WATERLOO -- Tom Volding spotted a loaf of banana bread at the Kimball Ridge Farmers' Market last Tuesday and had to have it.

It cost $5, but he only had $4 in his wallet. The sale nearly crumbled.

Luckily for Volding, and vendor Brenda Pfautsch, the story had a delicious ending. Volding pulled out the plastic and walked away with homemade bread for supper and Pfautsch was $5 richer.

Pfautsch was one of three vendors at the market to use wireless swipe machines for the first time. Customers -- who may be a little short of cash or would rather purchase goods electronically -- can use bank debit cards, credit cards and debit-type food assistance cards to buy locally grown fruits and vegetables, along with baked goods and crafts, from participating farmers.

"See, that's a perfect example. I would have lost that sale," Pfautsch said after her first debit sale. "I think it will really help."

The Iowa Department of Human Services and the Iowa Farm Bureau teamed up to help arrange for free swipe machines statewide and cover fees for their use. The goal: Pad the pockets of Iowa farmers while improving access to fresh, locally-grown food for citizens.

Pfautsch, a Dunkerton farmer who also manages the Kimball Ridge market, believes sales will increase for machine users. Besides the growing popularity of using plastic instead of cash, low-income individuals wishing to use food assistance debit cards can shop at farmer's markets again. That ended in 2003 when the state phased out paper coupons.

"All I use is a debit card any more. I carry very little cash. It's a good deal," Volding said. The Cedar Falls resident shops at farmers' markets about once a month.

Early sales figures are promising. Last year, 10 farmers going to markets in Des Moines, Cedar Rapids and Council Bluffs participated in a swipe machine pilot program. The farmers reported incomes of 10 percent to 25 percent more than the previous year.

Considered a success, the program was expanded to 57 vendors in June and another 100 were added in July, including five serving Black Hawk County. Pfautsch spent Monday training four other vendors for Tuesday's debut. Don Beck and Rod and Dawn Lorenz have swipe machines, while Hoffman Farms and Keifer Produce are waiting for them.

The swipe machines are portable. Many of the local vendors with machines will use them at the Downtown and Crossroads farmers' markets in Waterloo, the Main Street market in Cedar Falls and other small communities.

Pfautsch said the state contacted her if anyone in the area would like to participate.

"We were wholeheartedly interested. It opens (sales) up to people that don't have cash or want to purchase other things (like crafts) that can't be purchased with WIC (Women, In fact and Children) checks," she said.

Total Merchant Services of Basalt, Colo. donated machines in return for 12-month service contracts on each one. The machines normally cost between $800 to $1,100. The Farm Bureau is picking up the commercial transaction fees, which will cost the farm organization tens of thousands of dollars, officials said.

Jan Walters, executive officer of DHS, said the agency's main goal was to help food stamp recipients have access to fresh, locally grown food. Without the program, Don Beck doesn't know if he would have spent the money to have a machine without knowing if local people would use it and it was financially worth it.

Walters said one farmer recently reported more sales in the first week of June than the entire month last year. Only two people used the machines the first day at the Kimball Ridge market, but Pfautsch thinks that will significantly improve as the word spreads.

"In the end it will benefit the farmer, too. A lot of our member are selling at markets," said Holly Coppola, Farm Bureau spokesperson. "Anytime we can help increase revenue, it's a good deal."

Contact Matthew Wilde at (319) 291-1579 or matt.wilde@wcfcourier.com.