Transcript FM Nutrition Asst. Program - National Association of Farmers` Market

USDA’s Agricultural Marketing Service:
Debra Tropp
Branch Chief, Farmers Markets and Direct Marketing Research
USDA Agricultural Marketing Service
National Association of Farmers Market Nutrition Assistance Programs
October 2011
Presentation Overview

AMS Connection to Local Food Markets
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Evolving Market Landscape

Emerging Challenges

AMS Financial Assistance for Local Food Projects

AMS Research and Technical Assistance in Local Food
Marketing and Distribution
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Concluding Remarks and Questions
AMS Connection to Local Food
Begins with Agricultural Marketing Act of 1946
o It is the intent of Congress. . .to aid the
distribution of agricultural products through
research, market aids and services, and
regulatory activities, to the end that:
 distribution costs may be reduced
 the price spread between the producer and
consumer may be narrowed
 new and wider markets for American agricultural
products may be developed
 the full production of American farms [is] disposed
of usefully, economically, profitably, and in an
orderly manner.
AMS Connection to Local Food
Takeaways from 1946 Agricultural Marketing Act
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Reducing distribution costs and the price spread
between producers and consumers is an integral
component of AMS policy.
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AMS policy is predicated on the idea that the “full
production” of American farmers—regardless of
scale—should be marketed in a useful,
economical, profitable, and orderly manner.
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AMS is authorized to engage in cooperative
research projects with external agencies and
organizations to address marketing and
distribution concerns.
AMS Connection to Local Food
Takeaways from 1976 Farmer to Consumer Direct
Marketing Act, Title 7, Sec. 3004
Activities shall include, but shall not be limited to :
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Sponsoring conferences designed to facilitate
information sharing about the establishment and
operation of direct farm marketing
Determining feasible locations
Preparing and disseminating practical information
about direct farm marketing, and
Providing technical assistance to aid interested
individuals or groups.
Evolving Market Landscape
o
U.S. demand for locally grown food expected to
rise from an estimated $4 billion per year in 2002
to as much as $7 billion by 2012
o
Stimulated by sharp rise in direct-to-consumer
sales
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Direct sales of farm products for human consumption
tripled between 1992 and 2007 ($404 million to $1.2
billion)
Farmers markets up 4x from 1,755 in 1994 to nearly 7,200
by summer 2011
Community-supported agricultural arrangements up
from 2 in mid-80’s to more than 4,400 in fall 2011
More than 130,000 farmers involved in direct food sales
Evolving Market Landscape
Demand rising outside of household channels:
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Restaurant, retailers, institutional foodservice: all want
to capture a portion of rising consumer demand for
fresh, locally grown food
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Growing numbers of producers/producer organizations
are trying to satisfy this demand through innovative
marketing arrangements
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But challenges remain that make it difficult for local
producers, who often manage smaller-scale farms, to
take full advantage of shifting consumer preferences
Emerging Challenges
Limitation in farm income from direct to consumer markets
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Smaller farms can find themselves constrained by the limited
demand and onerous time/labor requirements of direct to
consumer marketing outlets.
Average FM vendor sales in ’05 just over 7K; no more than 15%
of vendors in Far West, Mid-Atlantic states grossed more than
25K/yr.
Restricted market channel options
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Smaller farmers who are looking to stabilize cash flow and scale
up their production by combining direct to consumer sales
(lower volume, higher unit prices) with sales to foodservice,
institutions and retail food markets (higher volume, lower per
unit prices) often have difficulty gaining access to commercial
accounts.
Lack individual capacity to meet buyer requirements for
product volume, quality, consistency, variety, or extended
availability
Emerging Challenges
Traceback mechanisms and recordkeeping
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Commercial, institutional and retail buyers are not just looking
to procure food products that are locally grown, but can be
traced back to the originating farm in the event of a foodborne
illness outbreak.
Many smaller farmers lack knowledge or capacity to establish
adequate recordkeeping or product monitoring systems
Food safety

Commercial and institutional customers are increasingly
demanding third-party certifications of production/handling
processes, a marketing requirement that many smaller farmers
have not had to address in the past
Market preparation
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Smaller producers may not find it economically viable to
pack/label/sort product in accordance with commercial buyer
standards
Emerging Challenges
Suggests additional work needs to be done to:
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Create infrastructure that supports collective
product aggregation, sorting, packaging and storage
of locally grown perishables
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Facilitate exposure to and education about
promising collective marketing models
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Help producers establish appropriate recordkeeping
and inventory control systems
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Educate producers about Good Agricultural
Practices (GAPs) and other relevant postharvest
handling protocols
How Does AMS Address Needs?
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Financial assistance through awards
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Shares vital information on farmers market
performance and operations
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Compiles and circulates farmers market trend and
growth data
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Provides training and resources about promising
collective direct marketing models
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Provides facility design assistance
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Provides guidance on appropriate recordkeeping
and inventory control systems
AMS Financial Assistance
Two Competitive Award Programs
(AMS Transportation and Marketing Programs)

 Farmers Market Promotion Program
 Federal-State Marketing Improvement Program
Specialty Crop Block Grant Program
(AMS Fruit and Vegetable Programs)
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 Administered on pro-rated basis to State Departments
of Agriculture
Farmers Market Promotion Program (FMPP)
FMPP is designed to assist eligible entities in
improving and expanding domestic direct to
consumer marketing outlets, including:
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Farmers markets
Roadside stands
Community-supported agriculture programs
Agritourism activities
Other direct-to-consumer marketing opportunities for
farm products
Originally authorized in the 2002 Farm Bill
Funded for the first time in FY 2006 ($1 million)
10% set-aside for new EBT projects created in
2008 Farm Bill, implemented in FY 2009
Increases in FMPP Grant Availability
FY-2008 ($1 million)
 225 proposals accepted for
review *
 85 grants funded
 20 (23.5%) EBT related
 Range:
 Grant cap of $75,000
FY-2009 ($3.4 million)
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Approximately 500 proposals
accepted for review
86 grants funded
34 (39.5%) EBT related
Range:
Grant cap of $75,000
FY-2010 ($4.34 million)
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Just over 500 applications accepted for review
81 grants awarded;
35 grants (43%) EBT related
Range:
Grant cap of $100,000
FY-2011 (approx. $10 million, minus overhead)
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More than 400 applications (30 day rather than 45 day submission period)
FMPP Scope of Activity
Funds most commonly used to support:
 Professional education opportunities for farmers, market
managers and farm vendors
 Purchases of critical supplies and equipment for financiallystrapped and newer farmers markets
 Permanent signage for farmers markets that identify location
and operating hours and enhance visibility
 Market publicity and media campaigns
 Market-based community outreach and nutrition education
 Electronic benefits transfer to encourage SNAP redemption
(set -aside began FY 2009)
 Recent emphasis on targeting urban and rural “food deserts”
Federal-State Marketing
Improvement Program
One-to-one matching grant program (cash or in-kind
match) to State agencies, for purpose of fostering
marketing research and marketing service projects.
Funding levels:
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Approximately 1.3 million per year (appropriated)
Approximately 25 projects funded each year
Average grant award in $50,000 range
Support of local food projects:
FY 2011
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25 projects awarded in 19 States
15 of 25 projects supported local and regional food
Total funding: $1.335 million
Average grant award per recipient: $53,253
Federal-State Marketing
Improvement Program
Sample FSMIP local food projects (FY 2011)
Georgia - $55,373 to the Georgia Department of
Agriculture, in cooperation with Georgia State
University's Andrew Young School of Policy
Studies, to:
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Increase utilization of State-run, non-profit and community
farmers markets
Implement new marketing and distribution strategies to
increase available supplies of locally grown produce to meet
growing demand
Federal-State Marketing
Improvement Program
Louisiana - $30,511 to Louisiana State University
Agricultural Center, in cooperation with the
Louisiana Department of Agriculture and Forestry,
Crescent City Farmers Markets, Louisiana State
University Sea Grant programs and Orleans Parish
Firstline Schools, to:
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Survey school lunch directors in pilot parishes to determine
demand for locally produced agricultural and fishery
products
Assess the capacity of local farmers and fishermen to fulfill
demand
Train local producers on the use of Louisiana MarketMaker
software and other resources that will help them identify
new institutional and direct marketing opportunities
Federal-State Marketing
Improvement Program
Massachusetts - $13,625 to the Massachusetts
Department of Agricultural Resources, in
cooperation with the Tufts University Friedman
School of Nutrition Science and Policy, to:
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Explore ways to effectively move local food products from
farms and wholesale markets to inner-city corner stores
Meet the preferences and requirements of producers, store
owners and target consumers
Specialty Crop Block Grants
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Initiated in FY 2005
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Authorizes USDA to “make grants to States for
each of the fiscal years 2005 through 2009 to be
used by State departments of Agriculture solely to
enhance the competitiveness of specialty crops.”
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Specialty crops are defined as fruits and
vegetables, tree nuts, dried fruits, and nursery
crops (including floriculture), used for edible,
ornamental or medicinal purposes (NOT energy)
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All 50 States, the District of Columbia, Puerto Rico,
the U.S. Virgin Islands, Guam, American Samoa,
and the Commonwealth of the Northern Mariana
Islands are eligible to apply
Specialty Crop Block Grants
Funding Formula:
 Each participating state/territory receives a
minimum base grant of $100,000 or 1/3 of 1
percent of the total amount of funding available
for that fiscal year
 Around 180K in FY 2011
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AMS allocates the remainder of the grant funds
based on the value of specialty crop production
in each state in relation to the national value of
specialty crop production using the latest
available cash receipt data.
Specialty Crop Block Grants
Who Can Apply:
 Commodity groups
 Agricultural organizations
 Colleges and universities
 Producers
 Municipalities
 State agencies
 Agricultural non-profits
Maximum Award:
 $75,000 for any given project
Specialty Crop Block Grants
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Projects Must SOLELY enhance the
competitiveness of specialty crops
 Cannot benefit nonspecialty crops such as dairy,
livestock, or poultry among others
 Must make the targeted specialty crop(s) more
competitive locally, state wide, regionally, nationally, or
internationally.
 Must benefit the specialty crop industry and/or public
NOT single organization, individual, institution, or
business.
Specialty Crop Block Grants
FY 2011: 55 specialty crop block grants that fund 740
initiatives in all 50 states (incl. multi-state)
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Increase nutritional knowledge and specialty crop
consumption
Improve efficiency within the distribution system and
reduce costs
Promote the development of good agricultural, handling
and manufacturing practices while encouraging audit fund
cost-sharing for small farmers, packers and processors
Support research through standard and green initiatives
Enhance food safety
Develop new/improved seed varieties and specialty crops
Control pests and diseases
Create organic and sustainable production practices
Establish local and regional fresh food systems
Expand food access in underserved/food desert
communities
Specialty Crop Block Grants
Increasing Child and Adult Nutrition Knowledge
and Consumption of Specialty Crops
Texas Department of Agriculture is partnering with
High Plains Food Bank to:
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Educate children and adults about their eating habits
Focus on locally-grown, ethnically-valued specialty crops
using an integrated hands-on approach to food
production from seed to harvest
Specialty Crop Block Grants
Developing Local and Regional Food Systems
Illinois Department of Agriculture is partnering with
FamilyFarmed.org to:
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Create a business plan for a pack house located in Central
Illinois that aggregates, stores, markets, and distributes
specialty crop products from area farms to Illinois
wholesale buyers, and
Establish a network of Illinois fruit and vegetable growers
committed to scaling up production for this market
Specialty Crop Block Grants
Improving Food Access in Underserved Communities
Colorado Department of Agriculture is partnering with
Slow Food Denver to:
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Address the lack of awareness and access to Colorado fruits
and vegetables for youth in low-income neighborhoods
Expand the School Garden Program with a Youth Farmers
Market model where students will set up market stands on
school grounds once a week to sell fresh produce from school
gardens and Colorado farms
Marketing Services Division
Research and TA
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Shares vital information on farmers market
performance and operations
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National Farmers Market Managers Survey
Dot survey
How-to manuscripts (Federal property, EBT)
TA for FM startups (especially in Federal family)
Collaborative research with ERS on competitive zones
for FM vendors and customers
Compiles and circulates baseline farmers market data
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National Farmers Market Directory (multi-use)
Geographic coordinate database for markets
Winter/year-round farmers market tracking
Marketing Services Division
Research and TA
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Provides training and resources about promising
collective marketing models
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Provides facility design assistance
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Food Hub research
Distribution model and food value chain research
Architectural design and layout
Renewable energy applications
Provides guidance on appropriate recordkeeping and
inventory control systems
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Supply chain management modules on product
technology and food safety
National Farmers Market Directory
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Market listings are voluntarily self-reported by market
managers , state FM association representatives, or
other relevant stakeholders. Information is submitted
through an automated on-line process.
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Updated information includes market location, number
of vendors, product types, operating months/days/hours
and eligible methods of payment (e.g., WIC/Senior FM
nutrition program vouchers, SNAP/EBT, WIC cash value
vouchers, credit/debit cards)
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Results of annual update are announced during National
Farmers Market Week (first full week in August)
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Two million page views to date in CY 2011!
National Farmers Market Directory
National Farmers Market Directory
National Farmers Market Directory
Recent Upgrades:
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Database of geographic coordinates for markets
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Available from AMS website and data.gov
Used by researchers and app developers
Featured on CNN as part of “healthy eating”
campaign with Foursquare (fall 2010)
Expanded list to be added by end of month to
reflect recent growth in market numbers
Embedded Google Maps for each market listing,
plus national/state maps of FMs
Searchable by location type (e.g., school, Federal
building, public park)
Captures multiple operating locations
National Farmers Market Directory
National Farmers Market Directory
Regional Food Hub Initiative
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In May 2010, USDA established an interagency
taskforce to examine the role and potential of
regional food hubs to improve farmer/rancher
access to larger volume markets
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Includes representation from the following USDA
agencies:
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Agricultural Marketing Service, lead agency
Rural Development
Food and Nutrition Service
National Institute of Food and Agriculture
Economic Research Service
Agricultural Research Service
Food Safety and Inspection Service
Coordinating efforts with other Federal agencies,
non-profit organizations, and the private sector
Regional Food Hub Initiative
Definitions vary from narrow market efficiency
functions to those related to visions of building a
more sustainable food system
Working Definition (evolving)
A business or organization that carries out or actively
coordinates the aggregation, distribution, and
marketing of source-identified locally or regionally grown food products, mostly on behalf of small to
mid-sized producers.
Food Hub Defining Characteristics
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Carrying out or coordinating the aggregation,
distribution, and marketing of locally/regionally
produced product from multiple producers to
multiple markets.
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Committed to buying from small to mid-sized local
producers whenever possible and considers these
producers as core to their business model.
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Utilizing one or more product differentiation
strategies (e.g. identity preservation, group
branding, sustainable production practices, etc.) to
help producers capture value and obtain a better
price for their products.
Food Hub Defining Characteristics
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Working closely with producers to ensure they can
meet buyer requirements by either providing direct
technical assistance or finding partners that can
provide this technical assistance.
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Aiming to be both financially viable and have
positive economic, social, and environmental
impacts within their respective communities
Local Food Hub,
Charlottesville, VA
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Currently works with 50 small
family farms (annual sales under $2
million) within 100 miles from
Charlottesville
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Produce farms from 1 to 30 acres
and orchards from 20 to 1,000
acres
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Offers fresh produce and other
food products to 100 customers,
which includes:
 45 public schools
 20 restaurants
 10 grocery stores
 4 senior centers
 3 college dining halls
 1 hospital (see video at
http://vimeo.com/14964949)
 Several distributors,
processors, and caterers
Product Categories Offered by Food Hubs
Food Hub Market Outlets
Food Hub Functions/Services
Producer Benefits
Community Services/Outreach
Regional Food Hub Taskforce
- Accomplishments to Date Established the National Food Hub Collaboration
 USDA Agricultural
Marketing Service, co-lead
 Wallace Center and Winrock International, co-lead
 National Good Food Network
 National Association of Produce Market Managers
 Project for Public Spaces
Regional Food Hub Taskforce
- Accomplishments to Date National Food Hub Survey—continual updating of food hub
database (more than 125 identified to date)
In-depth Interviews—with food hub operators to understand
emerging opportunities for growth, persistent challenges,
economic and social impacts
NAPMM Survey—assessing infrastructure and services of
members that could be used for food hub functions
Resource Guide--in process (draft expected October 2011)
Useful AMS Websites
Grants:
 www.ams.usda.gov/FMPP
 www.ams.usda.gov/FSMIP
 www.ams.usda.gov/SCBGP
Research/Technical Assistance:
 http://apps.ams.usda.gov/FarmersMarkets
(National FM Directory search engine)
 www.ams.usda.gov/FarmersMarkets
(FM program home page)
 www.ams.usda.gov/FoodHubs
(FoodHub portal)
 www.ams.usda.gov/MarketingServicesPublications
(AMS Marketing Services publication library)
Questions?