local foods strengthen your local economy

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Ken Meter

Crossroads Resource Center (Minneapolis)

Local Foods Strengthen Your Local Economy

Community Food Security Coalition F2S

Portland, Oregon March 20, 2009

“Finding Food in Farm Country” Studies

plus Maui & Hawai’i

44 regions in 19 states (8 statewide)

The perspectives of the communities where commodities are produced and used...

…are often overlooked

Local Farm & Food Economies

Local foods may be our strongest path toward

economic recovery

Build: Health Wealth Connection Capacity

Vision for local food economies

Schools play a role

How can schools promote this vision?

Consumption out of balance

•  50% of U.S. public school students qualify for free / reduced lunch

•  10% of households are “food insecure”

Mural: The Food Project Source: USDA

Economic crisis brings opportunity!

•  School budgets are strapped

•  People realize we need to change

Sources: Flegal, Wellman. Mural: The Food Project

Metro Denver

Health & Wellness

Commission &

Civic Results

Data helps

you make your case

A primer on the economy

Economic roots of the crisis

A “stimulus” will not be enough

Economic crisis

We have to redirect the economy

Economic crisis

Fundamental rule: the economy draws wealth away

from our communities

Economic crisis

The Bubble Economy

Farms — 1973 – 1985

Global Trade — 1990 - 2001

Stocks — 1996 - 2001

Housing — 2001 - 2007

Derivatives — 2006 - 2008

-50

0

50

100

150

200

250

300

350

400

450 1

92

9

19

31

1

93

3

19

35

1

93

7

19

39

1

94

1

19

43

1

94

5

19

47

1

94

9

19

51

1

95

3

19

55

1

95

7

19

59

1

96

1

19

63

1

96

5

19

67

1

96

9

19

71

1

97

3

19

75

1

97

7

19

79

1

98

1

19

83

1

98

5

19

87

1

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19

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1

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3

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1

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7

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2

00

1

20

03

2

00

5

20

07

2

00

9

U.S. Farm Cash Receipts and Production Expenses 1929 – 2009 (est) in billions ($2008)

Cash Receipts

Prod Exp

Farm Production Balance

Household debt in U.S., 1974 - 2005

$(200)

$-

$200

$400

$600

$800

$1,000

$1,200

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

billio

ns (

20

05

do

llars

) Home mortgage debt

Consumer debt

BEA

Net change in assets for consumers in Western states, 1984 - 2006

$(30,000)

$(20,000)

$(10,000)

$-

$10,000

$20,000

$30,000

$40,000

$50,000

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

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96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

Change in Total Assets

Change in Total Liabilities

Change in Net Assets

BEA

Issues in housing development

30% of ALL loans made in U.S. metro areas were

subprime (2006)

Source: Wall Street Journal, October 11, 2007

Value Chain

Producer Processor

Food Service

Distributor Retailer Consumer

Farmers' share of retail prices paid by consumers, 1950-2004

0

100

200

300

400

500

600

700

800

900

marketing bill farm value

41% 20%

Source ERS; chart by Ken Meter, 2007

$ b

illi

ons

(2004)

Value Network

Producer

Processor

Food Service

Distributor

Retailer

Consumer:

“Coproducer”

Educator

Policy Council

Non Profits

Corn sweeteners consumed in U.S., 1966 - 2002

0

10

20

30

40

50

60

70

HFCSGlucoseDextrose

Source: USDA/ERS — chart by Ken Meter, 2006

Corn sweeteners consumed in U.S.,

1966-2002

U.S. Youth Who are Overweight Percent by Age

13%

10.7%

4.1%

14.0%

10.7%

4.6%

0

2

4

6

8

10

12

14

16

1963-70 1971-74 1976-80 1988-94 1999

Percent

Ages 6-11 Ages 12-17>95th percentile for BMI by age and sex, based on NHANES I reference data Source: Troiano RP, Flegal KM. Pediatrics 1998;101(3):497-504. NHANES 1999, National Center for Health Statistics. Chart by Melinda Hemmelgarn

Energy is a major cost

•  The average food item in the U.S. travels 1,500 miles from farmer to consumer Source: Aldo Leopold Center

Energy in the Food System

Source: BLS; Department of Energy (estimates based on 1976 studies)

The Bubble Economy

Yet local action, and public policy, can create

the change

Hood River, Oregon

Gorge Grown region

Source: GGFN growers

Orchards export to:

•  Mexico

•  Columbia

•  India

•  Russia

Source: BEA

Farm Production Balance in Gorge Grown region, 1969-2006

-0.15

-0.10

-0.05

0.00

0.05

0.10

0.15

0.20

0.25

0.301

96

9

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

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19

95

19

97

19

99

20

01

20

03

20

05

$ b

illi

on

s (c

urr

en

t)

Cash Receipts

Production expenses

Balance

Farm Production Balance in Gorge Grown region, 1969-2006

-0.2

-0.1

0.0

0.1

0.2

0.3

0.4

0.51

96

9

19

71

19

73

19

75

19

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19

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19

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19

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19

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19

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19

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99

20

01

20

03

20

05

$ b

illi

on

s (2

00

6 d

oll

ars

)

Cash receipts

Production expenses

Balance

$600 million lost over last 30 years Source: BEA

5 positive years since 1983

Gorge Grown region

Source: BEA

Gorge Grown region

56% of region’s farms reported

net losses in 2002

Source: Ag Census

Potential wealth lost each year

All told, Gorge Grown region...

•  Loses $20 million raising crops

•  Buys $90 million of outside inputs

•  Buys $200 million of outside food

•  $310 million each year!

•  more than the value of all products produced in the region

•  more than the value of all food consumed in the region

Total loss to Hood River region is:

What are people doing about this?

Direct Food Sales

Local Food Expenditures by the participating institutions in the

Black Hawk County Area, Iowa 1997-2007

Northern Iowa Food & Farm Partnership

Year1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Local Food Expenditures

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Num

ber of Institutions

0

5

10

15

20

25

Local Food Expenditures Number of Institutions

Photo by Arion Thiboumery

Rudy’s Tacos — Waterloo, Iowa

71% local food!

Jobs, Fruit & Veggies, and Black Hawk County region

If Black Hawk region residents purchased locally grown fruits and vegetables just 3 months out of the year:

•  475 new jobs •  $6.3 million in labor income added to local economy

David Swenson, ISU Economist

Organic Sales

Organic Valley

Organic Valley Sales, 1988 - 2007

-

100

200

300

400

500

6001

98

8

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

$ m

illio

ns

Source: Organic Valley

$ m

illio

ns

Will Allen, Growing Power, Milwaukee

Growing Power, Milwaukee

Innovative farm operations

Winter CSA Milan, Minnesota

Fresh fresh organic greens November to April

Sells only within 30 miles

Winter CSA — Milan, Minnesota

Winter CSA — Milan, Minnesota

Local and state governments spend $50 billion each year

promoting economic development

Public sector can help

Stimulus package has money for schools, health

infrastructure, job training, and more!

Public sector can help

Source: National Association of City and County Health Officials NACCHO)

Wisconsin asks that stimulus money be used to upgrade

school kitchens

Public sector can help

Source: Michael Fields Institute

Appeal to officials on:

•  reducing health care costs •  increasing tax base •  creating jobs

Data helps you make your case

Schools represent a large market

Schools spend $17 billion each year on food!

Source: Ag Census

Schools represent a large market

Great Lakes Schools spend:

Illinois $350 million Indiana 200 Michigan 235 Minnesota 130 Ohio 230 Wisconsin 135

each year on food alone

for Great Lakes Farm to School Network

School spending cycles through economy

Multiplier studies:

SW Wisconsin (farms) 2.2 – 2.6 NE Iowa (local food) 1.91 Oregon (schools) 1.87 Michigan (fruits & vegs) 1.34 Iowa (mainstream) 1.3

Sources: Larry Swain, UWRF, David Swenson, ISU, Kaiser Permanente/Ecotrust, Hamm et al, MSU, Swenson, ISU

Resources

www.crcworks.org/econ.html

(612) 869-8664

kmeter@crcworks.org

www.crcworks.org/crcdocs/lfcedwd.pdf

www.crcworks.org/cfscced.html http://www.crcworks.org/crcdocs/MDHWC2008.pdf

“Finding Food in Farm Country”

www.crcworks.org/econ.html

(612) 869-8664

kmeter@crcworks.org

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