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Ohio Food Policy Summit Tony Logan, state director Ohio Rural Development U.S. Department of Agriculture May 27, 2014. What is a Local/Regional Food System?. The benefits (economic, social, nutritional, etc.) accrue to the local community. All phases of the lifecycle of food….
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Ohio Food Policy Summit Tony Logan, state director Ohio Rural Development U.S. Department of Agriculture May 27, 2014
What is a Local/Regional Food System? The benefits (economic, social, nutritional, etc.) accrue to the local community All phases of the lifecycle of food… Take place within a specific region (county, state, multi-state area) And… Information about the product’s origin is conveyed to the consumer so they can “choose local”
What is Local Food? A consumer-driven market • Consumer demand drives new farm products, new markets for businesses • Businesses capture higher margins when they produce with the customer in mind • Need to communicate about agriculture to the consumer • Unique business models and needs
Local WHAT? Beans, Grains, and Flour Meat, Poultry and Fish Vegetables Eggs Dairy Fruits
Local and Regional Food Systems Why local and regional food? • Economic development and jobs • Education and health in schools • Increased access to healthy food • Beginning farmer opportunities
USDA and Local/Regional Food Systems How is USDA involved? • Increasing the local food supply • Supporting infrastructure • Improved access to local foods
USDA and Local/Regional Food Systems Extending the Growing Season • Seasonal High Tunnel initiative (hoop houses) NRCS State Conservationists: http://www.nrcs.usda.gov/wps/portal/nrcs/sitenav/national/states/
USDA and Local/Regional Food Systems • Infrastructure • Aggregating Processing Distributing Marketing Rural Development State Offices: http://www.rurdev.usda.gov
USDA Rural Business Programs Business and Industry Loan Guarantee Intermediary Relending Program Rural Economic Development Loans and Grants Rural Business Enterprise Grants Value Added Agriculture Marketing Grants Cooperative Development Renewable Energy Programs
Cooperative Development • Rural Cooperative Development Grants = Grants made to establish rural co-op centers • OSU South Centers, Kent State University, and National Network of Forest Practitioners have been successful applicants in Ohio
Ohio Cooperative Start-ups: • Our Harvest, Cincinnati (regional food hub) • Farmers Market Management Network (Farm Market Training) • Fifth Street Brewpub Cooperative (Public House) Tending plants that will eventually produce food to be sold through Our Harvest Cooperative in Ohio, which is structured on the worker cooperative model used in the Mondragon region of Spain. Photo courtesy: Our Harvest Cooperative From food hubs to brewpubs, cooperatives are growing in Ohio, and are a useful tool in the local foods movement.
Lake-to-River Food Hub The LTR Food Hub includes aggregation with online ordering, a planned retail outlet and kitchen processing capacity. Operated by a multi-stakeholder cooperative. The Food Hub is owned by Common Wealth, Inc., an Ohio 501c-3 nonprofit corporation located near Youngstown State University.
Food Hubs, Produce Auctions and Kitchen Incubators in • Athens, Nelsonville, Chesterhill, Somerset and Zanesville • Funded through USDA Rural Business Enterprise Grants and Value Added Producer Grants • Managed by Rural Action, the Appalachian Center for Economic Networks (ACEnet), and Muskingum County Business Incubator
Business and Industry Loan Guarantees Guarantee up to 80% of a private lender’s loan for a business that will create/retain jobs Eligible Areas: 50,000 or less Population Typical Loan Guarantee is $2.5 million; but range from $500,000 to $10 million
Ohio businesses financed with B&I loan guarantees Kettle Creations, Lima – pre-cooked potato products Hirzel Canning, Ottawa – Ohio vegetable products Gerber Poultry, Wooster – Ohio poultry products
Value Added Producer Grants Products that are aggregated & marketed as a locally- produced food Helps expand customer base for products; commodities Result in greater portion of revenues being available to producer
Community Facility Loans / Grants Direct loans and limited grants for community facility projects in jurisdictions of 20,000 population or less Eligible projects include fire trucks and first responder equipment, libraries, day care facilities, Community Centers… Terms: up to 40 years
Rural Community Development Initiative (RCDI) Grants
USDA and Local/Regional Food Systems Credit • Farm Loans, Microloans and Farm Storage Facility Loans (for cold storage!) Farm Service Agency State Offices: http://www.fsa.usda.gov/FSA/stateOffices Farm Service Agency State Offices: http://www.fsa.usda.gov/FSA/stateOffices
Farm Storage Facility Loan • Applies to fruit, vegetable, and nut frozen or dry storage facilities • Low interest financing for farmers to erect or upgrade farm storage and handling facilities. • The loan is approved by the local FSA Committee.
Farm Storage Facility Loan • $500,000 is the maximum per person • 15% down • 7-year, 10-year, and 12-year loans • Fixed interest based on month of disbursement • Equal amortized installments • Loan disbursed after bin is erected and inspected Terms
USDA and Local/Regional Food Systems Increased access: Mobile markets USDA’s Farmers Market and Local Food Promotion Program www.ams.usda.gov/fmpp
USDA and Local/Regional Food Systems • Increased access: Farm to School USDA’s Farm to School Program www.fns.usda.gov/farmtoschool/farm-school
The Know Your Farmer, Know Your Food Initiative www.usda.gov/knowyourfarmer
Know Your Farmer, Know Your Food:Resources for Navigating USDA www.usda.gov/knowyourfarmer
The KYF Compass Map • Includes data on: • USDA-funded local food projects • Farmers markets and other “context data” gathered by USDA agencies • Projects and resources from • 9 other federal departments • Updated regularly www.usda.gov/kyfcompass
Find Resources to Fit the Need www.usda.gov/knowyourfarmer
Thank You! Tony Logan tony.logan@oh.usda.gov 614-255-2390 www.usda.gov/kyfcompass www.usda.gov/knowyourfarmer