Searching for Community and Fresh Local Produce? You Should Know What a Farm Stop Is

In a former vacuum cleaner store in Ann Arbor, Michigan, shoppers are browsing stunning seasonal produce, inhaling the scent of wild flower bouquets, and perusing loaves of crusty bread. 

Just down the street, students in a sister shop are typing on laptops, as the whoosh of milk being steamed and scent of coffee fill the air. You might mistake these places for gourmet grocery stores or a scene in a Nancy Meyers movie — but you’re really witnessing a revolution in how and where we buy food.

Argus Farm Stop, which has three locations, is part of a small but growing group of stores across the country that sell fruits and vegetables, prepared foods, baked goods, and decorative objects that are sourced from the surrounding area. All dubbed farm stops, these establishments serve as exciting business models for supporting local agriculture and small food companies.

What is a farm stop?

Farm stops are akin to a farmers market, but set in a brick and mortar location. While farmers markets are dependent on the weather, farm stops give growers and makers in the area a reliable outlet for selling their goods, rain or shine. 

These locales differ from food co-ops because they don’t require memberships, so anyone can come in and shop. Some are non-profit establishments, and others are money-making ventures, but big profit margins are rarely the sole motive.

To be clear, these are not the same thing as a gourmet grocery store. Whereas a specialty supermarket might feature items from across the country or even around the world, a farm stop focuses exclusively on local items, whether raised down the road or in the same state. 

How does the business model work?

Vendors receive most of the revenue from each sale, with the store keeping a small percentage. 

In Argus’ case, farmers get 75 percent of the revenue from the goods they bring, while Argus keeps 25 percent. The store then uses that small percentage to compensate staff, cover the cost of organizing inventory, and pay rent and utilities. Bill Brinkerhoff — who founded Argus ten years ago with his wife Kathy Sample — says the final yield is a small profit of just one to two percent each year.

Net income is similarly low for Agricole, a farm stop in Chelsea, Michigan, about 30 minutes away. Abby Hurst, one of the store’s four owners, notes that she kept $30,000 in profit last year out of $2 million in revenue, which comes out to about 1.5%. Agricole also operates on a 75-25% percent split. 

But for the people who run farm stops, it’s helping local farmers and food businesses that's most important. Hurst tells Food & Wine that “I’m happy with this because none of us do this for the money,” and Sample also noted that one major benefit of the business is “an opportunity to interact with farmers that a grocery store never would.” 

Opening is an investment 

Agricole’s founders drew directly from Argus’ expertise in opening their store, located in a sprawling brick building across from the headquarters for Jiffy Mix in Chelsea. 

Known as the Mack Building, the former factory that houses the farm stop was in danger of collapsing when Hurst and her husband Joe Ziolkowski bought it from the city. “The floors were rotting and there were trees growing out of the roof,” she recalls. 

After gutting the space, she and her partners spent $270,000 on renovations — they used money out of their own pockets, cash from investors, and the results of a crowdfunding campaign to make it happen.

They installed new floors, a commercial kitchen, a wall of frozen food cases, and an open bank of shelves to display produce. Considering the town’s small population of only 5,500, Hurst predicted the store would generate about $500,000 in annual revenue. Its success has far surpassed her expectations, and it generated about four times that estimate in 2023 alone. The number of vendors increased exponentially too, and has grown from an original 60 to 200. 

By comparison, it cost $180,000 to open Argus’ first location — located inside of a former gas station — in 2014, and $350,000 to renovate its newest store in 2022, according to Brinkerhoff. The Ann Arbor-based farm stop currently works with about 40 farmers, and together its three locations do about $6.8 million in annual business, with more than $4 million going directly to the farmers. 

What do farm stops sell? 

People who frequent an area’s farmers markets will see many of the same vendors at local farm stops, and the latter may peddle goods from orchards and potato growers to bakers and dairy companies. You can find frozen meat, seafood, ice cream, milk, and sometimes a variety of pantry items like locally milled flour, popcorn, and tortilla chips.

Inventory isn’t limited to raw ingredients, and ready-to-eat items are frequently sold at farm stops too. Grab and go sections may be stocked with items from local restaurants, like salads and sandwiches, as well as those from home businesses, such as spinach pie and soup. Sometimes there are even nonedible goods like bouquets — it all comes down to what growers and makers in the area are producing.

Melvin Parsons, the founder of We the People Opportunity Farm in Ypsilanti, Michigan, says the proprietors were welcoming when he first started bringing collard greens, kale, Swiss chard, tomatoes, green beans, turnips, and jalapeños to Argus. He remembers that “We didn’t even have a logo yet” when he brought his first vegetables in 2017, so Sample made a label for him from a piece of cardboard. 

“They’ve been supporters of our work,” Parsons tells Food & Wine, and have been “thoughtful and mindful” about helping farmers. “The farm stop model is a place we can bring our food, and we don’t have to [worry] about leaving it.” 

A place for community and gathering

The founders of both Argus and Agricole envisioned their stores as future gathering spaces for the community, a goal that has come to fruition.

Argus’ original location has an indoor greenhouse, which is now a popular remote work spot for locals. Its outdoor tables are often filled with students and neighbors who stop by at happy hour to sip on craft beers, available on tap.

Another location of the Ann Arbor store hosts a weekly trivia night, musical performances, and pop-ups for local businesses like Bev’s Bagels.

Agricole also sees a steady stream of parents, children, retirees, and other visitors throughout the day. Customers may recognize co-owner Abby Hurst, and say hello as they peruse the produce. Behind its sales floor, Agricole houses Stone House Oven, a bakery specializing in decorated cookies that are shipped nationwide. “We want it to be a community asset,” Hurst says. “You’re making a value choice when you come here.” 

The challenges of the farm stop model

Despite the idyllic atmosphere and supportive community behind these farm stops, the owners say they face continuous hurdles. Because much of the food is organic, the inventory must be checked often for spoilage. And when coupled with limited storage space, the store has to rely on consistent deliveries to keep everything stocked. “There are a lot of challenges because the margins are so slim,” Hurst explains.

Sample also points out that it’s not the type of business a single proprietor can run. In Argus’ case, Brinkerhoff looks after finances and infrastructure issues, while Sample focuses on interactions with farmers. Retail experience is a must, and their 65 employees are often tasked with giving customers suggestions for different recipes and preparation methods for produce.

At Agricole, many of the employees are in their teens and 20s, and the store has to manage a quick turnover rate when they go back to school. But compliments from customers, and the knowledge that the farm stop is supporting the local agriculture community, help offset the day-to-day frustrations. “From day one, people have said, ‘we’re so grateful you’re here,’” Hurst notes.