Author: Annette Malave, SVP/Insights, RAB
When most people hear about local businesses, the first thing that comes to mind are the brick-and-mortar locations that sell goods or offer services. While that may be true, there is another business that is not based as much on hard goods or services, but items that are served and eaten in homes. The business in reference is farming.
Locally grown food supports the local economy and community in which you live. Supporting local farmers is an investment within the community. The impact of farming or agriculture to the economy, locally or nationally, is one that cannot be ignored.
According to the U.S. Department of Agriculture (USDA), American farms contribute a substantial amount to the country’s GDP (gross domestic product) – $134.7 billion in 2020. Agriculture, food and related industries contributed nearly $1.1 trillion to the GDP.
Agriculture and its related industries also contribute to the country’s employment. Over 10% of the total U.S. employment comes from this sector. This translates to nearly 20 million full and part-time jobs. According to the USDA, direct on-farm employment accounted for 2.6 million of the 20 million.
Farms are not only a business, but they are also just as important as a consumer target. Seventy percent of adults whose household owns a farm listen to broadcast radio. While one might think that they tune in and listen to radio to hear about local events and stay up to date on weather, using radio to reach them to inform them of products or services that they may need for their business is also important.
These radio listeners are in the market – for various goods are services. According to MRI-Simmons data, adults whose household own a farm, in the next 12 months are 71% more likely to purchase a truck and 22% more likely to take out a second mortgage or home equity loan. Also, in the past year, they are:
- 60% more likely to have purchased an electric chain saw
- 46% more likely to have gotten homeowners or personal insurance from a local agent
- 36% to have purchased any tools
- 30% more likely to have $100,000+ in homeowners or personal insurance
Supporting farmers by either purchasing their products or providing them with a service they need just makes good sense. Using radio to reach and inform them is a growth opportunity – for the businesses that have the products and tools they need as well as the community they serve.