Livestock markets vital to economies

A 2017 economic impact study found that livestock auction markets are important for the vitality of rural communities. In collaboration with the Livestock Marketing Association (LMA), the study was completed by Decision Innovation Solutions in Urbandale, IA. The study of a standard, fixed-facility auction market in northwest Iowa 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 study market holds a weekly sale, selling all classes of cattle and was selected as a representative example of LMA member-markets based on type of market, gross sales of livestock, rural location of market, and population of city. The study also found that the market provides nearly 30 jobs, generating $600,000 in labor income to the community’s economy. Additionally, the market contributes $70,000 in local taxes and $125,000 in federal taxes. Of the total value-added number, approximately $30,000 is contributed by the on-site cafe, operated only on sale days and managed by a resident church (proceeds retained by church).