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Achieving 100% Participation in
  Local Agriculture Systems


           March 2009
USDA-Specialty Crop Research Initiative (SCRI)
 • First phase: “Regional Partnerships for Innovation” section
    – Project Period: 2 to 3 years
    – Budget: Federal funds in the range of $1 million to $2 million per project
    – Purpose: To form broad-based partnerships (universities, local governments, financial
      stakeholders, end-user industries, manufacturers, community organizations, etc.) that
      provide the local or regional infrastructure needed to fully exploit future technology
      commercialization and adoption
    – Description: “…there often remains a gap in organizational and networking resources
      resulting in a lack of “support networks” that encourage regional economic development.”
 • Only one awarded: $1.1M in matching funds = $2.2 M
 • Started with the Ohio Local Food Systems Collaborative (OLFSC)
   which evolved into http://localfoodsystems.org
 • Our goal is widespread participation through multiple projects
   in three states: OH, PA, and MI
 • We are leveraging the network by engaging as many other
   players as possible: IL, Mid-Atlantic, MN, IA…
Ohio State Univ., Michigan State
 Employment
                                               Univ., Pennsylvania Association
 Income                                       for Sustainable Agriculture, John
 Gross Metropolitan Product                   Deere, Ohio Dept. of Agriculture…
 Productivity

                                           Regional Networks & Leaders

                                                                       Research
                                                                       Education
      USDA SCRI Project                                                Pilot Projects
     Social Network Facilitation
    $2.2 million including match
                                                 Local Food Systems
                                                              Renewable Energy
                                                                 Distributed Manufacturing


                                   Local & Regional Economy

                                                                   Global Economy
Business Growth & Attraction
What Constitutes “Local”?
• The least distance agricultural output travels
  between the point of production and the
  point of consumption
• Mileage is a useful construct to compare
  alternative delivery pathways: local, regional,
  global
• Meet local needs as much as possible, first,
  then export surplus
Economic Growth Projections: 2008-2025
2x                                                                 2x




                                                            ly
                                                    esponsib               “Opportunity Space”
                                               Act R quences              for Regional and Local
                                         al to
                                Ind ividu nd Conse                              Economies
                      er o f the munity, a
              The Pow Self, Com
                     rd
1x
                towa                                               1x




                                          s to Deliver
                    The Power of Busines
                                              Price
                       Variety, Quality, and                            Global

                                                                        Regional

                                                                         Local


       2010                   2015                   2020        2025
The Size of the “Local Ag” Pot Is Prompting
         Players to Get in the Game
2x                                                          2x     What would be
                                                                    the impact on
                                                                  Regional and Local
                                                                  Economies if half
                                                                    of the money
                                                                  spent per day per
                                                                   person for food
                                                                   was purchased
1x                                                          1x       from local /
                                                                  regional sources?

       $10 / person / day is spent for food in the U.S.
        15% or $1.50 is spent for local / regional food
     75% spent on globally-sourced food ($6.40) leaves
                                                                 Global
     the community / region and is not reinvested there
                                                                 Regional

                                                                  Local


     2010            2015             2020                2025
Why Would the Global Economy Allow This?
• To grow, the global economy needs a steady flow of creativity
  and innovation which requires investment and freedom for
  participants to envision, consider alternatives, learn from
  experience, and adapt to changing conditions
• People who are thirsty, hungry, sick, and without shelter aren’t
  creative or innovative, they are dying and desperate and have
  nothing to lose—and nothing to contribute
• Left unchecked, the global economy renders people dependent
  on others to provide life’s essentials through agriculture—and
  vulnerable to the second point
• Investment by the global economy to support local and regional
  economies assures a sustainable platform upon which people
  live, work, contribute, develop, and enjoy—and the first point!
Characteristics of a Global Food System

             Packaging              Retail




                                                Consumers
 Producers




                           Hub
                           and
                          Spoke




             Processing           Preparation
Characteristics of a Local Food System
                                                                               •   Fresh / Ripe / Ready-to-Eat
                                                                               •   Tasty / Looks Appealing
                                                                               •   Healthy / Nutritious
                                                                               •   Organic / Chemical Free
                                                                               •   Short Travel Distances /
                     Packaging                  Retail
                                                                                   Reduced Carbon Footprint
                                                                               •   Traceability / Food Safety




                                                                   Consumers
 Producers




              10                                            10                 •   Efficient Conversion
             Miles                                         Miles               •   Effective in Local Market
                                  100 Miles                                    •   Easy to Find and Buy
                                                                               •   Convenient to Use
                                              Preparatio                       •   Comparable Value
                     Processing
                                                  n                            •   Available Information
                                                                               •   Local Brand / Place Value
                                                                               •   Zero / Low Emissions
                                                                               •   ‘Prosumer’ Orientation
                                                                               •   Community Currencies
                                                                               •   Builds Community /
                                                                                   Instills a Sense of Place
What Is “Agriculture”?
•   Food
•   Feed
•   Fuel
•   Fiber
•   Forestry
•   Floriculture
•   “Farmaceuticals”
What Are “Systems”?
• Complete Value Chain     • Spiral-Out Sourcing
   –   Production             –   Aggregation / Consolidation
   –   Processing             –   Logistics / Distribution
   –   Preparation            –   Packaging / Traceability
   –   Retail                 –   Inspection / Regulation
   –   Consumption
• Critical Inputs          • Horizontal Integration
   –   Land & Water           – Community-centric
   –   Information            – Leveraged business plans
   –   Skilled Labor          – Widespread participation
   –   Equipment Systems
   –   Finance
   –   Insurance
Conquering the “Last Mile” of Local Food Systems
                                                                 • An Air Car You Could See in 2

                                                                 • Driven: Shai Agassi's Audacio

Asset                                                            • Factory-in-a-Box
Utilization
                                                                 • Cheese on Wheels
                           Packaging      Retail
                                                                 • Have Knife, Will Travel: A Slau




                                                     Consumers
               Producers




Just-in-Time                                                     • Mobile Berry and Vegetable Q
Inventory
                                                                 • Totally Mobile Kitchen

                                        Preparatio               • Mobile Processing Unit
                           Processing
                                            n

Production
Control
What is “100% Participation”?
In a given community, every person…
• Makes conscious, informed decisions to buy
   agriculture products from local sources, or not
• Advances local agriculture as a way to reclaim
   responsibility and accountability for health,
   community well-being, economic stability, and
   ecological sustainability
• Provides resources for local agriculture to be
   acculturated and embedded within the community
100% Participation in Local Agriculture Systems
                                     Value Chain
                    Own & Operate
                                    Contributions
                                                           Invest
                  Volunteer


        Public Service                                        Direct, e.g., CSAs

    Hold Office                                                          In-Store

         Political                                                  Purchasing
     Involvement                                                    Preferences

Vote & Lobby                            Status                          Farmers Market
                                         Quo


Search & Lurk                             1                                  Health


    Join & Post                                                         Lifestyle
                                          2

 Convene & Lead                                                        Aspirations
                                          3
                                       Level of
                      Community      Participation
                                                     Personal
                     Engagement                      Motivation
Efficiency Improvement and Waste Reduction
                                                             within a Local Agriculture System Value Chain
                           Production                                   Processing       Preparation         Retail      Consumption     Is There a Play for You?


                                                                                                                                               MarketMaker
                   Virtual Buy / Sell Transactions within a Complex Market                                                                    Food Alliance
                                                                 Multi-Agent Systems / Trading Bots / Avatars                              Buy Fresh / Buy Local
(Regional Partnerships for Innovation)




                                                                     Internet Access / Mobile Phone Connectivity                              Local Harvest
                                                                           USDA-SCRI: RPI-PA
                                                                    (Regional Partnerships for Innovation)
                                         USDA-SCRI: RPI-OH




                                                                  Logistics and Operations Optimization                                   Zero Emissions Systems
                                                 Inventory / Scheduling / Containerization / Transportation                                  “Factory in a Field”
        Traceability / Ant Path / Traveling Salesman / Spiral / Corridors – Bus Stops                                                   Carbon Footprint Management

                                                                         USDA-SCRI: CAP-UIUC
                                                                      (Coordinated Agricultural Projects)
                                                                                                                                          Decision Support Systems
                                                                                                                                       Autonomous Equipment Systems
                                                                 Portfolio Diversification and Expansion                                 Modular Equipment Systems
GIS Data Layers / Scenarios for Urban – Periurban – Rural Applications                                                                   Gantry Equipment Systems
                                                             Agricultural Business Growth / Leveraged Human Competence                    Robotic Sensing Programs
                                                                         USDA-SCRI: CAP-UIUC                                                “Farm of the Future”
                                                                      (Coordinated Agricultural Projects)
                                                                                                                                          Open Communications
                                                                                                                                            Active Collaboration
                                                                             Accountability of Agriculture                                 Collective Leadership
                                                               Triple Bottom Line: Natural / Business / Social Ecosystems                Community Responsibility
                                                     Agriculture Is the Integrative Agent for a Local Community / Trust and Verify           Social Networking
                                                                                                                                           Leveraged Resources
Efficiency Improvement and Waste Reduction
                                                             within a Local Agriculture System Value Chain
                           Production                                   Processing       Preparation         Retail      Consumption     Is There a Play for You?


                                                                                                                                               MarketMaker
                   Virtual Buy / Sell Transactions within a Complex Market                                                                    Food Alliance
                                                                 Multi-Agent Systems / Trading Bots / Avatars                              Buy Fresh / Buy Local
(Regional Partnerships for Innovation)




                                                                     Internet Access / Mobile Phone Connectivity                              Local Harvest
                                                                           USDA-SCRI: RPI-PA
                                                                    (Regional Partnerships for Innovation)
                                         USDA-SCRI: RPI-OH




                                                                  Logistics and Operations Optimization                                   Zero Emissions Systems
                                                 Inventory / Scheduling / Containerization / Transportation                                  “Factory in a Field”
        Traceability / Ant Path / Traveling Salesman / Spiral / Corridors – Bus Stops                                                   Carbon Footprint Management

                                                                         USDA-SCRI: CAP-UIUC
                                                                      (Coordinated Agricultural Projects)
                                                                                                                                          Decision Support Systems
                                                                                                                                       Autonomous Equipment Systems
                                                                 Portfolio Diversification and Expansion                                 Modular Equipment Systems
GIS Data Layers / Scenarios for Urban – Periurban – Rural Applications                                                                   Gantry Equipment Systems
                                                             Agricultural Business Growth / Leveraged Human Competence                    Robotic Sensing Programs
                                                                         USDA-SCRI: CAP-UIUC                                                “Farm of the Future”
                                                                      (Coordinated Agricultural Projects)
                                                                                                                                          Open Communications
                                                                                                                                            Active Collaboration
                                                                             Accountability of Agriculture                                 Collective Leadership
                                                               Triple Bottom Line: Natural / Business / Social Ecosystems                Community Responsibility
                                                     Agriculture Is the Integrative Agent for a Local Community / Trust and Verify           Social Networking
                                                                                                                                           Leveraged Resources
Actors, Roles, and Scripts…
                   Players, Views, and Stories…
                             Agents, Rules, and Transactions
                           Production   Processing   Preparation   Retail   Consumption




Aggregation / Consolidation

Logistics & Distribution

Inspection & Regulation

Utilizing Land & Water

Supplying Inputs

Financing

Insuring
Actors, Roles, and Scripts…
                   Players, Views, and Stories…
                             Agents, Rules, and Transactions
                           Production     Processing    Preparation     Retail     Consumption


                                               Sysco      Global            Wal-Mart
Aggregation / Consolidation

Logistics & Distribution          Furmano’s             Regional      Goodness Greeness

Inspection & Regulation         Buy Fresh Buy Local                Door-to-Door Organics
                                                       Local
Utilizing Land & Water     PeaPod                MarketMaker                     Local Harvest

Supplying Inputs                        Food Alliance          Fresh Fork Market

Financing                                        Central Illinois Produce

Insuring
                                        C.H. Robinson                 ConAgra



 Reinventing the Wheel, Overinvestment, Inefficiency, High Maintenance Costs…
                              UNSUSTAINABLE!
A Complex Competitive Landscape Filled with
           Diverse Stakeholders Who Need…
                           Production     Processing    Preparation      Retail      Consumption


                                               Sysco
Aggregation / Consolidation
                                               Managed Access Wal-Mart
                                                   Global
                                                            to
                                  Furmano’s             Regional      Goodness Greeness
Logistics & Distribution
                                              Linked Databases
Inspection & Regulation         Buy Fresh Buy Local       via a
                                                            Door-to-Door Organics
                                                      Local
Utilizing Land & Water
                               Common
                           PeaPod
                                               Open Source Architecture
                                                MarketMaker            Local Harvest
                                                        that uses
Supplying Inputs                        Food Alliance            Fresh Fork Market
                                          Standardized Interfaces
Financing                                 which Central Illinois Produce
                                                enable players to develop
Insuring                                 Specialized Applications
                                        C.H. Robinson      ConAgra
                                    in response to their unique circumstances
Double-Edged Swords?

• Nostalgia
  – Local agriculture today is
    NOT the way it was, now
• Cooperatives
  – Vertical vis-à-vis Horizontal Integration
     • Economies of scale vis-a-vs economies of scope
• Making a Living from Local Agriculture
  – Full-time or part-time
  – Economic justification or social subsidization
What Does This Mean for Your Community?

• MarketMaker?

• Corridors / Bus Stops?

• Portfolio Diversification?

• Others?

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Achieving 100% Participation in Local Agriculture Systems

  • 1. Achieving 100% Participation in Local Agriculture Systems March 2009
  • 2. USDA-Specialty Crop Research Initiative (SCRI) • First phase: “Regional Partnerships for Innovation” section – Project Period: 2 to 3 years – Budget: Federal funds in the range of $1 million to $2 million per project – Purpose: To form broad-based partnerships (universities, local governments, financial stakeholders, end-user industries, manufacturers, community organizations, etc.) that provide the local or regional infrastructure needed to fully exploit future technology commercialization and adoption – Description: “…there often remains a gap in organizational and networking resources resulting in a lack of “support networks” that encourage regional economic development.” • Only one awarded: $1.1M in matching funds = $2.2 M • Started with the Ohio Local Food Systems Collaborative (OLFSC) which evolved into http://localfoodsystems.org • Our goal is widespread participation through multiple projects in three states: OH, PA, and MI • We are leveraging the network by engaging as many other players as possible: IL, Mid-Atlantic, MN, IA…
  • 3.
  • 4. Ohio State Univ., Michigan State Employment Univ., Pennsylvania Association Income for Sustainable Agriculture, John Gross Metropolitan Product Deere, Ohio Dept. of Agriculture… Productivity Regional Networks & Leaders Research Education USDA SCRI Project Pilot Projects Social Network Facilitation $2.2 million including match Local Food Systems Renewable Energy Distributed Manufacturing Local & Regional Economy Global Economy Business Growth & Attraction
  • 5. What Constitutes “Local”? • The least distance agricultural output travels between the point of production and the point of consumption • Mileage is a useful construct to compare alternative delivery pathways: local, regional, global • Meet local needs as much as possible, first, then export surplus
  • 6. Economic Growth Projections: 2008-2025 2x 2x ly esponsib “Opportunity Space” Act R quences for Regional and Local al to Ind ividu nd Conse Economies er o f the munity, a The Pow Self, Com rd 1x towa 1x s to Deliver The Power of Busines Price Variety, Quality, and Global Regional Local 2010 2015 2020 2025
  • 7. The Size of the “Local Ag” Pot Is Prompting Players to Get in the Game 2x 2x What would be the impact on Regional and Local Economies if half of the money spent per day per person for food was purchased 1x 1x from local / regional sources? $10 / person / day is spent for food in the U.S. 15% or $1.50 is spent for local / regional food 75% spent on globally-sourced food ($6.40) leaves Global the community / region and is not reinvested there Regional Local 2010 2015 2020 2025
  • 8. Why Would the Global Economy Allow This? • To grow, the global economy needs a steady flow of creativity and innovation which requires investment and freedom for participants to envision, consider alternatives, learn from experience, and adapt to changing conditions • People who are thirsty, hungry, sick, and without shelter aren’t creative or innovative, they are dying and desperate and have nothing to lose—and nothing to contribute • Left unchecked, the global economy renders people dependent on others to provide life’s essentials through agriculture—and vulnerable to the second point • Investment by the global economy to support local and regional economies assures a sustainable platform upon which people live, work, contribute, develop, and enjoy—and the first point!
  • 9.
  • 10. Characteristics of a Global Food System Packaging Retail Consumers Producers Hub and Spoke Processing Preparation
  • 11. Characteristics of a Local Food System • Fresh / Ripe / Ready-to-Eat • Tasty / Looks Appealing • Healthy / Nutritious • Organic / Chemical Free • Short Travel Distances / Packaging Retail Reduced Carbon Footprint • Traceability / Food Safety Consumers Producers 10 10 • Efficient Conversion Miles Miles • Effective in Local Market 100 Miles • Easy to Find and Buy • Convenient to Use Preparatio • Comparable Value Processing n • Available Information • Local Brand / Place Value • Zero / Low Emissions • ‘Prosumer’ Orientation • Community Currencies • Builds Community / Instills a Sense of Place
  • 12. What Is “Agriculture”? • Food • Feed • Fuel • Fiber • Forestry • Floriculture • “Farmaceuticals”
  • 13. What Are “Systems”? • Complete Value Chain • Spiral-Out Sourcing – Production – Aggregation / Consolidation – Processing – Logistics / Distribution – Preparation – Packaging / Traceability – Retail – Inspection / Regulation – Consumption • Critical Inputs • Horizontal Integration – Land & Water – Community-centric – Information – Leveraged business plans – Skilled Labor – Widespread participation – Equipment Systems – Finance – Insurance
  • 14. Conquering the “Last Mile” of Local Food Systems • An Air Car You Could See in 2 • Driven: Shai Agassi's Audacio Asset • Factory-in-a-Box Utilization • Cheese on Wheels Packaging Retail • Have Knife, Will Travel: A Slau Consumers Producers Just-in-Time • Mobile Berry and Vegetable Q Inventory • Totally Mobile Kitchen Preparatio • Mobile Processing Unit Processing n Production Control
  • 15. What is “100% Participation”? In a given community, every person… • Makes conscious, informed decisions to buy agriculture products from local sources, or not • Advances local agriculture as a way to reclaim responsibility and accountability for health, community well-being, economic stability, and ecological sustainability • Provides resources for local agriculture to be acculturated and embedded within the community
  • 16. 100% Participation in Local Agriculture Systems Value Chain Own & Operate Contributions Invest Volunteer Public Service Direct, e.g., CSAs Hold Office In-Store Political Purchasing Involvement Preferences Vote & Lobby Status Farmers Market Quo Search & Lurk 1 Health Join & Post Lifestyle 2 Convene & Lead Aspirations 3 Level of Community Participation Personal Engagement Motivation
  • 17. Efficiency Improvement and Waste Reduction within a Local Agriculture System Value Chain Production Processing Preparation Retail Consumption Is There a Play for You? MarketMaker Virtual Buy / Sell Transactions within a Complex Market Food Alliance Multi-Agent Systems / Trading Bots / Avatars Buy Fresh / Buy Local (Regional Partnerships for Innovation) Internet Access / Mobile Phone Connectivity Local Harvest USDA-SCRI: RPI-PA (Regional Partnerships for Innovation) USDA-SCRI: RPI-OH Logistics and Operations Optimization Zero Emissions Systems Inventory / Scheduling / Containerization / Transportation “Factory in a Field” Traceability / Ant Path / Traveling Salesman / Spiral / Corridors – Bus Stops Carbon Footprint Management USDA-SCRI: CAP-UIUC (Coordinated Agricultural Projects) Decision Support Systems Autonomous Equipment Systems Portfolio Diversification and Expansion Modular Equipment Systems GIS Data Layers / Scenarios for Urban – Periurban – Rural Applications Gantry Equipment Systems Agricultural Business Growth / Leveraged Human Competence Robotic Sensing Programs USDA-SCRI: CAP-UIUC “Farm of the Future” (Coordinated Agricultural Projects) Open Communications Active Collaboration Accountability of Agriculture Collective Leadership Triple Bottom Line: Natural / Business / Social Ecosystems Community Responsibility Agriculture Is the Integrative Agent for a Local Community / Trust and Verify Social Networking Leveraged Resources
  • 18. Efficiency Improvement and Waste Reduction within a Local Agriculture System Value Chain Production Processing Preparation Retail Consumption Is There a Play for You? MarketMaker Virtual Buy / Sell Transactions within a Complex Market Food Alliance Multi-Agent Systems / Trading Bots / Avatars Buy Fresh / Buy Local (Regional Partnerships for Innovation) Internet Access / Mobile Phone Connectivity Local Harvest USDA-SCRI: RPI-PA (Regional Partnerships for Innovation) USDA-SCRI: RPI-OH Logistics and Operations Optimization Zero Emissions Systems Inventory / Scheduling / Containerization / Transportation “Factory in a Field” Traceability / Ant Path / Traveling Salesman / Spiral / Corridors – Bus Stops Carbon Footprint Management USDA-SCRI: CAP-UIUC (Coordinated Agricultural Projects) Decision Support Systems Autonomous Equipment Systems Portfolio Diversification and Expansion Modular Equipment Systems GIS Data Layers / Scenarios for Urban – Periurban – Rural Applications Gantry Equipment Systems Agricultural Business Growth / Leveraged Human Competence Robotic Sensing Programs USDA-SCRI: CAP-UIUC “Farm of the Future” (Coordinated Agricultural Projects) Open Communications Active Collaboration Accountability of Agriculture Collective Leadership Triple Bottom Line: Natural / Business / Social Ecosystems Community Responsibility Agriculture Is the Integrative Agent for a Local Community / Trust and Verify Social Networking Leveraged Resources
  • 19. Actors, Roles, and Scripts… Players, Views, and Stories… Agents, Rules, and Transactions Production Processing Preparation Retail Consumption Aggregation / Consolidation Logistics & Distribution Inspection & Regulation Utilizing Land & Water Supplying Inputs Financing Insuring
  • 20. Actors, Roles, and Scripts… Players, Views, and Stories… Agents, Rules, and Transactions Production Processing Preparation Retail Consumption Sysco Global Wal-Mart Aggregation / Consolidation Logistics & Distribution Furmano’s Regional Goodness Greeness Inspection & Regulation Buy Fresh Buy Local Door-to-Door Organics Local Utilizing Land & Water PeaPod MarketMaker Local Harvest Supplying Inputs Food Alliance Fresh Fork Market Financing Central Illinois Produce Insuring C.H. Robinson ConAgra Reinventing the Wheel, Overinvestment, Inefficiency, High Maintenance Costs… UNSUSTAINABLE!
  • 21. A Complex Competitive Landscape Filled with Diverse Stakeholders Who Need… Production Processing Preparation Retail Consumption Sysco Aggregation / Consolidation Managed Access Wal-Mart Global to Furmano’s Regional Goodness Greeness Logistics & Distribution Linked Databases Inspection & Regulation Buy Fresh Buy Local via a Door-to-Door Organics Local Utilizing Land & Water Common PeaPod Open Source Architecture MarketMaker Local Harvest that uses Supplying Inputs Food Alliance Fresh Fork Market Standardized Interfaces Financing which Central Illinois Produce enable players to develop Insuring Specialized Applications C.H. Robinson ConAgra in response to their unique circumstances
  • 22. Double-Edged Swords? • Nostalgia – Local agriculture today is NOT the way it was, now • Cooperatives – Vertical vis-à-vis Horizontal Integration • Economies of scale vis-a-vs economies of scope • Making a Living from Local Agriculture – Full-time or part-time – Economic justification or social subsidization
  • 23. What Does This Mean for Your Community? • MarketMaker? • Corridors / Bus Stops? • Portfolio Diversification? • Others?