Transcript Woodbury County Experience” Organic Farming & Purchase

Rob Marqusee
Director, Rural Economic Development
712.279.6609
[email protected]
www.woodburyorganics.com
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
STATUS OF RURAL COMMUNITIES
Woodbury County
Population Breakdown
Loss In Population:
1970-2000
Unincorporated Areas: 11.2%/Rural Cities: 9.7%
However: 20%+ Decline Outside of Corridor
Forecast: Accelerated Decline After 2000 (DM Reg)
Statistical Impact of Policies
Woodbury County Ag - Rural Statistics
Sales of Livestock & Livestock Products
1969: $358M vs.
2003: $80M
78 percent decline over 35 years
Sales of Crops & Livestock
1998-2003: $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 & Subsidies
Annual 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)
Iowa Ag Stats & Forecast
Iowa Ag Statistics
50%+ Of Farmland To Transfer in 10 Yrs
25% Farmland Belong to Those >75 Age
Average Farmer Age 55+ (Woodbury: 60+)
Iowa Forecast
Fewer Owners of Land
Faster Decline in Rural Population
Less Income in Rural Areas
More Strain on Environment
(Des Moines Register: July 17 & July 24, 2005)
Non-Localized Food System
Money Flowing Out of Local Area
Federal Government
Non-Local
Corporate Ag Processing
Consumers
$
Farmers
$
Non-Local
“Inputs” Manufacturers
Money Flows From Federal Government to Farmers to Grow Crops
At A Loss (Cost of Production > Price Paid)
Ag Interests Buys At Low Price = Makes Lion’s Share of Profit on Food Products
In Effect: Federal Government Provides Indirect Subsidy of Large Corporate Ag Interests
Current
Economic Development Strategies
Economic Development Programs Are Based On:
Priority: Urban Projects (i.e., Industrial, Commercial, Residential)
Priority: Wage/Benefits Criteria
Priority: $ Incentives-Outside Prospects
Priority: Rural Programs Subject To Grant Writing Process
Small Farm Production Not A Business/Object of Business Retention
Focus: 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
Assisting the Good
Life 6/15/07
“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.”
A Better Economic Development Option
Localized Development
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 Context
Benefits to Local Economy of Local Food System:
Example:
Organics
Conversion
Policy
Primary Beneficiaries: Existing Local Producers
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Supporting Local Talent & Community Building
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Low Cost Compared to Current Economic Development Strategies
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Low Volume/High Margin Economic Development Strategy
Woodbury County Approach
Policies & Programs
Woodbury Policies
Organics Conversion Policy: 6.28.05
100% 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: 1.10.06
Mandatory 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
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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 Policy
Sale to County
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Zero Up Front Cost to County
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Size of Potential Food Market in Area
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Increase Number of Farmers
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County Markets Local Products (Brand)
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Marketing of County
Anatomy of Woodbury
Tax Rebate Policy
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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
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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
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‘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
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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
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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 Facility
Local Community College - Organic Courses/Lab
Whole Foods Market of Omaha
Local Foods Broker & Market, & Ed. Center
Organic Farmer Networks - Mentoring
Annual 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 Testimony
Sustainable Foods for Siouxland – Education 501(c)(3)
Leopold Center Study Grants
The Big Hurdle
Where are the Farmers?
Fixing the Farmer Shortage
Removing 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 Before
U.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.