The Role of Local Food in Economic Recovery
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The Role of Local Food in Economic Recovery Ken Meter Crossroads Resource Center (Minneapolis) University of Georgia Ag Forecast Series January 24-25, 2011 “Finding Food in Farm Country” Studies plus Maui & Hawai’i 58 regions in 25 states & one province Local Farm & Food Economies The perspectives of the communities where food is produced and eaten... …are often overlooked Vision for local food economies Build: Health Wealth Connection Capacity The current food system takes wealth out of our communities “Local” foods may be the best path toward economic recovery “Local” is a shorthand.... Photo: DSC Goal: to build Community-Based Food Systems Photo: DSC Lorentz Meats (Cannon Falls) Thriving niche markets: 60 employees • Beef & pork processing • Organic processing • Own national brand • Custom work for nearby farms Lorentz Meats (Cannon Falls) Beef processing: Costs 35 cents/lb Competes with 3 cents/lb Lorentz Meats (Cannon Falls) Helps launch other businesses: Thousand Hills Cattle Co. Hillside Farmers’ Co-op Finding Food in Southern Virginia The Harvest Foundation; Virginia Co-op Extension Carroll Floyd Franklin Henry Patrick Pittsylvania Caswell (NC) Rockingham (NC) Map: geology.com Martinsville / Henry County region • 412,965 residents • Earn $12.3 billion of income each year Source: Federal Census $200,000 or more $150,000 $199,999 $125,000 $149,999 $100,000 $124,999 $75,000 - $99,999 $60,000 - $74,999 $50,000 - $59,999 $45,000 - $49,999 $40,000 - $44,999 $35,000 - $39,999 12,000 $30,000 - $34,999 14,000 $25,000 - $29,999 $20,000 - $24,999 $15,000 - $19,999 $10,000 - $14,999 less than $10,000 households Household income levels in Martinsville region, 1999 18,000 16,000 104,000 people (30%) below 185% of poverty 10,000 8,000 6,000 4,000 2,000 - Martinsville region Food & Farm Economy • 6,642 farms •Average size 157 acres (similar to Virginia & NC) Source: USDA Agriculture Census 2007 Martinsville region Food & Farm Economy • 68% of farms sell less than $10,000 • 7% sell more than $100,000 Source: USDA Agriculture Census 2007 Martinsville region Food & Farm Economy • 33% of farms are less than 50 acres Martinsville region Food & Farm Economy • 29%+ of sales — cattle & calves • 10% of sales — ornamentals Martinsville region Food & Farm Economy • Poultry & Egg sales — $11.6 million Source: USDA Agriculture Census 2007 Martinsville region Food & Farm Economy • 343 vegetable farms • $6+ million sales Source: USDA Agriculture Census 2007 Martinsville region Food & Farm Economy • 225 orchards • $6 million sales Source: USDA Agriculture Census 2007 407 farms sell direct to consumers $2.6 million sales Source: Census of Agriculture 2007 Martinsville region Food & Farm Economy • 24 farms sell organic products • $228,000 sales Farm Production Balance in Martinsville region, 1969-2008 450 400 350 $ millions (current) 300 250 200 Cash Receipts 150 Production expenses Balance 100 50 -100 Source: Bureau of Economic Analysis 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 -50 1969 0 Farm Production Balance in Martinsville region, 1969-2008 700 600 Cash receipts Production expenses $ millions (2007 dollars) 500 Balance 400 300 200 100 -200 Source: Bureau of Economic Analysis 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 -100 1969 0 Farm Production Balance in Martinsville region, 1969-2008 700 600 Cash receipts Production expenses $ millions (2007 dollars) 500 Balance 400 300 200 $156 million less than 1969 100 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 -100 1969 0 -200 Source: Bureau of Economic Analysis $346 million lost since 1999 Martinsville region Food & Farm Economy • Region’s farmers produce $293 million of commodities per year And… • Spend $328 million to raise them Lose $35 million in production costs Averages for (1999-2008) Source: Bureau of Economic Analysis Martinsville region Food & Farm Economy So… • Farm families earn $52 million of other farm-related income • And receive $12 million in federal supports each year Source: Bureau of Economic Analysis Martinsville region farm income by type, 1969-2008 250 200 150 Other Farm-Related Income Farm Production Balance 100 50 -50 -100 Source: Bureau of Economic Analysis 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 0 1969 $ millions (2007 dollars) Government Payments Crop and livestock sales in Martinsville region, 1969-2008 500 450 $ millions (2007 dollars) 400 Livestock 350 Crops 300 250 200 150 100 50 Source: Bureau of Economic Analysis 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 1969 0 Photo: USDA 60% of all farms reported net losses in 2007 — after subsidies Farm production expenses in Martinsville region, 1969-2008 80 Feed purchased $ millions (2008 dollars) 70 Livestock purchased Seed purchased 60 Fertlizer and Lime Petroleum products 50 Hired farm labor 40 30 20 10 Source: Bureau of Economic Analysis 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 1969 0 $140 million of these farm inputs are sourced outside the region Source: Ken Meter using data from Agriculture Census 2007 Using local inputs would reduce these losses Also a region of food consumers... Finding Food in Farm Country As farmers struggle... • Consumers buy $1 billion of food each year • $900 million from outside region Source: Ken Meter using Bureau of Labor Statistics Finding Food in Martinsville region Markets for food eaten at home millions Meats, poultry, fish, and eggs $ 139 Fruits & vegetables 96 Cereals and bakery products 78 Dairy products 65 “Other,” incl. sweets, fats, & oils 199 Source: Census & BLS All told, Martinsville region… • Loses $34 million in production • Loses $140 million buying inputs • Loses $900 million buying food Finding Food in Farm Country Total loss is: • $1.17 billion each year! • Four times the value of all food commodities raised in region The good news is... Farm Production in to Current farm incomeBalance compared Martinsville region, 1969-2008 Martinsville region consumer market 700 600 Cash receipts Production expenses $ millions (2007 dollars) 500 Balance 400 300 Region’s consumer market 200 100 -200 Source: BEA and BLS 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 -100 1969 0 Martinsville region If the region’s consumers bought 15% of their food directly from local farms... …farms would earn $90 million of new income Shenandoah Valley not alone... State of Virginia Farm Production Balance in Virginia, 1969-2008 5 $ billions (2008 dollars) 4 3 Cash receipts 2 Production expenses Balance 1 $976 million less than 1969! -1 Source: Bureau of Economic Analysis 2007 2005 2003 2001 1999 1997 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 1969 0 $2.2 billion lost in last 10 years! State of Georgia -2 2007 2005 2003 2001 1999 1997 10 1995 1993 1991 1989 1987 1985 1983 1981 1979 1977 1975 1973 1971 1969 $ billions (2008 dollars) Farm Production Balance in Georgia, 1969-2008 12 Cash receipts Production expenses Balance 8 6 4 2 0 U.S. data Farm Production Balance for U.S. farms, 1929 - 2010 350 300 $ billions (2005 dollars) 250 200 150 Cash Receipts Production expenses 100 Farm Production Balance 50 USDA Economic Research Service 2007 2004 2001 1998 1995 1992 1989 1986 1983 1980 1977 1974 1971 1968 2010F -50 1965 1962 1959 1956 1953 1950 1947 1944 1941 1938 1935 1932 1929 0 Change in Farm Production Balance, 1969 - 2002 Map by Ken Meter, 2005 Source: BEA Corn sweeteners consumed in U.S., 1966 - 2002 Source: USDA/ERS — chart by Ken Meter, 2006 U.S. Youth Who are Overweight Percent by Age Percent 16 14.0% 14 10.7% 12 13% 10 10.7% 8 6 4.6% 4 2 4.1% 0 1963-70 1971-74 Ages 6-11 1976-80 1988-94 1999 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 Growing Power, Milwaukee 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 3,000 deaths due to food poisoning each year in U.S. Sources: CDC/Walters Medical cost: $152 billion per year Health suffers Medical costs of obesity are $174 billion per year — Source: CDC/Walters, Harvard Public Health/Colditz Supply Chain Food Service Producer Processor Distributor Retailer Consumer 41% Source ERS; chart by Ken Meter, 2007 20% Value Network Policy Council Non Profits Consumer: Producer “Coproducer” Processor Retailer Educator Distributor Food Service Direct Food Sales Innovative farm operations Winter CSA Milan, Minnesota Fresh fresh organic greens November to April Sells only within 30 miles Winter CSA — Milan, Minnesota Winter CSA — Milan, Minnesota Organic Sales Organic Valley 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 $ millions Organic Valley sales, 1988 - 2009 (est) 600 $532 million sales 500 400 300 200 100 - Black Hawk region, Iowa UNI Local Food Project 1998 3 institutions buy $111,000 of local foods 2009 26 buy $2,600,000 Local Food Expenditures by the participating institutions in the Black Hawk County Area, Iowa 1998-2009 Northern Iowa Food & Farm Jobs, Fruit & Veggies, and Black Hawk County region If Black Hawk region 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 Will Allen, Growing Power, Milwaukee Growing Power, Milwaukee Greensgrow Gardens, Philadelphia Greensgrow Gardens, Philadelphia Greensgrow Gardens, Philadelphia Greensgrow Gardens, Philadelphia Viroqua, Wisconsin • Factory closes • 85 of best jobs lost • Printing & packaging firm Viroqua, Wisconsin Viroqua, Wisconsin • Economic Development Association buys building • 100,000 square feet • Regional food processing center Viroqua Business Cluster Produce Distributor 1 Produce Distributor 2 Processors Bakery & Public Space TBD Nonprofits Viroqua Business Cluster Hospital Produce Distributor 1 Root cellar Produce Distributor 2 Food co-op Processors Schools Bakery & Public Space TBD Nonprofits Organic Valley Amish farmers Viroqua, Wisconsin Northfield, Minnesota Hillside Farmers Co-op Latino/Anglo Poultry Co-op Hillside Farmers Co-op Northfield, Minnesota Production on 1/4-acre sites Process at larger scale, someday Poultry Business Cluster P P P P P P P Poultry Business Cluster P P P Processing P P P P Poultry Business Cluster Eggs Hazelnuts P P Grains P Apples Processing P Herbs P P Sweet corn P Compost Elements of Success for Local Food Economies “Mapping the Minnesota Food Industry” • Relationships • Resilience • Recycling Minnesota policy Invest homeland security money in food planning H1N1 virus — made plans to close borders U.S. Federal Policy 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 (612) 869-8664 kmeter@crcworks.org
