The pandemic kicked the Iowa State Fair in the financial pants.

• Last year's canceled event led to a more than $12 million loss, according to an unaudited financial report obtained by Axios.

Why it matters: The future of the fair — Iowa's largest annual event — hinges on what happens this year, ISF CEO Gary Slater told us.

• And a wave of worry mounts as new variants of COVID-19 evolve and cases rise again.

Catch up quick: 2020 marked the first time the state fair was canceled since 1945.

• Public health concerns drove the decision, but finances were also a factor. A socially distanced fair would've lost about the same amount of money, fair officials determined prior to last year's announcement.

By the numbers: Expenses dropped 54%, from around $33.2M to $15.4M, last year as compared to 2019. But that couldn't offset the steep loss in revenue, $34.5M to $3.2M, according to fair officials.

🔽 The biggest hits:

• Concessions: -$10.4M ($11.2M to $752K)
• Admissions: -$8.2M ($8.4M to $192.9K)
• Grandstand: -$7.5M ($7.5M to $0)

What else: Layoffs were avoided last year through penny-pinching acts, including voluntary furloughs, but that could change if this year's event falls flat, Slater told Jason.

• And it's not just coronavirus that's a threat. Attendance is greatly influenced by weather, Slater said.

Of note: Under Iowa law, no tax money is used to pay for fair operations.

The bottom line: Typically about 90% of the fair's annual income comes in August. If this year's event doesn't go well, we could see changes in its future.

COVID-19 mitigation efforts will cost the Iowa State Fair between $300K and $400K this year, fair officials told us.

Quick take: Janitorial services account for much of the extra expense. Bathrooms and high-contact areas will be cleaned more frequently than in previous fairs.

• At least 100 hand sanitizer stations are set up this year. There were 40 in 2019.

What to watch: No masks are required and there are no capacity limits this year, but Iowa's fair neighbors to the north are reconsidering such measures.

• The Minnesota State Fair — which last year canceled its event before Iowa did — announced this week that an indoor mask mandate now appears likely.
• Yes, but: Our fair officials encourage folks to wear masks inside.

Fun fact: The fair used 560 gallons of hand soap and 60 gallons of hand sanitizer in 2019.

• It'll be a lot higher this year, fair spokesperson Mindy Williamson predicts. (We'll give you an update after the fair.)

Gov. Kim Reynolds yesterday announced this T-shirt campaign fundraiser.

Between the lines: Iowa Democrats and local officials say they're concerned about the spread of the Delta variant when the fair returns next week.

• But Reynolds' shirt points out — she's here for the fair to stay.

💬 Our thought bubble: Someone should have ironed that puppy.

🔮 Plan your future with the daily program and special events directories.

👮 Metal detectors are newly installed at each of the entrances, but Commander Randy Jones said they shouldn't hold up lines.

💉 COVID-19 vaccinations are available daily from 10am-6pm at Hy-Vee's pharmacy, Booth #40050 between the Grand Avenue gate and the Elwell Family Food Center. Free. No appointment needed.

🐍 Rattlesnake sausage?! We dare you to try all 63 new foods.

🐐 Goat yoga is expanding to include llamas and bunnies. Find the dates they're happening, here.

💵 Vendors are required to offer credit card options, starting this year.

Food and drink demand is expected to soar at the fair this year, but ingredients, supplies and staff are all in short supply.

Why it matters: You'll likely have to pay $1-2 more for your favorite foods, as rising costs are passed to consumers.

• And don't expect all your favorite menu items to be there. We've heard it's hard to find everything from pickle spears to Corona.

For example: Cooking oil, a fried food staple, was difficult to track down, said Jada Smith, owner of Jada Concessions.

• When she found it, the bulk cost more than doubled from the last fair — from $25 to $58 per container.
• "It's outrageous, and then the customers are mad at us because we have to raise our prices," Smith said.

Plus: Vendors were required to share their menus and lock-in prices earlier this summer. But they say prices fluctuate every week.

• Bryan Etchen, owner of Iowa Orchard, said he had to ask fair officials last week if he could raise his prices or risk not attending. (They obliged, he said.)
• Less than 20% of vendors have approached the fair asking to change their prices this year, according to officials.

The big picture: With SBA loans to pay back and pricier expenses, this year will be about staying afloat, said Helen Little of Campbell's Concessions.

• "Crazy is the only word I can come up with because it's almost like we just can't get our head around it yet," Little said.

Organizers say there are also worker shortages abound — ranging from parking attendants to bartenders to corn dog cooks.

Why it matters: You'll likely have to wait a little longer in lines, especially if attendance reaches 2019's record-breaking levels.

The intrigue: A unique challenge for our 11-day fair is the limited availability of teens and young adult workers, who typically make up the majority of those working the grounds.

Employment for teens ages 15-19 increased by two percentage points when comparing 2019 to 2021. That's likely because it's easier to get an entry-level job at a decent wage today, said Iowa State University economist John Winters.

• What that means for the fair: It's a great time to be a teen looking for work, but that also spells more competition for employers.

Meanwhile, employment for young adults ages 20-24 decreased by six percentage points from 2019-21.

• They may have qualified for unemployment benefits and stimulus checks, giving them more of a financial cushion, especially if they moved back home, Winters said.
• What that means for the fair: There isn't an urgency to rush back to the workforce, especially for temporary labor, Winters said.

The bottom line: About 1,600 fair workers are standard (not including vendors).

• Hiring, which typically would've wrapped up at this point, continues this year, ISF spokesperson Mindy Williamson told us yesterday.

You can find job descriptions and applications, here.

👋 Linh here. For the longest time, I always thought our Barksdale buckets of cookies seemed similar to those Sweet Martha's cookies Minnesotans obsess over.

• Except ours were better and cheaper.

Turns out: We may have found some inspiration from their cookie process.

The backstory: As Iowa State Fair's CEO shares it...

• In the early 90s, Joe Barksdale, aka Iowa's cookie godfather, wanted to start selling the warm, chocolatey dessert at the fair using his grandmother's recipe.
• To become more efficient in his process, he traveled to Minnesota and spent a fair there learning from Sweet Martha's Cookie Jar about how to produce mass quantities of cookies.

So for our neighbors up north: "They were probably first, although I wouldn't want to admit that," Slater said.

Taste it yourself: This is the first fair where we'll see the new 5,000-square-foot Barksdale's State Fair Cookie Building off the main concourse.