Study Shows Iowa Food Farmers Had a $66.5M Economic Output

By Cami Koons

A survey of the commercial horticulture food crops industry in Iowa showed direct specialty crop sales of more than $79 million in 2022 and even higher figures of economic output attributable to the industry. 

Iowa Department of Agriculture and Land Stewardship announced the results of the 2023 survey  Wednesday and said it shows the local produce industry is “diverse, growing, and making a significant contribution to Iowa’s economy and agricultural identity.” 

The survey was sent to Iowa specialty crop producers who grow edible crops like vegetables, fruits, berries, nuts, honey, maple syrup, herbs, mushrooms and pumpkins. 

According to a news release from IDALS, this is the first “comprehensive look” at the industry since 2015. 

More than 850 specialty farmers participated in the survey, which found that a total of 11,650 acres of specialty crops were grown in 2023. 

Sales from these farms had a statewide economic output of $66.5 million in 2023 and supported $29.9 million in labor. 

Iowa Secretary of Agriculture Mike Naig said the survey “confirms the economic strength of specialty crop producers.” 

“Iowa’s horticulture food crops sector is an important part of our agricultural economy and a defining feature of the diversity and vibrancy of Iowa agriculture,” Naig said. 

Most of these farms are small, grow multiple products and sell directly to consumers. These farmers skew young with nearly 50% of respondents below the age of 35. 

The survey found the average age of Iowa specialty crop producers was 57.2 years, which is lower than the national average, 58.1 years, of producers in the U.S. according to the latest Census of Agriculture.  

The majority of specialty farm producers responded that they also work-off farm jobs and 37% responded they work full-time jobs off the farm in addition to running the farm. 

The average farm size for these edible crops was 7.8 acres, though many farms are quite a bit smaller considering the median farm size was just 2.8 acres. The survey also found that just 4% of farms had crop insurance. 

From 1989 to 2000, the number of specialty farms in Iowa declined from 1,400 farms to 938 farms, according to the survey results. The industry has since rebounded, with 1,680 farms counted in 2023. 

The results show the total number of sales of edible specialty crops increased by 73% from 2012 to 2022, with inflation-adjusted figures. The survey results show direct edible specialty crop sales amounted to $79 million in 2022. 

In addition to growing on average 3.8 distinct specialty crops, farmers also diversify their operations with on-farm activities. Nearly 60% of surveyed farms participate in some form of agritourism, which they reported generated $6.6 million in income.

Farmers also increase their sales with value-added products, or products that have been processed in some way, like canned vegetables or wine. The survey results show edible specialty crop farms sold an estimated $11.3 million in value-added products in 2023. 

Naig said he believes the Iowa edible specialty crop industry will continue to grow, especially with the expansion of the department’s marketing service, Choose Iowa. Naig said these farmers also help connect Iowans to their food sources. 

“With the continued expansion of the Choose Iowa program, I believe this sector is well-positioned for even greater growth in the years ahead,” Naig said. “Horticulture food crops bring opportunities not just for established farms but also for beginning farmers who are shaping the future of our industry.” 

Honey, peppers, apples, tomatoes and lettuce were the top edible specialty crops grown in Iowa. According to survey results, the number of honey producers in the state has “dramatically increased” as there were fewer than 200 producers in 1997 and there were 1,229 in 2022. 

The other top crops had between 400 and 550 producers each in 2022. Producers who sold through Community Supported Agriculture programs or at farmers markets were more likely to grow a higher variety of crops. 

According to the release from IDALS, the report, which was produced primarily by the department and staff from Iowa State University Extension and Outreach, will help lawmakers and department leaders to “better support specialty crop farmers and help them overcome challenges, seize new opportunities, and sustain growth.”

Iowa Capital Dispatch is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Iowa Capital Dispatch maintains editorial independence. Contact Editor Kathie Obradovich for questions: [email protected]. Follow Iowa Capital Dispatch on Facebook and Twitter.