Factors Affecting Sales at Farmers’ Markets - An Iowa Study

Interest in farmers’ market activity has increased dramatically in the past few years as consumers’ seek the availability of fresh, locally produced food in increasing numbers. State Departments of Agriculture are promoting farm-ers’ markets as a means of increasing farmer income through direct market-ing. Within the State of Iowa alone, the number of farmers’ markets has in-creased more than 60% over the past ten years.1 With over 180 markets in op-eration in 2004, Iowa boasted the greatest number of markets per capita in the nation.

Various reasons, both social and economic appear to exist for increased mar-ket participation by consumers. With the recent proliferation of these markets, it is apparent that farmers’ markets are filling a food distribution niche, allow-ing patrons access to fresh produce and local growers, while providing a means for smaller farms to stay viable (Burns and Johnson). In a 1999 survey of Iowa farmers’ market vendors, more than half of those surveyed assigned at least some importance to the net profits earned through market participation; almost half indicated that the closure of the surveyed market would mean a significant loss to their farming operations (Hinrichs). Over 85% of surveyed vendors assigned much importance to the satisfaction derived from providing quality foods and interacting with consumers and fellow vendors. Consumers benefit from inter-action with food producers and a break from the ordinary shopping experience (Brown; Burns and Johnson; Payne) as well as the availability of locally produced food. In previous studies of farmers’ market consumer characteristics, the per-ceived quality of goods available at farmers’ markets was important to shopping
Theresa Varner, Agricultural Statistician, USDA NASS, California Field Office.

Daniel Otto is Professor of Economics, Iowa State University.

Factors Affecting Sales at Farmers’ Markets 177 decisions (Connell, Beierlein and Vrooman; Estes; Jack and Blackburn; Ladzinski, Toensmeyer and Kerr; Govindasamy et al., 1998; Anderson et al.)

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Interest in farmers’ market activity has increased dramatically in the past few years as consumers’ seek the availability of fresh, locally produced food in increasing numbers. State Departments of Agriculture are promoting farm-ers’ markets as a means of increasing farmer income through direct market-ing. Within the State of Iowa alone, the number of farmers’ markets has in-creased more than 60% over the past ten years.1 With over 180 markets in op-eration in 2004, Iowa boasted the greatest number of markets per capita in the nation.

Various reasons, both social and economic appear to exist for increased mar-ket participation by consumers. With the recent proliferation of these markets, it is apparent that farmers’ markets are filling a food distribution niche, allow-ing patrons access to fresh produce and local growers, while providing a means for smaller farms to stay viable (Burns and Johnson). In a 1999 survey of Iowa farmers’ market vendors, more than half of those surveyed assigned at least some importance to the net profits earned through market participation; almost half indicated that the closure of the surveyed market would mean a significant loss to their farming operations (Hinrichs). Over 85% of surveyed vendors assigned much importance to the satisfaction derived from providing quality foods and interacting with consumers and fellow vendors. Consumers benefit from inter-action with food producers and a break from the ordinary shopping experience (Brown; Burns and Johnson; Payne) as well as the availability of locally produced food. In previous studies of farmers’ market consumer characteristics, the per-ceived quality of goods available at farmers’ markets was important to shopping
Theresa Varner, Agricultural Statistician, USDA NASS, California Field Office.

Daniel Otto is Professor of Economics, Iowa State University.

Factors Affecting Sales at Farmers’ Markets 177 decisions (Connell, Beierlein and Vrooman; Estes; Jack and Blackburn; Ladzinski, Toensmeyer and Kerr; Govindasamy et al., 1998; Anderson et al.)

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