USDA resources for regional food hubs

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? All phases of the lifecycle of food… Take place within a specific region (county, state, multi-state area) The benefits (economic, social, nutritional, etc.) accrue to the local community 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? Meat, Poultry and Fish Vegetables Dairy Fruit s Beans, Grains, and Flour Eggs 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 Rural Development State Offices: http://www.rurdev.usda.gov Marketing 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 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 Value Added Producer Grants Applicant Name Eggtech Von Strohm Fiber Mill Auburn Twin Oaks RD Funding $300,000 $60,500 $125,000 The Ohio Soybean Council $71,551 Mercer Landmark $39,800 Tea Mills Gourmet Chicken Products Total $178,062 $649,913 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 Applicant Name RD Funding WSOS Community Action (FY08) $261,475 Ohio Valley Regional Development Commission (FY08) $108,000 WSOS Community Action (FY07) $175,000 The Ohio State University Research Foundation (FY 05) $105,825 WSOS Community Action Commission (FY04) $300,000 Ohio Valley Regional Development Commission (FY02) $120,000 WSOS Community Action Commission (FY02) $700,000 Total $1,770,300 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 Terms • $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 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 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 [...]... 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... 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 ... $300,000 Ohio Valley Regional Development Commission (FY02) $120,000 WSOS Community Action Commission (FY02) $700,000 Total $1,770,300 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... 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... 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,... 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 Terms • $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 USDA and Local /Regional Food. .. 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:... 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 Value Added Producer Grants Applicant Name Eggtech Von Strohm Fiber Mill Auburn Twin Oaks... 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 Applicant Name RD Funding WSOS Community Action (FY08) $261,475 Ohio Valley Regional Development Commission ... inspected 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... 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... 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