Breakdown of Farmers Market costs

December 16th, 2010 · 11 Comments

Since the announcement that the Magnolia Farmers Market would not return next year unless the community was able to raise $20,000, questions have been raised regarding what that money is used for and why it is so expensive to run the Farmers Market.

We got this explanation from Julian O’Reilley, Operations Manager at Neighborhood Farmers Market Alliance (NFMA). “Our current conversation with groups and individuals in Magnolia is asking for at least $12,000 to cover projected deficits for the market this year, and significant help to make the market better and more sustainable into the future. If fewer people are willing to step up, but more funds are raised, the NFMA would be able to implement some community-directed changes in the market. Our board will review the funds raised and commitments of volunteer time in February in order to determine if the market will open in 2011.”

O’Reilley says the Magnolia Farmers Market had been slowing growing until it peaked in 2008. It was down 14% in 2009 and 25% in 2010. The average vendor sales per market day are $561, below the $600 per day benchmark for a healthy market. Eight vendors (five of them farmers) dropped out mid-season due to low sales.

Major budget items for the Magnolia market include market day staffing – 9 hours per market day for one on-site manager, staff planning, vendor contracts and outreach, site design and pre-market coordination, banners, signs, website, newsletters, print advertising, site rental paid to the Parks Department, licenses, site insurance, organizational memberships, special event programming and vendor communication.

O’Reilley says that a sustainable Magnolia Farmers Market must bring in a minimum of $30,000 per season in earned income or with a contributed income subsidy. It must have community partners involved in leading or sponsoring kids activities, special events, cooking demos and nonprofit outreach. They are also recommending a more centrally located market with strong ties to the business core or a connection to another event.

The NFMA board will review the funds raised and commitments of volunteer time in February in order to determine if the market will open in 2011.

Nancy Gellos is leading the Magnolia group that wants to save the market. You can contact her via email at nancygellos@comcast.net. There is also a fundraiser for the market coming up at Dish it up!. More info here.

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db

You pay rent to the Parks Dept., in Magnolia the Market is located in
Blaine’s parking lot not a Park. We
all know how the Park’s Dept blows there money. If anything rent should be paid to the city and or waived. I am all for small business but sounds like there are some major expenses that need to be hashed out and shared with all the markets throughout the city. Looks like the Vendors have some costs to pay as well, memberships etc. These costs are what cost of doing business means,..ie markup and profit. I would not expect the Vendors to something below their cost. Maybe they can’t sell their products for what they need to
make a profit. I don’t think subsidizing is the answer.
Thank you for answers!! I am in the Construction business can I get subsidized too? My Industry gets to deal with all the cash non licensed
workers and businesses out there and the State can’t enforce the Laws fast enough.
Jody

As much as I would love to eat organic produce and meat; and also support our local farmers, I cannot swing it financially right now.
Hopefully these resources will still be around when this recession ends.
Womyn2me

I think it is a waste of money on the part of these people who are doing the fundraising. I would rather hop over to Ballard on Sunday than see us pour money into the hole that is the equivalent of a kids lemonaid stand farmers market.

if it cannot support itself, then it goes under, just like any other event .
mj

I would rather see $20,000 donated to a food bank and have to make the trip down to Whole Foods for my (hypothetical) fancy produce, than have $20,000 donated to the farmers’ market. I think our priorities are a little messed up if people really think this is a good use of money.
cma319

I’ve been hearing for a few years that there are 2 many farmer’s markets in the city–there just aren’t enough people in each neighborhood to sustain each one. If farmer’s aren’t doing well enough at this one it makes more sense for people to just go to Ballard or Queen Anne–it’s not that far, everyone in Magnolia has a car, and it makes those markets more profitable.
Gerald

This is not a “breakdown” of costs. It lumps a bunch of nebulous terms that are meaningless without any actual accounting. “Staff planning” and “pre-market coordination” could be Hooters on Monday and Wednesday (sarcasm – not accusation). It’s simple – follow the money. What are the “deficits?” What is “better” and “more sustainable?”

It’s simple – the Neigborhood Farmers Market Allience should provide a definitive breakdown of revenues, expenditures, goals, objectives and public benefit. Not just contemporary buzz words such as local, sustainable, farmer, family owned etc. Then start by publishing that information here. Once that is explained, and only after thorough explanation, it might be appropriate to ask for funds.

Until then I agree with mj – donate to a much needed and worthy cause. Even after any additional “breakdown(s)” I’ll probably still agree with mj.
Monty

If private individuals want to keep the market afloat with their own money, more power to them. But, this would not be a good use of City money. So, I hope nobody asks.
Chris

Although I frequent farmer’s markets each weekend I had stopped going to the Magnolia market this year because the selection and prices were not comparable to Ballard or the U-district.
I would love to have an equally vibrant market in Magnolia but the local market size just can’t support it. Subsidies won’t fix this fundamental problem and should be used to generate higher social return elsewhere.
Snarkbark

Agree with other posters…this is not a breakdown of costs, just general cost info. But all that aside, if the market is not profitable for the vendors, then it simply means there is not enough demand.

Throwing money at the market is NOT going to increase demand for the goods.

BTW…I love the market and shop there during the summer. But the economics are what they are.
magman

yes what Gerald said. Magnolians are spreadsheet types — how about an actual account of costs instead of a list of things for which money might or might not be spent?
TonyToni

We need a strip club. not a produce stand!