Why not forget about things prizes that you need to spend $$ on. Why not ask a local bakery, or some type of food business allow the winner to observe or participate in their place of business for an afternoon.
A winery, farmers' market, seafood market/fishing boat, even a local farm, either dairy or grain, would be cool too.
Actually, they would be better 1st prizes than 2nd or 3rd.
At least for me.
Sorry, can't think of a good $$ 2nd or 3rd prize right now.