Committed to the future of

rural communities

Dr. Glenda Humiston, State Director

California’s

Working

Landscapes Leveraging Regional Industry Clusters

and Value Chains for Growth & Jobs

Funding and Technical Assistance for:

Business & Cooperatives Development

Renewable Energy & Broadband

Community Facilities & Rural Utilities

Water, Sewer & Solid Waste Systems

Single, Multi-Family & Farmworker Housing

FY 2013: $1.2 Billion

CA Portfolio: ~ $7 Billion

Committed to the future of rural communities Rural Development

Committed to the future of rural communities Rural Development

Seven Action Teams:

Advancing Manufacturing Capital

Housing Infrastructure

Regulations Workforce

Working Landscapes

…harnessing the power of regional collaboration to spur economic innovation and growth

www.caeconomy.org

Committed to the future of rural communities Rural Development

1.2 Million Jobs in California

$318 Billion Direct Sales & Exports

272,000+ New Jobs in Five Years

http://www.caeconomy.org/resources/entry/2013-california-economic-summit-playbook

Agriculture ~ Forests ~ Fisheries ~ Mining

Watersheds ~ Energy ~ Recreation ~ Habitat

Working Landscapes

Committed to the future of rural communities Rural Development

Farmer’s share

of the food

dollar has

steadily shrunk

for decades.

Vital to harness

Farm-to-Fork

jobs & economic

opportunities for

California!

Committed to the future of rural communities Rural Development

Agriculture ~ Forests ~ Fisheries ~ Mining

Watersheds ~ Energy ~ Recreation ~ Habitat

Working Landscapes

Better data and analytical tools to improve decisions

Policy integration to reduce conflicts and confusion

Develop market-based incentives for ecosystem services

Ensure public & private investment to rural enterprises

Improve collaboration & educate all stakeholders

www.caeconomy.org/progress/entry/2013-working-landscapes-action-team

Committed to the future of rural communities Rural Development

Colleges / Universities

& Job

Training

Economic

Development

Corporations

Government

Agencies

NGOs Coop Extension

& Research Institutions

Financial

Institutions

Foundations

Prosperity People

Planet

Private

Sector

Committed to the future of rural communities Rural Development

$1 billion manufacturing decrease in rural MN leads to loss

of 1,043 jobs and $208 million in revenue in Twin Cities!

If manufacturing

rural cluster grows

6% ($1 billion), the

urban area picks

up 16% of all jobs

gained and 38% of

additional output.

Rural & Urban Areas Very Interdependent

SOURCE: “Estimating Rural and Urban Minnesota’s Interdependencies”, Kate Searls, Minnesota Rural Partners, Inc., 2011

http://mnruralpartners.files.wordpress.com/2011/02/rurb-02_11-final.pdf

Committed to the future of rural communities Rural Development

Understanding diverse “reservoirs” can bridge

gaps in the natural availability of water.

http://aginnovations.org/images/uploads/CRWFS_Storage_FINAL.pdf

Healthy watersheds in the Sierras can

produce 10 – 20% more water.

Committed to the future of rural communities Rural Development

Traditional Urban Planning: one

shade of green outside urban areas.

What does “Green” Mean??

Rural – Urban Connections:

details on rural parcels!

Facilitates regional planning,

economic development and

better use of infrastructure!

Committed to the future of rural communities Rural Development

Committed to the future of rural communities Rural Development

SOURCE: CA Center of Excellence, “Agriculture Value Chain Scan”, June 2011

Projection: Agriculture Value Chain Occupation by Sector

SECTOR 2011 JOBS 5-YEAR NEW JOBS AVG. HOURLY WAGE

Support 1,446,232 183,018 $24.59

Production 206,303 -36,364 $23.34

Processing 226,216 5,173 $23.49

Distribution 585,014 29,913 $24.04

TOTAL 2,463,765 181,740 $23.87

Committed to the future of rural communities Rural Development

Industry Clusters & Value Chains

SUPPORT PRODUCTION PROCESSING DISTRIBUTION

• Consulting

• Marketing

• Conservation

• Financial Services

• Repairs

• R&D

• Land

• Water

• Labor

• Buildings

• Seeds

• Equipment

• Aggregation

• Packaging

• Cold Storage

• Handling

• Recycling / Waste

Management

• Sales

• Logistics

• Warehousing

• Import / Export

• Containers

• Transportation

• Infrastructure

Technology Renewable Energy

Agro-Tourism & Food Goods

Movement

Manufacturing

Energy Grid

Materials

Entertainment Marketing Restaurants

Travel

Inventory Packaging Vehicles

Utilities

Air Quality

Investors Workforce

Equipment Research Data

Committed to the future of rural communities Rural Development

Improve Distribution &

Expand Opportunities

for New Players

Feenstra, Allen, Hardesty, Ohmart, and Perez, “Using Supply Chain Analysis to Assess Sustainability of Farm-to-Institution Programs.”

Food Bank / Food Hub • Similar facilities & equipment

• Complementary back-hauls

• Localized Cold Storage

Commercial

Kitchens • Value-Added

• Jobs & $$$

Food Apps • Share Info

• Save Resources

Committed to the future of rural communities Rural Development

Over 300 California Firms

Producing an Array of

Bio-Based Products

February 2012: President Obama Issued Executive Order Requiring

Federal Agencies and Contractors to Utilize Biobased Products.

Committed to the future of rural communities Rural Development

Commercial bioplastic is already

made from cellulose – replacing

petroleum-based plastics.

USDA scientists developed means

to ferment a broader range of

cellulosic materials – enabling large

scale commercial production.

An estimated $375 billion market

for chemical, plastic, and rubber

products represents a substantial

bioeconomy opportunity.

Biodegradable Plastics from Biomass

Committed to the future of rural communities Rural Development

Agriculture & Technology New Opportunities for Jobs & Economic Development

Technology Ecosystem

Needs

Identified Business

Investment

Public Policy

Support

Wireless Rural

Broadband

Innovation &

Research

Committed to the future of rural communities Rural Development

Equity capital in rural areas is

as successful as equity capital

in tech-oriented metro regions.

Patricia Scruggs et al, “The Role of Equity Capital in Rural Communities,” March 2010,

A study of 18,000 investments

found no statistical difference

between rural and metro regions

on key variables: jobs created,

type of industry, exit type, length

of investment, or performance.

Committed to the future of rural communities Rural Development

• 34 Different Ways to

Access Capital

• Recommendations on Policy and Resources

• Over 130 top experts and

activists representing financial

institutions, private businesses,

economic development

organizations and government

agencies pledged to implement!

www.rurdev.usda.gov/Reports/CA-CalFOR.pdf

Committed to the future of rural communities Rural Development

California Community Capital Collaborative

SOURCE: Employee

Benefit Research

Institute, May 2010

Data from Averaging

National Statistics

… If Residents Bring 5% of Their

Retirement Accounts Home

Facilitating Local

Investment and

Regional Economies

$43 Billion for

California Investments

Committed to the future of rural communities Rural Development

YOU Provide the Intangible Capital!

Human Capital

Experience

Competencies

Management

Skills

Workforce

Knowledge Capital

Information

Research

Processes

Intellectual

Property

Social Capital Customers

Vendors

Partners

Brands

Reputation

Phone: 530-792-5800

www.rurdev.usda.gov/ca

California Rural Development

U.S. Department of Agriculture

430 G Street, Agency 4169

Davis, CA 95616