Local Food as Economic Recovery

Local Food as Economic Recovery Ken Meter Crossroads Resource Center (Minneapolis) CFSC Food Policy Workshop Des Moines, Iowa October 10, 2009

Financial partners: •  Prairie Rivers RC&D •  Golden Hills RC&D •  Johnson County Local Food Alliance •  Grinnell Area Local Food Alliance •  Geode RC&D •  Limestone Bluffs RC&D •  Pathfinders RC&D •  Iowa Valley RC&D •  University of Wisconsin Extension •  Experiment in Rural Cooperation (SE Minnesota) •  Northwest & West Central Minnesota Regional Sustainable Development Partnerships •  Food Systems Working Group (Value Chain Partnerships project) — Aldo Leopold Center for Sustainable Agriculture at Iowa State University •  University of Minnesota •  Oregon Food Bank •  W. K. Kellogg Foundation (Michigan) •  FarmAid •  Northwest Area Foundation

“Finding Food in Farm Country” Studies plus Maui & Hawai’i 45 regions in 20 states (8 states, 1 province)

Local Farm & Food Economies The perspectives of the communities where food is produced and eaten... …are often overlooked

Local is a shorthand.... Photo: DSC

Goal: to build Community-Based Food Systems Photo: DSC

Vision for local food economies Build: Health Wealth Connection Capacity

Photo: Teryl Roper

Finding Food in Farm Country Marshall County Partner: Prairie Rivers RC&D

Marshall County •  39,000 residents •  Earn $1.3 billion income each year Source: Federal Census 2000, BEA

households - 1,000 1,200 1,400 1,600 1,800 200 400 600 800 less than $10,000 $10,000 - $14,999 $15,000 - $19,999 $20,000 - $24,999 $25,000 - $29,999 $30,000 - $34,999 $35,000 - $39,999 $40,000 - $44,999 (26%) below 9,824 people 185% of poverty $45,000 - $49,999 $50,000 - $59,999 Household income levels in Marshall County, 1999 $60,000 - $74,999 $75,000 - $99,999 $100,000 - $124,999 $125,000 - $149,999 $150,000 - $199,999 $200,000 or more

Farm Production Balance in Marshall County, Iowa, 1969-2007 250 Cash Receipts 200 Production expenses Balance 150 $ millions (current) 100 50 0 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 -50 Source: Bureau of Economic Analysis

Farm Production Balance in Marshall County, Iowa, 1969-2007 450 400 Cash receipts Production expenses 350 Balance 300 $ millions (2007 dollars) 250 200 150 100 50 0 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 -50 -100 Source: Bureau of Economic Analysis

Farm Production Balance in Marshall County, Iowa, 1969-2007 450 400 Cash receipts Production expenses 350 Balance 300 $ millions (2007 dollars) 250 200 150 100 $37 million less than 1969! 50 0 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 -50 -100 $4 million average surplus Source: Bureau of Economic Analysis

Marshall County’s Food & Farm Economy •  Region’s farmers sell $175 million of commodities per year and… •  Spend $171 million to raise them Gain $4 million in production costs Averages for (1979-2007) Source: Bureau of Economic Analysis

Marshall County’s Food & Farm Economy So… •  Farm families earn $11 million of other farm-related income •  And receive $18 million in federal supports each year Source: Bureau of Economic Analysis

Crop and livestock sales in Marshall County, Iowa, 1969-2007 300 250 $ millions (2007 dollars) Livestock 200 Crops 150 100 50 0 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 Source: Bureau of Economic Analysis

Finding Food in Farm Country All told, Marshall County... •  Gains $4 million in production •  Loses $80 million buying inputs •  Loses $90 million buying food Potential wealth lost each year

Finding Food in Farm Country Total loss is: •  $166 million each year! •  This is 87% of value of all food commodities raised in region

Finding Food in Farm Country If consumers bought only 15% of their food directly from local farms: $8 million of new farm income earned each year

Marshall County is not alone...

State of Iowa

Farm Production Balance in Iowa, 1969-2007 40 35 30 Cash receipts Production expenses $ billions (2007 dollars) 25 Balance 20 15 10 $2.3 billion less than 1969! 5 0 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 -5 $22 billion gained in last 29 years

U.S. data

Consumption out of balance •  50% of U.S. public school students qualify for free / reduced lunch •  10% of households are “food insecure” Source: USDA Mural: The Food Project

Health suffers Medical costs of obesity are $134 billion per year — 1/3 of what U.S. farmers gross Source: Harvard Public Health/Colditz

Corn sweeteners consumed Corn sweeteners consumed in U.S., 1966 - 2002 in U.S., 1966 - 2002 70 60 50 40 HFCS 30 Glucose Dextrose 20 10 0 Source: USDA/ERS — chart by Ken Meter, 2006

U.S. Youth Who are Overweight Percent by Age Percent 16 14.0% 14 12 10.7% 13% 10 10.7% 8 6 4.6% 4 4.1% 2 0 1963-70 1971-74 1976-80 1988-94 1999 Ages 6-11 Ages 12-17 >95th percentile for BMI by age and sex, based on NHANES I reference data Source: Troiano RP, Flegal KM. Pediatrics 1998;101(3):497-504. NHANES 1999, National Center for Health Statistics. Chart by Melinda Hemmelgarn

Photo: DSC

Value Chain Food Service Producer Processor Distributor Retailer Consumer

Farmers' share of retail prices paid by consumers, 1950-2004 900 800 700 600 500 400 marketing bill farm value 300 200 100 41% 20% 0 Source ERS; chart by Ken Meter, 2007

Value Network Policy Council Non Profits Consumer: Producer “Coproducer” Processor Retailer Educator Distributor Food Service

Pollo de Campo (Minnesota) •  Build 30 chicken barns this winter •  20 – 25 Latino families •  ¼ acre each •  Goal: 35,000 chickens in 2010 •  Create a path to ownership

Vernon Economic Development (Wisconsin) •  Crossroads’ study inspires vision •  Purchase factory at low price •  Regional food processing center

Marshall County (Iowa) •  100 people at community forum •  Chamber, Mayor’s office attend •  Des Moines Register covers Latino farming project •  Local sponsors: RC&D, Community College, Leopold

Pottawatamie County (Iowa) •  RC&D district sponsors study •  County board allocates 5 years’ funding for local food coordination •  Part of Southwest Iowa Farm and Food Initiative

Northeast Iowa Farm and Food Coalition •  from 6 farmers to 150 active citizens in 18 months! •  Ken presents 9 times •  Data helps unify effort and attract investors

Northern Iowa region If residents purchased locally grown fruits and vegetables just 3 months out of the year: •  475 new jobs •  $6.3 million in labor income added to local economy David Swenson, ISU Economist

Clark County (Washington) •  Data turns around local discussion of agriculture •  Deepens work of food systems council

Columbia Gorge (Washington/ Oregon) •  Data persuades county to allocate land for local foods •  Community food assessment brings low-income needs forward •  Mobile farmers’ market

Flint (Michigan) •  Data makes strong case to mayor and development officials •  Urban farms can use existing infrastructure •  Youth involved in hoop house

Douglas County (Kansas) •  County chair launches food planning effort •  Sustainability coordinator to be hired

Dreaming New Mexico •  Data for state plus 6 regions •  Create bioregional vision

Elements of Success for Local Food Systems NEW STUDY! “Mapping the Minnesota Food Industry” www.crcworks.org/mnfood.pdf

Elements of Success for Local Food Systems NEW STUDY! “Mapping the Minnesota Food Industry” •  Reciprocity •  Resilience •  Recycling

Invest in communities rather than cash for commodities

Vision for local food economies Build: Health Wealth Connection Capacity

“Finding Food in Farm Country” www.crcworks.org/econ.html (612) 869-8664 kmeter@crcworks.org

Local Food as Economic Recovery

by Community Food Security Coalition on Oct 26, 2009

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