How to Open a Roadside Farm Stand

Roadside stands can be popular for consumers looking for farm fresh produce straight from the source. It could also be another source of income for your operation. Farm stands are a fun and personal way to connect with your community by providing things like fresh produce, baked goods and florals. There are many benefits such as lowering food waste, minimal maintenance, personalization, flexibility and more.

Types of Roadside Stands

The first thing to know is there are different types of roadside stands. The most common are farm stands and farmer’s markets.  Roadside stands can be as simple as a table with a tent or a physical structure. If you are looking for something short-term, or something more seasonal, a temporary farm stand may be more flexible for your business. In many places permits are required, so make sure to check local guidelines. Permanent structures can be great for those who sell year-round but can incur more maintenance and are fixed to a location. 

Farm Stand

A farm stand can be on the roadside or located on the farm itself. Farm stands may vary in simplicity or extravagance and can be personalized and adapted to your business, what you sell is completely up to you. 

Farmer’s Market

A stand in a farmer’s market could be all yours or include contributions from multiple farmers. This option could be more cost-effective and low maintenance when the products are sourced from multiple operations. However, keep in mind your insurance coverage would likely only extend to your produce and goods, not the contributions of others.  

Farmer’s markets are a great way to gain more exposure within your community. Plus they’re consistent, typically held at a regular cadence in the spring and summer seasons. Downsides to farmer’s markets are event fees and having to travel to the farmer’s market. You may also be restricted from selling certain items depending on the rules of your farmer’s market. 

What to Consider When Starting a Roadside Stand

There are many things to consider when starting a roadside stand, such as structure, staffing, location, laws, inventory and marketing. It’s easy to feel overwhelmed with many options, but you may find getting started creating a roadside stand is easier than you think! 

1. Structure

Temporary stands and structures may need to be smaller and easy to set up and pack away.  In markets where you have a long-term or recurring presence, you might consider constructing something that is sturdier and can withstand shelving structures for inventory storage. You might want to visit a farmer’s market booth or roadside stand near you for inspiration and ideas about a setup that works best for you and your products.  

Decorate your stand with signs and details about what you are selling. For instance, if your main selling point is produce, you might look into fruit and vegetable hangings or artwork that can be seen from far away. 

Keep in mind you may need a permit to host land use or event space. Your local zoning and event regulations will determine which type you will need to acquire. Contact your local building and zoning division to inquire about a permit specific to your business. 

1.  Staffing

Depending on the scale of your stand, you may be able to supply and staff it all by yourself.  The benefit of running your own stand is managing your own cash and providing more personalization, quality control and customer service. However, you may need some help. Especially if you’re part of a farmer’s market that happens every weekend. You may choose to hire a trusted individual or employee to run the stand and market your products. The downside of bringing on staff is labor costs and reliability. 

You may consider instituting an honor-based system such as a cash box. These are self-serve and can be done at any time, however theft may occur. You can combat these by having a locked box with a code or by designating specific pick up times for your inventory. Attaching a camera can deter theft and help manage and track inventory during the day. 

1. Location

Location is key when considering where to run your stand. You may choose to sell at a local market in your community or consider taking a trip into a neighboring city with more foot traffic. Take the time to plan and consider traffic and logistics. Is there enough parking space for those who pass by? Or – do you wish for more foot traffic to your stand?

You should also consider things like temperature, shade, electricity and gas. You may need these items to successfully run your stand if your items need refrigeration. Eggs, for example may need proper refrigeration. However, holding a roadside farm stand at your own farm is a great way for visitors to try your products and promote your farm as a destination – with food storage methods onsite. 

1. Laws, Permits & Insurance

You might be asking, are permits required to operate a roadside stand? Laws vary depending on the state you live in. You may be required to file for temporary event permits or permanent use permits. Consider local requirements around food safety, land use and food selling permits. Searching online for your local community guidelines can give you a good idea of where to start. . If you sell a mix of products, you may need more than one permit to run your roadside selling business. 

Insurance coverage may vary depending on your provider, and the type of stand you own. While some providers automatically include liability coverage for something like a roadside stand, it’s optional with other providers. This means you need to request it and pay for it if it’s not already included. Make sure you know your coverage! 

1.  Products & Inventory

Roadside stands are great for selling any extra yields. Fruits and vegetables, florals, jams, jellies and baked goods are great ideas for your stand. You may decide to also sell seasonal items such as fruit ciders, pastries, honey, soaps, crafts, or other items made from your farm.  

Make sure to create an inventory sheet and track your products sold. Not only can this record any instances of theft or damaged products, but it can also be a terrific way to track sales over time. You may find it easiest to group your products into categories and update your inventory weekly, monthly or even daily. You may need to audit prices depending on things like sales, competition, demand and quality. 

1.  Marketing

Inexpensive marketing ideas are a fantastic way to promote your business. Consider the demographics of your market. Who are they? What do they enjoy? Tailor marketing to your target demographic. Marketing can be as simple as needed or as extravagant as you would like. Things such as big signs, online reviews and word of mouth can all drive customers to your roadside stand. 

Social media can be a powerful and free tool where you can post things like hours, special events, limited edition products, weather cancelations and more. Consider the addition of flyers, newsletters, business cards or other paper materials that can be stashed into bags when purchasing products. This can help customers think about your brand and keep them coming back. 

1. Pricing

Depending on factors such as location, you may have competition and/or demand. If you decide to create a roadside stand near a grocery store, remember you’re competing with grocery store prices. It is important to think about your expenses when conducting a price analysis and pricing your products. Factor in travel costs, demand and any other overhead you may think of. It might help to scope out other local stands to compare prices as well. 

Protect Your Business

Now that you have an idea of how to get started with your stand, you’re ready to set your ideas in bloom. Contact a Farm Bureau agent today to discuss the coverage you need to operate your roadside stand with peace of mind.