Your Farmers Market's Economic Impact

1. Farmers’ Market Federation of New York Conference
Your Market’s Economic Impact
March 7, 2013

2. Presentation Topics
1. Market benefits
2. Economic impact

3. 4. Strengthens and
celebrates the local
food system
3. Creates hundreds of
jobs and substantial
economic impact
Market Benefits
Grand Rapids
1. Sparks
redevelopment and
downtown renewal
2. Supports
entrepreneurship and
innovation
6. Brings diverse
people together in
active public spaces
5. Promotes public
health
Downtown
Market

4. Rochester Public Market Master Plan
• New open Shed D
• Winterization of Shed C
• Redevelopment of Shed B
(Wintershed)
• Creation of pedestrian-friendly plaza
• Construction of new storefront
building

5. Economic Impact
• Economic impacts
– Direct benefits of increased sales
– Indirect benefits that flow from increased purchases
– Induced benefits to household incomes and consumption
• Assumptions
– All master plan elements completed as proposed
– Impacts begin when construction completed
– Impact of proposed master plan changes, not impact of the Market as it is
today
– Study limited to city-owned and operated facilities, not adjacent businesses
• Methods
– RIMS II Multipliers from U.S. Bureau of Economic Analysis (BEA), input-output
multipliers that account for the input and output structure of more than 500
U.S. industries
– Five county Rochester Metropolitan Statistical Area (MSA) – Livingston,
Monroe, Ontario, Orleans and Wayne Counties

8. RIMS II Multipliers for Rochester MSA
Final Demand Multiplier
Output Earnings Employment
Food services 1.4001 0.4240 17.5069
Wholesale trade 1.2885 0.4041 6.0673
Retail trade 1.3020 0.4237 13.6186
Real estate 1.2160 0.1063 3.7544
Construction 1.3875 0.4736 9.6282
1. Output = total dollar change in output that occurs in all industries in the regional economy for
each additional dollar of output delivered to final demand by the industry sector corresponding
to the row entry (e.g., Food services)
• $1.00 of new sales in Food Services creates $1.40 in new economic output
2. Earnings = total dollar change in earnings of households employed by all industries in the
regional economy for each additional dollar of output delivered to final demand by the industry
sector corresponding to the row entry
• $1.00 of new sales in Food Services accounts for $0.42 in earnings among all households
3. Employment = total change in number of jobs that occurs in all industries in the regional
economy for each additional one million dollars of output delivered to final demand by the
industry corresponding to the row entry
• $1 million of new sales of Food Services creates 17.5 new jobs in the region

9. Current Sales Estimate
FY12
Shed A Shed C Wintershed Kiosks Total
Stalls 108 66 58 4 236
Days/week (Jan-March) 3 3 3 3
Days/week (April-Dec) 3 3 3 3
Average sales $850 $700 $900 $1,500
Vacancy
Jan-Mar 50% 60% 10% 25%
Apr-Jun 25% 30% 25% 20%
Jul-Sep 10% 20% 35% 10%
Oct-Dec 25% 30% 25% 20%
Sales
Jan-Mar 1,790,100$ 720,720$ 1,832,220$ 175,500$ $4,518,540
Apr-Jun 2,685,150$ 1,261,260$ 1,526,850$ 187,200$ $5,660,460
Jul-Sep 3,222,180$ 1,441,440$ 1,323,270$ 210,600$ $6,197,490
Oct-Dec 2,685,150$ 1,261,260$ 1,526,850$ 187,200$ $5,660,460
Total 10,382,580$ 4,684,680$ 6,209,190$ 760,500$ $22,036,950

10. Post Construction Sales Estimate
Post Construction
Shed A&D Shed C Wintershed Kiosks Total
Stalls 156 66 52 4 278
Days/week (Jan-March) 3 3 3 3
Days/week (April-Dec) 3 3 3 3
Average daily sales $850 $700 $1,100 $2,200
Vacancy
Jan-Mar 60% 40% 5% 20%
Apr-Jun 30% 25% 15% 15%
Jul-Sep 15% 20% 20% 5%
Oct-Dec 30% 25% 15% 15%
Sales
Jan-Mar 2,068,560$ 1,081,080$ 2,119,260$ 274,560$ $5,543,460
Apr-Jun 3,619,980$ 1,351,350$ 1,896,180$ 291,720$ $7,159,230
Jul-Sep 4,395,690$ 1,441,440$ 1,784,640$ 326,040$ $7,947,810
Oct-Dec 3,619,980$ 1,351,350$ 1,896,180$ 291,720$ $7,159,230
Total 13,704,210$ 5,225,220$ 7,696,260$ 1,184,040$ $27,809,730
Storefront sales estimated at $2.3 million
Total increase: $8.1 million

11. Source of Sales, Final Demand
Source of Sales
Food Service 10% $2,203,695 13% $3,919,465
Retail 85% $18,731,408 83% $25,024,276
Wholesale 5% $1,101,848 4% $1,205,989
Total 100% $22,036,950 100% $30,149,730
2012 Sales Post Construction
FY2012
Sales
Food service $2,203,695 1.4001 $3,085,393 0.4240 $934,367 17.5069 38.6
Retail $18,731,408 1.3020 $24,388,293 0.4237 $7,936,497 13.6186 255.1
Wholesale $1,101,848 1.2885 $1,419,731 0.4041 $445,257 6.0673 6.7
Total $22,036,950 $28,893,416 $9,316,121 300.4
Post Construction
Sales
Food service $3,919,465 1.4001 $5,487,643 0.4240 $1,661,853 17.5069 68.6
Retail $25,024,276 1.3020 $32,581,607 0.4237 $10,602,786 13.6186 340.8
Wholesale $1,205,989 1.2885 $1,553,917 0.4041 $487,340 6.0673 7.3
Total $30,149,730 $39,623,167 $12,751,979 416.7
Difference $8,112,780 $10,729,751 $3,435,858 116.4
Final Demand
Output Earnings Employment
Final Demand
Output Earnings Employment

12. Impact of Local Production
Industry Output Earnings Employment Earnings Employment
Vegetables 1.3727 0.2525 11.9091 1.5395 1.2362
Fruit 1.3286 0.2895 14.4871 1.4118 1.1578
Nursery 1.2622 0.3249 13.5085 1.2679 1.1647
Cattle 1.1418 0.1925 7.7308 1.726 1.4606
Bread 1.6078 0.4157 11.809 1.7717 1.3915
Other food 1.6215 0.3029 7.5342 2.1353 1.7499
Final Demand Direct Effect

13. Current Vendor Categories
Number of vendors used as proxy for sales

14. Estimate of Local Production

15. Impact of Local Production
FY2012
Sales
Vegetables $4,376,295 1.3727 $6,007,340 0.2525 $1,105,014 11.9091 52.1
Fruit $2,917,530 1.3286 $3,876,230 0.2895 $844,625 14.4871 42.3
Nursery $439,387 1.2622 $554,594 0.3249 $142,757 13.5085 5.9
Cattle $135,196 1.1418 $154,360 0.1925 $26,025 7.7308 1.0
Bread $770,617 1.6078 $1,238,998 0.4157 $320,346 11.809 9.1
Other food $419,108 1.6215 $679,584 0.3029 $126,948 7.5342 3.2
Total $9,058,133 $12,511,107 $2,565,715 113.6
Post Construction
Sales
Vegetables $5,987,403 1.3727 $8,218,909 0.2525 $1,511,819 11.9091 71.3
Fruit $3,991,602 1.3286 $5,303,243 0.2895 $1,155,569 14.4871 57.8
Nursery $601,145 1.2622 $758,765 0.3249 $195,312 13.5085 8.1
Cattle $184,968 1.1418 $211,187 0.1925 $35,606 7.7308 1.4
Bread $1,054,316 1.6078 $1,695,129 0.4157 $438,279 11.809 12.5
Other food $573,400 1.6215 $929,768 0.3029 $173,683 7.5342 4.3
Total $12,392,834 $17,117,000 $3,510,268 155.5
Difference $3,334,701 $4,605,894 $944,554 41.8
Final Demand
Output Earnings Employment
Final Demand
Output Earnings Employment

16. Impact of Construction & Operations
Value
Construction $13,319,300 1.3890 $18,500,508 0.4723 $6,290,705 9.6888 129.0
Real estate $1,051,518 1.1872 $1,248,362 0.1885 $198,211 8.5552 9.0
Total $14,370,818 $19,748,869 $6,488,916 138.0
Final Demand
Output Earnings Employment

17. Total Economic Impact
RPM Total Impact
post construction
Output
(millions)
Earnings
(millions)
Jobs
10 year impact
(millions)
Market sales $39.6 $12.8 416.7 $454.2
Farmer sales $17.1 $3.5 155.5 $196.2
Market management $1.2 $0.2 9.0 $14.3
Construction $18.5 $6.3 0.0 $212.1
Total $76.5 $22.8 581.2 $876.9
Change due to
master plan
Output
(millions)
Earnings
(millions)
Jobs
10 year impact
(millions)
Market sales $10.7 $3.4 116.4 $107.3
Farmer sales $4.6 $0.9 41.8 $46.1
Market management $0.5 $0.1 3.9 $5.4
Construction $18.5 $6.3 129.0 $18.5
Total $34.4 $10.8 291.1 $177.2

18. Farmers’ Market Federation of New York Conference
Your Market’s Economic Impact
Ted Spitzer, President
www.marketventuresinc.com
tspitzer@marketventuresinc.com
(207) 321-2016