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Linda Best


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Linda Best

  1. 1. Challenges  and  Opportunities  
  2. 2. diminish  in  number,  if  we  continue  to  rely  on  the  global  food  system  to  sustain  us and  if  that  system  failsthen  the  dire  situation  of  our  farmers  today  will  become    Or  we  can  take  steps  now  to  re-­‐create  a  local,  sustainable,  healthy  food  system  that  gives  our  farmers  the  livelihood  they  deserve,  and  provides  reliable,  healthy  food  to  our  families  Opportunities  and  Challenges  in  Atlantic  Agriculture:  Silver  Donald  Cameron  ,  Chris  Benjamin.  Jennifer  Scott  Consulting,  August  30,  2010.    Challenges  
  3. 3. Challenges  Over  50  years  production  of  food  in  NS  has  decreased  from  approximately  60%  sufficiency  to  about  15%  (8%  supply  managed,  5%  crops,  2%  livestock)  and  exports  have  declined  Farms  have  decreased  from  12,518  to  3,905  Farm  population  decreased  from  58,000  to  8,000  Loss  of  communities,  food  security,  economy    Strategies  are  needed  to  help  reverse  the  trend      
  4. 4. Decline  in  Rural  NS  Population    
  5. 5. Challenges­‐632-­‐x/2007000/t/4185570-­‐eng.htm#12  05,00010,00015,00020,00025,00030,00035,00040,00045,00050,0001921 1931 1941 1951 1961 1971 1981 1991 2001 2006 2011Farms  in  Nova  Scotia    0500001000001500002000002500003000001921 1931 1941 1951 1961 1971 1981 1991 2001 2006 2011Land  in  Crops  in  Nova  Scotia    In  1961  about  12,518  farms  In  1999  about  4,200    In  2006  about  3,795      In  2011  there  were  3,905    Can  we  help  ensure  that  the  turn  around  will  continue?      1.6  million  ha,  or  21%  of  the  is  suitable  population  could  be  fed  by  the  production  from  just  490,444  ha  of  farmland   less  than  half  our  physical  capacity.  (GPI    J  Scott)  Challenges  -­‐  Opportunities  
  6. 6.­‐632-­‐x/2007000/t/4185570-­‐eng.htm#12­‐2010-­‐NS-­‐Ag-­‐Overview-­‐w-­‐Appendices.pdf  Agriculture  -­‐  NS  economy    NS  Population  942,000    3,905  farms  occupying  420,000  acres    Sales  in  2011  of  $591  million,  1.8  %  of  GDP    NSFA  FACT  SHEET  Challenges  -­‐  Opportunities  
  7. 7. Opportunities  Production  was  a  cornerstone  of  rural  NS  and  can  be  again    new  strategies  are  needed  Availability  of  healthy  food  is  becoming  crucial  in  light  of  global  issues  Production  and  multiplier  effects  create    social  and  economic  gains  Helps  keep  rural  landscapes  and  communities  vibrant,  preserves  local  culture  and  history,  attracts  tourists  and  enhances  quality  of  life    
  8. 8. Community  Economic  Development  Investment  Fund  (CEDIF)    In  1998  NS  established  the  CEDIF  program  to  encourage  residents  to  invest  in  NS  businesses    Through  the  sale  of  shares  a  pool  of  capital  is  formed  to  operate  or  invest  in  profit-­‐oriented  local  businesses      CEDIF  cannot  be  charitable,  non-­‐taxable,  or  not-­‐for-­‐profit  Must  have  at  least  six  directors  elected  from  the  defined  community    Raising  capital  from  community  through  public  offering  requires    Department  of  Finance  Equity  Tax  Credit  Certificate  and  Securities  Commission  approval.        
  9. 9. Currently,  less  than  2%  of  NS  investment  capital  (RRSPs,  mutual  funds,  stocks)  remains  in  the  province.    CEDIF  program  matches  local  investors  with  local  business  helps  local  businesses  access  capital  -­‐  enables  them  to  start  or  stay  in  communities  providing  jobs  and  services  CEDIFs  that  provide  consistent  returns  on  investment  have  helped  change  attitudes  toward  investing  locally  Program  has  grown  to  support  more  than  60  projects.  Almost  7,500  Nova  Scotians  have  invested  more  than  $56  million  in  small-­‐  to  medium-­‐sized  local  companies,  fuelling  economic  growth  throughout  the  province.  Community  Economic  Development  Investment  Funds  
  10. 10. 35%  non-­‐refundable  NS  tax  credit  with  minimum  five  year  investment  Additional  20%  for  10  year  hold,  and  10%  for  15  year  hold    RRSP  eligible  in  addition  to  the  NS  Tax  credit  Shareholder  input  in  investment  decisions  through  the  board  of  directors  Return  on  investments  depends  on  performance  of  the  business(s)  in  the  fund    Community  Economic  Development  Investment  Funds  
  11. 11. CEDIF  May  06,  2013    NS  Gov.  News  Release  Homegrown  Program  Recognized  Internationally  Community-­‐based  businesses  are  creating  jobs  and  helping  strengthen  local  economies  in  the  province,  with  help  from  an  NS  program  getting  international  attention.      World  Economic  Forum  recognized  NS  Community  Economic  Development  Investment  Funds  program  as  a  successful  example  of  fostering  social  innovation  and  entrepreneurship,  and  local  economic  development.  The  program  was  acknowledged  during  the  forums  Social  Innovation  Summit  in  Peru  recently.  Community  Economic  Development  Investment  Funds  
  12. 12. FarmWorks  Investment  Co-­‐operative  Limited  FarmWorks  was  founded  in  May  2011  to  provide  a  way  for  citizens  to  invest  in  farms  and  food  production  In  November  2011  FarmWorks  established  a  CEDIF  with  all  of   investment  FarmWorks  provides  a  means  for  citizens  to  efficiently  and  effectively  invest  in  sustainable  agriculture  and  food  production  in  the  Province.  FarmWorks  provides  loans  to  multiple  well-­‐managed  enterprises  scaling  up  or  launching  agricultural  and  food-­‐related  businesses  in  NS.        
  13. 13.        
  14. 14.  
  15. 15. CEDIF  Promotion  in  2013    FarmWorks  CEDIF  Promotion  FarmWorks  CEDIF  Governance     Responsibilities  of  Executive  and  Directors     By-­‐laws     Ethics,  Confidentiality,  Transparency,  Accountability  Vision  Mission  Objectives  including  Board  Sustainability  Business  Plan    Outcome  Measurements    Clients  and  Board    
  16. 16. Richard Melvin ChairMelvin Farms, Interim Chair NS Food Policy Council,Past President NS Federation of AgricultureAnn Anderson Vice-ChairEducator, Wolfville Community Foundation, Friends of AgricultureLinda Best SecretaryMicrobiologist, Friends of Agriculture, NS Food Policy CouncilKris Keddy TreasurerFinancial Consultant, Investors Group, Ag. Production ManagementStephen Anderson DirectorPartner, Food Economy GroupAlison Scott Butler DirectorAlicia Lake DirectorPatricia Vanaman Independent DirectorTri County Local Food Network, Community University ResearchRobert MacEachern Independent DirectorCommon Roots Garden, Sociologist, Policy Analyst
  17. 17. Gordon CaldwellPartner, Grant Thornton AccountingGordon MichaelContinuing Education SMU, Food Alliance,Former Executive Director FMIC CEDIFJeff MooreFormer CEO Just Us! Coffee,Chair Just Us! CEDIFThomas KrausseDandelion Community InvestmentCooperative LimitedGary MortonPartner Morton Horticultural ConsultingJonathan McClellandNS Co-op Council BusinessDevelopment OfficerEdith CallaghanProfessor Manning School of Business, AcadiaAv SinghOrganic & Rural Infrastructure Specialist, PerenniaHank BosveldBosveld Fruit Farm, NS Farm Loan BoardJo Anne FewerCEO Perennia,Seconded to Building Our New EconomySusan CarrollRestaurant, WolfvilleCharles KeddyCharles Keddy FarmsRupert JannaschIronwood FarmDuncan EbataBusiness Acadia, Web, MarketingRoss PierceyBusiness & Quality ConsultantJohn AylwardVenture Solutions CBPeter HicklentonCrop Production Systems ResearchJeremy WhiteEngineer, Marketing, Big Spruce
  18. 18. CEDIF  Promotion  in  2013    FarmWorks  CEDIF  Promotion  FarmWorks  CEDIF  Promotion  In  January  and  February  of  2012  FarmWorks  held  22  public  meetings  across  NS,  and  20  meetings  in  2013    In  2012  $223,500  invested  by  102  shareholders  In  2013  $225,300  invested  by  78  shareholders  Within  15  months  $448,800  raised    next  Offer  October  We  are  also  building  awareness  of  the  positive  impact  of  food-­‐related  businesses  on       the  economy  of  NS  through       the  Food  Grows  Here  strategy  
  19. 19. Investment  35%  Equity  Tax  Credit    (5  yr  hold)  Current  Year    +20%  Equity  Tax  Credit    (10  yr  hold)    End  year  5  +10%  Equity  Tax  Credit    (15  yr  hold)  End  year  10  Total  Equity  Tax  Credit    After  15  Years  Taxable  Income  Before  RRSP  Deductions/  Tax  Deferred  Potential  Total  Tax  Deferrals  &  Credits  Preserved  Capital  +  Tax  Benefits                +  Potential  2%  Dividend  $100   $35   $20   $10   $65   -­‐  -­‐  -­‐   $65   $195  $1,000   $350   $200   $100   $650   -­‐  -­‐  -­‐     $650   $1,950  $2,000   $700   $400   $200   $1,300  $40,000/  $1,498  $2,798   $5,398  $5,000   $1,750   $1,000   $500   $3,250  $40,000/  $1,498  $4,748   $11,248  $10,000   $3,500   $2,000   $1,000   $6,500  $80,000/  $2,996  $10,367   $22,496  NS  TAX  CREDIT  (NS  Department  of  Finance)  RRSP  Tax  Deferral  (Federal)    CAPITAL  PRESERVATION  (Diligence)    FARMWORKS  DIVIDENDS  (Potential)  
  20. 20. FarmWorks  Investment  Co-­‐operative  Limited  FarmWorks  lends  to  multiple  enterprises  that  have  the  potential  for  minimum  10%  increase  in  production  and  profitability  Mentors,  supports  and  helps  facilitate  farm  and  food-­‐related  innovation  and  diversification  in  partnership  with  government  and  other  organizations  Promotes  investing  locally  and  buying  local  food  for  health,  economic,  social,  environmental  and  other  benefits  that  result  from  growing  and  processing  food  in  Nova  Scotia  
  21. 21. Process  for  Applicants  Preliminary  Application      no  fees  confidentiality  agreement  Business  Plan  and  three  years  financial  projections    Reviewers  Evaluation  consultations  with  Applicant  Board  Decision  Disbursement  unsecured  debt  flexible  terms  no  early  repayment  penalty  Ongoing  mentoring    Annual  Financial  Statements  
  22. 22. Reviewer  Evaluations  Section     Total  Character   Rank  1  to  20    Commitment   Rank  1  to  20    Management   Rank  1  to  25    Business  Plan    Markets   Rank  1  to  25    Business  Plan    Materials/Methods   Rank  1  to  25    Business  Plan    Financials   Rank  1  to  25    Viability     Rank  1  to  60    Total   1    200    Less  than  130  do  not  proceed,  130   160  reapply,  greater  than  160  proceed    
  23. 23. Outcome  Measures  Businesses  #  meeting  and  exceeding  10%  increase  in  production  #  meeting  and  exceeding  10%  increase  in  profitability  #  of  mentoring  interactions  and  type  #  of  enterprises  repaying  loans    Board  #  of  interactions  with  businesses    #  of  interactions  with  investors    #  of  public  meetings  and  communications  #  of  website  and  social  media  interactions        
  24. 24. Outcome  Measures  Businesses  2012  Shareholder  investment                        $223,500       12  Loans                             $217,000  2013  Shareholder  Investment                        $225,300       4  Loans  to  date                              $72,000       Under  consideration                                          $120,000  Ongoing  contact  and  mentoring  Loans  at  6%  for  5  years  are  being  repaid  and  principal  and  interest  are  available  for  reinvestment  
  25. 25. FarmWorks  Investments  
  26. 26. Outcome  Measures  Board    sessions,  AGM,  multiple  Directors  meetings,  approximately  30  hours  per  applicant,  participated  in  12  food-­‐related  events,  many  hours  on,  Facebook,  Tweets  -­‐related  events,  media  Friends  of  Agriculture  Society  has  been  established  to  cover  educational  costs  in  support  of  FarmWorks  
  27. 27. FarmWorks  Model  Is  Transferable  to    Other  Communities  CEDIF  program  helps  communities  create  tangible  results  from  local  efforts  as  they  take  charge  of  their  own  initiatives  by  making  local  investment  decisions.  The  Community  Economic  Development  Business  (CEBD)  program  has  been  created  as  part  of  the  Prince  Edward  Island  Rural  Action  Plan  to  support  local  investment.  Their  first  CEBD  is  modeled  on  FarmWorks.  Manitobas  Community  Enterprise  Development  Tax  Credit  is  five  years  old  and  $1.9  million  has  been  invested  in  12  community  enterprises