Farmers market competition increases, drives prices down
For the past decade, the amount of farmers markets has steadily increased all across the United States. Many people are now finding it easier to buy fresh, organic food at a lower cost.
According to the UDSA Agriculture Marketing Service, there were nearly five times as many farmers markets in 2014 as there were in 1994 when the service started keeping track. While the trend seems to be slowing down, the amount is still growing by a significant number every year.
John Horowitz, the chairman of the Department of Economics at Ball State University, says some buyers are willing to pay a premium for locally grown, organic food.
“Small local producers have higher costs than larger producers. Much like a craft brewer has much higher costs than the major producers,” he said in an email.
In order for food to be certified organic by USDA standards, it must meet the following guidelines:
Preserve natural resources and biodiversity
Support animal health and welfare
Provide access to the outdoors so that animals can exercise their natural behaviors
Only used approved materials
Do not use genetically modified ingredients
Receive annual onsite inspections
Separate organic food from non-organic food
Shelli Abbott, a farmer with Abbott’s Garlic and Poultry in Muncie, says that while her products are not officially certified organic, they come pretty close. Her and her husband bring their products to the Muncie market at Minnetrista.
Abbott’s farm is an example of a large-scale operation. However, that’s not always the case for vendors. Some do it purely as a hobby or just for supplemental income. These groups often do not try to become certified organic because it is not worth the time and effort.
This is the way it is for many farmers and growers that bring their products to farmers markets. However, what they can guarantee is the “locally grown” label, which is good enough for most people.
Buying certified organic food often costs more than buying non-organic. It is a reality for many people that this kind of diet is unaffordable, as nearly 13 percent of Indiana’s population is on the SNAP program, according to information gathered from the USDA Food and Nutrition Service.
So, when consumers can go to a farmers market in Indiana and see produce and animal products that cost even less than buying those same things at the supermarket, it can be appealing.
However, this economic model is really hurting the farmers who do it for more than just supplemental income. As more and more people try to sell their products at an increasing number of markets, the competition begins to rise. The result is that prices are driven lower, which means that profits are being sacrificed.
*This was a story I wrote for a class at Ball State University.
