"Premium" is referring to the payout and sounds better than placing, it does not mean that this is a premium exhibit, nor is it used to boost the moral of the contestants.. The number of premiums depends on the size of the class. Highest placing pays the best premium.
It looks like MN State Fair pays top 7 premiums in classes with 1-10 entries per their entry book; thus premiums for the top 5 (hard to place 6 & 7 if there are no entries.)
How about you watch some of the livestock shows, they will usually place all of the animals in the class and only award ribbons and premiums based on the rule book. I enjoy seeing the judges preference order.
FWIW those appear to be open class entries, FFA and 4-H have their emblems on the ribbons. At the MN State Fair, Open Class and FFA classes award placing premiums (1st, 2nd, 3rd, etc) and 4-H awards quality premiums (Purple, Blue, Red, White). Premium payout is dependent on show (Open, FFA, 4-H), ribbon awarded, and class (different premiums for livestock, crops, etc).
I know guys that size their beans, wheat, corn, for crops competition to ensure a "uniform specimen" for open class crops; this is a competition and is taken seriously by the contestants. I would expect the best sample to get more money than the second best, and second best more than third best, etc and that is why the judges place them.
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