Farmers' market A farmers' market (or farmers market according to the AP stylebook, also farmer's market in the Cambridge Dictionary) is a physical retail marketplace intended to sell foods directly by farmers to consumers. Farmers' markets may be indoors or o ...

s are markets in which producers sell directly to

consumer A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...

s. While farmers' markets do not have a measurable impact on the

United States economy The United States is a highly developed mixed-market economy and has the world's largest nominal GDP and net wealth. It has the second-largest by purchasing power parity (PPP) behind China. It has the world's seventh-highest per capita GDP ...

as a whole, many studies have found that farmers' markets impact

state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States * ''Our S ...

and

municipal A municipality is usually a single administrative division having corporate status and powers of self-government or jurisdiction as granted by national and regional laws to which it is subordinate. The term ''municipality'' may also mean the go ...

economies as well as

vendor In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms ...

s, local businesses, and

s. These impacts are measured using the IMPLAN Input-Output Model and the Sticky Economic Evaluation Device (SEED), in addition to other methods. The economic impacts that are most frequently measured include effects on the

revenue In accounting, revenue is the total amount of income generated by the sale of goods and services related to the primary operations of the business. Commercial revenue may also be referred to as sales or as turnover. Some companies receive reven ...

and

income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. Fo ...

of local growers and local businesses, the effects on job creation, and the effects on other

sectors Sector may refer to: Places * Sector, West Virginia, U.S. Geometry * Circular sector, the portion of a disc enclosed by two radii and a circular arc * Hyperbolic sector, a region enclosed by two radii and a hyperbolic arc * Spherical sector, a p ...

of state and local economies. Some obstacles that may reduce impact or create negative economic effects include over-saturation, socioeconomic barriers, the opportunity cost of farmers' markets, and the projected un

sustainable growth Sustainable development is an organizing principle for meeting human development goals while also sustaining the ability of natural systems to provide the natural resources and ecosystem services on which the economy and society depend. The desi ...

of farmers' markets in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...

Methodology

Researchers use different methods to calculate the economic impact of farmers' markets on

economies An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...

in the

. The reason to include

methodologies In its most common sense, methodology is the study of research methods. However, the term can also refer to the methods themselves or to the philosophical discussion of associated background assumptions. A method is a structured procedure for bri ...

in this article is to demonstrate how impact is measured differently, which influences the findings and conclusions of the studies. The most common methods used are the IMPLAN Input-Output Model and the Sticky Economic Evaluation Device, which are mostly used to calculate the impact of farmers' markets on state,

, and local

IMPLAN input-output model

The IMPLAN input-output model is a quantitative economic

software Software is a set of computer programs and associated software documentation, documentation and data (computing), data. This is in contrast to Computer hardware, hardware, from which the system is built and which actually performs the work. ...

, technique, or

data In the pursuit of knowledge, data (; ) is a collection of discrete Value_(semiotics), values that convey information, describing quantity, qualitative property, quality, fact, statistics, other basic units of meaning, or simply sequences of sy ...

that facilitates

analysis Analysis ( : analyses) is the process of breaking a complex topic or substance into smaller parts in order to gain a better understanding of it. The technique has been applied in the study of mathematics and logic since before Aristotle (3 ...

of spending. This analytic tool, created by the U.S. Forest Service and the

University of Minnesota The University of Minnesota, formally the University of Minnesota, Twin Cities, (UMN Twin Cities, the U of M, or Minnesota) is a public land-grant research university in the Twin Cities of Minneapolis and Saint Paul, Minnesota, United States. ...

, uses the Bureau of Economic Analysis (BEA) input-output criterion combined with other data to compile tables that identify cash flows between different

of the

economy An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...

. IMPLAN methodology has been used in studies on Portland and

Iowa Iowa () is a state in the Midwestern region of the United States, bordered by the Mississippi River to the east and the Missouri River and Big Sioux River to the west. It is bordered by six states: Wisconsin to the northeast, Illinois to th ...

n farmers' markets to calculate the economic impact by studying consumption-based transactions. It is also used to compute data supporting studies on the impact of farmers' markets on

Sticky Economic Evaluation Device (SEED)

Market Umbrella is a

nonprofit organization A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...

that developed the Sticky Economic Evaluation Device (SEED), a tool that measures the economic impact of a public market on neighboring businesses. SEED multiplies the annual

generated by

s of the

market Market is a term used to describe concepts such as: *Market (economics), system in which parties engage in transactions according to supply and demand *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an ...

and abutting businesses by the multiplier. Specifically, the Regional Input-Output Modeling System II multiplier is used, which is generated by the BEA
BEA
. The RIMS II multiplier measures how many dollars remain in the regional or local

. "The greater the interaction each dollar has with the local economy, the larger the multiplier." This methodology also gathers information through customer-intercept surveys and head count tabulation in order to calculate the economic impact the market has on its

region In geography, regions, otherwise referred to as zones, lands or territories, are areas that are broadly divided by physical characteristics ( physical geography), human impact characteristics ( human geography), and the interaction of humanity an ...

. Market Umbrella provides markets with access to their survey templates and facilitates report generating through the use of online accounts on their website. The sales tax revenue generated by market consumers, including purchases at neighboring businesses, is additionally captured. The SEED methodology, developed with farmers' markets in mind, has been used to measure the economic impact of Crescent City Farmers' Markets.

Economic impact on the U.S. economy and its regions

There are few studies that focus on the impact of farmers' markets on the United States economy and on regional economies in the U.S. The

USDA The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...

has the most research surrounding regional variation and overall composition of farmers' markets.

Impact on U.S. economy

In 2012, the

output Output may refer to: * The information produced by a computer, see Input/output * An output state of a system, see state (computer science) * Output (economics), the amount of goods and services produced ** Gross output in economics, the value o ...

generated by

farm A farm (also called an agricultural holding) is an area of land that is devoted primarily to agricultural processes with the primary objective of producing food and other crops; it is the basic facility in food production. The name is used ...

s contributed $166.9 billion to

gross domestic product Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is oft ...

, which was 1 percent of

GDP Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...

. This figure includes all farms participating in economic activity, which suggests that the total contribution of

farmers' market A farmers' market (or farmers market according to the AP stylebook, also farmer's market in the Cambridge Dictionary) is a physical retail marketplace intended to sell foods directly by farmers to consumers. Farmers' markets may be indoors or o ...

s to the U.S. economy in terms of

is very small. Nevertheless, the number of farmers' markets in the

is growing rapidly, with growth increasing by 8.6 percent per year on

average In ordinary language, an average is a single number taken as representative of a list of numbers, usually the sum of the numbers divided by how many numbers are in the list (the arithmetic mean). For example, the average of the numbers 2, 3, 4, 7 ...

. About 30 percent of these new markets are less than five years old and most of them report sales that are half the national

. These new markets have on average 22

s compared to the national average of 31, and 430 customers per week compared to the national average of 959. This explains why the growth in sales from $888 million in 2000 to $1 billion in 2005 was only 2.5 percent in spite of the rapid growth in the number of farmers' markets. The

generated from farmers' markets was $31,923 per month according to a 2005

study.

Regional variation

The

s that have the most lucrative farmers' markets are the Far West and the mid-Atlantic region. Managers of farmers' markets reported in a 2005 study that about 15 percent of the

s at their

earned between $25,000 and $100,000 annually. This range was the largest reported level of

across the regions. The North Central and Rocky Mountain regions in contrast experienced the lowest level of

sales Sales are activities related to selling or the number of goods sold in a given targeted time period. The delivery of a service for a cost is also considered a sale. The seller, or the provider of the goods or services, completes a sale in ...

with

between $1,000 and $5,000. This may be due in part to the

seasonal A season is a division of the year based on changes in weather, ecology, and the number of daylight hours in a given region. On Earth, seasons are the result of the axial parallelism of Earth's tilted orbit around the Sun. In temperate and po ...

variability of different

s. The markets in the

Rocky Mountain The Rocky Mountains, also known as the Rockies, are a major mountain range and the largest mountain system in North America. The Rocky Mountains stretch in straight-line distance from the northernmost part of western Canada, to New Mexico in ...

region were open on

only 3.92 months, while markets in the Far West were open for 4.9 months on average. The Far West also experienced the greatest level of sales with $476,733 per market per year, while the Rocky Mountain region experienced the lowest level of sales with $90,169 per market per year.

Economic impact on states and cities

Many studies assess the impact of

s in the United States on state economies and

economies. Most of these studies find that farmers' markets benefit state and local economies because they have direct and indirect effects on personal

, job creation, and on

generated in other

of the economy including

manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to ...

and

transportation Transport (in British English), or transportation (in American English), is the intentional movement of humans, animals, and goods from one location to another. Modes of transport include air, land (rail and road), water, cable, pipeline, ...

Iowa

The Iowa Department of Agriculture and Land Stewardship conducted a study in 2009 to measure the economic impact of farmers' markets in

using the IMPLAN Input-Output (I-O) model. Iowa is fourth in the nation in terms of its number of farmers' markets and ranks second in terms of the number of farmers' markets

per capita ''Per capita'' is a Latin phrase literally meaning "by heads" or "for each head", and idiomatically used to mean "per person". The term is used in a wide variety of social sciences and statistical research contexts, including government statistic ...

. The report shows that

among Iowa farmers' markets increased by 92 percent since 2004, reaching $38.4 million in

in 2009. The tables entitled "Market sales per city, 2004" and "Market sales per city, 2009" show the overall increase in sales among different areas of Iowa between 2004 and 2009. Using the IMPLAN I-O model, the $38.4 million in farmers' market sales translated into "$59.4 million of gross sales among sectors in the Iowa

." Additionally, the I-O model found that $12.2 million was linked to "personal

effects directly or indirectly related to farmers' market activity." The study also concluded that 374 jobs were directly linked to farmers' market activity, while 200 jobs were "indirectly attributed to the activity." The 2009 report also focused on how farmers' markets affect other

of the Iowan economy. The two sectors of the economy most impacted by farmers' market activity were

agriculture Agriculture or farming is the practice of cultivating plants and livestock. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people t ...

and

mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic ...

and

wholesale Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...

and

retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholesaler, and ...

trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct excha ...

. The direct impact on agriculture and mining was about $24,960,000, with another $1 million in "business-related indirect impact" and "consumer-related induced impact."

Construction Construction is a general term meaning the art and science to form Physical object, objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Pr ...

, finance,

professional services Professional services are occupations in the service sector requiring special training in the arts or sciences. Some professional services, such as architects, accountants, engineers, doctors, and lawyers require the practitioner to hold profe ...

, and

personal services ''Personal Services'' is a 1987 British comedy film directed by Terry Jones and written by David Leland, about the rise of a madam of a suburban brothel which caters to older men. The story is inspired by the real experiences of Cynthia Payne, ...

were not directly impacted, but between $1 million and $4 million generated in each sector reflected indirect and induced impacts of farmers' market activity. The table entitled "Output impact of Iowa farmers' market activities" shows these impacts.

Portland, Oregon

The City of Portland's Office of Sustainable Development (OSD) commissioned a report in 2008 to study the impact of Portland's 14 farmers' markets on "the regional Portland metro-area economy." The 14 farmers' markets studied in Portland had

of approximately $11.2 million in the aggregate in 2007. The study found that the direct impact of "spending at farmers' markets" stays within the

, while sales at the traditional

grocery store A grocery store ( AE), grocery shop ( BE) or simply grocery is a store that primarily retails a general range of food products, which may be fresh or packaged. In everyday U.S. usage, however, "grocery store" is a synonym for supermarket, a ...

"leak outside the region." Therefore, the estimated direct impact of $11.2 million in farmers' market spending is equivalent to only $3.4 million "in economic impact in a traditional grocery market" due to

importation An import is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade. In international trade, the importation and exportation of goods are limited ...

goods In economics, goods are items that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not t ...

and

household A household consists of two or more persons who live in the same dwelling. It may be of a single family or another type of person group. The household is the basic unit of analysis in many social, microeconomic and government models, and is i ...

marginal decision-making in the retail sector. Using the IMPLAN Input-Output Model, the study also measured the economic impact of

product Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or set of deliverables that contribute to a business solution Mathematics * Produ ...

sales, prepared food sales, and management fees, or "the payment of market management

fee A fee is the price one pays as remuneration for rights or services. Fees usually allow for overhead, wages, costs, and markup. Traditionally, professionals in the United Kingdom (and previously the Republic of Ireland) receive a fee in cont ...

s by vendors," on

, employment, and employee compensation in the Portland

. The study concluded that the 14 markets in Portland produced approximately $17 million in output, 150 jobs, and $3.2 million in employee compensation. The table entitled "Total est. economic impact of 14 Portland-area farmers' markets, 2007" shows how product sales, prepared food sales, and management fees impacted the Portland economy in 2007.

Crescent City Farmers' Market, New Orleans, Louisiana

Using the SEED

methodology In its most common sense, methodology is the study of research methods. However, the term can also refer to the methods themselves or to the philosophical discussion of associated background assumptions. A method is a structured procedure for br ...

, marketumbrella.org analyzed the economic impact of Crescent City Farmers' Market-Mid City, Crescent City Farmers' Market-CBD, and Crescent City Farmers' Market-Upt, in

New Orleans New Orleans ( , ,New Orleans

Louisiana Louisiana , group=pronunciation (French: ''La Louisiane'') is a state in the Deep South and South Central regions of the United States. It is the 20th-smallest by area and the 25th most populous of the 50 U.S. states. Louisiana is borde ...

s, the "host neighborhood," and the "surrounding

." The combined economic impact included vendor

, the revenue of nearby businesses, and sales tax revenue. The combined impact of the Crescent City Farmers' markets was $6,655,614.52 on vendor revenue, $5,008,742.34 on neighborhood business revenue, and $236,014.04 on

and state tax revenue. Crescent City Farmers Mkt-Mid City was reported to have a market impact of $984,555.13 on vendors and a neighboring business impact of $936,714.04 for a combined annual economic impact of $1,921,269.17. During the 51 days of operation throughout the year, the market generated

and state sales tax revenue of $44,138.36. In its 51 days of operation, Crescent City Farmers Mkt-CBD generated $3,150,982.42 for vendors and $2,657,647.23 for neighboring businesses with a combined annual economic impact of $5,808,629.66. The revenue for municipal and state sales taxes was projected at $125,229.45 annually. Lastly, Crescent City Farmers Mkt-Upt generated $2,520,076.97 for vendors and $1,414,381.06 for neighboring businesses, for a combined economic impact of $3,934,458.03. Municipal and State sales tax revenue was projected at $66,646.23.

Economic impacts on U.S. vendors, businesses, and consumers

s directly impact

s, businesses, and

s. Farmers' markets influence these individuals through

and

, the income multiplier effect, local business incubation, employment, and

preferences In psychology, economics and philosophy, preference is a technical term usually used in relation to choosing between alternatives. For example, someone prefers A over B if they would rather choose A than B. Preferences are central to decision the ...

. Many studies concentrate on the impact of farmers' markets on vendors, businesses, and consumers because farmers' markets are a local phenomenon whose effects are most observable at the community or individual level. This section differs from the previous section that highlighted some

and

studies because it provides a summary of the general impacts almost all state and municipal studies measure.

Impact on total vendor sales

Farmers' markets generate significant economic benefits to farmers' market

s. A study shows that vendors who participated in nine markets throughout

urban centers An urban area, built-up area or urban agglomeration is a human settlement with a high population density and infrastructure of built environment. Urban areas are created through urbanization and are categorized by urban morphology as cities ...

Baltimore Baltimore ( , locally: or ) is the List of municipalities in Maryland, most populous city in the U.S. state of Maryland, fourth most populous city in the Mid-Atlantic (United States), Mid-Atlantic, and List of United States cities by popula ...

and

Los Angeles Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the List of municipalities in California, largest city in the U.S. state, state of California and the List of United States cities by population, sec ...

collectively earn $52,000 to $40,594,000 per year from

. Kamm's Corners Farmers Market, the median market studied, generated $1.8 million per year for vendors. Vendors value the

net profit In business and accounting, net income (also total comprehensive income, net earnings, net profit, bottom line, sales profit, or credit sales) is an entity's income minus cost of goods sold, expenses, depreciation and amortization, interest, ...

s derived from the

, as almost

half One half ( : halves) is the irreducible fraction resulting from dividing one by two or the fraction resulting from dividing any number by its double. Multiplication by one half is equivalent to division by two, or "halving"; conversely, ...

of the vendors

surveyed Surveying or land surveying is the technique, profession, art, and science of determining the land, terrestrial Two-dimensional space#In geometry, two-dimensional or Three-dimensional space#In Euclidean geometry, three-dimensional positions of ...

in a study on Iowa's farmers' markets indicated that they would incur a significant loss if farmers' markets were to close down.

Impact on vendor revenue

Vendor In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms ...

s generally make more money by selling their

products Product may refer to: Business * Product (business), an item that serves as a solution to a specific consumer problem. * Product (project management), a deliverable or set of deliverables that contribute to a business solution Mathematics * Produ ...

to the local

community A community is a social unit (a group of living things) with commonality such as place, norms, religion, values, customs, or identity. Communities may share a sense of place situated in a given geographical area (e.g. a country, village, ...

than by selling them to a

r for use in the conventional food system. One study found that

s and food

producers Producer or producers may refer to: Occupations *Producer (agriculture), a farm operator *A stakeholder of economic production *Film producer, supervises the making of films **Executive producer, contributes to a film's budget and usually does not ...

were able to retain almost, if not all, of the

from the sale of their product on the local

. Vendors may receive up to "seven times greater net

on a per unit basis" in the local market than in the conventional market. It is also easier for vendors at farmers' markets to gauge consumer

demand In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. The relationship between price and quantity demand is also called the demand curve. Demand for a specific item ...

and

price A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the ...

their products accordingly because they are able to interact directly with the

population Population typically refers to the number of people in a single area, whether it be a city or town, region, country, continent, or the world. Governments typically quantify the size of the resident population within their jurisdiction using a ...

that they serve.

Impact on vendor incentives

Vendors who participate in farmers' markets usually have another, often primary form of employment. So, selling their goods at the market is usually a residual use of their time. One study suggests that participating in farmers' markets may reduce the

incentive In general, incentives are anything that persuade a person to alter their behaviour. It is emphasised that incentives matter by the basic law of economists and the laws of behaviour, which state that higher incentives amount to greater levels of ...

s of small

growers to expand their farms and become more efficient because they must dedicate significant time to

marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...

activities. This suggests that vendor profits may not increase by as much as they could due to the time dedicated to marketing.

Income multiplier effect

Beyond the direct effects on vendors, farmers' markets also produce indirect effects. Farmers use the sales that they garner from the

to purchase

fertilizer A fertilizer (American English) or fertiliser (British English; see spelling differences) is any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. Fertilizers may be distinct from ...

seed A seed is an embryonic plant enclosed in a protective outer covering, along with a food reserve. The formation of the seed is a part of the process of reproduction in seed plants, the spermatophytes, including the gymnosperm and angiospe ...

s, and other inputs of production from businesses. This type of transaction has income multiplier effects, meaning that farmers' markets not only impact vendor

, but also impact the

s of businesses linked to the

production Production may refer to: Economics and business * Production (economics) * Production, the act of manufacturing goods * Production, in the outline of industrial organization, the act of making products (goods and services) * Production as a stati ...

of commodities sold at the markets. A study focusing on Iowa farmers' markets showed that $12.2 million worth of business

was due to farmers' market-related transactions among vendors. Another study found that almost all of the "wage and business proprietor income in local food supply chains is retained locally."

Local business incubation

Farmers' markets can support local businesses. A 2002 study found that sixty percent of

s at farmers' markets also visited stores surrounding the market on the same day. Sixty percent of those consumers also indicated they only visited stores surrounding the farmers' market on days that they visited the market. Another study supports these findings and showed that an "overwhelming majority" of customers at farmers' markets also visited at least one nearby store. Additionally, the farmers' market itself provides a space for local and small

growers to innovate and respond directly to consumer demand. Sweet Briar Farms in Eugene,

Oregon Oregon () is a state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington, while the Snake River delineates much of its eastern boundary with Idaho. T ...

began selling

pork Pork is the culinary name for the meat of the domestic pig (''Sus domesticus''). It is the most commonly consumed meat worldwide, with evidence of pig husbandry dating back to 5000 BCE. Pork is eaten both freshly cooked and preserved; ...

cuts at the Eugene and Portland farmers' markets in 2000. In the last ten years, the company has expanded to producing bacon and

sausage A sausage is a type of meat product usually made from ground meat—often pork, beef, or poultry—along with salt, spices and other flavourings. Other ingredients, such as grains or breadcrumbs may be included as fillers or extenders. ...

as well as

spice A spice is a seed, fruit, root, bark, or other plant substance primarily used for flavoring or coloring food. Spices are distinguished from herbs, which are the leaves, flowers, or stems of plants used for flavoring or as a garnish. Spice ...

sauce In cooking, a sauce is a liquid, cream, or semi-solid food, served on or used in preparing other foods. Most sauces are not normally consumed by themselves; they add flavor, moisture, and visual appeal to a dish. ''Sauce'' is a French wor ...

s, and rubs. The company now has 25

workers The workforce or labour force is a concept referring to the pool of human beings either in employment or in unemployment. It is generally used to describe those working for a single company or industry, but can also apply to a geographic reg ...

and is one of the biggest

providers in the

Willamette Valley The Willamette Valley ( ) is a long valley in Oregon, in the Pacific Northwest region of the United States. The Willamette River flows the entire length of the valley and is surrounded by mountains on three sides: the Cascade Range to the eas ...

. The company credits much of its success to the ability to sell new, experimental products at farmers' markets.

Job creation

A study of Iowa's farmers' markets showed that 140 jobs were created in a single year that could be attributed to farmers' market activity. Other studies also found that farmers' market activity directly and indirectly supports the growth of local jobs. One study showed that 5.4 jobs were created per farmers' market. This figure was used to suggest that public

funding Funding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm use ...

of 100 to 500 'otherwise-unsuccessful' farmers' markets per year could generate 13,500 jobs in five years. Direct-to-Consumer Sales versus Total Agricultural Sales

Direct-to-Consumer Sales versus Total Agricultural Sales

Impact on consumers

Farmers' markets address local

and

. The number of farmers' markets in the United States has grown from 340 in 1970 to 7,000 in 2011. There are also over 4,000 CSAs in the United States, which shows that consumers want to buy local food. Consumers that go to farmers' markets generally seek to support local farms and businesses and also seek to buy food that is

health Health, according to the World Health Organization, is "a state of complete physical, mental and social well-being and not merely the absence of disease and infirmity".World Health Organization. (2006)''Constitution of the World Health Organiza ...

y and sustainably produced. Recent national

show that eighty-two percent of consumers go to farmers' markets to get fresh

produce Produce is a generalized term for many farm-produced crops, including fruits and vegetables (grains, oats, etc. are also sometimes considered ''produce''). More specifically, the term ''produce'' often implies that the products are fresh and g ...

, seventy-five percent go to support the local economy, and fifty-eight percent patron these markets because they want to know the source of the products they buy. Farmers' markets serve a

not satisfied by the mass-produced and consolidated methods of production of the United States food system. Consumers also benefit from increased information, because they can learn about where the food they buy comes from by speaking with farmers at the market.

Economic impact obstacles

Although the number of farmers' markets has grown substantially in the

over the last decade, there are some factors that may hinder the overall impact of farmers' markets or create negative effects. Overcoming some of these obstacles will ensure the

profitability In economics, profit is the difference between the revenue that an economic entity has received from its outputs and the total cost of its inputs. It is equal to total revenue minus total cost, including both explicit and implicit costs. It i ...

of farmers' markets while producing positive

spillover effect In economics a spillover is an economic event in one context that occurs because of something else in a seemingly unrelated context. For example, externalities of economic activity are non-monetary spillover effects upon non-participants. Odors f ...

s on neighboring markets.

Over-saturation

A negative effect on sales of Iowa farmers' markets was linked to the creation of new farmers' markets, specifically with regard to

location In geography, location or place are used to denote a region (point, line, or area) on Earth's surface or elsewhere. The term ''location'' generally implies a higher degree of certainty than ''place'', the latter often indicating an entity with an ...

and timing. Agriculture Statistician Theresa Varner and Professor of Economics Daniel Otto stated that

competition Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, indiv ...

was a factor affecting

of farmers' markets in

. They identified a conflict based on the days that markets operated and suggested that already existing farmers' markets should be improved and expanded. Percentage of Farmers' Markets that Accept SNAP Benefits by County

Percentage of Farmers' Markets that Accept SNAP Benefits by County

Barriers

The Appalachian Sustainable Agriculture Project (ASAP) analyzed the various barriers

low-income Poverty is the state of having few material possessions or little

income

individuals face with regard to farmers' markets. The study collected data that highlighted

convenience Convenient procedures, products and services are those intended to increase ease in accessibility, save resources (such as time, effort and energy) and decrease frustration. A modern convenience is a labor-saving device, service or substance ...

, product pricing, language and cultural barriers, federal nutrition benefits, and lack of information and awareness as some of the obstacles to participating in farmers' markets. Low-income families and individuals asserted that convenience is a significant

in regard to their shopping

. Such convenience is provided by 24-hour access, one-stop shopping, consistent product availability, or proximity of markets to public

, home, or other regularly accessed places. This convenience is not equally replicated by seasonally driven farmers' markets. Although recent studies have shown farmers' markets to offer competitive

s, some low-income shoppers still identify high prices as a barrier. Additionally, low-income consumers prefer the

price structure and price displays. Promotions resulted in a significant factor for almost half of Oregon food stamp customers surveyed. Participation in farmers' markets was hindered by language barriers. Low-income customers in several studies who did not speak

English English usually refers to: * English language * English people English may also refer to: Peoples, culture, and language * ''English'', an adjective for something of, from, or related to England ** English national ide ...

said participating in these markets was troublesome. The inability or the perception of the inability to process Electronic Benefit Transfer (EBT) cards by some farmers' markets are major barriers for customers that depend on Supplemental Nutrition Assistance Program (SNAP) benefits. Lastly a lack of experience and knowledge with fresh food among low-income communities conflicts with market participation.

Opportunity cost

Research entitled ''Evaluating the Economic Impact of Farmers' Markets Using an Opportunity Cost Framework'' was conducted on farmers' markets in

West Virginia West Virginia is a state in the Appalachian, Mid-Atlantic and Southeastern regions of the United States.The Census Bureau and the Association of American Geographers classify West Virginia as part of the Southern United States while the B ...

. Researchers intended to illustrate that opportunity cost reduced net positive impact, however, not disproportionately. They distributed the impact of opportunity cost in the West Virginian economy by major industries. These industries were: agriculture-resources, Mining-utilities-construction, manufacturing, trade-transportation, financial activities, professional-technical services, educational-health-social services, entertainment-travel-other services, and government. The sectors that presented a more significant impact were agriculture-resources and trade-transportation. Education-health-social services were affected by secondary impacts. Total job impacts were felt in the trade-transportation and agriculture-resources sectors. So while the data affirms that farmers' markets have a positive effect on the local economy of West Virginia the opportunity costs reduces its positive impact significantly.

Unsustainable growth

While farmers' markets are growing rapidly there is data indicating that a significant number of markets fail in

. The study conducted by

Oregon State University Oregon State University (OSU) is a public land-grant, research university in Corvallis, Oregon. OSU offers more than 200 undergraduate-degree programs along with a variety of graduate and doctoral degrees. It has the 10th largest engineering c ...

analyzed data collected from the Oregon Farmers' Market Association (OFMA) and the

Oregon Department of Agriculture The Oregon Department of Agriculture (ODA) is responsible for agriculture in Oregon. This agency of the government of the U.S. state of Oregon promotes and regulates food production and safety. It is headed by the director of agriculture, appoin ...

(ODA) to identify the various factors that were prevalent in the markets that closed in that state. They identified that markets that failed had a short life span. Their research stated that 50 percent of these failed markets closed after their first season. They noted that older markets could also be prone to failure. Data presented a high manager turnover rate of an average of 30 percent between 1999 and 2005. While analyzing the data, researchers were presented with a set of circumstances dependent on each other. A farmers' market needs resources such as

volunteer Volunteering is a voluntary act of an individual or group freely giving time and labor for community service. Many volunteers are specifically trained in the areas they work, such as medicine, education, or emergency rescue. Others serve ...

s, and these resources are affected by market administrative revenue. In small markets, there are fewer vendors, which attracts a smaller percentage of customers.

Administrative Administration may refer to: Management of organizations * Management, the act of directing people towards accomplishing a goal ** Administrative Assistant, traditionally known as a Secretary, or also known as an administrative officer, administ ...

revenue could aid in acquiring more resources, yet small markets cannot supply a significant number of resources. Larger markets are typically better off. Researchers then concluded that market size, administrative revenue, manager turnover, and resource needs were key factors in projecting market failure.

References

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External links

Washington Farmers' Markets

Baltimore City Farmers' Market

Farmers' Markets in New York
Economy of the United States