1. Committed to the future of
rural communities
Dr. Glenda Humiston, State Director
Winning With
Rural – Urban
Partnerships
Leveraging Regional
Industry Clusters and
Value Chains for
Growth & Jobs

2. • Funding and Technical Assistance for:
– Business & Cooperatives Development
– Community Facilities & Rural Utilities
– Water, Sewer & Solid Waste Systems
– Single, Multi-Family & Farmworker Housing
FY 2012: $1.3 Billion
CA Portfolio: >$8 Billion
Committed to the future of
rural communities

3. January 2010 – 43 Forums
•Over 1,000 Californians Participated
•Consistent Recommendations Offered
Throughout All of California
•Strong Partnerships Emerged
1st
Quarter 2011 – 58 Forums
•Almost 2,000 Californians Attended
•Update on Activities and New Economic
Development Strategies
•Strong Support Received
•Many Requests for Collaboration
Forums Produce Recommendations
Committed to the future of rural communities
www.rurdev.usda.gov/Reports/CA-JobsReport-Feb10.pdf

4. Kauffman
FastTrac®
Survey
June 2012
Biggest Obstacle To
Starting A Company Is:
Committed to the future of rural communities
Only 2% of annual
state job gains are
business relocations;
most are from:
•expanding existing
businesses – 42%
•creating new
companies – 56%
Jed Kolko, September 2010,
Public Policy Institute of California

5. •Create Jobs!
•Improve
Distribution
•Expand Access to
New Markets
Committed to the future of rural communities
Regional Industry Cluster Projects
• Enhance Goods
Movement Strategy
• Reduce Carbon
Footprints
SACOG
Rural–Urban
Connection Strategy
Digital 395
Broadband
Project

6. Committed to the future of rural communities
$1 billion manufacturing decrease in rural MN leads to loss
of 1,043 jobs and $208 million in revenue in Twin Cities!
If rural Minnesota’s
manufacturing
cluster grows 6%
($1 billion), the
urban area picks
up 16% of all jobs
gained and 38% of
additional output.
Rural & Urban Areas Very Interdependent
SOURCE: “Estimating Rural and Urban Minnesota’s Interdependencies”, Kate Searls, Minnesota Rural Partners, Inc., 2011

7. Committed to the future of rural communities

8. Committed to the future of rural communities

9. New Distribution Models
Feenstra, G., P. Allen, S. Hardesty, J. Ohmart, and J. Perez., “Using Supply Chain Analysis to Assess
Sustainability of Farm-to-Institution Programs.” Journal of Agriculture, Food Systems, and Community Development
Committed to the future of rural communities

10. • Farmgate: $1.6 Billion
• Indirect: $3.3 Billion
• 21,000 Jobs
Committed to the future of rural communities
Shift Local Consumption
to Local Production =
More Jobs & Economic
Growth!

11. Agro-Tourism:
A Motorcycle
Rally on the
Cattle Ranch
to augment
income!
Committed to the future of rural communities

12. SOURCE: “Local Works: Examining the Impact of Local Business on the Economy”
Case Studies from Arizona, Hawaii, Maine, New York, Michigan and Wisconsin
Capture the Multiplier Effect!
Committed to the future of rural communities

13. Committed to the future of rural communities

14. Bio-Green
Planet
300+ California Firms
Producing an Array of
Bio-Based Products
February 2012: President
Obama signs Executive
Order Requiring Federal
Agencies and Contractors to
Utilize Biobased Products.
Committed to the future of rural communities

15. Commercial bioplastic is already
made from cellulose – replacing
petroleum-based plastics.
USDA scientists developed means
to ferment a broader range of
cellulosic materials – enabling large
scale commercial production.
An estimated $375 billion market
for chemical, plastic, and rubber
products represents a substantial
bioeconomy opportunity.
Biodegradable Plastics from Biomass
Committed to the future of rural communities

16. Committed to the future of rural communities

17. Committed to the future of rural communities
Link Various California Technology Clusters

18. • Coordinate economic development
programs across the federal
government.
• Up to 25 communities will be awarded
$200,000 in 2013 to create strategies
and initiate public-private partnerships.
• 5-6 communities will receive up to $25
million grants in 2014 from the EDA and
supplemented by funding and additional
resources from other federal agencies.
Committed to the future of rural communities

19. A public/private partnership driven
by CEOs of leading North State
businesses to support innovative
growth companies.
One of California’s 12 iHubs, and
the only iHub focused on rural.
Innovate North State’s 5-Year
Vision is to have the North State
recognized as the most
economically competitive rural
region in the U.S. by 2017.
Committed to the future of rural communities
2013 NorCal Top
100 Manufacturers
• Microphor, Inc. in Willits
• Northcal in Ukiah

20. Train Workforce & Entrepreneurs
Committed to the future of rural communities

21. Secretary Vilsack on the 2012 Farm Bill, October 24, 2012
“Every additional billion dollars of
agricultural export sales helps to
generate 8,400 jobs at home.”
www.export.gov
Committed to the future of rural communities

22. Committed to the future of rural communities
• Agriculture: food, fiber, open space, biofuels...
• Forests: wood, habitat, water, carbon sinks...
• Rivers/Coastal: fishing, food, tourism, energy...
• Parks/Public Land: tourism, recreation, habitat...
• Mining & Energy: solar, wind, geothermal, ore...
“Working Landscapes” Targeted
For Action at State Summit
~ $1 Trillion of California Economy

23. •34 Ways to Access Capital
•Recommendations on
Policy and Resources
•Over 130 top experts and
activists representing
financial institutions, private
businesses, economic
development organizations
and government agencies
pledged to implement!
www.rurdev.usda.gov/Reports/CA-CalFOR.pdf
Committed to the future of rural communities

24. • California Organized Investment Network
• State Assistance Fund for Enterprise –
Business and Industrial Development
Corporation (SAFE-BIDCO)
• Tax-Exempt Industrial
Development Revenue Bonds
• Revolving Loan Funds
• Lending Circles
…and much more!
Committed to the future of rural communities

25. Purchasing cooperatives include:
•Ace Hardware,
•The Bike Cooperative,
•Unified Grocers
•and many more.
Worker cooperatives include:
•small bicycle & book stores,
•a fair-trade coffee roaster,
•a taxi company,
•an engineering firm…and more
Cooperatives
Committed to the future of rural communities

26. Direct Public Offerings
Committed to the future of rural communities

27. The U.S. has about 11,000
ESOP companies and about 11
million employee participants.
Employee Stock Ownership Plans
SOURCE: Pugh, W., Oswald, S. & Jahera, J., “The effect of ESOP adoptions on corporate performance:
Are there really performance changes?” Managerial and Decision Economics, 21(5): 167, 2000
Committed to the future of rural communities
ESOP companies, as a
whole and by industry,
tend to outperform their
non-ESOP counterparts.

28. Corporate Investment in Shared Value
Committed to the future of rural communities

29. Goal:
$90 Million
Funds Raised
to Date:
$270 Million
New Model for Financing Regions and/or Sectors
Committed to the future of rural communities

30. California Community Capital Collaborative
Committed to the future of rural communities

31. California Citizens
Hold $859 Billion in
Retirement Accounts
SOURCE: Employee
Benefit Research
Institute, May 2010
Data from Averaging
National Statistics
$43 Billion
for Investment in
California if…
“Invest Local” Initiative
Residents Bring 5%
of Their Retirement
Accounts Home
Committed to the future of rural communities

32. Committed to the future of rural communities
Buy Local
Invest Local
Build Clusters &
Value Chains
Provide Infrastructure
& Goods Movement

33. YOU Provide the Intangible Capital!
Committed to the future of rural communities
Human
Capital
Experience
Competencies
Management
Skills
Workforce
Knowledge
Capital
Information
Research
Processes
Intellectual
Property
Social
Capital
Customers
Vendors
Partners
Brands
Reputation

34. Committed to the future of
rural communities
Phone: 530-792-5800
www.rurdev.usda.gov/ca
California Rural Development
U.S. Department of Agriculture
430 G Street, Agency 4169
Davis, CA 95616