SOCAP10: Debra Tropp, USDA

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  • For newbies: What are subcommittees, what do they do in relation to money? What do the related task force folks do in relation to funding/money?SUBCOMMITTEES combine forces and expertise of various agencies to see what can be done to promote local and regional food initiatives through synergy of resources, collaboration, concrete workplans. There is no official KYF2 office or budget line item—everything is based on existing budgetary authorities. However, subcommitees and KYF2 leadership work with subject matter experts and mission area leadership to set priorities for each agency on local and regional food as much as possible.
  • SOME ARE GRANT PROGRAMSNEW DEVELOPMENTS IN LAST YEAR: HOW THEIR AUTHORITY IS VIEWED AS FLEXIBLE. NO MONEY SO TAKING A LOOK AT EXISTING LEGISLATIVE AUTHORITIES. AND MADE CHANGES TO CRITERA TO MAKE MORE OPEN FOOD SYSTEMS.Not Unsure what the key point is you want to convey here to funders? That these are totally new areas developed under KYF2 that may affect them? YES, COMPLETELY NEW EMPHASES/PRIORITIESB&I Loans: set-aside within the B&I Loan Program for initiatives that establish and facilitate the processing, distribution, aggregation, storing and marketing of locally or regionally produced food products. Any agricultural product that is distributed and marketed within the State or within 400 miles of where it is produced is considered a "locally or regionally produced agricultural food product." Real Examples:Monogram Meat Snacks LLC, a division of Monogram Food Solutions LLC, operates a meat processing facility in Chandler, MN (population 276). The company manufactures various types of beef jerky and meat snacks, smoked sausage, and hot dogs out of this facility. They are the largest private employer in Murray County and attract employees from all over southwestern Minnesota and southeastern South Dakota. In 2008, Monogram issued $4.4 Million of taxable bonds purchased by AgStar Financial Services using the Mission Related Investment authorities for the Farm Credit System. The funds were used to provide a large remodel of the facility as well as purchase numerous equipment items to add significant production capacity to the facility. These bonds were guaranteed by the USDA under the B&I program, thus making the project a reality. Monogram continued to have increased facility expansion and production capacity needs identifying another $4 Million of capital expenditure slated for 2009. The initial USDA experience with Monogram and AgStar was positive, so another B& I application was submitted to USDA during August of 2009. AgStar is scheduled to purchase another $2 Million of taxable bonds guaranteed by the USDA by the end of September to help fund the project along with other financing provided by the State of MN, Murray County, and a regional economic development groupSeptember 2010 announcement included 4 awards to regional food system Example:The California Association of RC&D Councils will receive $250,000 to develop a regional food system, in an 11-council region, add value to livestock processing and marketing, utilize biomass, and develop renewable energy and agricultural resourcesEcotrust=249KGolden Hills RC&D Council in Iowa will receive $83,000 to conduct “Grow your Small Market Farm” business development assistance sessions for local food producers, including on-farm and classroom business training; focus on a permaculture system that supports year-round growing technologies for specialty crops in cold weather climates; offer training in vermicomposting and aquaculture; and (4) develop an application for a recognized American Viticultural Area (AVA) in western Iowa.SC
  • A FEW SUBCOMMITTEES TO FOCUS ON BECAUSE THEY HAVE IMPLICATIONS FOR FUNDING AND SUPPORTING LOCAL AND REGIONAL FOOD SYSTEMS.Mention Eastern Market coop agreement for 100K re: regional food hubs (coop agreements only to non-profits, state &local govt agencies, not private firms—limits Would be great to explain basics of how USDA works in allocating funds when and how much, how do you decide ie RFP proces, and then how is it dispersed – ie thru state agencies? Via other nonprofits?
  • COMING UP FISCAL YEAR 2011GRANTSLOANSSTIMULUS PACKAGES FOR COMMUNITY DEV FINANCING INST.Treasury:Through the New Markets Tax Credit (NMTC) and financial assistance to Treasury-certified community development financial institutions (CDFIs), Treasury has a proven track record in expanding access to nutritious foods by catalyzing private sector investment. The Healthy Foods Financing Initiative builds on that track record, with $250 million in authority for the NMTC and $25 million for financial assistance to CDFIs devoted to helping finance healthy food options. Treasury’s CDFI Fund has a long history of supporting these kinds of investments, including: providing funding for the landmark Pennsylvania Fresh Food Financing Initiative that has brought 68 grocery stores to underserved communities; the Roberts Fresh Market, a full-service supermarket in an underserved area of New Orleans that was devastated by Hurricane Katrina; anda new Super Giant in Washington, D.C., the only grocery store in the Anacostia neighborhood and now one of Giant’s most successful stores.USDA’s proposed funding level of $50 million is expected to support more than $150 million in public and private investments in the form of loans, grants, promotion, and other programs that can provide financial and technical assistance to enhance access to healthy foods in under-served communities, expand demand and retail outlets for farm products, and increase the availability of locally and regionally produced foods. USDA has a solid track record of supporting successful farmers markets, and has also invested in grocery stores that procure locally grown food and create agricultural supply chains for local growers, such as in the People’s Grocery project in Oakland, CA (FMPP)HHS will dedicate up to $20 million in Community Economic Development program funds to the Healthy Food Financing Initiative. Through the CED program, HHS will award competitive grants to Community Development Corporations to support projects that finance grocery stores, farmers markets, and other sources of fresh nutritious food. These projects will serve the dual purposes of facilitating access to healthy food options while creating job and business development opportunities in low-income communities, particularly since grocery stores often serve as anchor institutions in commercial centers. HHS has supported fresh food projects in the past, such as the Plaza del Valle in Panorama City, CA.
  • WALLACE CENTER ONLYRURAL HUBS, URBAN HUBS, FOOD SAFETY EDUCATIONONE MORE SLIDE ABOUT THIS ONE ABOUT SPECIFIC TOPICSLOIs with 500 applications, then 46 reviews, 13 enterprises - $350k nonprofit grantFIRST TIME THEY’VE DONE ITThe ten enterprises span across the United States and total $340,512 in support:Agriculture and Land-Based Training Association (ALBA) – Salinas, Calif. D.C. Central Kitchen – Washington, D.C. Dixon Cooperative Market—Dixon, New Mexico Grass Lake Sanctuary – Manchester, Mich. GrowNYC – New York, N.Y. Institute for Agriculture and Trade Policy—Minneapolis, Minn. La Cocina – San Francisco, Calif. Los Angeles Communities Advocating for Unity Social Justice, and Action Inc (LA CAUSA) – Los Angeles, Calif. PetaWakan Tipi – St. Paul, Minn. Shagbark Seed and Mill Company – Athens, OhioHUFED center updatesSeptember 15, 2010Wallace Healthy Urban Food Enterprise Development (HUFED) Center has closed out its Year 1 application process, having selected 13 enterprises from among 538 Letters of Interest (LOIs) received from nearly all 50 states; 46 of whom were invited to submit full proposals. It was inspiring to receive so many strong and innovative concepts that both illustrate the need and possible solutions. We encourage those who were not selected to try again. We will announce the next round of funding and Request for Application (RFA) process this Fall 2010. The process will include an invitation to submit Letters of Interest (short mini-proposals) and then finalists will be selected from the LOIs to submit full proposals. Join our mailing list to be the first to hear the announcement.
  • WALLACE CENTER ONLYRURAL HUBS, URBAN HUBS, FOOD SAFETY EDUCATIONONE MORE SLIDE ABOUT THIS ONE ABOUT SPECIFIC TOPICSLOIs with 500 applications, then 46 reviews, 13 enterprises - $350k nonprofit grantFIRST TIME THEY’VE DONE ITThe ten enterprises span across the United States and total $340,512 in support:Agriculture and Land-Based Training Association (ALBA) – Salinas, Calif. D.C. Central Kitchen – Washington, D.C. Dixon Cooperative Market—Dixon, New Mexico Grass Lake Sanctuary – Manchester, Mich. GrowNYC – New York, N.Y. Institute for Agriculture and Trade Policy—Minneapolis, Minn. La Cocina – San Francisco, Calif. Los Angeles Communities Advocating for Unity Social Justice, and Action Inc (LA CAUSA) – Los Angeles, Calif. PetaWakan Tipi – St. Paul, Minn. Shagbark Seed and Mill Company – Athens, OhioHUFED center updatesSeptember 15, 2010Wallace Healthy Urban Food Enterprise Development (HUFED) Center has closed out its Year 1 application process, having selected 13 enterprises from among 538 Letters of Interest (LOIs) received from nearly all 50 states; 46 of whom were invited to submit full proposals. It was inspiring to receive so many strong and innovative concepts that both illustrate the need and possible solutions. We encourage those who were not selected to try again. We will announce the next round of funding and Request for Application (RFA) process this Fall 2010. The process will include an invitation to submit Letters of Interest (short mini-proposals) and then finalists will be selected from the LOIs to submit full proposals. Join our mailing list to be the first to hear the announcement.
  • RESEARCH ONLY RIGHT NOW100K COOPERATIVE RESEARCH WITH EASTERN MARKETDIFFERS BY STATE WHETHER YOU GET MONEY THRU STATE OR DIRECTLY FROM USDA, MOST OF STATE RESEARCH THRU STATE, USDA FIELD OFC OF RURAL DEVELOPMENT OFC BECAUSE THERE ARE A LOTHFFI – RETAIL, WHOLESALE REGIONAL FOOD HUBRURAL DEVELOPMENTVALUE-ADDED PRODUCER GRANT PROGRAM – FACILITY DEV, LAND ACQUISITION50K POPULATION OR LESSDeleted La Montanita case study because the Logistics session at the conference is all about hubs, and I’ve heard mixed info from different managers and workers within LM. Also, want to stay focused on USDA funding strategies and streams vs hub model in general.Inventoried so far…33 Food Hubs31 Hybrid Markets12 Shipping-point Markets25 Wholesale/Terminal MarketsCommunity services:Food Hub services may include:Community Gathering Place Accessible Health Care Services SNAP and WIC Benefit Sign-up Business Incubators Community Healthy Playgrounds to Encourage Physical Activity For At-risk Children Fitness Centers Healthy Cooking and Eating Classes and Demonstrations Community Garden and Agricultural Micro-enterprise Project Planning Education and Incentive Programs in Elementary and Middle SchoolsAggregation: Food Hubs can also bulk purchase agricultural inputs and other supplies that producers can pick up while dropping off productsCoordination: More than anything else, this is what sets a food hub apart – a full time business management team that is coordinating efforts between value chain actors (producers, processors, distributors, buyers, consumers). Hub management is actively seeking markets for producers, finding distributors to deliver products to buyers, creating marketing and educational materials to increase demand, and working with producers to ensure their products meet the buyers specifications, in terms of quality, quantity, packaging, food safety, traceability, etc. Hub management could also play an active role in linking producers and other chain actors to other business development, extension, and credit services. Permanent Facility: The first point is a core function of food hub, the second point not as much. A regional food hub can, but does not necessarily, need to be a place where wholesale and retail transactions take place. It is sufficient that a food hub be a centralized facility that aggregates and coordinates farm product to service retail and institutional markets. The proximity of the Food Hub to consumers will largely determine the feasibility of offering wholesale and retail vending.The same holds true for a Food Hub’s ability to offer other community services, i.e., proximity to consumers that could benefit from these services.TWO MAJOR DELIVERABLES of USDA KYF2 subcommittee1) Create Regional Food Hubs Resource GuideUse lessons learned from literature review and from other regional food hub examples to prepare a resource guide on establishing regional food hubs.Carry out outreach (webinars, workshops, etc.) about using USDA programs and resource guide.2) Develop a prioritized list of existing USDA funding streams that could be used to target regional food hub development. Meetings already held with representatives of United Fresh’s wholesale and distribution committee and officers of the North American Produce Market Mgrs association
  • SOCAP10: Debra Tropp, USDA

    1. 1. Support of Local Food Initiatives:<br />The Complementary Roles of Federal, Private and Non-Profit Institutions<br />Debra Tropp<br />Branch Chief, Farmers Market & Direct Marketing Research<br />USDA Agricultural Marketing Service<br />October 2010<br />1<br />
    2. 2. Know Your Farmer, Know Your Food (KYF2)<br />USDA Responding to Local Food Trend: KYF2 <br /><ul><li> Launched September 2009
    3. 3. A “national conversation” re: viable local and regional food systems and new economic opportunities
    4. 4. Deputy Secretary Kathleen Merrigan oversees KYF2 Task Force
    5. 5. Eliminates organizational “silos”
    6. 6. Aligns departments; break down structural barriers
    7. 7. Enhances collaboration
    8. 8. Developsshort-term action plans for all USDA agencies and interagencyKYF2 subcommittees
    9. 9. Advises subcommittees how to allocate money; doesn’t budget new money or disperse funds itself (budgets & how money allocated = complicated!)</li></ul>2<br />
    10. 10. KYF2 Subcommittees<br />Current Subcommittees:<br /><ul><li>Business Structures
    11. 11. Program Access
    12. 12. Train the Trainers
    13. 13. Data Gathering
    14. 14. Data and Gap Analysis
    15. 15. Farm to School and School to Farm
    16. 16. Local Meat Processing
    17. 17. USDA In-House Operations</li></ul> (cafeteria remodel/new healthy menus & vending machines)<br /><ul><li>Opportunities in Agriculture
    18. 18. Food Deserts
    19. 19. Regional Food Hubs</li></ul>Related Departmental and Interagency Activities:<br /><ul><li>Regional Innovations Task Force
    20. 20. Healthy Urban Food Enterprise Development Center
    21. 21. Healthy Food Financing Initiative
    22. 22. White House Task Force on Childhood Obesity/Let’s Move</li></ul>3<br />
    23. 23. New Developments from USDA KYF2<br />KYF2 responds to demand for local foods, interpreting criteria for existing USDA programs to be more open to supporting local/regional food projects:<br /><ul><li>Rural Dev. Business and Industry Loan Guarantees (public/private partnerships) – now being used to expand local food processing capacity
    24. 24. Rural Dev. Community Facilities direct loans, guaranteed loans & grants – funding for “essential community facilities” now seen to include FMs, school and community kitchens, food banks, local food storage and distribution centers
    25. 25. Food & Nutrition Svc. school-based garden RFP - $1 M (new program)
    26. 26. Natl. Resource Cons. Svc.– new cost share provision for hoop house construction to extend local supply availability in harsher climates
    27. 27. New “Great Regions” RFP under Rural Dev. Rural Business Opportunity Grants ($6.2 M) gave preferential treatment to rural broadband, renewable energy and food system topics. 4 food system projects awarded in CA, IA, OR, and SC</li></ul>4<br />
    28. 28. A Few Examples of Relevant KYF2 Initiatives<br />KYF2 Task Force<br />Food Deserts & Healthy Food Financing Initiative (HFFI)<br />12 other Subcommittees & Related Initiatives <br />Regional Food Hubs<br />Healthy Urban Food Enterprise Dev Ctr (HUFED)<br />$$$<br />Administrative Grant to Wallace Center<br />$$$<br />Grants,<br /> Loans,<br />Stimulus Packages <br />$$$<br />USDA operating budget<br />$$$<br />Varied funding mechanisms<br />(based on existing budget)<br />Initial pilots in FY2011, then competitive awards (criteria TBA)<br />5<br />Competitive grants to nonprofits awarded by Wallace Center<br />Agency research<br />(includes some selected external research partners)<br />Scope and direction within Agency programs<br />
    29. 29. Healthy Food Financing Initiative (HFFI)<br />Strategy to eliminate “food deserts” in 7 years<br />Joint Request in FY 2011 budget:<br /><ul><li>Treasury
    30. 30. $250 million requested for new markets tax credits
    31. 31. $25 million for assistance to CDFIs to support private sector financing
    32. 32. USDA
    33. 33. $50 million requested from program set-asides for loans and grants
    34. 34. Heath & Human Services
    35. 35. $20 million requested for grants to Community Development Corp’s
    36. 36. Finance grocery stores, farmers markets
    37. 37. Ripple effect to lower income neighborhoods:
    38. 38. Job creation
    39. 39. Business development opportunities</li></ul>6<br />
    40. 40. Healthy Urban Food <br />Enterprise Development Center (HUFED)<br /><ul><li>Greater access to healthy affordable food via:
    41. 41. Grants
    42. 42. Technical Assistance
    43. 43. Market-based enterprise development (e.g., retail channels)
    44. 44. Funded by USDA’s National Institute for Food and Agriculture
    45. 45. Wallace Center administers funds for:
    46. 46. Urban hubs
    47. 47. Rural hubs
    48. 48. Value chain support
    49. 49. Food safety & nutrition education
    50. 50. Models that bring economic benefits to small/med producers
    51. 51. Models to replicate in other regions
    52. 52. Allocated 1st tranche this year: $350k to 10 enterprises out of 538 applicants</li></ul>7<br />
    53. 53. Examples of HUFED Recipients<br /><ul><li>ALBA Organics– Salinas, CA: local foods for wholesale buyers serving low-income communities and food safety education for small-scale producers
    54. 54. D.C. Central Kitchen – WDC: processing kitchen & job training
    55. 55. Dixon Cooperative Market—Dixon, NM: enhancing fresh food availability in co-op grocery store in rural food desert
    56. 56. Grass Lake Sanctuary – Manchester, MI: rural food hub connecting to cities
    57. 57. GrowNYC – New York, NY: urban food hub (“wholesale” FM at terminal mkt)
    58. 58. Institute for Agriculture and Trade Policy—Minneapolis, MN: multi-stakeholder farm-to-school program
    59. 59. La Cocina – San Francisco, CA: incubator for underserved food entrepreneurs
    60. 60. PetaWakan Tipi – St. Paul, MN: alternative distribution network serving Native families</li></ul>8<br />
    61. 61. Regional Food Hubs: a path to viable regional food systems?<br />Additional research within USDA to create resource guide re: food hub development:<br /><ul><li> Inventory of food hubs
    62. 62. Available Federal funding streams
    63. 63. Technical Assistance
    64. 64. Engagement of food wholesale groups (e.g., United Fresh, National Assoc. of Produce Market Managers)</li></ul>Benefits of food hubs?<br /><ul><li>Physical aggregation of source-identified products
    65. 65. Allows small/medium farms to reliably supply larger volumes of consistent locally- grown foods
    66. 66. Aggregation point may be multipurpose: logistics, foodservice, retail, ancillary community services
    67. 67. Active Coordination of Planting & Harvest Across Farms
    68. 68. Maximizes variety, quality, consistency and volume of local product
    69. 69. May provide farms more access to business management systems
    70. 70. Allows for better planning, responsiveness, and resiliency</li></ul>9<br />
    71. 71. What Have We Learned So Far?<br />The Good News. . .<br /><ul><li>Widespread interest & support of regional food systems within USDA
    72. 72. Outpouring of new initiatives around local food systems
    73. 73. Unprecedented partnerships and coordination with other govt agencies re: local foods (e.g.,. Center for Disease Control, Treasury, Health & Human Services, Housing & Urban Dev)
    74. 74. Demand for locally and regionally grown product continues to skyrocket (e.g., farmers markets up 16% last year to 6,132)
    75. 75. Not always about building new infrastructure, but about economics of making underutilized assets work better through active coordination and planning</li></ul>10<br />
    76. 76. What’s needed most?<br /><ul><li>Start-up capital to renovate/upgrade facilities
    77. 77. Working capital to coordinate supply chain logistics (e.g., transactions, aggregation, distribution, marketing)
    78. 78. Enterprise developmenttraining and technical assistance to help growers meet wholesale buyer needs
    79. 79. Volume
    80. 80. Quality
    81. 81. Packaging
    82. 82. Traceability
    83. 83. Adoption/adherence to GAP and GHP standards
    84. 84. Collaboration & information-sharingvia multi-stakeholder consortia</li></ul>11<br />
    85. 85. Limitations of USDA Regional Food Funding<br /><ul><li>Limitation in resource base: no independent funding
    86. 86. Geographic limitations
    87. 87. Lack of brick & mortar funding (primarily with grants)
    88. 88. Grant timelines
    89. 89. Time lag in accessing funds
    90. 90. Eligible entity restrictions
    91. 91. Limited administrative/overhead costs</li></ul>12<br />
    92. 92. Contact Information<br />Debra Tropp, Branch Chief, Farmers Markets & Direct Marketing Research<br />Debra.Tropp@ams.usda.gov<br />Jim Barham, KYF2 Food Hub Tactical Team Lead<br /> Agricultural Economist – Marketing Services Division<br /> USDA Agricultural Marketing Service<br />James.Barham@ams.usda.gov<br />Information on local food grant programs<br />www.usda.gov/knowyourfarmer (click on “grants, loans and support”)<br />13<br />

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