“ Small startups can test out their product ,” he says . “ Some businesses are hits ; others won ’ t take off . At the Goshen market , we see vendors come and go frequently .” Hartman cites one of the most common ways for farmers to fall short of profitability : undervaluing their products . This can be a fatal mistake . “ For many beginning farmers , undervaluing what they sell puts them out of business ,” he says . “ It ’ s often a race to who can charge the least . It ’ s important that farmers charge fair prices — customers want to support farmers who sell local food , as this is a service they provide .” Many factors come into play in determining profitability levels of farmers ’ markets and their vendors . Some of these factors , according to Neal , include farmers ’ abilities to engage customers , location ( urban or rural ) and demand , having the right product mix , the amount and quality of value-added offerings , and whether or not the market participates in SNAP ( Supplemental Nutrition Assistance Program ). One of the easiest ways for a farmers ’ market to boost profitability , according to Neal , is to accept credit and debit cards . “ Don ’ t be afraid of technology , don ’ t miss out on plastic . Embrace technology to be attractive for kids .” Local Impact In addition to the USDA national aggregate study mentioned above , it ’ s important to examine impact to the local economy . Because farmers ’ markets keep money local , and because vendors can retain 100 percent of their profits , a local economic impact can be quite robust . One such example is Audubon Park Community Market in Orlando , Florida . A 2013 economic study by marketumbrella . org calculated the economic benefit of the market for its vendors and nearby businesses , and found that the Audubon Park Community Market had an overall economic impact of $ 960,561 , based on an economic multiplier effect that takes into account the value of direct-to-consumer sales . Because farmers selling at this market were able to keep 100 percent of money earned ( as opposed to 19 percent for farmers selling at grocery stores , according to the American Farm Bureau Federation ), that economic benefit was drastically amplified . Even though the market ’ s 2013 gross receipts totaled $ 337,562.88 , the overall economic benefit to market vendors was about double this amount based on the multiplier . A Launchpad for Small Farmers Heather Grove , community director of East End Market , also in Orlando , says that farmers ’ markets offer high profitability potential for smaller farmers . “ For small farmers , they are the best place — they make double per pound what they would make elsewhere ,” she says . “ Without a farmers ’ market , these businesses would never have a place to launch from .” Grove also serves as program coordinator of Fleet Farming in Orlando , a coalition of “ farmlettes ” and community gardens that deliver food via bicycle . “ We ( Fleet Farming ) sell lettuce at East End Market , and we make double what we can make anywhere else in town ,” she says . But capitalizing on that opportunity means farmers ’ markets need to compete with grocery stores , CSAs and the like to maintain that opportunity , according to Violet Stone , a small farms program coordinator at Cornell University . While Stone is is optimistic about the potential of the profitability of farmers ’ markets , she says she often sees that potential go unrealized . “ In the beginning , small farmers were just so happy to get their dollar back ,” she says . “ But many times investments were never made to farmers ’ markets , and , as a result , many of them have little infrastructure .” Stone points to increased competition with other producers . She notes that grocery stores ( which have restrooms and running water ) have now incorporated many of the attractive aspects of farmers ’ markets . “ Farmers ’ markets are great for beginning farmers ,” she says . “ But they need more investment in infrastructure . I would like to see more farmers ’ markets elevate the position of market manager to a paid , professional position .” Focus on Farmers , Food and People
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