Given the geography and agroclimatic conditions of the Southeast, coupled with continued population expansion from in-migration, local foods markets may be a promising niche market for some farms in the region. The Southeast has more small farms than any other U.S. region. Using farm-level data, we address the question of how successful southeastern farms engaged in direct sales to consumers differ from other farms. We also include a case study of a marketing association in the panhandle of Florida. In both analyses, we focus on the role of the supply chain for direct sales in explaining farm returns.