By DOUG SCHMITZ
Iowa Correspondent

DES MOINES, Iowa — The 223 designated farmers’ markets across Iowa in 2009 have contributed an estimated $71 million to the state’s economy, according to a new report released by the Iowa Department of Agriculture and Land Stewardship (IDALS).

“In these difficult economic times, farmers’ markets continue to serve as vital links between rural producers and Iowa consumers – allowing all Iowans access to fresh, nutritious, locally produced agricultural products,” said Iowa Agriculture Secretary Bill Northey. “For many of us, farmers’ markets are a face of Iowa agriculture.
“This report also serves to remind us that farmers’ markets are a great way for consumers to purchase the wide variety of agricultural products produced on Iowa’s farms, and a great place to get to know the farmers who produce them.”

Conducted at farmers’ markets throughout the state, the survey’s data were provided to Strategic Economics Group, Inc. by Principal Associate Daniel Otto, an Iowa State University professor of agricultural economics who analyzed the findings.

The report is based on information gathered from the 2009 Farmers’ Market Economic Impact Survey, conducted by a cooperative agreement between the IDALS and the USDA National Agriculture Statistics Service Iowa Field Office. IDALS collected demographic and market participation information from more than 4,000 consumers and more than 1,200 vendors during the 2009 market season.

The survey participants were asked questions based on the following categories: fruits and vegetables; meat, fish, poultry, dairy and eggs; crafts; flowers; baked goods; and honey, jam, wine and prepared foods.

“In the five years since the last comprehensive survey, we have seen a 92 percent increase in sales at the farmers’ markets located across the state,” Northey said.

The $71 million estimate was broken down to $59.4 million in direct and indirect sales, and an additional $12.2 million of personal income effects, with 374 direct jobs and more than 200 indirect jobs possibly attributing to the activities of markets.

“Farmers’ markets are a great opportunity to access fresh, nutritious, locally grown foods and it looks like Iowans are taking full advantage of that opportunity,” Northey added.

The report also had shown the state’s markets had $38.4 million in sales in 2009 based on consumer reports, which was an increase from $20 million in 2004. Other findings from the report showed about 99,000 customers and 1,500 vendors attended at least one market in 2009, with the average customer returning for an estimated 11 market visits per season.

“The typical market consumer was 51 to 65 years of age, buying mostly fruits, vegetables and baked goods,” Otto said. “Evidence suggested that consumers patronizing the largest markets were slightly younger, traveled farther and spent more.”

The survey also showed Iowa customers spent an average of $17.12 per visit: 84.4 percent of these customers purchased fresh fruit and vegetables, and 45 percent purchased baked goods.
Interviews were conducted during three points of the 2009 market season: early-, mid- and late-season, with equal representation across all seasonal periods.

“Because consumers may spend differing amounts of money per seasonal period, this equal representation across seasonal periods helps ensures greater accuracy when dollar purchases are averaged for the entire season,” Otto said.

In the vendor survey, the managers of the selected markets were given copies of paper surveys to distribute to the vendors who had been in regular attendance at the market. The survey was based on a set of questions suggested by the author and sponsors, and vendors were asked to return the survey to the manager for submission.

As a national leader in the number of farmers’ markets, Iowa did see an increase in the number of markets by more than 75 percent over the past 15 years, the report said. More than 135,000 Iowans shop regularly at their local farmers’ market during the typical 22-week market season, with 88 of Iowa’s 99 counties having markets in operation.

In fact, in 2009, the estimated 223 farmers’ markets made Iowa the fourth largest in the nation and second in the number per capita.

“This report again highlights the importance of farmers’ markets as a way for consumers to purchase the wide variety of agricultural products raised and grown here in Iowa, and a great opportunity to get to know and interact with the farmer that produced them,” Northey said.

With increasing consumer interest in Iowa products and producers using markets to raise profitability, he said this is the most markets the state has ever had.

“These farmers’ markets provide residents with direct access to Iowa’s nutritious, affordable and delicious products,” he said. “With their great diversity of products, helpful and capable vendors and unique, festive atmosphere, these markets provide powerful benefits for vendors, consumers and communities.”

With farmers’ markets becoming the largest direct-to-consumer sales venue in Iowa, Northey said the 2007 Census of Agriculture has shown the value of agricultural products sold directly to individuals for human consumption rose from 11.6 million to 16.5 million, a 42 percent increase.

Because the typical consumer is a city resident and not necessarily familiar with local agriculture and the types of goods available throughout the season, Otto concluded that greater market participation might result from increased marketing, which includes market- and agriculture-related education in urban areas.