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  • From: JOHN A HENDRICKSON <jhendric AT wisc.edu>
  • To: Market Farming <market-farming AT lists.ibiblio.org,>
  • Subject: [Market-farming] economic impact of farmers' markets
  • Date: Mon, 16 May 2005 01:41:52 -0500

I thought the following would be of interest. -John

STUDY SHOWS POSITIVE ECONOMIC IMPACT OF IOWA FARMERS' MARKETS

Farmers' markets not only are a great place to get fresh produce, flowers
and baked goods, they also may generate an estimated $20.8 million in
sales and more than 325 jobs for the Iowa economy.

These figures are from an economic analysis prepared for the Regional
Food Systems Working Group (RFSWG) led by the Leopold Center for
Sustainable Agriculture. To do the analysis, Iowa State University
economist Daniel Otto and graduate student Theresa Varner used
information collected during the 2004 market season for the Iowa
Department of Agriculture and Land Stewardship (IDALS) and the Iowa
Farmers' Market Association (IFMA).

"There's more hidden economic value in Iowa's farmers' markets than meets
the eye," said Rich Pirog, who directs the Leopold Center's Marketing and
Food Systems Initiative and the regional foods group. "Farmers' markets
and other efforts that support locally grown and processed foods have a
positive impact on the regional economy."

Iowa Secretary of Agriculture Patty Judge, whose office promotes and
provides educational venues for Iowa's Farmer's Markets, states that,
"Farmers' markets continue to be the number one marketing channel for
Iowa's vegetable and fruit growers. Supporting Iowa's farmer's markets is
a 'win' for all of us matching Iowa farmers with Iowa consumers."

In 2004, Iowa had around 160 farmers' markets, the highest per capita in
the nation. At least 55,000 people went to a farmers market every week,
with total seasonal attendance set at 135,000. An additional 12 markets
are expected to open in 2005.

Based on interviews with more than 4,500 customers, these markets
generated $20.8 million in total sales in 2004. Those sales, in turn,
resulted in an additional $12.2 million of economic activity, of which
$4.3 million represents the supplies and services purchased by vendors
and growers, and $7.2 million in induced (payroll) effects. The analysis
showed that farmers' markets represent an estimated 325 jobs in Iowa,
plus an additional 146 full-time jobs created by the secondary impacts of
the farmers' markets.

The economic impacts of year's bustling farmers' market season in Iowa
were estimated using an economic input-output model. The model uses
purchases and sales of commodities between industries, businesses and
consumers to estimate additional secondary impacts in a regional economy.

"This study really shows the multiplier effect of farmers' markets in a
community," said Virginia Gieseke of Des Moines, who manages the Drake
Neighborhood Farmers Market and is a member of the RFSWG and IFMA. "But
farmers' markets have many other impacts that cannot be measured, such as
the ability to gather people in a community and provide fun and
educational activities."

To gather the consumer information, trained enumerators interviewed
approximately 10 percent of the customers at 161 farmers' markets in
Iowa. Customers were interviewed at the beginning, middle and end of the
summer to account for differences in the markets during the growing
season. Questions included the number of times they visited the market,
average cost of their purchase, and type of products purchased.

The average customer was 51 to 65 years old, and visited the market 13
times during the standard 21-week season. Customers spent $11-$20 per
visit, and more than 80 percent bought fruits and vegetables and 40
percent purchased baked goods.

The report,
http://www.leopold.iastate.edu/research/marketing_files/markets_rfswg.pdf
”Consumers, Vendors and the Economic Importance of Iowa Farmers'
Markets," is available on the RFSWG web site, www.valuechains.org, or by
contacting project director Rich Pirog, (515) 294-1854.







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