Sep 29, 2025

Farm Market & Agritourism: What to do when market fluctuation affects prices

Prices for fruits and vegetables at the farm level can swing quickly because of weather and seasonal supply. Retail store prices, on the other hand, change more slowly. 

This happens because stores spread costs across transportation, labor and marketing. For farmers selling directly at markets, price swings are felt more immediately. Understanding this gap helps explain to customers why prices may rise or fall.

A step-by-step guide to handling price changes

Re-check your costs

When the price of containers, labor, fuel or ingredients changes, update your cost of goods sold (COGS). This number should be the minimum price you accept. From there, add your profit margin and check local competition.

Use reliable price reports

Look at the USDA AMS Market News weekly for crop prices at shipping points, terminals and retail outlets. Also, review the National Retail Report – Specialty Crops for supermarket ads. Some states, like Kentucky, also post farmers market price reports. If your market tracks vendor prices, compare your prices with those as well.

Set prices by channel

Prices can be different at farmers markets compared to retail farm markets. Research shows organic produce is sometimes cheaper at markets, while conventional items are often cheaper in grocery stores. Use your sales history and outside reports to set prices for each channel.

Adjust pack sizes and units

Consider smaller package sizes instead of only raising prices. For example, offer a 12-ounce package instead of a 1-pound pack. Offer both unit and per-pound prices to give customers choices. Always post clear unit prices so shoppers can compare fairly.

Plan markdowns for perishables

Have a plan for price reductions near the end of the sales day or shelf life; for example, a small discount in the last hour of the market or a bigger discount on day-old baked goods. Studies show planned markdowns can reduce waste and protect revenue. Avoid sudden, unplanned price drops that confuse customers.

Be clear and consistent

Always post prices where customers can see them. If prices change, explain “short supply this week due to weather” or “packaging costs increased.” Follow your market’s rules on signage and keep your displays easy to read.

Create a routine

• Weekly: Review USDA/Extension price reports and update your records.
• By channel: Set separate prices for farmers markets and farm stores.
• End of day: Apply markdowns for perishables and record leftovers.
• Monthly: Compare your profits against your goals, and adjust package sizes or product mix.

Why your prices don’t need to match supermarkets

Supermarket prices include costs for transport, storage, advertising and retail labor. Farmers selling directly must cover their own expenses for labor, packaging and space. That means your prices will not always match the grocery store — and they don’t need to. Use your cost calculations and local benchmarks to explain your prices to customers.

Keep records

Write down each week’s prices, package sizes, markdowns, sales and waste. By the end of a season, these notes will help you see what worked during price swings and what needs improvement. For small-scale DTC sales, your records are one of the best tools for managing price changes.

— Brian Moyer is an educational program associate with Penn State Extension. As founder of PA Farm Markets LLC and founder and manager of the Skippack Farmers Market, Moyer specializes in assisting farmers markets, retail farm markets, direct-to-consumer sales, and new and beginning farmers with marketing, business and regulatory issues.