Achieving 100% Participation in Local Agriculture Systems

March 2009

USDA-Specialty Crop Research Initiative (SCRI)• First phase: “Regional Partnerships for Innovation” section

– Project Period: 2 to 3 years– Budget: Federal funds in the range of $1 million to $2 million per project– Purpose: To form broad-based partnerships (universities, local governments, financial

stakeholders, end-user industries, manufacturers, community organizations, etc.) that provide the local or regional infrastructure needed to fully exploit future technology commercialization and adoption

– Description: “…there often remains a gap in organizational and networking resources resulting in a lack of “support networks” that encourage regional economic development.”

• Only one awarded: $1.1M in matching funds = $2.2 M• Started with the Ohio Local Food Systems Collaborative (OLFSC)

which evolved into http://localfoodsystems.org • Our goal is widespread participation through multiple projects

in three states: OH, PA, and MI• We are leveraging the network by engaging as many other

players as possible: IL, Mid-Atlantic, MN, IA…

USDA SCRI ProjectSocial Network Facilitation

$2.2 million including match

Local & Regional Economy

Regional Networks & Leaders

ResearchEducationPilot Projects

Local Food SystemsRenewable Energy

EmploymentIncomeGross Metropolitan ProductProductivity

Business Growth & Attraction Global Economy

Ohio State Univ., Michigan State Univ., Pennsylvania Association for Sustainable Agriculture, John

Deere, Ohio Dept. of Agriculture…

Distributed Manufacturing

What Constitutes “Local”?

• The least distance agricultural output travels between the point of production and the point of consumption

• Mileage is a useful construct to compare alternative delivery pathways: local, regional, global

• Meet local needs as much as possible, first, then export surplus

Economic Growth Projections: 2008-2025

1x

2025202020152010

2x

1x

“Opportunity Space”for Regional and Local

Economies

2x

Global

Regional

Local

The Power of Business to Deliver

Variety, Quality, and Price

The Power of the Individual to Act Responsibly

toward Self, Community, and Consequences

The Size of the “Local Ag” Pot Is PromptingPlayers to Get in the Game

1x

2025202020152010

2x

1x

What would be the impact on

Regional and LocalEconomies if half

of the money spent per day per person for food was purchased

from local / regional sources?

2x

Global

Regional

Local

$10 / person / day is spent for food in the U.S.15% or $1.50 is spent for local / regional food

75% spent on globally-sourced food ($6.40) leaves the community / region and is not reinvested there

Why Would the Global Economy Allow This?

• To grow, the global economy needs a steady flow of creativity and innovation which requires investment and freedom for participants to envision, consider alternatives, learn from experience, and adapt to changing conditions

• People who are thirsty, hungry, sick, and without shelter aren’t creative or innovative, they are dying and desperate and have nothing to lose—and nothing to contribute

• Left unchecked, the global economy renders people dependent on others to provide life’s essentials through agriculture—and vulnerable to the second point

• Investment by the global economy to support local and regional economies assures a sustainable platform upon which people live, work, contribute, develop, and enjoy—and the first point!

Characteristics of a Global Food System

Retail

Processing

Pro

du

cers

Preparation

Packaging

Co

nsu

mers

Huband

Spoke

Characteristics of a Local Food System

• Fresh / Ripe / Ready-to-Eat• Tasty / Looks Appealing• Healthy / Nutritious• Organic / Chemical Free• Short Travel Distances /

Reduced Carbon Footprint• Traceability / Food Safety• Efficient Conversion• Effective in Local Market• Easy to Find and Buy• Convenient to Use• Comparable Value• Available Information• Local Brand / Place Value• Zero / Low Emissions• ‘Prosumer’ Orientation• Community Currencies• Builds Community /

Instills a Sense of Place

Prod

ucer

s Consumers

Packaging Retail

Processing Preparation

100 Miles

10Miles

10Miles

What Is “Agriculture”?

• Food• Feed• Fuel• Fiber• Forestry• Floriculture• “Farmaceuticals”

What Are “Systems”?

• Complete Value Chain– Production– Processing– Preparation– Retail– Consumption

• Critical Inputs– Land & Water– Information– Skilled Labor– Equipment Systems– Finance– Insurance

• Spiral-Out Sourcing– Aggregation / Consolidation– Logistics / Distribution– Packaging / Traceability– Inspection / Regulation

• Horizontal Integration– Community-centric– Leveraged business plans– Widespread participation

Just-in-TimeInventory

Asset Utilization

ProductionControl

Conquering the “Last Mile” of Local Food Systems• An Air Car You Could See i

n 2009: ZPM’s 106 MPG Compressed-Air Hybrid

• Driven: Shai Agassi's Audacious Plan to Put Electric Cars on the Road

• Factory-in-a-Box

• Cheese on Wheels

• Have Knife, Will Travel: A Slaughterhouse on Wheels

• Mobile Berry and Vegetable Quick Freeze Unit Now Available for Producers

• Totally Mobile Kitchen

• Mobile Processing Unit

Prod

ucer

s

Consumers

Packaging Retail

Processing Preparation

What is “100% Participation”?

In a given community, every person…• Makes conscious, informed decisions to buy

agriculture products from local sources, or not• Advances local agriculture as a way to reclaim

responsibility and accountability for health, community well-being, economic stability, and ecological sustainability

• Provides resources for local agriculture to be acculturated and embedded within the community

Hold OfficeHold Office In-StoreIn-Store

100% Participation in Local Agriculture Systems

PurchasingPreferences

PersonalMotivation

CommunityEngagement

PoliticalInvolvement

Search & Lurk

Join & PostJoin & Post

Convene & LeadConvene & Lead

HealthHealth

LifestyleLifestyle

AspirationsAspirations

Vote & LobbyVote & Lobby

Public ServicePublic Service

Farmers MarketFarmers Market

Direct, e.g., CSAsDirect, e.g., CSAs

VolunteerVolunteerInvestInvest

Own & OperateOwn & Operate

StatusQuo

Value ChainContributions

Level of Participation

1

2

3

Accountability of AgricultureTriple Bottom Line: Natural / Business / Social Ecosystems

Agriculture Is the Integrative Agent for a Local Community / Trust and Verify

Efficiency Improvement and Waste Reduction within a Local Agriculture System Value Chain

Production Processing Preparation Retail Consumption

MarketMakerFood Alliance

Buy Fresh / Buy LocalLocal Harvest

Zero Emissions Systems“Factory in a Field”

Carbon Footprint Management

Decision Support SystemsAutonomous Equipment Systems

Modular Equipment SystemsGantry Equipment SystemsRobotic Sensing Programs

“Farm of the Future”

Open CommunicationsActive Collaboration

Collective LeadershipCommunity Responsibility

Social NetworkingLeveraged Resources

Is There a Play for You?

Value Chain

USDA-SCRI: CAP-UIUC(Coordinated Agricultural Projects)

USDA-SCRI: RPI-PA(Regional Partnerships for Innovation)U

SDA-SCRI: RPI-O

H(R

egio

nal P

artnersh

ips fo

r Inn

ovatio

n)

Logistics and Operations OptimizationInventory / Scheduling / Containerization / Transportation

Traceability / Ant Path / Traveling Salesman / Spiral / Corridors – Bus Stops

Portfolio Diversification and Expansion GIS Data Layers / Scenarios for Urban – Periurban – Rural Applications

Agricultural Business Growth / Leveraged Human Competence

Virtual Buy / Sell Transactions within a Complex MarketMulti-Agent Systems / Trading Bots / Avatars

Internet Access / Mobile Phone Connectivity

USDA-SCRI: CAP-UIUC(Coordinated Agricultural Projects)

Accountability of AgricultureTriple Bottom Line: Natural / Business / Social Ecosystems

Agriculture Is the Integrative Agent for a Local Community / Trust and Verify

Efficiency Improvement and Waste Reduction within a Local Agriculture System Value Chain

Production Processing Preparation Retail Consumption

MarketMakerFood Alliance

Buy Fresh / Buy LocalLocal Harvest

Zero Emissions Systems“Factory in a Field”

Carbon Footprint Management

Decision Support SystemsAutonomous Equipment Systems

Modular Equipment SystemsGantry Equipment SystemsRobotic Sensing Programs

“Farm of the Future”

Open CommunicationsActive Collaboration

Collective LeadershipCommunity Responsibility

Social NetworkingLeveraged Resources

Is There a Play for You?

Value Chain

USDA-SCRI: CAP-UIUC(Coordinated Agricultural Projects)

USDA-SCRI: RPI-PA(Regional Partnerships for Innovation)U

SDA-SCRI: RPI-O

H(R

egio

nal P

artnersh

ips fo

r Inn

ovatio

n)

Logistics and Operations OptimizationInventory / Scheduling / Containerization / Transportation

Traceability / Ant Path / Traveling Salesman / Spiral / Corridors – Bus Stops

Portfolio Diversification and Expansion GIS Data Layers / Scenarios for Urban – Periurban – Rural Applications

Agricultural Business Growth / Leveraged Human Competence

Virtual Buy / Sell Transactions within a Complex MarketMulti-Agent Systems / Trading Bots / Avatars

Internet Access / Mobile Phone Connectivity

USDA-SCRI: CAP-UIUC(Coordinated Agricultural Projects)

Players, Views, and Stories…Actors, Roles, and Scripts…

Agents, Rules, and TransactionsProduction Processing Preparation Retail Consumption

Aggregation / Consolidation

Logistics & Distribution

Inspection & Regulation

Utilizing Land & Water

Supplying Inputs

Financing

Insuring

Players, Views, and Stories…Actors, Roles, and Scripts…

Agents, Rules, and TransactionsProduction Processing Preparation Retail Consumption

Aggregation / Consolidation

Logistics & Distribution

Inspection & Regulation

Utilizing Land & Water

Supplying Inputs

Financing

Insuring

Global

Regional

Local

C.H. Robinson

Sysco

Local Harvest

Wal-Mart

Goodness GreenessFurmano’s

Central Illinois Produce

Door-to-Door Organics

MarketMakerPeaPod

Buy Fresh Buy Local

Food Alliance Fresh Fork Market

ConAgra

Reinventing the Wheel, Overinvestment, Inefficiency, High Maintenance Costs…UNSUSTAINABLE!

Production Processing Preparation Retail Consumption

A Complex Competitive Landscape Filled with Diverse Stakeholders Who Need…

Aggregation / Consolidation

Logistics & Distribution

Inspection & Regulation

Utilizing Land & Water

Supplying Inputs

Financing

Insuring

Global

Regional

Local

C.H. Robinson

Sysco

Local Harvest

Wal-Mart

Goodness GreenessFurmano’s

Central Illinois Produce

Door-to-Door Organics

MarketMakerPeaPod

Buy Fresh Buy Local

Food Alliance Fresh Fork Market

ConAgra

Managed Accessto

Linked Databasesvia a

Common Open Source Architecture that uses

Standardized Interfaceswhich enable players to develop

Specialized Applicationsin response to their unique circumstances

Double-Edged Swords?

• Nostalgia– Local agriculture today is

NOT the way it was, now

• Cooperatives– Vertical vis-à-vis Horizontal Integration

• Economies of scale vis-a-vs economies of scope

• Making a Living from Local Agriculture– Full-time or part-time– Economic justification or social subsidization

What Does This Mean for Your Community?

• MarketMaker?

• Corridors / Bus Stops?

• Portfolio Diversification?

• Others?