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