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
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
and Flour
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:
USDA and Local/Regional Food Systems
Rural Development State Offices:
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
• Gerber Poultry, Wooster – Ohio poultry
Value Added Producer Grants
• Products that are aggregated & marketed as a
locally- produced food
• Helps expand customer base for products;
• Result in greater portion of revenues being
available to producer
Value Added Producer Grants
Applicant Name
Von Strohm Fiber Mill
Auburn Twin Oaks
RD Funding
The Ohio Soybean Council
Mercer Landmark
Tea Mills Gourmet Chicken Products
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)
Ohio Valley Regional Development Commission (FY08)
WSOS Community Action (FY07)
The Ohio State University Research Foundation (FY 05)
WSOS Community Action Commission (FY04)
Ohio Valley Regional Development Commission (FY02)
WSOS Community Action Commission (FY02)
USDA and Local/Regional Food Systems
 Farm Loans, Microloans and Farm Storage Facility Loans (for
cold storage!)
Farm Service Agency State Offices:
Farm Service Agency State Offices:
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
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
USDA and Local/Regional Food Systems
Increased access: Mobile markets
USDA’s Farmers Market and Local Food Promotion
USDA and Local/Regional Food Systems
 Increased access: Farm to School
USDA’s Farm to School Program
The Know Your Farmer,
Know Your Food Initiative
Know Your Farmer, Know Your Food:
Resources for Navigating USDA
The KYF Compass Map
•Includes data on:
USDA-funded local food
Farmers markets and other
“context data” gathered by
USDA agencies
•Projects and resources from
9 other federal departments
•Updated regularly
Find Resources to Fit the Need
Thank You!
Tony Logan
[email protected]

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