There’s no announcement posted on the Iowa State Fair’s website yet, but fair officials will force vendors to go cash-free starting this year.

Fair patrons will need to buy tickets that can then be redeemed for purchases at the fair.

The tickets will be sold in 50-cent increments at more than 150 booths throughout the fairgrounds. The tickets don’t expire so if you don’t use them all this year you can save them for next year.

Fair officials say they’ve been considering the change for years.

They say it will reduce robbery of fairgoers and employee theft and create a universal payment method across the fairgrounds.

The fair’s official Facebook post about the policy change is after the jump.

I suspect this move is the Iowa State Fair’s way of preventing vendors from holding back some of their sales (thereby avoiding sales tax on a portion of their revenue). It will be a monumental hassle for fairgoers, who will need to guess at the beginning of the day how much money they will spend and either wait in additional lines or end up with extra tickets if they guessed wrong.

I expect the system will work against vendors not located near one of the sites where tickets are sold. You’re much less likely to buy food or anything else on impulse if doing so requires you to walk to a ticket booth, wait, then make your way through crowds back to the vendor. The system may work in favor of vendors located near the fairground exits, because it creates incentive to use up extra tickets before heading home.

UPDATE: The Iowa State Fair board of directors may backpedal.

The Iowa State Fair’s board of directors will “consider” the governor’s suggestion that they “listen to fairgoers” before switching to a cashless system for food and drink purchases during the 2014 Iowa State Fair.

The board issued a written statement late Wednesday afternoon following an onslaught of negative reaction and the governor’s caution about making such a “big change” to use 50-cent tickets as currency on the fairgrounds.  The Board said it has “been moved by the passion of fairgoers.”

Iowa State Fair’s Facebook note, January 7:

A New Cashless System at the Fair

January 7, 2014 at 5:32pm

While details are still being finalized for a groundswide cashless system at the 2014 Fair, we would like to reassure our Fairgoers that we are working toward a more efficient purchasing experience.

As the Iowa State Fair serves as a summer highlight and annual tradition for many Fairgoing families, it is understandable that changes and improvements may cause Fairgoers some apprehension.

A groundswide cashless system will enable Fairgoers to purchase tickets in advance through the Fair website and during the Fair at over 150 locations throughout the grounds.

The tickets will be valid for food, beverage and attraction purchases groundswide and will be accepted everywhere except the Midway. As an added convenience for Fairgoers, the tickets will have no expiration date. Any unused tickets may be saved and used for Fair purchases the following year.

We appreciate the feedback from our Fairgoers and will post more details as they become available.