linda best
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Challenges and Opportunities
diminish in number, if we continue to rely on the global food system to sustain us and if that system failsthen the dire situation of our farmers today will become
Or we can take steps now to re-‐create a local, sustainable, healthy food system that gives our farmers the livelihood they deserve, and provides reliable, healthy food to our families
Opportunities and Challenges in Atlantic Agriculture: Silver Donald Cameron , Chris Benjamin. Jennifer Scott Consulting, August 30, 2010.
Challenges
Challenges
Over 50 years production of food in NS has decreased from approximately 60% sufficiency to about 15% (8% supply managed, 5% crops, 2% livestock) and exports have declined
Farms have decreased from 12,518 to 3,905 Farm population decreased from 58,000 to 8,000 Loss of communities, food security, economy Strategies are needed to help reverse the trend
Decline in Rural NS Population
Challenges
http://www.statcan.gc.ca/pub/95-‐632-‐x/2007000/t/4185570-‐eng.htm#12
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
1921 1931 1941 1951 1961 1971 1981 1991 2001 2006 2011
Farms in Nova Scotia
0
50000
100000
150000
200000
250000
300000
1921 1931 1941 1951 1961 1971 1981 1991 2001 2006 2011
Land in Crops in Nova Scotia
In 1961 about 12,518 farms In 1999 about 4,200 In 2006 about 3,795 In 2011 there were 3,905 Can we help ensure that the turn around will continue? 1.6 million ha, or 21% of the
is suitable
population could be fed by the production from just 490,444 ha of farmland less than half our physical capacity. (GPI J Scott)
Challenges -‐ Opportunities
http://www.statcan.gc.ca/pub/95-‐632-‐x/2007000/t/4185570-‐eng.htm#12
http://www.gov.ns.ca/agri/AO0102-‐2010-‐NS-‐Ag-‐Overview-‐w-‐Appendices.pdf
Agriculture -‐ NS economy NS Population 942,000 3,905 farms occupying 420,000 acres Sales in 2011 of $591 million, 1.8 % of GDP
NSFA FACT SHEET
Challenges -‐ Opportunities
Opportunities
Production was a cornerstone of rural NS and can be again new strategies are needed
Availability of healthy food is becoming crucial in light of global issues
Production and multiplier effects create social and economic gains
Helps keep rural landscapes and communities vibrant, preserves local culture and history, attracts tourists and enhances quality of life
Community Economic Development Investment Fund (CEDIF)
In 1998 NS established the CEDIF program to encourage residents to invest in NS businesses
Through the sale of shares a pool of capital is formed to operate or invest in profit-‐oriented local businesses
CEDIF cannot be charitable, non-‐taxable, or not-‐for-‐profit Must have at least six directors elected from the defined community
Raising capital from community through public offering requires Department of Finance Equity Tax Credit Certificate and Securities Commission approval.
Currently, less than 2% of NS investment capital (RRSPs, mutual funds, stocks) remains in the province.
CEDIF program matches local investors with local business helps local businesses access capital -‐ enables them to start or stay in communities providing jobs and services CEDIFs that provide consistent returns on investment have helped change attitudes toward investing locally
Program has grown to support more than 60 projects. Almost 7,500 Nova Scotians have invested more than $56 million in small-‐ to medium-‐sized local companies, fuelling economic growth throughout the province.
Community Economic Development Investment Funds
35% non-‐refundable NS tax credit with minimum five year investment
Additional 20% for 10 year hold, and 10% for 15 year hold
RRSP eligible in addition to the NS Tax credit Shareholder input in investment decisions through the board of directors
Return on investments depends on performance of the business(s) in the fund
Community Economic Development Investment Funds
CEDIF May 06, 2013 NS Gov. News Release Homegrown Program Recognized Internationally
Community-‐based businesses are creating jobs and helping strengthen local economies in the province, with help from an NS program getting international attention.
World Economic Forum recognized NS Community Economic Development Investment Funds program as a successful example of fostering social innovation and entrepreneurship, and local economic development. The program was acknowledged during the forum's Social Innovation Summit in Peru recently. http://novascotia.ca/news/release/?id=20130506004
Community Economic Development Investment Funds
FarmWorks Investment Co-‐operative Limited
FarmWorks was founded in May 2011 to provide a way for citizens to invest in farms and food production
In November 2011 FarmWorks established a CEDIF with all of investment
FarmWorks provides a means for citizens to efficiently and effectively invest in sustainable agriculture and food production in the Province.
FarmWorks provides loans to multiple well-‐managed enterprises scaling up or launching agricultural and food-‐related businesses in NS.
CEDIF Promotion in 2013
FarmWorks CEDIF Promotion FarmWorks CEDIF Governance Responsibilities of Executive and Directors By-‐laws Ethics, Confidentiality, Transparency, Accountability Vision Mission Objectives including Board Sustainability Business Plan Outcome Measurements Clients and Board
Richard Melvin Chair Melvin Farms, Interim Chair NS Food Policy Council,
Past President NS Federation of Agriculture Ann Anderson Vice-Chair
Educator, Wolfville Community Foundation, Friends of Agriculture Linda Best Secretary
Microbiologist, Friends of Agriculture, NS Food Policy Council Kris Keddy Treasurer
Financial Consultant, Investors Group, Ag. Production Management
Stephen Anderson Director Partner, Food Economy Group
Alison Scott Butler Director
Alicia Lake Director
Patricia Vanaman Independent Director Tri County Local Food Network, Community University Research
Robert MacEachern Independent Director Common Roots Garden, Sociologist, Policy Analyst
Gordon Caldwell Partner, Grant Thornton Accounting
Gordon Michael Continuing Education SMU, Food Alliance,
Former Executive Director FMIC CEDIF Jeff Moore
Former CEO Just Us! Coffee, Chair Just Us! CEDIF Thomas Krausse
Dandelion Community Investment Cooperative Limited
Gary Morton Partner Morton Horticultural Consulting
Jonathan McClelland NS Co-op Council Business
Development Officer Edith Callaghan
Professor Manning School of Business, Acadia Av Singh
Organic & Rural Infrastructure Specialist, Perennia Hank Bosveld
Bosveld Fruit Farm, NS Farm Loan Board
Jo Anne Fewer CEO Perennia,
Seconded to Building Our New Economy Susan Carroll
Restaurant, Wolfville Charles Keddy
Charles Keddy Farms Rupert Jannasch
Ironwood Farm Duncan Ebata
Business Acadia, Web, Marketing Ross Piercey
Business & Quality Consultant John Aylward
Venture Solutions CB Peter Hicklenton
Crop Production Systems Research Jeremy White
Engineer, Marketing, Big Spruce
CEDIF Promotion in 2013
FarmWorks CEDIF Promotion FarmWorks CEDIF Promotion
In January and February of 2012 FarmWorks held 22 public meetings across NS, and 20 meetings in 2013
In 2012 $223,500 invested by 102 shareholders
In 2013 $225,300 invested by 78 shareholders
Within 15 months $448,800 raised next Offer October We are also building awareness of the positive impact of food-‐related businesses on
the economy of NS through the Food Grows Here strategy
Investment
35% Equity Tax Credit (5 yr hold) Current Year
+20% Equity Tax Credit (10 yr hold) End year 5
+10% Equity Tax Credit (15 yr hold) End year 10
Total Equity Tax Credit After 15 Years
Taxable Income
Before RRSP Deductions/ Tax Deferred
Potential Total Tax Deferrals & Credits
Preserved Capital + Tax Benefits
+ Potential 2% Dividend
$100 $35 $20 $10 $65 -‐ -‐ -‐ $65 $195
$1,000 $350 $200 $100 $650 -‐ -‐ -‐ $650 $1,950
$2,000 $700 $400 $200 $1,300 $40,000/ $1,498 $2,798 $5,398
$5,000 $1,750 $1,000 $500 $3,250 $40,000/ $1,498 $4,748 $11,248
$10,000 $3,500 $2,000 $1,000 $6,500 $80,000/ $2,996 $10,367 $22,496
NS TAX CREDIT (NS Department of Finance) RRSP Tax Deferral (Federal)
CAPITAL PRESERVATION (Diligence) FARMWORKS DIVIDENDS (Potential)
FarmWorks Investment Co-‐operative Limited
FarmWorks lends to multiple enterprises that have the potential for minimum 10% increase in production and profitability
Mentors, supports and helps facilitate farm and food-‐related innovation and diversification in partnership with government and other organizations
Promotes investing locally and buying local food for health, economic, social, environmental and other benefits that result from growing and processing food in Nova Scotia
Process for Applicants Preliminary Application
no fees confidentiality agreement
Business Plan and three years financial projections Reviewers Evaluation
consultations with Applicant Board Decision Disbursement
unsecured debt flexible terms no early repayment penalty
Ongoing mentoring Annual Financial Statements
Reviewer Evaluations
Section Total Character Rank 1 to 20 Commitment Rank 1 to 20 Management Rank 1 to 25 Business Plan Markets Rank 1 to 25 Business Plan Materials/Methods Rank 1 to 25 Business Plan Financials Rank 1 to 25 Viability Rank 1 to 60 Total 1 200
Less than 130 do not proceed, 130 160 reapply, greater than 160 proceed
Outcome Measures
Businesses # meeting and exceeding 10% increase in production # meeting and exceeding 10% increase in profitability # of mentoring interactions and type # of enterprises repaying loans
Board # of interactions with businesses # of interactions with investors # of public meetings and communications # of Farmworks.ca website and social media interactions
Outcome Measures
Businesses 2012 Shareholder investment $223,500 12 Loans $217,000 2013 Shareholder Investment $225,300 4 Loans to date $72,000 Under consideration $120,000 Ongoing contact and mentoring Loans at 6% for 5 years are being repaid and principal and interest are available for reinvestment
FarmWorks Investments
Outcome Measures
Board
sessions, AGM, multiple Directors meetings, approximately 30 hours per applicant, participated in 12 food-‐related events, many hours on FarmWorks.ca, Facebook, Tweets
-‐related events, media
Friends of Agriculture Society has been established to cover educational costs in support of FarmWorks
FarmWorks Model Is Transferable to Other Communities
CEDIF program helps communities create tangible results from local efforts as they take charge of their own initiatives by making local investment decisions.
The Community Economic Development Business (CEBD) program has been created as part of the Prince Edward Island Rural Action Plan to support local investment. Their first CEBD is modeled on FarmWorks.
Manitoba's Community Enterprise Development Tax Credit is five years old and $1.9 million has been invested in 12 community enterprises
