Economic impact study shows livestock markets important for rural vitality; $1M in total value-added dollars to community

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Lindsay Graber Runft
lrunft@lmaweb.com
(816) 301-2426

Economic impact study shows livestock markets important for rural vitality; $1M in total value-added dollars to community

KANSAS CITY, Mo. – A 2017 economic impact study found that livestock auction markets are important for the vitality of rural communities. The study of a standard, fixed-facility auction market revealed that the market provides approximately $1 million in total value-added dollars to its local community (population of 5,000) annually. Key findings also showed that markets create jobs and contribute substantially in taxes and labor income.

The case livestock auction market is located in northwest Iowa and has a weekly cattle sale, selling all classes of cattle. The market was selected as a representative example of Livestock Marketing Association (LMA) member-markets based on type of market, gross sales of livestock, rural location of market, and population of city. LMA represents 75 percent of the livestock auction markets in the United States, and cattle are the largest per-head species sold through livestock auction markets annually (31 million head, per 2016 USDA GIPSA Annual Report data).

Also from the key findings: the market studied provides nearly 30 jobs, generating $600,000 in labor income to the community’s economy. Additionally, the market contributes $70,000 in local taxes. In federal taxes, the market contributes $125,000. Of the total value-added number, approximately $30,000 is contributed by the on-site café, operational only on sale days and managed by a resident church (proceeds retained by church).

Speaking on rural vitality, LMA President, Jerry Etheredge said, “Livestock markets are extremely important to their local communities. They generate cash for local farmers and that cash gets traded in town. For those rural communities, employment opportunities at a market are a big deal.”

In collaboration with the LMA, the study was completed by Decision Innovation Solutions in Urbandale, Iowa.

About the Livestock Marketing Association
The Livestock Marketing Association, headquartered in Kansas City, Missouri, is North America’s largest membership organization dedicated to supporting, representing and communicating with and for the entire livestock marketing sector. LMA has more than 800 member businesses across the U.S. and Canada. For more information, visit www.LMAWeb.com.

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