How Digital Marketplaces Are Empowering Small Farmers

For decades, small and mid-sized farms have been the backbone of rural economies, yet they continue to disappear at an alarming rate. According to the United States Department of Agriculture (USDA), the number of farms in the US has declined by over 140,000 between 2017 and 2022—a 7 per cent decrease. While economic pressures, land consolidation and rising input costs all contribute to this decline, one of the most significant challenges remains market access—how farmers connect with customers and secure consistent, profitable sales.

Traditionally, farmers have relied on farmers’ markets, community supported agriculture (CSAs), and wholesale contracts to sell their products. While these models work for some, they present logistical and financial challenges: farmers’ markets require physical presence and unpredictable sales, CSA programs demand upfront consumer investment and wholesale contracts often result in slim profit margins. In an era where consumers expect convenience and digital accessibility, small farms are at a disadvantage when competing with large-scale grocery supply chains.

However, digital tools are beginning to change the landscape, offering small farmers new ways to sell directly to consumers while retaining more of the food dollar.

Digital marketplaces: the shift toward direct-to-consumer digital sales

E-commerce has transformed nearly every industry, from retail to restaurants—yet small farms have largely been left behind. A lack of accessible platforms, high transaction fees and the complexity of logistics have historically prevented farmers from taking full advantage of online sales.

Now, emerging digital marketplaces and farm-specific sales platforms are addressing these issues, allowing farmers to list their products, accept payments and coordinate pickup or delivery with minimal friction. Unlike traditional classified listings, these platforms facilitate entire transactions—reducing the back-and-forth messaging, missed sales and unpaid invoices that often come with informal online selling.

One key advantage of these digital solutions is their ability to help farmers build stronger, more predictable customer relationships. When consumers can browse available products, place orders and schedule pickups or deliveries with ease, they are more likely to buy from local farms regularly. These tools don’t just offer convenience—they also support financial sustainability by reducing uncertainty in farm sales.

Keeping food dollars in local communities

Beyond the direct benefits to farmers, digital farm marketplaces can help address a broader economic challenge: the decline of rural economies. Currently, only about 14 cents of every food dollar spent in the U.S. goes to farmers, with the rest absorbed by processing, distribution and retail. By connecting farmers directly to consumers, digital sales models allow farmers to capture a larger share of the revenue, strengthening their businesses and reinvesting in local communities.

Moreover, studies show that money spent on local food stays in local economies at a much higher rate than conventional food purchases. (American Farmland Trust) When customers buy directly from a farm instead of a grocery store chain, a greater portion of that spending remains in the community—supporting not just the farm itself, but also other local businesses, from feed suppliers to farm equipment repair shops.

Case studies: farmers adopting digital solutions

Across the country, farms are beginning to leverage digital tools to enhance their sales and resilience. For example:

• A pasture-based livestock farm in the Midwest increased its direct-to-consumer sales by 40 per cent after integrating an online storefront, allowing customers to place orders in advance and schedule local deliveries.
• A diversified vegetable farm in the Northeast transitioned from relying solely on farmers’ markets to a hybrid model, where half of their sales now come from online pre-orders—a shift that reduced waste and improved cash flow.
• A family dairy farm in the South expanded its customer base beyond its immediate region by using an online sales platform to ship artisanal cheeses directly to consumers, bypassing wholesale distributors.

These examples illustrate how digital marketplaces are not replacing traditional farm sales but complementing them, providing farmers with greater flexibility and security.

The future of small farm sales: expanding digital accessibility

For these innovations to have a widespread impact, farmers must have access to user-friendly, affordable digital tools that fit the realities of small-scale agriculture. Many farms operate on thin margins, and adopting new technology can feel daunting. However, as more solutions are designed specifically for small farms, barriers to entry are lowering.

In addition, consumer interest in local food is at an all-time high. Surveys indicate that more than 55 per cent of consumers express a preference for purchasing from local farms, but many don’t know where or how to do so. By making farm-to-table transactions as seamless as ordering from a grocery app, digital sales platforms can bridge the gap between consumer demand and farm viability.

One emerging example is Red Hen, a new initiative designed to give farmers a simple, nationwide platform for selling directly to customers, whether through pickup, delivery or shipping. While large-scale grocery delivery has become the norm, small farms have largely been left out of this shift. Tools like Red Hen aim to bring that same level of convenience to the local food movement—without forcing farmers into unsustainable pricing models.

As these models continue to evolve, digital farm marketplaces have the potential to reshape local food systems, ensuring that small farms remain a thriving part of the agricultural landscape. By embracing technology in a way that aligns with the values of sustainable farming and community resilience, we can help create a future where small farms not only survive—but thrive.