Customer and Vendor Survey Analysis and Economic Impact Analysis for the 2010 Baltimore City Farmers Market

Transcription

1 Customer and Vendor Survey Analysis and Economic Impact Analysis for the 2010 Baltimore City Farmers Market Prepared for Baltimore Office of Promotion and the Arts

2 Table of Contents 1.0 Executive Summary Objective Summary of Findings Introduction Survey Analysis Customer Survey Vendor Survey Economic Impact Analysis Overview Findings Conclusion Works Cited Appendix A Methodology Appendix B Customer Survey Appendix C Vendor Survey

3 Table of Figures Figure 1: Customer Survey Question 2 Results... 7 Figure 2: Customer Survey Question 3 Results... 7 Figure 3: Customer Survey Question 4 Results... 8 Figure 4: Customer Survey Question 5 Results... 8 Figure 5: Customer Survey Question 6 Results... 9 Figure 6: Customer Survey Question 7 Results Figure 7: Customer Survey Question 8 Results Figure 8: Customer Survey Question 9 Results Figure 9: Customer Survey Question 1 Results Figure 10: Customer Survey Question 10 Results Figure 11: Customer Survey Question 11 Results Figure 12: Customer Survey Question 12 Results Figure 13: Customer Survey Question 13 Results Figure 14: Customer Survey Question 14 Results Figure 15: Customer Survey Question 15 Results Figure 16: Vendor Survey Question 1 Results Figure 17: Vendor Survey Question 2 Results Figure 18: Vendor Survey Question 3 Results Figure 19: Vendor Survey Question 10 Results Figure 20: Vendor Survey Question 4 Results Figure 21: Vendor Survey Question 5 Results Figure 22: Vendor Survey Question 6 Results Figure 23: Vendor Survey Question 7 Results Figure 24: Vendor Survey Question 8 Results Figure 25: Vendor Survey Question 9 Results Figure 26: Economic Impacts Figure 27: Comparison of Findings

4 1.0 Executive Summary 1.1 Objective The Regional Economic Studies Institute of Towson University (RESI) has been tasked by the Baltimore Office of Promotion and the Arts (BOP&A) to conduct a survey analysis and an economic impact analysis for the Baltimore attendees, vendors and operations for the 2010 market season. To achieve the project objectives, RESI worked with BOP&A to create two separate survey instruments (one for customers and one for vendors). The customer survey was given to a random sample of attendees at the farmers market. RESI completed 530 surveys (a minimum of 377 was required to achieve a ±5 percent at the 95 percent confidence interval). RESI also conducted vendor surveys. A total of 72 surveys were completed by vendors. The findings from the survey analysis were then used to complete an economic impact analysis for the farmers market. In order to quantify the economic impacts of the project, RESI utilized IMPLAN. For more information regarding the survey instruments, IMPLAN and RESI s methodology, please refer to the appendices. 1.2 Summary of Findings A summary of RESI s findings in regard to the survey analysis and the economic impact analysis for the Baltimore are as follows: Customer Survey Analysis The majority of survey respondents, or 85.3 percent, indicated that they were not first-time attendees and the majority also learned of the farmers market through word of mouth or past attendance (42.5 percent and 42.3 percent, respectively). Many survey respondents (again, a majority) visit the farmers market weekly each season 52.9 percent with a number of others visiting biweekly. The plurality of survey respondents indicated that they decided to attend the farmers market for general food shopping, with many others indicating that they were there because they attended before and liked it or they were there for a specific item or vendor, at 47.2, 16.8 and 15.3 percent, respectively. Items that survey respondents most often cited as those that they purchased or intended to purchase included produce (fruits and vegetables) at 39.0 percent, or baked goods or meats. The things most frequently cited by survey respondents as what they liked most about the farmers market included the quality and freshness of products (20.0 percent and 19.4 percent, respectively) as well as the types and variety of products (18.5 percent and 18.3 percent, respectively). The majority of respondents indicated that they spent or planned to spend between $0 and $49. 4

5 Vendor Survey Analysis Most survey respondents indicated that their business offers the following types of products: other food (21.4 percent), produce (fruits and vegetables) or crafts, both at 19.4 percent of respondents. The plurality of survey respondents (41.7 percent) indicated that their business has participated in the Baltimore for one to three years. Another third of respondents indicated that their business participation has lasted for ten or more years. Although 29.2 percent of survey respondents indicated that their business average daily sales are between $0 and $249, another 19.4 percent indicated that their average daily sales are $1,000 or more. The majority of survey respondents 54.2 percent indicated that less than 25 percent of their business total annual revenue is attributable to sales at the Baltimore. The majority of survey respondents, or 83.3 percent, indicated that their business does participate in other farmer s markets. Of those that do, 52.8 percent of survey respondents indicated that their business typically experiences a higher volume of sales at the Baltimore compared to others. When asked to indicate whether or not their business feels the Baltimore City Farmers Market could make any changes or improvements, 58.3 percent of survey respondents responded that it could. Economic Impact Analysis The total employment impact of Baltimore attendees and operations for the 2010 market season is nearly 134 jobs, with 113 of those attributable to direct job impact. The total output impact of the farmers market for the 2010 market season is nearly $9.5 million, with more than $6.5 million in direct impact. The total wage impact of the farmers market for the 2010 market season is nearly $4.1 million, with more than $3.1 million in direct impact. RESI s literature review of similar studies suggests that the Baltimore has a significant economic impact on the surrounding region when compared with other farmers markets. 5

6 2.0 Introduction The Regional Economic Studies Institute of Towson University (RESI) has been tasked by the Baltimore Office of Promotion and the Arts (BOP&A) to conduct a survey analysis and an economic impact analysis for the Baltimore City farmers market attendees, vendors and operations for the 2010 market season. To achieve the project objectives, RESI worked with BOP&A to create two separate survey instruments (one for customers and one for vendors). The customer survey was given to a random sample of attendees at the farmers market. RESI completed 530 surveys (a minimum of 377 was required to achieve a ±5 percent at the 95 percent confidence interval). RESI also conducted vendor surveys. A total of 72 surveys were completed by vendors. The findings from the survey analysis were then used to complete an economic impact analysis for the farmers market. In order to quantify the economic impacts of the project, RESI utilized IMPLAN. For more information regarding the survey instruments, IMPLAN and RESI s methodology, please refer to the appendices. 3.0 Survey Analysis 3.1 Customer Survey The customer survey was designed to elicit information from farmers market attendees regarding a range of topics, including estimated spending at the farmers market, spending behavior in lieu of the farmers market and demographic information. Survey results for each question can be found in the figures below. Please refer to Appendix B for the complete customer survey instrument. Attendance First, customers were asked questions regarding their attendance at the Baltimore City Farmers Market to determine how they learned of the farmers market, whether it was their first time attending and how often they visit the farmers market each season. Survey results for each question can be found in Figures 1 through 3. 6

7 Figure 1: Customer Survey Question 2 Results 2. How did you learn of the farmers market? (Circle one only.) Number Percentage Radio 0 0.0% Television % Newspaper % Other Print 4 0.8% Internet % Past Attendance % Word of Mouth % Flyer/Poster 6 1.1% Other 0 0.0% No response 2 0.4% As shown in Figure 1, the majority of survey respondents learned about the farmers market through word of mouth and past attendance, with 42.5 percent and 42.3 percent, respectively. Few respondents learned about the farmers market through television and newspaper, at 4.9 percent and 3.0 percent, respectively. No respondents indicated that they heard about the farmers market from the radio or by means other than the options offered in the survey. A 2008 economic impact study regarding the markets forming the Farmers Markets Association of Manitoba Cooperative which included a consumer survey asked this same question with the categories Friend (27.6 percent), Paper (14.2 percent), Poster (19.5 percent), Radio (10.3 percent), TV (2.1 percent) and Other (26.3 percent). 1 While the categories from which survey respondents could choose were not exactly the same, there are some slight similarities. Friend was a popular choice among those in the Manitoba survey, which could be considered similar to Word of Mouth. More respondents indicated this method than others for the Baltimore. Television was cited as a method much less frequently for both the Manitoba and Baltimore surveys. Interestingly, when compared with responses from attendees of the Baltimore, more respondents in the Manitoba study indicated that they learned of the farmers market via newspaper, poster and radio. Figure 2: Customer Survey Question 3 Results 3. Is this your first time attending the farmers market? Number Percentage Yes % No % No response 0 0.0% 1 This Little Farmer Went to Market : An Economic Impact Study of the Member Markets of the Farmers Markets Association of Manitoba Cooperative. Dungannon Consulting Services. December

8 The majority of survey respondents approximately 85.3 percent indicated that they have previously attended the farmers market, as shown in Figure 2. Only 14.7 percent indicated that this was their first time attending the farmers market. Those respondents who indicated that this was not their first time attending the farmers market were then asked to indicate how often they attend. The results can be found in Figure 3 below. Figure 3: Customer Survey Question 4 Results 4. Approximately how often do you visit the farmers market each season (May through December)? (Circle one only.) Number Percentage Weekly % Biweekly % Monthly % Every other month % Once 8 1.8% No response 2 0.4% Approximately 52.9 percent of survey respondents who indicated that this is not their first time coming to the farmers market visit the market on a weekly basis. Approximately 20.1 percent of respondents visit biweekly and only 1.8 percent visit once per season. The remainder visits the farmer s market monthly, every other month or gave no response. Participation Next, customers were asked questions regarding their participation at the Baltimore City Farmers Market to determine their reasons for attending, the types of items they purchase, how they got there, what they like most about the farmers market, and how much they planned to spend. Survey results for each question can be found in Figures 4 through 8. Figure 4: Customer Survey Question 5 Results 5. Why did you decide to attend the farmers market? (Circle all that apply.) Number Percentage General food shopping % Specific item/vendor % Attended before and liked it % Just looked like fun % Other % No response 4 0.6% As shows in Figure 4, the plurality of survey respondents (47.2 percent) decided to attend the farmers market for general food shopping. Approximately 16.8 percent of respondents decided to go to because they attended before and liked it; another 15.3 percent indicated that they decided to attend the farmers market for a specific item or vendor. 8

9 Of those who indicated Other, most indicated either some social reason (27.1 percent) or to buy local/fresh items (22.9 percent) or another reason that could not be categorized with other responses (20.8 percent) as why they decided to attend the farmers market. Other responses included to show support, to experience the atmosphere or to help or work. Survey respondents were then asked what types of items they intended to purchase or purchased at the farmers market, as shown in Figure 5 below. Figure 5: Customer Survey Question 6 Results 6. What types of items did you or do you intend to purchase at the farmers market? (Circle all that apply.) Number Percentage Produce (fruits and vegetables) % Meats % Baked goods % Other food % Flowers % Crafts % Home and garden % Concessions % Other % No response % A plurality of survey respondents (39.0 percent) purchased or intended to purchase produce (fruits and vegetables) at the farmers market. Many survey respondents also purchased or intended to purchase baked goods (17.3 percent) and meats (15.1 percent). Flowers and concessions rounded out the top five types of items survey respondents purchased or intended to purchase at the farmers market. Of those who indicated Other food, most indicated that they purchased or intended to purchase dairy products (20.0 percent) or eggs (16.0 percent). Others indicated that they purchased or intended to purchase seafood, prepared food or some other food product. Of those who indicated Other, most indicated that they purchased or intended to purchase milk (38.5 percent), coffee (33.3 percent) or some other product. 9

10 Figure 6: Customer Survey Question 7 Results 7. How did you get to the farmers market? (Circle one only.) Number Percentage Automobile % Bus % Light Rail/Metro 2 0.4% Bicycle % Walk % Other 0 0.0% No response 2 0.4% The majority of survey respondents indicated that they traveled to the farmers market via automobile, at 84.2 percent. Another 6.8 percent walked to the farmers market and 6.0 percent used the bus. Bicycles were another popular form of transportation, whereas few survey respondents used the light rail/metro or some other form of transportation. Figure 7: Customer Survey Question 8 Results 8. What do you like most about the farmers market? (Circle one only.) Number Percentage Types of products available % Quality of products available % Variety of products available % Prices of products available % Freshness of products available % Accessibility 9 1.7% Specific vendor(s) % Other % No response 6 1.1% When asked what they liked most about the farmers market, 20.0 percent of survey respondents liked the quality of products available. The freshness of products available and the types of products available were also popular responses, at 19.4 and 18.5 percent, respectively. Interestingly, only 2.6 percent indicated that they liked the specific vendors in the farmer s market, whereas 15.3 percent indicated that they decided to visit the farmers market for a specific item or vendor. Due to the fact that respondents could select only one answer, it is likely that respondents indicated some other reason than Specific vendor(s), and the reason could be related to a specific item or vendor rather than be mutually exclusive. Of those who indicated Other, the majority indicated that they liked the atmosphere (51.9 percent), socialization or some social aspect (20.3 percent), to show support, to buy local/fresh items or some other reason. The 2008 study of farmers markets in Manitoba ranked the relative importance of purchasing factors; the consumer survey asked respondents to rank the importance of several purchasing 10

11 factors on a scale of one to five. Ranked in order from first to ninth were the following purchasing factors: freshness, locally grown/made, price, quality/taste, availability, health benefits, unique, packaging/presentation and impulse. 2 While the categories from which survey respondents could choose were not exactly the same, there are some similarities. RESI s survey analysis shows that survey respondents indicated freshness and quality as important factors as well. Price (3.4 percent indicated this as what they liked most about the farmers market) was less important than in the Manitoba study. Figure 8: Customer Survey Question 9 Results 9. How much did/do you plan to spend at the farmers market? (Circle one only.) Number Percentage <$ % $20.00-$ % $35.00-$ % $50.00-$ % $65.00-$ % $80.00-$ % >$ % No response 6 1.1% As shown in Figure 8, nearly one third or 33.0 percent of survey respondents indicated that they spent or planned to spend between $20 and $34 at the farmers market. Another 23.2 percent planned to spend less than $20. A small fraction of survey respondents 4.2 percent indicated that they spent or planned to spend $80 or more. Iowa State University s survey analysis of the 2004 market season for Iowa farmers markets asked market consumers to indicate their spending. Approximately 47 percent of survey respondents indicated that they spend $1 to $10, 27 percent responded $11 to $20, and 14 percent responded $21 to $30 and 12 percent indicated that they spent more than $30. 3 The 2008 Manitoba study also asked a question regarding spending per visit at farmers markets in the consumer survey. The aggregate results were as follows: 29.1 percent spent $20 or less, 50.9 percent spent $21-$40, 15.1 percent spent $41-$60 and 4.9 percent spent $61 plus. 4 There are slight similarities between the Iowa study and RESI s, mainly in the fact that the majority of survey respondents indicated that they spent or planned to spend in the lower spending ranges. However, with the spending ranges being so low in the Iowa study when compared with RESI s, further comparison is difficult. However, in the Manitoba study, This Little Farmer Went to Market : An Economic Impact Study of the Member Markets of the Farmers Markets Association of Manitoba Cooperative. Dungannon Consulting Services. December Otto, Daniel Ph.D. and Theresa Varner. Consumers, Vendors, and the Economic Importance of Iowa Farmers Markets: An Economic Impact Survey Analysis. Department of Economics, Iowa State University. March This Little Farmer Went to Market : An Economic Impact Study of the Member Markets of the Farmers Markets Association of Manitoba Cooperative. Dungannon Consulting Services. December

12 percent indicated that they spent $20 or less; 23.2 percent indicated the same range in RESI s analysis. Although the spending ranges are not exactly the same, fewer survey respondents in both the Manitoba study and RESI s analysis indicated that they spent or planned to spend larger sums of money. Demographics Finally, customers were asked to indicate with which demographic categories (residency, race, age, etc.) they identify. Survey results for each question can be found in Figures 9 through 15. Figure 9: Customer Survey Question 1 Results 1. Gender of respondent Number Percentage Male % Female % No response 8 1.5% The majority of survey respondents who attended the farmers market were female, at 57.2 percent. Approximately 41.3 percent were male whereas those individuals disseminating the survey did not answer the question for the remainder (1.5 percent). Figure 10: Customer Survey Question 10 Results 10. Are you a Maryland resident? (Circle one only.) Number Percentage Yes % No % No response 2 0.4% As shown in Figure 10, the majority, or 96.6 percent, of survey respondents who attended the farmers market were Maryland residents. Very few respondents were not Maryland residents; only 3.0 percent indicated that they were non-residents. The survey then asked respondents to indicate where they live, as shown in Figure

13 Figure 11: Customer Survey Question 11 Results 11. Where do you live? (Circle one only.) Number Percentage Allegany County 0 0.0% Anne Arundel County % Baltimore City % Baltimore County % Calvert County 9 2.0% Caroline County 1 0.0% Carroll County 2 0.0% Cecil County 0 0.0% Charles County 3 1.0% Dorchester County 0 0.0% Frederick County 1 0.0% Garrett County 0 0.0% Harford County 7 1.0% Howard County % Kent County 0 0.0% Montgomery County 2 0.0% Prince George s County 6 1.0% Queen Anne s County 0 0.0% St. Mary s County 0 0.0% Somerset County 0 0.0% Talbot County 0 0.0% Washington County 0 0.0% Wicomico County 0 0.0% Worcester County 1 0.0% Other 7 1.0% No response 4 1.0% As one might expect, the majority of survey respondents (55.0 percent) indicated that they live in Baltimore City. Many survey respondents, or 30.0 percent, indicated that they live in Baltimore County. Most survey respondents indicated that they live in nearby counties, with very few survey respondents indicating that they live in Western or Southern Maryland. Of those who indicated Other indicated that they were from New York (42.8 percent) or Iowa, Michigan, Pennsylvania or Virginia. 13

14 Figure 12: Customer Survey Question 12 Results 12. Race of respondent Number Percentage White % Black or African American % Hispanic or Latino % Asian % American Indian or Alaska Native 3 0.6% Native Hawaiian and Other Pacific Islander 4 0.8% Some other race 9 1.7% No response 6 1.1% As shown in Figure 12, more than half of survey respondents, or 57.5 percent, identified their race as White, followed by Black or African American, with 30.9 percent. Only small percentages of people identified themselves as American Indian or Alaska Native or Native Hawaiian and Other Pacific Islander. Another 1.7 percent of survey respondents identified themselves as some other race. Figure 13: Customer Survey Question 13 Results 13. Age of respondent (Circle one only.) Number Percentage Under % % % % % % 65 and over % No response 3 0.6% The majority of survey respondents indicated that they are between 25 and 54 years of age, with 26.8 percent, 20.0 percent and 21.7 percent indicating that they are 25-34, and Another 15.3 percent of respondents indicated that they fall in the age category. The 2005 Iowa farmers market report also collected demographic data including consumer age groups. Of all survey respondents, 32 percent indicated that they are 51 to 65, 28 percent indicated that they are over 65, 25 percent indicated that they are 36 to 50, 14 percent indicated 14

15 that they are 21 to 35 and one percent indicated that they are 20 or under. 5 Similarly, in RESI s analysis, only 1.7 percent of survey respondents indicated that they are under 18. However, for the most part, most the respondents in the Iowa study seem to be somewhat older than those surveyed in RESI s analysis. Only 5.7 percent of survey respondents indicated that they are 65 or over, whereas that percentage was 28 percent in the Iowa study. Figure 14: Customer Survey Question 14 Results 14. What is your level of education? (Circle one only.) Number Percentage Some high school or less % High school graduate % Some college/technical school % College graduate % Post-graduate school % Other 1 0.2% No response 2 0.4% As shown in Figure 14, the plurality of survey respondents, or 40.0 percent, indicated that they are college graduates. Another 26.8 percent of survey respondents indicated that they have completed post-graduate school. Few respondents indicated that they had completed some high school or less or some other level of educational attainment. Figure 15: Customer Survey Question 15 Results 15. In what range is your yearly household income? (Circle one only.) Number Percentage Less than $20, % $20,000-$39, % $40,000-$59, % $60,000-$79, % $80,000-$99, % $100,000 or more % No response % Approximately 21.3 percent of survey respondents indicated that their estimated yearly household income is $100,000 or more, as shown in Figure 15. The other income ranges most frequently cited were $40,000-$59,999 (16.2 percent) and $60,000-$79,999 (14.7 percent). Only 8.1 percent of survey respondents indicated an estimated yearly household income less than $20,000. Another 15.1 percent did not offer a response. 5 Otto, Daniel Ph.D. and Theresa Varner. Consumers, Vendors, and the Economic Importance of Iowa Farmers Markets: An Economic Impact Survey Analysis. Department of Economics, Iowa State University. March

16 3.2 Vendor Survey 6 The vendor survey was designed to elicit information from farmers market vendors regarding general business information and their opinions on the economic benefit of the farmers market, among other topics. Please refer to Appendix C for the complete vendor survey instrument. Survey results for each question can be found in the figures below. Results of the vendor survey were separated into three categories of respondents, based on products offered, as follows: Farmers o Produce (fruits and vegetables) o Meats o Dairy products o Fish and other seafood o Honey o Floriculture Concessions o Prepared foods o Drinks o Baked goods Crafts and Home o Crafts o Home and garden General Information and Participation First, vendors were asked questions regarding their participation in the Baltimore City Farmers Market to determine how long they have participated and how many additional employees are required. Vendors were also asked questions regarding their business to determine what types of products they offer and their primary location. Survey results for each question can be found in Figures 16 through Totals throughout this section may not exactly equate to each category added together due to rounding. 16

17 Figure 16: Vendor Survey Question 1 Results 1. What types of products does your business offer at the Baltimore Farmer s Market? (Circle all that apply.) Farmers Concessions Crafts & Home All Vendors Number Percentage Number Percentage Number Percentage Number Percentage Produce (fruits and vegetables) % 0 0.0% 0 0.0% % Meats % 2 7.7% 0 0.0% 9 9.2% Baked goods 2 3.8% % 0 0.0% 7 7.1% Other food (Specify) % % 1 5.0% % Flowers % 0 0.0% 0 0.0% 8 8.2% Crafts 2 3.8% 0 0.0% % % Home and garden 3 5.7% 1 3.8% 0 0.0% 4 4.1% Concessions 1 1.9% % 0 0.0% 7 7.1% Other (Specify) 2 3.8% 0 0.0% % 4 4.1% No response 0 0.0% 0 0.0% 0 0.0% 0 0.0% As shown in Figure 16, most survey respondents indicated that their business offers the following types of products: other food (21.4 percent), produce (fruits and vegetables) or crafts, both at 19.4 percent of respondents. A number of respondents also indicated that their business offers meats or flowers (at 9.2 percent and 8.2 percent, respectively). As can be expected, most farming respondents indicated that they offered produce (35.8 percent), most concessions vendors responded they offered other food (46.2 percent) and concessions (23.1 percent), and most crafts and home vendors responded that they offered crafts (85.0 percent). Those survey respondents who indicated that their business offers other food were then broken down into subcategories, with 33.3 percent of the 21 respondents who responded other food indicating syrups, sauces, condiments, etc., 14.3 percent indicating dairy products, 9.5 percent indicating seafood and 42.9 percent indicating some other food or drink which did not easily fit into a subcategory. Of the farming vendors who responded that their businesses offer other food, a plurality (37.5 percent) indicated dairy products, while most concessions respondents indicated prepared food and drink (58.3 percent) or syrups, sauces, and condiments (41.7 percent). Only one respondent classified under crafts and home indicated that their business offers other food. Those who indicated other non-food products were dissimilar enough that subcategories were not identified. 17

18 Figure 17: Vendor Survey Question 2 Results 2. How long has your business participated in the Baltimore Farmer s Market? (Circle one only.) Farmers Concessions Crafts & Home All Vendors Number Percentage Number Percentage Number Percentage Number Percentage 1-3 years % % % % 3-5 years 2 6.3% % 1 5.3% 6 8.3% 5-10 years % % % % 10+ years % % 1 5.3% % No response 0 0.0% 0 0.0% 0 0.0% 0 0.0% The plurality of survey respondents (41.7 percent) indicated that their business has participated in the Baltimore for one to three years. Another third of respondents indicated that their business participation has lasted for ten or more years. Fewer respondents indicated five to ten years or three to five years, at 16.7 and 8.3 percent, respectively. The highest number of respondents to indicate that their business has participated in the Baltimore for ten or more years was seen in the farming vendor category (59.4 percent). Both concessions and crafts and home vendors were more likely to indicate that their business has participated for one to three years, 38.1 percent and 78.9 percent, respectively. This shows an expansion in the variety of vendor participants which can be found at the Baltimore. Figure 18: Vendor Survey Question 3 Results 3. How many additional employees does your business hire to support its participation in the Baltimore Farmer s Market? (Circle one only.) Farmers Concessions Crafts & Home All Vendors Number Percentage Number Percentage Number Percentage Number Percentage None % % % % % % 0 0.0% % 3 or more No response % % 0 0.0% % 1 3.1% 0 0.0% 0 0.0% 1 1.4% Approximately 40.3 percent of survey respondents indicated that their business hires no additional employees to support its participation in the Baltimore, as shown in Figure 18. Another 36.1 percent indicated that their business hires one or two additional employees and fewer indicated three or more additional employees (22.2 percent). The remainder of survey respondents did not answer the question. Among all vendors the highest response indicated (40.3 percent) was that their business hires no additional employees to support its participation in the Baltimore. As two of the three vendor categories indicated that their business does hire additional employees to support its participation in the market, this response rate was highly influenced by the fact that 18

19 all craft and home vendors indicated that their business hires no additional employees. Both farming and concessions vendors were more likely to indicate that their business hires one or two additional employees, 46.9 percent and 52.4 percent, respectively. Figure 19: Vendor Survey Question 10 Results 10. What is the primary location of your business? (Circle one only.) Farmers Concessions Crafts & Home All Vendors County Number Percentage Number Percentage Number Percentage Number Percentage Allegany 1 3.1% 1 4.8% 0 0.0% 2 2.8% Anne Arundel 1 3.1% 1 4.8% % 4 5.6% Baltimore City 1 3.1% % % % Baltimore % % % % Calvert 0 0.0% 0 0.0% 0 0.0% 0 0.0% Caroline 2 6.3% 0 0.0% 0 0.0% 2 2.8% Carroll % 0 0.0% 0 0.0% 4 5.6% Cecil 1 3.1% 0 0.0% 0 0.0% 1 1.4% Charles 0 0.0% 0 0.0% 0 0.0% 0 0.0% Dorchester 0 0.0% 0 0.0% 0 0.0% 0 0.0% Frederick 1 3.1% 0 0.0% 1 5.3% 2 2.8% Garrett 0 0.0% 0 0.0% 0 0.0% 0 0.0% Harford 2 6.3% 0 0.0% 1 5.3% 3 4.2% Howard 3 9.4% 1 4.8% 0 0.0% 4 5.6% Kent 1 3.1% 0 0.0% 0 0.0% 1 1.4% Montgomery 1 3.1% 0 0.0% % 3 4.2% Prince George s 0 0.0% % 0 0.0% 3 4.2% Queen 1 3.1% 0 0.0% 0 0.0% 1 1.4% Anne s St. Mary s 0 0.0% 0 0.0% 0 0.0% 0 0.0% Somerset 0 0.0% 0 0.0% 0 0.0% 0 0.0% Talbot 0 0.0% 0 0.0% 0 0.0% 0 0.0% Washington 1 3.1% 0 0.0% 0 0.0% 1 1.4% Wicomico 0 0.0% 1 4.8% 0 0.0% 1 1.4% Worcester 0 0.0% 0 0.0% 0 0.0% 0 0.0% Other (Specify below) 1 3.1% 1 4.8% 1 5.3% 3 4.2% No response 3 9.4% 0 0.0% 0 0.0% 3 4.2% As one might expect given the location of the Baltimore, many survey respondents indicated that the primary location of their business is Baltimore County (27.8 percent) or Baltimore City (19.4 percent). Several respondents indicated counties such as Anne Arundel, Carroll and Kent, among others. The remainder of survey respondents did not offer a response. 19

20 Many farming vendor respondents indicated that the primary location of their business is Baltimore County (25.0 percent) or Carroll County (12.5 percent). The farming vendors were the only respondents that did not have Baltimore City listed as one of their top primary business locations. The majority of concessions vendor respondents indicated that the primary location of their business is Baltimore City (33.3 percent) or Baltimore County (28.6 percent). The concessions vendor respondents were the most likely among all vendors to indicate that Baltimore City was the primary location of their business. A plurality of crafts and home vendors indicated that the primary location of their business was in either Baltimore City (31.6 percent) or Baltimore County (31.6 percent). Sales and Revenue Next, vendors were asked questions regarding sales and revenue attributable to the Baltimore to determine average daily sales, portion of total annual revenue, participation in other farmers markets and where vendors experience higher sales volume. Survey results for each question can be found in Figures 20 through 23. Figure 20: Vendor Survey Question 4 Results 4. What are your business average daily sales at the Baltimore Farmer s Market? (Circle one only.) Farmers Concessions Crafts & Home All Vendors Number Percentage Number Percentage Number Percentage Number Percentage $0-$ % 2 9.5% % % $250- $499 $500- $749 $750- $999 $1,000 or more No response 3 9.4% % % % 1 3.1% % 0 0.0% % % 2 9.5% 0 0.0% % % % 0 0.0% % % % 0 0.0% % As shown in Figure 20, 29.2 percent of survey respondents indicated that their business average daily sales are between $0 and $249 and another 19.4 percent indicated that their average daily sales are $1,000 or more. Another 13.9 percent indicated sales between $750 and $999 and 23.6 percent indicated average daily sales in the mid ranges between $250 and $749. The remaining 13.9 percent of survey respondents did not answer the question. The range of responses (the highest category and the lowest category being the top two responses) seen in the results for all vendors is easier to understand when analyzing each vendor type separately. Farming vendors indicated that their business average daily sales are $1,000 or more (34.4 percent), or are between $750 and $999 (25.5 percent). Concessions vendor respondents indicated that their business average daily sales are between $500 and $749 or between $250 and $499, 33.3 percent and 19.0 percent, respectively. Craft and home vendor respondents indicated the lowest average daily sales. Most respondents in this category (

21 percent) indicated average sales between $0 and $249. Since respondent vendors are describing sales at a farmers market, the farming vendors having the highest sales seems reasonable. Figure 21: Vendor Survey Question 5 Results 5. Approximately what portion of your business total annual revenue is attributable to sales at the Baltimore Farmer s Market? (Circle one only.) Farmers Concessions Crafts & Home All Vendors Number Percentage Number Percentage Number Percentage Number Percentage 0%-24% % % % % 25%- 49% % % 0 0.0% % 50%- 74% 2 6.3% % 1 5.3% 7 9.7% 75%- 99% 1 3.1% 0 0.0% % 4 5.6% 100% 0 0.0% 1 4.8% % 3 4.2% No response % 2 9.5% 1 5.3% 7 9.7% The majority of survey respondents 54.2 percent indicated that less than 25 percent of their business total annual revenue is attributable to sales at the Baltimore. Another 16.7 percent indicated 25 percent to 49 percent. Fewer survey respondents indicated 50 percent or more of their business total annual revenue is attributable to the farmer s market. Only 4.2 percent rely entirely on revenue generated at the Baltimore and another 9.7 percent did not offer a response. Generally speaking, all three vendor category respondents indicated that less than 25 percent of their business total annual revenue is attributable to sales at the Baltimore City Farmers Market. Half of farming vendor respondents (50 percent), more than half of concessions vendor respondents (52.4 percent), and nearly two-thirds of crafts and home vendor respondents (63.2 percent) indicated that less than 25 percent of their total annual revenue is attributable to sales at the market. The 2008 economic impact study regarding the markets forming the Farmers Markets Association of Manitoba Cooperative which included a vendor survey asked this same question. The results from three separate market size distinctions (small, medium and large) were aggregated for overall percentages; 64.7 percent responded that 0 to 20 percent of their total income was attributable to farmers market sales, 8.1 percent responded 21 to 40 percent, 8.8 percent responded 41 to 60 percent, 5.9 percent responded 61 to 80 percent and 12.5 percent responded 81 to 100 percent. 7 7 This Little Farmer Went to Market : An Economic Impact Study of the Member Markets of the Farmers Markets Association of Manitoba Cooperative. Dungannon Consulting Services. December

22 While the categories from which survey respondents could choose were not exactly the same, there are some similarities. For the most part, most survey respondents in both cases indicated smaller ranges, meaning that their business relies on other locations or events in addition to the farmer s market as a means of generating revenue. A larger percentage of survey respondents from the Manitoba survey indicated that they rely entirely on the farmer s market to generate revenue (12.5 percent compared to 4.2 percent). Figure 22: Vendor Survey Question 6 Results 6. Does your business participate in any other Farmer s Markets? (Circle one only.) Farmers Concessions Crafts & Home All Vendors Number Percentage Number Percentage Number Percentage Number Percentage Yes % % % % No 2 6.3% 1 4.8% % % No response 0 0.0% 0 0.0% 0 0.0% 0 0.0% The majority of survey respondents, or 83.3 percent, indicated that their business does participate in other farmer s markets, as shown in Figure 22. The remaining 16.7 percent indicated that their business does not participate in other farmer s markets. Those in the former category were then asked where their business typically experiences a higher volume of sales. While both farming vendors (93.8 percent) and concessions vendors (95.2 percent) were highly likely to indicate that their business does participate in other farmer s markets, crafts and home vendors responses were fairly evenly distributed. Of the crafts and home vendor respondents, 52.6 percent indicated that their business participates in other farmer s market and 47.4 percent indicated that their business does not. 22

23 Figure 23: Vendor Survey Question 7 Results 7. Where does your business typically experience a higher volume of sales? (Circle one only.) Farmers Concessions Crafts & Home All Vendors Number Percentage Number Percentage Number Percentage Number Percentage Baltimore Farmers Market At other Farmers Market(s) No response % % % % % % % % % 1 4.8% % % As shown in Figure 23, 52.8 percent of survey respondents a clear majority indicated that their business typically experiences a higher volume of sales at the Baltimore City Farmers Market. Less than a quarter, or 23.6 percent, indicated that their business typically experiences a higher volume of sales at some other farmer s market(s). The remainder did not answer the question. More than half of farming vendor respondents (59.4 percent) and crafts and home vendor respondents (52.8 percent) indicated that their business typically experiences a higher volume of sales at the Baltimore than at other farmer s markets. More than threequarters of concessions vendors (76.2 percent) indicated that their business also experiences a higher volume of sales at the Baltimore. Feedback Finally, vendors were asked questions designed to elicit feedback and/or suggestions to improve the Baltimore, including whether changes or improvements could be made and what changes or improvements would be beneficial. Survey results for each question can be found in Figures 24 and 25. Figure 24: Vendor Survey Question 8 Results 8. Does your business feel the Baltimore Farmer s Market could make any changes or improvements? (Circle one only.) Farmers Concessions Crafts & Home All Vendors Number Percentage Number Percentage Number Percentage Number Percentage Yes % % % % No % % % % No response % 2 9.5% 0 0.0% 7 9.7% When asked to indicate whether or not their business feels the Baltimore could make any changes or improvements, 58.3 percent of survey respondents responded that it could, as shown in Figure 24. Less than a third (31.9 percent) indicated that their business does 23

24 not feel that the farmer s market could make any changes or improvements and 9.7 percent did not offer a response. Almost half of farming vendors indicated that they feel the Baltimore could make changes or improvements. Meanwhile, more than sixty percent (61.9 percent) of concessions vendors, and nearly seventy-five percent (73.7 percent) of crafts and home vendors indicated that their business feels changes or improvements could be made. These responses correspond to responses indicated in Figure 20. Farming vendors indicated the highest earnings while at the Baltimore and were the least likely to indicate that they feel the market could make changes and improvements. Conversely, the crafts and home vendor respondents indicated the lowest earnings and were the most likely to indicate that their business feels that the market could make changes or improvements. Figure 25: Vendor Survey Question 9 Results 9. What changes or improvements does your business feel would be beneficial? (Circle all that apply.) Farmers Concessions Crafts & Home All Vendors Number Percentage Number Percentage Number Percentage Number Percentage Different location Different time(s) Different day(s) Other (Please specify) No response 0 0.0% 2 9.5% % 6 8.0% 1 3.1% 2 9.5% % % 0 0.0% 1 4.8% 0 0.0% 1 1.3% % % % % % % % % The plurality of survey respondents did not answer the question in regard to what changes or improvements their business feels would be beneficial. Most of those survey respondents who indicated that their business feels that the farmer s market could make changes or improvements then offered more specific feedback regarding what kinds of changes or improvements would be beneficial. Few indicated that different time(s), a different location or different day(s) would be beneficial (at 12.0 percent, 8.0 percent and 1.3 percent, respectively). Many (30.7 percent) offered other changes or improvements. As seen in Figure 24, farming vendors were the least likely to indicate that they feel that Baltimore could make changes or improvements. As a result, it is not surprising that the majority (62.5 percent) indicated no response when asked what changes or improvements that they feel would be beneficial. A high number of concessions vendors (47.6 percent) indicated no response when asked about changes and improvements. However, both farming (34.4 percent) and concessions (47.6 percent) vendors offered changes or improvements other than the options listed above when they did indicate a response. Crafts and home vendors 24

25 were as likely to indicate that they feel different times would be beneficial (28.6 percent) as they were to offer other changes or improvements (28.6 percent). Other responses ranged from changes or improvements in the facilities/set-up of the farmer s market, advertisement/marketing, inspections/registration/requirements, etc. Some survey respondents were also concerned with the availability of resale (not vendor-made) products or the location of certain kinds of vendors. Selected quotes (which were edited for readability) taken from completed surveys include the following: Promote shoppers bring their own bags. Inspection enforcements We need a website phone calls made when entrances are closed or roads are shut down. We need a mtg. w/ all vendors at least before and after market starts and ends. We need more than one policeman. So not close market on Labor Day weekend, which is the busiest weekend of the year. Separate farmer from other vendors. It's a farmers market not a flea market. Too many pigeons! Limit number of businesses. Easier customer access and visibility to crafters area, offer dollar off" coupons for arts and crafts purchase when [customers] purchase $10 or more from food vendor/farm stand. Promote vendor-made, i.e. NOT RESALE merchandise, crafts. Integrate artists with farmers my best customer just found me the Sunday before Christmas because I was allowed to sell in the market. Best one day sale in 2 years. Set some limits in the amount of people selling the same thing or spread them out more. Have signs up pointing the way to bathrooms and vendors. Even my friends did not find me on the outside wall. Pave area where dirt is. Supply trash cans and all vendor locations not just by the food. Have handmade items only. 25

26 4.0 Economic Impact Analysis 4.1 Overview In addition to conducting a survey analysis, RESI was tasked with completing an economic impact analysis of the Farmers Market on Baltimore City. RESI estimated job creation, output and wage levels attributable to the farmers market based on information collected from the customer survey. These results were broken down by type of impact (direct, indirect and induced). To enumerate the economic impacts of the farmers market on Baltimore City and the state of Maryland, RESI used the IMPLAN input/output model and made the following assumptions: Attendance and spending patterns are based on information collected from the customer survey as well as a literature review of similar studies. Economic impact multipliers are developed from IMPLAN input/output software. IMPLAN data are for IMPLAN 2009 data are based on the North American Industrial Classification System (NAICS). IMPLAN employment multipliers are adjusted for inflation using the Bureau of Labor Statistic s CPI-U. The economic impact estimates are for the state of Maryland. For more information regarding IMPLAN and RESI s methodology, please refer to Appendix A. 4.2 Findings 8 IMPLAN Results RESI used information collected from the customer survey as well as attendance estimates provided by BOP&A to estimate the direct, indirect, induced and total economic impacts (employment, output and wages) of the Baltimore for the 2010 market season. RESI used the low attendance estimates for each weekend provided by BOP&A (3,000 attendees on non-peak Sundays and 7,000 attendees on peak Sundays), which best coincided with BOP&A s total estimate of nearly 200,000 attendees per market season, to determine a conservative estimate of the economic impact of the farmers market for the 2010 market season. The results can be found in Figure Totals throughout this section may not exactly equate to direct, indirect, and induced impacts added together due to rounding. 26

27 Figure 26: Economic Impacts Impact Direct Indirect Induced Total Farmers Employment Output $4,447,832 $1,855,264 $1,958,952 $8,262,049 Wages $621,701 $508,173 $609,640 $1,739,515 Concessions Employment Output $304,963 $53,785 $147,197 $505,944 Wages $141,811 $15,640 $45,806 $203,257 Crafts and home Employment Output $1,789,488 $409,032 $765,993 $2,964,514 Wages $825,114 $116,557 $238,362 $1,180,033 All Vendors Employment Output $6,542,283 $2,318,081 $2,872,142 $11,732,506 Wages $1,588,626 $640,371 $893,808 $3,122,804 27

28 Literature Review RESI completed a literature review of available sources in order to compare findings on the economic impacts of farmers markets. For comparison purposes, a summary of findings from similar studies as well as RESI s survey analysis of the Baltimore can be found in Figure 27. Figure 27: Comparison of Findings Study Number of Markets Employment Output Wages Iowa Farmers Markets (2005) N/A 471 $31.5 million $12.2 million West Virginia Farmers Markets (2008) $2.4 million N/A Portland Farmers Markets (2008) $17.1 million $3.2 million Farmers Markets Association of Manitoba Cooperative (2008) 15 N/A $10.3 million N/A Nationwide Farmers Markets (2009) 4,093 N/A $1.0 billion N/A Mississippi Farmers Markets (2010) $1.6 million $0.2 million Baltimore (2010) $11.7 million $3.1 million Sources: Bonnie G. Yosick LLC; Dungannon Consulting Services; Hughes, Brown, Miller and McConnell; Iowa State University; RESI It is important to remember that the study teams involved in the analyses discussed below generally collected data from more than one farmers market; therefore, the resulting economic impacts can be expected to be higher than for Baltimore City in some cases. However, as shown in Figure 27, the economic impact of the Baltimore is significant for one farmers market when compared with the economic impacts of other farmers markets. It is difficult to determine from the studies included in the literature review whether this may be attributable to a difference in market size or number of vendors, length of season, popularity of the market, or some other factor(s). Iowa State University was tasked with completing a survey analysis in 2005 to assess the economic impact of Iowa farmers markets in the 2004 market season (though the report did not specify how many farmers markets were included in the analysis). The study team concluded that, while vendor surveys resulted in estimated total sales of $9.8 million, the consumer survey estimate of $20.0 million in sales would be more accurate given the larger sample size. 9 According to the report, sales and other activity at Iowa farmers markets indirectly resulted in 140 jobs (nearly 471 jobs total when including direct jobs) and directly or indirectly resulted in 9 Otto, Daniel Ph.D. and Theresa Varner. Consumers, Vendors, and the Economic Importance of Iowa Farmers Markets: An Economic Impact Survey Analysis. Department of Economics, Iowa State University. March