why local foods make good economic development sense creating our own vision for the future food,...

Why Local Foods Make Good Economic Development Sense

Creating “Our Own” Vision for the Future

Food, Farm, & Jobs Act Task Force

Springfield, Ilinois

June 4, 2008

Rob MarquseeDirector, Rural Economic

Development712.279.6609

rob@marqusee.comwww.woodburyorganics.com

STATUS OF RURAL COMMUNITIES

Woodbury County Population Breakdown

Loss In Population: Unincorporated Areas: 11.2%/Rural Cities: 9.7%

1970-2000 However: 20%+ Decline Outside of CorridorForecast: Accelerated Decline After 2000

(DM Reg)

Woodbury County Ag - Rural Statistics

Sales of Livestock & Livestock Products1969: $358M vs. 2003: $80M78 percent decline over 35 years

Sales of Crops & Livestock1998-2003: $145M loss from crops & livestock

Farms & Average Farm Sizes (Farms/Acreage)1975: 1,930/268 vs. 2004: 1,140/387

78% Increase in Number of Farms 1000 Acres+

Woodbury County Losses & SubsidiesAnnual Loss: $24M Annual Subsidy: $23M

Difference of $1M Made Up By Additional Jobs(Statistics Provided By: Ken, Meter, Crossroads Resource Center, 2005 & U.S. Census)

Statistical Impact of Policies

Iowa Ag Stats & Forecast

Iowa Ag Statistics50%+ Of Farmland To Transfer in 10 Yrs25% Farmland Belong to Those >75 Age

Average Farmer Age 55+ (Woodbury: 60+)Iowa Forecast

Fewer Owners of LandFaster Decline in Rural Population

Less Income in Rural AreasMore Strain on Environment

(Des Moines Register: July 17 & July 24, 2005)

Non-Localized Food System

Money Flowing Out of Local Area

Federal Government

Farmers

Non-LocalCorporate Ag Processing

Consumers

Money Flows From Federal Government to Farmers to Grow CropsAt A Loss (Cost of Production > Price Paid)

Ag Interests Buys At Low Price = Makes Lion’s Share of Profit on Food ProductsIn Effect: Federal Government Provides Indirect Subsidy of Large Corporate Ag

Interests

Non-Local“Inputs” Manufacturers

$

$

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

0

100

200

300

400

500

600

700

800

900

marketing bill farm value

CurrentEconomic Development Strategies

Economic Development Programs Are Based On:

Priority: Urban Projects (i.e., Industrial, Commercial, Residential)

Priority: Wage/Benefits CriteriaPriority: $ Incentives-Outside Prospects

Priority: Rural Programs Subject To Grant Writing ProcessSmall Farm Production Not A Business/Object of Business

RetentionFocus: Transforming Rural Communities Into Another Purpose

Programs Do Not Address Causes For Rural Decline

Examples of Current Economic Development Strategies

Billions of Taxpayer Dollars (“…without a peep”)•Biodiesel Project: IDED Gives $535K to Major Corp: 4-9 Jobs

•Ethanol Supports: Five Subsidies ($4M): Sioux City Example

•Regulations Favor Large Processing Houses/Seed Patents

•Ethanol: 70¢ / per Gallon : $70M on 100M Gal. Facility (Mostly Non-Local)

•Farm Subsidies: $275B / 10 yrs Average

With Stated Impact on Local Economies•Primary Beneficiary: Non-Local Owners/Processing

•Environment is Severely Compromised: Water/Top Soil

•Less “Local” Control

•National Health/Obesity Crises

“No official tally of business subsidies exists, but in separate studies Peter S. Fisher of the University of Iowa and Kenneth F. Thomas of the University of Missouri estimated that state and local subsidies aimed at creating jobs total about $50 billion annually.

More subtle subsidies … are not counted in those figures and may be even larger.”

Assisting the Good Life 6/15/07

A Better Economic Development Option

Localized Approach: We Are In Control!Address Market Forces (Which Caused Decline)

Localize Economy As Much As Possible: Integration

Diversify Production & Processing

Business Retention: Small Farms = Business

Troll For Outside Business Relocation (Least Efficient)|

Creating a Local Economic Development ContextBenefits to Local Economy of Local Food System:

Primary Beneficiaries: Existing Local Producers

Supporting Local Talent & Community Building

Low Cost Compared to Current Economic Development Strategies

Low Volume/High Margin Economic Development Strategy

Localized Development

Example:Organics

ConversionPolicy

Woodbury County Approach

Policies & Programs

Woodbury Policies

Organics Conversion Policy: 6.28.05100% Tax Rebate on Ag Land Converted to Organic

Sustainability, Environmental, Diversification

Smaller Farms, More Labor, Higher Income

Woodbury Health Initiative: 8.2.05 (Sen. Harkin)Local Foods/Mobile Farmers Market Rural County

School Wellness Food Programs & Attack Obesity

Local Food Purchase Policy: 1.10.06Mandatory Purchase of Locally Grown Organic

Supports Local Farmer, Local Broker & Markets

Woodbury’s Tax Rebate Program

“Addressing The Cause of Decline”

Woodbury’s Tax Rebate Policy Details

• 100% Real Property Tax Rebate - 5 Years• Application Process• Land Owner Must Reside in County• County: $50K p/yr Total Potential Investment• Certification Required After Third Year• Refund Penalty: If Fails to Comply With

Program• Source of Funds: Option Sales Tax/Gen.

Funds

Woodbury’s Tax Rebate PolicySale to County

• Zero Up Front Cost to County

• Size of Potential Food Market in Area

• Increase Number of Farmers

• County Markets Local Products (Brand)

• Marketing of County

Anatomy of Woodbury Tax Rebate Policy

• Analyze the Causes of Local Decline• Inventory Citizen Resources

(Champions)• What Can Be Produced & Possible

Markets• Inventory Available Buildings/Donors• Create a Vision of the Future• Identify Obstacles/Is It Still Practical?• How Can Local Government Help

Obstacles: Woodbury Tax Rebate Policy

• Age of Farmers (60+ years old in county)

• Who is Going to Convert?• Who is Going to Farm Organically?• Education/Mentor - Support Networks• Board of Supervisors: Targeting

Organics• Unfair to Other Businesses?• How Will We Get a Return on

Investment?• Marketing of Produced Crops/Meat

Woodbury’s Local Food Purchase Policy

“Creating a Local Food System - Jump Start the Market”

Woodbury’s Mandatory Local Food Purchase Policy

• ‘Mandatory’ for County Government Facilities

• Creates Immediate ‘Market’ for Products• Creates Need for Local Foods Broker (POC)• Negotiations With Food Service

Contractor(s)• Local = 100 mile radius/beyond if no

production• Pricing & Reporting Provisions

Anatomy of Woodbury LFPP Policy

• Create First Market: Immediate $300K Market

• Lead By Example - Schools/Hospitals• Multiplier Effect to General Economy:

1.5%• Insure Policy Cost Does Not Exceed

Benefit• Instill Discipline in Broker• Opening Up Markets for Producers

Obstacles: Woodbury Tax LFPP Policy

• Practical Barrier: Working With Food Services

(general industrial food system barriers)• Learning the Food Business• “Processing & Presentation” Issues• Supply Dependability Issues• Menu Obstacles to Use More Local• Practical Barrier: Qualified People• Practical Barrier: Demand - Then Supply

Community “Buy-In”

“Partnerships”

Community Partners & Results

$40M Organic Soybean Processing FacilityLocal Community College - Organic Courses/LabWhole Foods Market of OmahaLocal Foods Broker & Market, & Ed. CenterOrganic Farmer Networks - MentoringAnnual Organic Growers Conference Organic Market: Project With Chamber, City, &

County Northwest Iowa Farm/Farmer Exchange

Local Foods Brand: “Sioux City Sue”U.S. House of Representatives TestimonySustainable Foods for Siouxland – Education

501(c)(3)Leopold Center Study Grants

The Big Hurdle

Where are the Farmers?

Fixing the Farmer ShortageRemoving the Cost Barriers

Tentative Program Benefits to New Farmers

5 to 40 Acres to Eligible New Farmers

No Principal or Interest Payment for 3 yrs

Loans at 4% Interest - 15 yr. Term

Free Buildable Lot from Community

Must Buy Home (Habitat for Humanity)

Equipment Cooperative

Programs In Action &

Accolades

Partnership Between Woodbury County, City of Sioux City, and

Siouxland Chamber of Commerce

www.woodburyorganics.com

www.woodburyorganics.com

Expanding Local Business

NACo Award Winner

New Movie Release

Testimony BeforeU.S. House of

Representatives

Organic Farming Is Economic Development!

What we are doing, as a community, is supporting our farmers and giving them a fair opportunity to serve our citizens and provide food at fair, competitive

prices and making a decent living in the process.