The Benefits of Farmers

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The Benefits of Farmers Markets By Dr. Al
MylesEconomist and Extension ProfessorDepartment
of Agricultural EconomicsMississippi State
UniversityPresented at the 2008 Farmers Market
Conference AFMA Annual meeting, Jonesboro,
ArkansasFebruary 28 29, 2008
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Introduction

• Farmers markets create and support sustainable
  agricultural and community life by enhancing
  farms, businesses, families, and communities.
• Farmers markets demonstrate ways of
  collaboration among citizens, private enterprise,
  and government for the common good of the
  community (Myles, et al, 2004).

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Advantages of a Farmers Market

• Low Start up Cost
• -Most markets are located in a good area
• -Fees for a selling space is minimal
• -Zoning and local license generally not a
  problem
• -Little or no packaging is required
• -All you need is a creative display and a truck

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Advantages of a Farmers Market

• Publicity for Your Farm
• -Allows you to interact with customers
• -Educate customers about your farm and things
  you grow
• -Pitch your products to the public
• -Promote other aspects of your business, such as
  pick-your-own, roadside stand, or agri-tourism
  activity

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• Customer/Farmer Feedback
• -Customer feedback is almost immediate
• -Customers are your link to market trends and
  demands
• -You can experiment with new crops or
  marketing ideas on a limited basis
• -Other vendor/farmer networking can help you
  with marketing ideas, growing techniques and
  value-added products
• Source Wise, 2006

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Farmers Markets Growth

• Since 1994, farmers markets have grown 18.32
  percent in the U.S. (Figure 1).

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Figure 1.
Source http//www.ams.usda.gov/farmersmarkets/Far
mersMarketGrowth.htm
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Farmers Markets (2004) Number
Arkansas 28
Alabama 72
Louisiana 20
Mississippi 18
Missouri 96
Oklahoma 35
Tennessee 46 

SOURCE USDA Agricultural Marketing Service, selected states. SOURCE USDA Agricultural Marketing Service, selected states. SOURCE USDA Agricultural Marketing Service, selected states. SOURCE USDA Agricultural Marketing Service, selected states.
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Market Profile

• A 2002 United States Department of Agriculture
  (USDA) study found
• -That almost 2.8 million customers visited these
  facilities per week for an estimated 14 million
  visitors in 2002.
• -The average farmers market operated about 2
  days per week and received produce from farms
  averaging 1.38 acres.
• -Most growers (88) participating in a farmers
  market lived less than 50 miles from the
  facility.
• -The average farmers market customer in the
  U.S. Spent 17.50 per week or 306 dollars per
  year at these facilities in 2002 (USDA report).
• -About 95 percent of consumers lived less than
  50 miles from the facility and about 67 percent
  lived less than 10 miles from the facility.
• -The typical farmers market averaged 1,055
  customers in 2000.

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General Benefits of Farmers Markets

• Farmers markets provide consumers with fresh
  produce, taste, appearance and nutritive value
  for their limited food dollar.
• Farmers markets are effective at keeping food
  dollars in a given region, helping to keep small
  producers in business.
• Farmers markets help producers to receive higher
  prices by removing the broker and selling
  directly to the consumer.

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• The communities in which farmers markets operate
  benefit from more money spent in the local
  economy, creating spending, re-spending, and
  higher multiplier effects in the area (Myles,
  2004).
• They tend to draw people DOWNTOWN that otherwise
  would not be there. Many of these people, as
  well as vendors, will then shop in the
  surrounding stores because they are convenient.
  (Abel, Thomson, and Maretki, 1999)

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• Farmers markets can improve the attractiveness
  of the local area in which they operate.
• They display local good and services and show the
  diversity of talent of local chefs, artists, and
  growers,further exposing visitors to the
  community (Myles, 2004).

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Economic Potential

• The potential for fruit and vegetable sales from
  farmers market facilities is strong since most
  customers no longer grow their own produce.
• Average Household Expenditure on Fresh Fruits and
  Vegetables by Selected States in US

State 2003 () 2008 () Change
Alabama Arkansas Louisiana Mississippi Missouri Oklahoma Tennessee 303 305 316 302 327 322 325 329 331 340 327 356 349 354 8.58 8.52 7.59 8.28 8.87 8.39 8.92
SOURCES USDA and CLARITAS, Inc. 2004 SOURCES USDA and CLARITAS, Inc. 2004 SOURCES USDA and CLARITAS, Inc. 2004 SOURCES USDA and CLARITAS, Inc. 2004
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Source http//www.bls.gov/cex/home.htm
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Example Total Income Impact Average Number of
Weekly Customers x Customers Average Weekly
Expenditure X Number of Weeks in a Month x Number
of Operating Months x Percent of market operating
days in a week () x Income Multiplier 1,055 x
17.50 x 4 x 4 x .428 x 2.66 336,307 These
are based on national statistics. If one assumes
their state would average about 75 percent of the
U.S. or 225,230 annually for a farmers market.
Even with such positive returns to the
community, most of these facilities will need
government help since, on average, only one in 5
will be self-sufficient.
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Why Should the Government and Economic
Development Officials Care?

• Farmers markets provide major benefits to local
  communities engaged in economic development.
• Both vendors and consumers will spend part of
  their weekly incomes and other businesses in the
  local community benefit because of increased
  customer traffic in the trade area.
• Information about the multiplier effects of
  farmers markets, the average daily amount spent
  by consumers, and the average number of visitors
  allows local authorities to project direct and
  indirect impacts associated with the
  establishment of a farmers market in the area.

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Access and Viability

• -Help connect farmers to community economic
  development officials to select a site that is
  best suited for everyone concerned.
• -Encourage market vendors to diversify their
  offerings and to produce and sell value-added
  products such as baked goods, cheese, meat, eggs,
  honey, cider, fresh and dried flowers, jams and
  other preserves, and plants.
• -Contribute to the success of farmers markets in
  low-income areas is by encouraging the
  dissemination of Women, Infants and Children
  (WIC) Farmers market Nutrition Program (FMNP)
  coupons.

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Summary

• Rural area, in general, continue to experience
  tough economic times and lag behind their urban
  counterparts in poverty levels, income,
  employment, education and other indicators of
  well-being.
• Although farmers markets are not a panacea for
  economic growth, local development officials can
  play a major part in supporting these facilities.

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REFERENCES   Myles, Albert E. Benefits of
Farmers Markets. Extension Professor.
Department of Agricultural Economics.
Mississippi State University (Special
presentation).   Wise, Shelaine and Stanley G.
Wise. Selling In A Farmers Market. County
Extension Director II. Prentiss County.
Mississippi State University Extension Service,
2006.   Abel, Jennifer. Joan Thompson, Audrey
Marretzki. Extension's Role with Farmers'
Markets Working with Farmers, Consumers, and
Communities. Journal of Extension. Vol. 37,
Number 5, October 1999.   USDA, Agricultural
Marketing Service. Website. http//www.ams.usda.g
ov/farmersmarkets/FarmersMarketGrowth.htm  
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