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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

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Local Food as Economic Recovery

  • 1. Local Food as Economic Recovery Ken Meter Crossroads Resource Center (Minneapolis) CFSC Food Policy Workshop Des Moines, Iowa October 10, 2009
  • 2. 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
  • 3. “Finding Food in Farm Country” Studies plus Maui & Hawai’i 45 regions in 20 states (8 states, 1 province)
  • 4. Local Farm & Food Economies The perspectives of the communities where food is produced and eaten... …are often overlooked
  • 5. Local is a shorthand.... Photo: DSC
  • 6. Goal: to build Community-Based Food Systems Photo: DSC
  • 7. Vision for local food economies Build: Health Wealth Connection Capacity
  • 8.
  • 9.
  • 11. Finding Food in Farm Country Marshall County Partner: Prairie Rivers RC&D
  • 12. Marshall County •  39,000 residents •  Earn $1.3 billion income each year Source: Federal Census 2000, BEA
  • 13. 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
  • 14.
  • 15. 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
  • 16. 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
  • 17. 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
  • 18. 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
  • 19. 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
  • 20. 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
  • 21. 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
  • 22. Finding Food in Farm Country Total loss is: •  $166 million each year! •  This is 87% of value of all food commodities raised in region
  • 23. 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
  • 24. Marshall County is not alone...
  • 26. 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
  • 28. 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
  • 29. Health suffers Medical costs of obesity are $134 billion per year — 1/3 of what U.S. farmers gross Source: Harvard Public Health/Colditz
  • 30. 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
  • 31. 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
  • 33. Value Chain Food Service Producer Processor Distributor Retailer Consumer
  • 34. 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
  • 35. Value Network Policy Council Non Profits Consumer: Producer “Coproducer” Processor Retailer Educator Distributor Food Service
  • 36. 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
  • 37. Vernon Economic Development (Wisconsin) •  Crossroads’ study inspires vision •  Purchase factory at low price •  Regional food processing center
  • 38. 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
  • 39. 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
  • 40. 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
  • 41. 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
  • 42. Clark County (Washington) •  Data turns around local discussion of agriculture •  Deepens work of food systems council
  • 43. Columbia Gorge (Washington/ Oregon) •  Data persuades county to allocate land for local foods •  Community food assessment brings low-income needs forward •  Mobile farmers’ market
  • 44. Flint (Michigan) •  Data makes strong case to mayor and development officials •  Urban farms can use existing infrastructure •  Youth involved in hoop house
  • 45. Douglas County (Kansas) •  County chair launches food planning effort •  Sustainability coordinator to be hired
  • 46. Dreaming New Mexico •  Data for state plus 6 regions •  Create bioregional vision
  • 47. Elements of Success for Local Food Systems NEW STUDY! “Mapping the Minnesota Food Industry” www.crcworks.org/mnfood.pdf
  • 48. Elements of Success for Local Food Systems NEW STUDY! “Mapping the Minnesota Food Industry” •  Reciprocity •  Resilience •  Recycling
  • 49. Invest in communities rather than cash for commodities
  • 50. Vision for local food economies Build: Health Wealth Connection Capacity
  • 51. “Finding Food in Farm Country” www.crcworks.org/econ.html (612) 869-8664 kmeter@crcworks.org