Economic impact study shows livestock auctions are growing in importance for rural vitality; $2M in total value-added dollars to community
April 14, 2023
Overland Park, Kan.
A 2023 economic impact study, which updated a study from 2017, found that livestock auction markets continue to be important for the growth and vitality of rural communities. The study of an average, fixed-facility livestock auction market revealed that the market provides approximately $2 million in total value-added dollars to its local community. This result is up from $1 million identified in the 2017 Livestock Marketing Association (LMA) Economic Impact Report.
The case livestock auction market, located in a rural Missouri town with a population of less than 5,000, sells all classes of cattle in a weekly sale. The auction market was selected as a representative example of LMA member-livestock auctions based on type of operation, gross sales of livestock, rural location of market and population of city. LMA represents 85% of the livestock auction markets in the United States, with cattle being the largest per-head species sold through livestock auction markets annually (32 million head, per 2020 USDA P&S Annual Report data).
Key findings also revealed that the market studied provides 17 jobs, generating $888,000 in labor income to the community’s economy. Additionally, the market contributes $447,000 in local taxes and $108,000 in federal taxes. Of the total value-added number, contributions were also made by the on-site café, which further provides labor income, state, local and federal taxes.
“Livestock auction markets today remain critical to helping our rural communities continue to thrive,” said Kristen Parman, LMA Vice President of Membership Services. They generate a competitive sale environment which results in cash for local livestock producers. That cash equals dollars spent in town and investments back into their businesses and operations.”
In collaboration with LMA, the study was completed by Decision Innovation Solutions in Urbandale, Iowa.
A copy of the report can be downloaded here.
About the Livestock Marketing Association
The Livestock Marketing Association (LMA), headquartered in Overland Park, Kan., is North America’s leading, national trade association dedicated to serving its members in the open and competitive auction method of marketing livestock. Founded in 1947, LMA has more than 800 member businesses across the U.S. and Canada and remains invested in both the livestock and livestock marketing industries through member support, education programs, policy representation and communication efforts.
RELATED PRESS RELEASES
December 16, 2014
LMA Opposes USDA Creating Second Beef Checkoff
The Livestock Marketing Association (LMA) submitted comments opposing USDA Secretary Tom Vilsack’s plans to create a second Beef Checkoff under the Commodity, Promotion, Research, and Consumer Information Act of 1996. Cattle producers already pay a $1 Checkoff each time cattle are sold. This program was created in 1985 under the Beef Promotion and Research Act. If USDA moves forward with their plans, the second Checkoff would run at the same time as the current Checkoff.
June 14, 2022
Epperly Wins 2022 World Livestock Auctioneer Championship
OVERLAND PARK, Kan. - Will Epperly, from Dunlap, Iowa, was named the 2022 World Livestock Auctioneer Champion at the 58th annual competition held at Shipshewana Auction & Trading Place, Shipshewana, Ind., and presented by the Livestock Marketing Association (LMA).
September 28, 2022
LMA Hosts 2022 Washington D.C. Fly In
Livestock Marketing Association (LMA) members and staff traveled to Washington D.C. September 18-20, 2022, for the LMA D.C. Fly In. This was the first LMA D.C. Fly In hosted by the association since spring of 2020. Over the course of two days, approximately 50 LMA members and staff met with Senators, U.S. Representatives, Congressional staff people, and U.S. Department of Agriculture (USDA) officials.