Finances
One of the hallmarks of CSA is the role of advance member payments in capitalizing production.
Many CSAs do not require bank loans at all because advance payments are sufficient to cover
most or all production costs. Advance payments also provide an essential source of financing
since many CSAs are not eligible for bank loans due to the small size of their operations.
However, there are regional variations with respect to advance payments. CSAs in colder
climates such as Oregon and Washington, with a discrete growing season and specific start and
end dates are more likely to receive advance payments than those in more temperate regions such
as California, where production is year-round and members are more likely to pay monthly or
quarterly.
Share prices vary significantly among CSAs, in part because they are calculated using different
methodologies. Some CSAs price shares are based on the wholesale market value of the produce,
while others charge closer to what the produce would cost at retail markets. The one farm in our
sample that is exclusively CSA prices its shares based on total production costs.
The profitability of CSA is difficult to gauge, in part because CSA is often one of several
marketing strategies and farmers are often unable to calculate the profitability of each marketing
component. Three of the farmers in our sample felt that CSA was the most profitable component
of their farm operation, while six perceived other marketing outlets as more profitable.