Farm to Food Assistance
Register for our monthly meeting series here: ... View more
Organizers:
- Organized by
-
-
LFPA Pricing / “Fair Market Value” Fluctuations
-
LFPA Pricing / “Fair Market Value” Fluctuations
Hey beautiful people,
In states that have set price lists for LFPA, do these prices fluctuate or are they set for the length of the program? We had an inquiry from a state that just shifted their prices dramatically from when farmers were initially engaged to grow product for the program. Farmers have been raising products and increasing volume based on the original price list and now face huge potential losses. We’d appreciate any insights you might have on this, and your suggestions of what advocates can do to make it right. Thank you!
-
5 Replies
-
Nebraska is using the (Resources — Iowa LFPA) Iowa LFPA Pricing Guidance document for all commonly grown and sold food items in the Midwest. The last I talked with them I believe they said it was managed by someone from Iowa Extension and is updated somewhat regularly with food prices and new products being sold in the market. Since Iowa and Nebraska markets are so similar it makes sense to use similar prices. A lot of Nebraska producers also sell to Iowa, so it keeps things competitive. This is also a transparent way to ensure that both the producers that sell, and the food hubs that buy, are getting a fair price. (Fun fact produce prices are more volatile than oil).
-
Thanks Jacob! Have y’all run into issues with serious differences in price from when farmers were first engaged, to when the sales actually occurred? This dynamic speaks to the importance of forward contracting, as farmers can lock in the price before ramping up production.
-
Thanks for sharing, Jacob.
It’s helpful to see IA/NE LFPA price range with a tab that tracks price changes. The “change log” lists the increase or decrease with a date and who signed off on it. Most of the changes are either price increases or adding new products to the list. Only 2 of 160+ changes are price drops.
-
-
this is amazing ! very helpful.
I’m also curious for other LFPA folks what pricing logic you are doing for CSA Style boxes?
We are using a flat $36 reimbursement per box with an estimated $8.50 admin costs and estimated $27.50 that is direct food costs from farmers. We are hearing from aggregators that this is a bit low to be feasible. Curious what box prices folks are setting
-
I wanted SO much for their to be a price set for CSA boxes so that could be part of the process. It makes so much sense IMO for a CSA farmer to be paid to distribute some number of additional CSA boxes for a pantry or community partner. It’s a smart way for some beginning or urban farmers to scale up production.
-
Log in to reply.