Given the geography and agroclimatic conditions of the Southeast, coupledwith continued population expansion from in-migration, local foods marketsmay be a promising niche market for some farms in the region. The Southeasthas more small farms than any other U.S. region. Using farm-level data, weaddress the question of how successful southeastern farms engaged in directsales to consumers differ from other farms. We also include a case study ofa marketing association in the panhandle of Florida. In both analyses, wefocus on the role of the supply chain for direct sales in explaining farmreturns.