Measuring Farmers

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Measuring Farmers Market PerformanceWhy?W
hat?How? Monika Roth, Agricultural Development
Marketing SpecialistCornell Cooperative
Extensionmr55_at_cornell.edu
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Convergence of Movements

• Public Health/Obesity
• Local Economy/Local Foods
• Sustainable Agriculture/Environment
• Livable Communities/Smart Growth
• Civic Engagement/Social Integration
• Public Spaces, Historic Preservation

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Market Claims vs Reality

• Alternative Marketing Outlet
• Increasing farmer/vendor income
• Ag/Small Business Development
• Entrepreneurship/Marketing skills
• Job Creation
• Downtown Revitalization
• Keeping land in farms
• Community Development
• Improved Nutrition Food Access

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Farmers Market Facts

• 1994 USDA
• 1,755 Markets

• 2004 USDA
• 3,700
• 30,000 farmers
• 3 Mil consumers
• 1 Billion spent

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Farmers Market Sales

• Greenmarkets NYC (18 markets) 20M
• Dane County, Madison, WI 5M
• Santa Monica, CA (Wed) 3.8M
• Santa Monica, CA (Sat) 1.8M
• Ithaca, NY 1.3M
• Crescent City, LA 1M
• Santa Fe, NM 750,000
• Boulder, CO 695,000
• 1996-99 Data Sources

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Iowa Farmers Markets Economic Impact Study

• 180 Markets
• 60 increase in 10 years
• 135,000 customers
• 20.8 Million in Sales
• 31.5 Million economic impact
• 2004 Study, Iowa Dept. of Agriculture

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Farmers Markets Canada Impact Study

• 508 Markets
• 28 Million Shoppers
• 32 average spent per customer visit
• 1.03 Billion in Sales
• 1.55 B - 3.09 B economic impact
• 2008 Study, Farmers Markets Canada

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Measures of Success

• Agriculture
• Small Business
• Consumers
• Community

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Meeting your Mission

• Why your market was established what was the
  impetus
• Mission/Purpose
• Objectives
• Evaluation processes

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Dane County Farmers Market

• Provide producers alternative outlets
• Promote Wisconsin grown
• Offer fresh, tasty, nutrient rich foods
• Connect farmers and consumers
• Educational forum
• Test products, improve marketing skills
• Quality of life, social interaction
• Preserve Ag heritage

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Ways to Collect Data

• Vendors
• Customers
• Community Benefits

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Vendor Data

• Membership Application
• -address, products, volume, season, employees,
  sales
• Market Records
• -vendor numbers, season, fees collected
• Surveys
• Meetings

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Farmers at Markets

• Higher profits, customer contact
• 10 years younger than the average farmer
• From within 50 miles, some 150
• Farm .2 to 150 acres
• Employ 2 full-time, 2 part-time
• Earn 40-50 farm income at market
• Sales 1000-100,000 per season
• Attend 1-2 markets a week
• tomatoes, sweet corn, fruits, flowers, greens
  most important crops

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Ithaca Farmers MarketVendor Impact (120)

• Vendor Demographics
• Age 34 between 26-40 76 between 41-66
• Household Income lt25,00033 25,000- 67,000
  44 gt67,000 23
• Business Profiles
• 40 started business at market 35 had no
  businesses prior to market
• Primary income 32 Secondary income 52
• 55 in county 40 city
• Sales
• 62 lt 40,000 gross market sales 22 with gross
  sales gt 100,000
• Use of Income
• Operating Costs 93 Wages 33
• Household Bills 68 Entertainment 47
  Food/Clothing - 54

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Customer Data - How

• Guest Book
• Newsletter mailing list
• Raffle drawing
• Customer counts
• Car counts
• Intercept or Dot surveys (RMA)
• Focus groups
• Traffic flow studies
• FMNP redemption data

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Customer Data - What

• Numbers per day/season
• Where they come from
• When they come, how often
• Why they come
• Who they are (demographics)
• How they heard about the market
• What they buy from how many vendors
• Amount of money they spend

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Customers at Markets

• Half are 50, mostly female, white
• Educated, Earn 30,000, from Suburbs
• Live within 10 miles of market
• Spend 10-20 per visit
• Most are regular shoppers
• 80 shop on Saturdays

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Customers at Markets

• Shop from 6 or fewer vendors
• Drive farther, visit less often, buy more
• Value atmosphere, quality, variety, producer
  contact
• Price is less important
• Preference for local fruits
• Hear about market via word of mouth

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Iowa Customers

• 135,000 customers
• Attend 13 weeks of 21 week season
• Average distance to market 8 Miles
• Average shopper spent 11-20/week
• 86 buy fruits and vegetables
• 42 buy baked goods
• 20 ready to eat foods
• 14 cut flowers
• 2004 Study

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Why People dont Shop

• No markets around
• Do not know about markets
• Not convenient
• Take too much time
• Limited variety, selection

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Community Benefits

• Jobs
• New farmer development
• Land in farms
• Business start-up - spin-off
• Community food needs
• Improved nutrition
• Youth development
• Nearby business impacts
• Tourism
• Community pride

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Ithaca Farmers Market

• Total Sales 1.3 M
• Vendor Sales 12,000 avg/year
• Range lt5,000 to gt50,000
• IFM Sales Sole Source of Income for 3 vendors
• Tourism 33 customers
• Top 10 Ithaca Area Visitor Attraction
• Jobs 155 jobs plus 125 owners
• 135 part-time/seasonal 20 full-time
• Business incubation 48 sell at other outlets
• 2002 Survey of IFM Vendors

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Ithaca Farmers MarketCommunity Impact

• Local supplies 75 county 85 city
• Spend 58 before/after Market in City 40 in
  County
• 44 vendors created jobs
• 19 year round full time 49 full time seasonal
  11 year round part time 120 seasonal
• Business investments under 5,000
• 2007 Survey

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FMNP Facts

• 36 States, DC, Guam, Puerto Rico, 5 Tribes
• 2.3 Million Women Children
• 25.2 Million
• 15 Million to 47 Senior Programs
• 2,345 Farmers
• 2003 data

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Limiting Factors

• Population density
• Demographics
• Location-Parking
• Site amenities
• No room to grow
• Market layout
• Season, day
• Lack of vision, goals

• Few customers
• Community support
• Low sales
• Lack of sales skills
• Poor management
• Poor rules
• Inadequate funding
• Not enough promo

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Ingredients for Success

• Impetus
• Commitment
• Community
• Location
• Permanency
• Type of Market
• Sponsor

• Rules
• Product mix
• Healthy competition
• Atmosphere
• Responsive vendors
• Quality products
• Display/appearance

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Importance of Measuring Market Performance

• Realizing a Markets Mission/Vision
• Achieving a Markets Potential
• Build Community Support
• Document Claims - benefits
• Justification of Public Benefit
• Funding Opportunities
• Supportive Policies

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Farmers Markets are Good forEveryone!Info
rmation helps tell the story and makes them
better
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Resources

• The Value of NY Farmers Markets to NY
  Communities Federation NY Farmers Markets
• Project for Public Spaces, Economic Benefits
• Farmers Market Canada National Farmers Market
  Impact Study, 2009 report
• Economics Institute, Loyola University
• Rapid Market Assessment Tool, Oregon State Univ.
• USDA AMS, Farmers Market Survey