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 ...

s are markets in which producers sell directly to

consumer A consumer is a person or a group who intends to order, or use 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 has a highly developed mixed economy. It is the world's largest economy by nominal GDP and second largest by purchasing power parity (PPP). As of 2025, it has the world's seventh highest nominal GDP per capita and ninth ...

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

state State most commonly refers to: * State (polity), a centralized political organization that regulates law and society within a territory **Sovereign state, a sovereign polity in international law, commonly referred to as a country **Nation state, a ...

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 gov ...

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 term ...

s, local

business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for ...

es, 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 product (business), goods and services related to the primary operations of a business. Commercial revenue may also be referred to as sales or as turnover. Some compan ...

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. F ...

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 ...

of state and local economies. Some obstacles that may reduce impact or create negative economic effects include over-saturation, socioeconomic barriers, the

opportunity cost In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. Assuming the best choice is made, ...

of farmers' markets, and the projected un

sustainable growth Sustainable development is an approach to growth and human development that aims to meet the needs of the present without compromising the ability of future generations to meet their own needs.United Nations General Assembly (1987)''Report of th ...

of farmers' markets in the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

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 ...

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 consists of computer programs that instruct the Execution (computing), execution of a computer. Software also includes design documents and specifications. The history of software is closely tied to the development of digital comput ...

, technique, or

data Data ( , ) are a collection of discrete or continuous values that convey information, describing the quantity, quality, fact, statistics, other basic units of meaning, or simply sequences of symbols that may be further interpreted for ...

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 (38 ...

of spending. This analytic tool, created by the

U.S. Forest Service The United States Forest Service (USFS) is an agency within the U.S. Department of Agriculture. It administers the nation's 154 national forests and 20 national grasslands covering of land. The major divisions of the agency are the Chief's ...

and the

University of Minnesota The University of Minnesota Twin Cities (historically known as University of Minnesota) is a public university, public Land-grant university, land-grant research university in the Minneapolis–Saint Paul, Twin Cities of Minneapolis and Saint ...

, uses the Bureau of Economic Analysis (BEA)

input-output In computing, input/output (I/O, i/o, or informally io or IO) is the communication between an information processing system, such as a computer, and the outside world, such as another computer system, peripherals, or a human operator. Inputs ar ...

criterion combined with other data to compile tables that identify

cash flow Cash flow, in general, refers to payments made into or out of a business, project, or financial product. It can also refer more specifically to a real or virtual movement of money. *Cash flow, in its narrow sense, is a payment (in a currency), es ...

s between different

of the

economy An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...

. IMPLAN methodology has been used in studies on Portland and

Iowa Iowa ( ) is a U.S. state, state in the upper Midwestern United States, Midwestern region of the United States. It borders the Mississippi River to the east and the Missouri River and Big Sioux River to the west; Wisconsin to the northeast, Ill ...

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), also known as a nonbusiness entity, nonprofit institution, not-for-profit organization, or simply a nonprofit, is a non-governmental (private) legal entity organized and operated for a collective, public, or so ...

that developed the Sticky Economic Evaluation Device (SEED), a tool that measures the economic impact of a

public market A marketplace, market place, or just market, is a location where people regularly gather for the purchase and sale of provisions, livestock, and other goods. In different parts of the world, a marketplace may be described as a '' souk'' (from ...

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 *Marketing, the act of sat ...

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 areas, zones, lands or territories, are portions of the Earth's surface that are broadly divided by physical characteristics (physical geography), human impact characteristics (human geography), and ...

. 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 A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a govern ...

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 an United States federal executive departments, executive department of the Federal government of the United States, United States federal government that aims to meet the needs of commerc ...

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 valu ...

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 fo ...

s contributed $166.9 billion to

gross domestic product Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performanc ...

, which was 1 percent of

GDP Gross domestic product (GDP) is a monetary measure of the total market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic performance o ...

. 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 ...

s to the

U.S. economy The United States has a highly developed mixed economy. It is the world's largest economy by nominal GDP and second largest by purchasing power parity (PPP). As of 2025, it has the world's seventh highest nominal GDP per capita and ninth ...

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 colloquial, ordinary language, an average is a single number or value that best represents a set of data. The type of average taken as most typically representative of a list of numbers is the arithmetic mean the sum of the numbers divided by ...

. 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

customer In sales, commerce, and economics, a customer (sometimes known as a Client (business), client, buyer, or purchaser) is the recipient of a Good (economics), good, service (economics), service, product (business), product, or an Intellectual prop ...

s 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 The Mid-Atlantic is a region of the United States located in the overlap between the nation's Northeastern and Southeastern states. Traditional definitions include seven U.S. states: New York, New Jersey, Pennsylvania, Delaware, Maryland, Virgi ...

. 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. A period during which goods are sold for a reduced price may also be referred ...

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 axial tilt, tilted orbit around the Sun. In temperat ...

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 the secondary sector of the economy. The term may refer ...

and

transportation Transport (in British English) or transportation (in American English) is the intentional Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land tr ...

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". Social statistics The term is used in a wide variety of social science, social sciences and statistical research conte ...

. 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 encompasses crop and livestock production, aquaculture, and forestry for food and non-food products. Agriculture was a key factor in the rise of sedentary human civilization, whereby farming of domesticated species created ...

and

mining Mining is the Resource extraction, extraction of valuable geological materials and minerals from the surface of the Earth. Mining is required to obtain most materials that cannot be grown through agriculture, agricultural processes, or feasib ...

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 the sale to business or institutional customers. A retailer purchases goods in large quantities from manufacturers, directly or through a wholes ...

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. Traders generally negotiate through a medium of cr ...

. 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 are processes involved in delivering buildings, infrastructure, industrial facilities, and associated activities through to the end of their life. It typically starts with planning, financing, and design that continues until the a ...

finance Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Admin ...

professional services Professional services are occupations in the service sector requiring special training in liberal arts and pure sciences education or professional development education. Some professional services, such as architects, accountants, engineers, d ...

, and personal services 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 or grocer's shop ( BE) or simply grocery is a retail store that primarily retails a general range of food products, which may be fresh or packaged. In everyday US usage, however, "grocery store" is a synon ...

"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 importer is the receiving country in an export from the sending country. Importation and exportation are the defining financial transactions of international trade. Import is part of the International Trade which involves buying and receivin ...

goods In economics, goods are anything that is good, usually in the sense that it provides welfare or utility to someone. Alan V. Deardorff, 2006. ''Terms Of Trade: Glossary of International Economics'', World Scientific. Online version: Deardorffs ...

and

household A household consists of one 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 im ...

marginal Marginal may refer to: * Marginal (album), ''Marginal'' (album), the third album of the Belgian rock band Dead Man Ray, released in 2001 * Marginal (manga), ''Marginal'' (manga) * ''El Marginal'', Argentine TV series * Marginal seat or marginal c ...

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

food Food is any substance consumed by an organism for Nutrient, nutritional support. Food is usually of plant, animal, or Fungus, fungal origin and contains essential nutrients such as carbohydrates, fats, protein (nutrient), proteins, vitamins, ...

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 contrad ...

s by vendors," on

employment Employment is a relationship between two party (law), parties Regulation, regulating the provision of paid Labour (human activity), labour services. Usually based on a employment contract, contract, one party, the employer, which might be a cor ...

, 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 bri ...

, 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 (commonly known as NOLA or The Big Easy among other nicknames) is a Consolidated city-county, consolidated city-parish located along the Mississippi River in the U.S. state of Louisiana. With a population of 383,997 at the 2020 ...

Louisiana Louisiana ( ; ; ) is a state in the Deep South and South Central regions of the United States. It borders Texas to the west, Arkansas to the north, and Mississippi to the east. Of the 50 U.S. states, it ranks 31st in area and 25 ...

s, the "host

neighborhood A neighbourhood (Commonwealth English) or neighborhood (American English) is a geographically localized community within a larger town, city, suburb or rural area, sometimes consisting of a single street and the buildings lining it. Neigh ...

," and the "surrounding

." The combined economic impact included vendor

, the revenue of nearby

es, and

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

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

es, and

s. Farmers' markets influence these individuals through

and

, the income multiplier effect, local business incubation,

, 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 is a human settlement with a high population density and an infrastructure of built environment. Urban areas originate through urbanization, and researchers categorize them as cities, towns, conurbations or suburbs. In urbani ...

Baltimore Baltimore is the most populous city in the U.S. state of Maryland. With a population of 585,708 at the 2020 census and estimated at 568,271 in 2024, it is the 30th-most populous U.S. city. The Baltimore metropolitan area is the 20th-large ...

and

Los Angeles Los Angeles, often referred to by its initials L.A., is the List of municipalities in California, most populous city in the U.S. state of California, and the commercial, Financial District, Los Angeles, financial, and Culture of Los Angeles, ...

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

. Kamm's Corners Farmers Market, the

median The median of a set of numbers is the value separating the higher half from the lower half of a Sample (statistics), data sample, a statistical population, population, or a probability distribution. For a data set, it may be thought of as the “ ...

market studied, generated $1.8 million per year for vendors. Vendors value the

net profit In business and Accountancy, 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 (a ...

s derived from the

, as almost

half One half is the multiplicative inverse of 2. It is an irreducible fraction with a numerator of 1 and a denominator of 2. It often appears in mathematical equations, recipes and measurements. As a word One half is one of the few fractions w ...

of the vendors surveyed 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 term ...

s generally make more money by selling their

products Product may refer to: Business * Product (business), an item that can be offered to a market to satisfy the desire or need of a customer. * Product (project management), a deliverable or set of deliverables that contribute to a business solution ...

to the local

community A community is a social unit (a group of people) with a shared socially-significant characteristic, such as place, set of norms, culture, religion, values, customs, or identity. Communities may share a sense of place situated in a given g ...

than by selling them to a

r for use in the conventional

food system The term food system describes the interconnected systems and processes that influence nutrition, food, health, community development, and agriculture. A food system includes all processes and infrastructure involved in feeding a population: growi ...

. One study found that

s and food

producers Producer(s), The Producer(s), or co-producer(s) may refer to: Occupations *Producer (agriculture), a farm operator *Producer, a stakeholder of economic production * Film producer, supervises the making of films **Executive producer, contributes t ...

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 goods, good that consumers are willing and able to purchase at various prices during a given time. In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desi ...

and

price A price is the (usually not negative) quantity of payment or compensation expected, required, or given by one party to another in return for goods or services. In some situations, especially when the product is a service rather than a ph ...

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

population Population is a set of humans or other organisms in a given region or area. Governments conduct a census to quantify the resident population size within a given jurisdiction. The term is also applied to non-human animals, microorganisms, and pl ...

that they serve.

Impact on vendor incentives

Vendors who participate in farmers' markets usually have another, often primary form of

. 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 or organization to alter their behavior to produce the desired outcome. The laws of economists and of behavior state that higher incentives amount to greater levels of effort and therefo ...

s of small

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

marketing Marketing is the act of acquiring, satisfying and retaining customers. It is one of the primary components of Business administration, business management and commerce. Marketing is usually conducted by the seller, typically a retailer or ma ...

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 or fertiliser 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 liming materials or other non-nutrient soil amendments. Man ...

seed In botany, a seed is a plant structure containing an embryo and stored nutrients in a protective coat called a ''testa''. More generally, the term "seed" means anything that can be Sowing, sown, which may include seed and husk or tuber. Seeds ...

s, and other inputs of production from

es. 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 stat ...

commodities In economics, a commodity is an economic good, usually a resource, that specifically has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. Th ...

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

es. 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 Eugene may refer to: People and fictional characters * Eugene (given name), including a list of people and fictional characters with the given name * Gene Eugene, stage name of Canadian born actor, record producer, engineer, composer and musi ...

Oregon Oregon ( , ) is a U.S. state, state in the Pacific Northwest region of the United States. It is a part of the Western U.S., with the Columbia River delineating much of Oregon's northern boundary with Washington (state), Washington, while t ...

began selling

pork Pork is the culinary name for the meat of the pig (''Sus domesticus''). It is the most commonly consumed meat worldwide, with evidence of pig animal husbandry, husbandry dating back to 8000–9000 BCE. Pork is eaten both freshly cooke ...

cuts at the

and

Portland Portland most commonly refers to: *Portland, Oregon, the most populous city in the U.S. state of Oregon *Portland, Maine, the most populous city in the U.S. state of Maine *Isle of Portland, a tied island in the English Channel Portland may also r ...

farmers' markets in 2000. In the last ten years, the company has expanded to producing

bacon Bacon is a type of Curing (food preservation), salt-cured pork made from various cuts of meat, cuts, typically the pork belly, belly or less fatty parts of the back. It is eaten as a side dish (particularly in breakfasts), used as a central in ...

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 In the culinary arts, a spice is any seed, fruit, root, Bark (botany), bark, or other plant substance in a form primarily used for flavoring or coloring food. Spices are distinguished from herbs, which are the leaves, flowers, or stems of pl ...

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 flavour, texture, and visual appeal to a dish. ''Sauce'' is a French wor ...

s, and rubs. The company now has 25 workers and is one of the biggest

providers in the

Willamette Valley The Willamette Valley ( ) is a 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 east, the ...

. 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

. Consumers that go to farmers' markets generally seek to support local farms and businesses and also seek to buy food that is

health Health has a variety of definitions, which have been used for different purposes over time. In general, it refers to physical and emotional well-being, especially that associated with normal functioning of the human body, absent of disease, p ...

y and sustainably produced. Recent national

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

produce In American English, produce generally refers to wikt:fresh, fresh List of culinary fruits, fruits and Vegetable, vegetables intended to be Eating, eaten by humans, although other food products such as Dairy product, dairy products or Nut (foo ...

, 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 revenue that an economic entity has received from its outputs and total costs of its inputs, also known as surplus value. It is equal to total revenue minus total cost, including both Explicit co ...

of farmers' markets while producing positive

spillover effect In economics, a spillover is a positive or a negative, but more often negative, impact experienced in one region or across the world due to an independent event occurring from an unrelated environment. For example, externalities of economic act ...

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

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, indi ...

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.

Barriers

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

low-income Poverty is a state or condition in which an individual lacks the financial resources and essentials for a basic standard of living. Poverty can have diverse

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 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 In the United States, the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federal government program that provides food-purchasing assistance for low- and no-income persons to help them maintai ...

(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 mountainous U.S. state, state in the Southern United States, Southern and Mid-Atlantic (United States), Mid-Atlantic regions of the United States.The United States Census Bureau, Census Bureau and the Association of American ...

. Researchers intended to illustrate that

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 university, public Land-grant university, land-grant research university in Corvallis, Oregon, United States. OSU offers more than 200 undergraduate degree programs and a variety of graduate and doctor ...

analyzed data collected from the Oregon Farmers' Market Association (OFMA) and the Oregon Department of Agriculture (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 an elective and freely chosen act of an individual or group giving their time and labor, often for community service. Many volunteers are specifically trained in the areas they work, such as medicine, education, or emergency ...

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 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

{{Reflist

External links

Washington Farmers' Markets

Baltimore City Farmers' Market

Farmers' Markets in New York
Economy of the United States

Methodology

IMPLAN input-output model

Sticky Economic Evaluation Device (SEED)

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

Impact on U.S. economy

Regional variation

Economic impact on states and cities

Iowa

Portland, Oregon

Crescent City Farmers' Market, New Orleans, Louisiana

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

Impact on total vendor sales

Impact on vendor revenue

Impact on vendor incentives

Income multiplier effect

Local business incubation

Job creation

Impact on consumers

Economic impact obstacles

Over-saturation

Barriers

Opportunity cost

Unsustainable growth

See also

References

External links