The Small Farms Industry Clusters (SFIC) Project

and policy makers increasingly recognize that industry clusters are critical to regional development and competitiveness. However, cluster research to date has not focused on agricultural producers. This project: examines the potential of, and variations in, economic clusters of small- and medium-scale farms for achieving agricultural economic development and environmental management objectives; identifies the unique characteristics of clusters that may support long-term farm viability and the sustainability of surrounding rural communities; and engages farmers and development professionals as integral partners in the research/outreach process. Clusters are concentrations of firms or businesses that: • are located in relatively close proximity to each other, • compete with each other in similar markets, • cooperate with one another to enhance both technical skills and market access, • support, through social networks, growth and development of individual businesses, • share common inputs such as labor with specific skills, • recruit support industries based upon the concentration of firms in an area, • benefit mutually from new knowledge generation that is location specific, and • work together to respond to new market needs or societal demands, such as environmental management. These latter features set clusters apart from traditional associations of firms or farms, such as cooperatives. As an analytical framework, clusters provide an ideal integrated and comprehensive tool for assessing the interplay among economic, social, environmental and biological factors related to small farms and rural economic development. We examine and compare clusters formed around: 1. traditional commodities (dairy, wines, mushrooms)