New web tool explores potential produce markets


About the calculator

Go to the calculator

Did you know that ...? Facts about Iowa produce

The Iowa Produce Market Potential Calculator is part of a new generation of market tools being
developed with support and technical assistance by the Leopold Center. These marketing aids have a variety of uses, and build upon the knowledge we’ve gained over the past eight years of supporting local and regional food system projects. Here are a few ways that this unique tool can be used.

A market discovery tool for producers
An Iowa farmer interested in local and regional fresh produce markets can use the Iowa Produce Market Potential Calculator to explore new or expand existing markets. With information from the Calculator, a farmer can see the relative demand for 37 different fresh produce items, either for particular counties or the entire state.

For example, it’s easy to use the calculator to see that Iowa farmers supply only 1 percent of the state’s consumption of fresh broccoli. Armed with this information, a farmer can adjust yield, acreage or market share to get information that he or she needs to develop a marketing plan.

A tool for partners across the fresh produce value chain
Many tools developed by researchers and educators are designed for only one sector of the food value chain. However, the Iowa Produce Market Potential Calculator can be beneficial for producers, processors, distributors and retailer partners across the chain. Its output can help these partners with production, supply management, transportation/logistics and market potential questions.

Specific examples include estimations of the potential farm revenue for a specific crop, the number of acres needed to supply demand, the number and size of trucks needed for transport to meet demand, and the amount of cubic feet of warehouse space. Given the opportunity, the calculator also could be used by nongovernmental organizations and other public sector partners to provide more information across local and regional produce value chains.

As an economic development tool for local/regional food groups
What we’ve learned from Leopold Center food system projects is that in order for local and regional food enterprises to succeed, they need strategic support at the state and community levels. Significant community and state-based incentives and resources must be in place to attract entrepreneurs and transitioning farmers to start and stay with these food enterprises.

Although the general benefits of local and regional food systems have been articulated by many, there is a lack of information about how these enterprises can impact local and regional economies.

Using the Iowa Produce Market Potential Calculator is one approach that can help farmers and local groups, including state food policy councils, more effectively make the case for local and state investment in these enterprises.

As a tool to model economic impacts of local food systems
What would happen to Iowa’s economy if Iowans raised, rather than imported, just 25 percent of the 37 different fruits and vegetables that are consumed in Iowa each year?

Let’s assume that instead of marketing these fruits and vegetables through existing grocery outlets, Iowa farmers were able to offer these produce items for direct sale. Under this scenario, Iowa grocery chains would lose some of their retail margins since they would not sell the same volume of fresh produce. And the number of farms engaged in fruit and vegetable production would need to increase, as would all of the labor necessary for the production. A percentage of land currently used for conventional crops (primarily corn and soybeans) would need to be planted in fruit and vegetable crops.

ISU economist Dave Swenson worked with the Regional Food Systems Working Group to consider the impact of this hypothetical scenario on Iowa’s economy. By netting out the changes outlined above, Swenson was able to get a good idea of the potential contributions under this scenario.

Using supply and demand data from the Iowa Produce Market Potential Calculator, in conjunction with a modified state of Iowa input-output model maintained in the Department of Economics at ISU, Swenson modeled the potential economic impacts of these shifts in production and distribution. If the 25 percent goal were achieved, he estimated that total new sales in Iowa would increase by nearly $140 million, and $52.4 million in additional labor income would be paid to 2,030 job holders.

While this scenario is purely hypothetical and created for discussion purposes, it shows some of the dramatic impacts that changes in our food production system could have at the Iowa level. This is just one of many reasons that the Iowa Produce Market Potential Calculator is a powerful resource to add to our tool kit.

About the calculator

The Iowa Produce Market Potential Calculator was developed by the Center for Transportation Research and Education (CTRE) at Iowa State University and the Leopold Center.

The calculator displays an Iowa map that shows both statewide and county-by-county supply and demand for each of the 37 fruit and vegetable crops that can be grown in Iowa. Crops include tree fruits such as apples, pears and plums, several types of berries, melons, garlic, and a variety of vegetables such as asparagus, carrots, cabbage, green beans, potatoes, pumpkins, squash, sweet corn and tomatoes.

Supply – where and how much of a certain crop is grown in Iowa – is based on information from the U.S. Census of Agriculture. Demand – or what Iowans eat – is based on national per capita consumption data.

The calculator can show results in a variety of weight-based units: pounds, bushels, even by one-ton, 10-ton or 20-ton truck loads. It also figures potential farm revenues that would accrue if the local markets were fully realized.

The tool has generated much interest and numerous requests from people who want to duplicate the model in other states.


Back to Winter 2005 Leopold Letter


Published by the Leopold Center for Sustainable Agriculture
Ames, Iowa 50011, (515) 294-3711
URL: www.leopold.iastate.edu