USDA Resources for Regional Food Hubs

Report
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
Beans,
Grains,
and Flour
Eggs
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
Rural Development State Offices:
http://www.rurdev.usda.gov
Marketing
USDA Rural Business Programs
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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
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
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
[email protected]
614-255-2390
www.usda.gov/kyfcompass
www.usda.gov/knowyourfarmer

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