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Every autumn, pumpkin patches in the U.S. not only entertain visitors but significantly contribute to job creation, increased household incomes, and strategic pricing decisions. A closer analysis highlights their profound impact on the economic landscape of their local communities.
By Rohan Varma
Edited by Haanbi Kim
As the crisp and cool autumn breeze arrives, pumpkin patches all across the United States open their doors to excited visitors eager to find the perfect pumpkins. Beyond serving as sources of entertainment activities in influencing seasonal consumer preferences, these patches play a crucial role in bolstering local demand for pumpkins and, thus, profits for businesses.
The 19th-century migration of many individuals and families from rural areas to urban cities led to a disconnect from that former rustic lifestyle, causing pumpkins, with their earthly charm, to serve as a nostalgic emblem of a past way of life. As the calendar flips to mid-September and early October, the crescendo of seasonal Halloween preparation echoes across the nation. According to University of Missouri Extension Horticulturist David Trinklein, Americans expect to spend approximately $800 million on Halloween pumpkins. According to a 2021 study by the National Retail Federation, 44% of respondents plan to carve a pumpkin, and the demand for these festivities bolsters the demand for pumpkins accordingly.
The popularity of Halloween traditions, specifically carving pumpkins and creating pumpkin-specific goods, rejuvenates demand for family farms that host pumpkin patches during the fall season. This can be seen through the seasonal elasticity of demand for pumpkin-related products. A study by the Economic Research Service in the U.S. Department of Agriculture found that from 2020 to 2022, the pumpkin production value for the top five states—California, Illinois, Indiana, Michigan, and Pennsylvania—increased by over 25%. The economic activity generated by pumpkin patches allows for job creation as farmers will be able to expand their operations, leading to an increased household income for local workers in those additional jobs. The business growth results in increased profit for farmers and workers and serves as a vivid testament to the profound impact these patches wield on the local economies of states involved in their production.
Heightened economic activity in local communities is further illustrated by the demand from consumers during the autumn season. Mark Craven, founder of Craven Farms in Washington, estimates that he gets around 20,000 to 30,000 visitors each weekend, with the demand increasing during the pandemic as families desired outdoor activities during lockdown. Craven states that he had even run out of pumpkins because of consumer demand, illustrating how pumpkin patches play a role in the local economy due to the profits they generate from their seasonal demand.
Analyzing the economic pricing of pumpkin patches reveals intriguing insights as it boils down to whether it's a direct sale to consumers or wholesale. In a data study from The Hustle, the average cost of a pumpkin per pound when it is a direct sale is $0.51. Wholesale, however, it is between $0.07 to $0.10, with farmers making 10 times more selling pumpkins directly, causing farmers like Craven to get rid of the bulk economic pricing model. The labor-intensive nature of maintaining a patch, providing a pleasant visitor experience, and dealing with the seasonality of the product can make it challenging to sustain profitability through sheer volume alone. Therefore, the decision to move away from bulk economic pricing is a strategic one that acknowledges the unique characteristics of the pumpkin patch market by allowing farmers to not only maximize profits but also create a more intimate and memorable experience for customers. On average, most pumpkin patches are between two and 40 acres – yielding roughly $12,000 to $240,000 in net profit. Evidently, these patches emerge as economic powerhouses, injecting vitality into local communities and offering farmers lucrative opportunities.
Pumpkin patches are more than just seasonal attractions, they are vital commodities that galvanize communities and provide the heart of a thriving local economy. The next time you visit your local pumpkin patch, remember that you are not just embarking on a beloved autumn tradition but also contributing to the economic prosperity of your community.
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