning the death of the one-on-one relationship between the farmer and their investor.

Those participating in a CSA may want to invest their capital in used agricultural equipment. It's typically more affordable to buy used equipment online through IronPlanet's auctions than new, and this can help a farm grow and eventually attract more customers.

Topics: Industry Headlines