USDA resources for regional food hubs

USDA and Local/Regional Food Systems... USDA and Local/Regional Food SystemsInfrastructure Aggregating Processing Distributing Marketing Rural Development State Offices: http://www.rurd

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… specific region (county, Take place within a

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

Local WHAT?

Vegetables Meat, Poultry and Fish

Beans, Grains, and Flour

s

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

 Increasing the local food supply

 Supporting infrastructure

 Improved access to local foods

How is USDA involved ?

USDA and Local/Regional Food Systems

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

• 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

USDA Rural Business Programs

• 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

Cooperative Development

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.

• Our Harvest, Cincinnati (regional food hub)

• Farmers Market Management Network (Farm Market

Training)

• Fifth Street Brewpub Cooperative (Public House)

Ohio Cooperative Start-ups:

• 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.

Lake-to-River Food Hub

• 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

• 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

Business and Industry Loan Guarantees

B&I loan guarantees

• Kettle Creations, Lima – pre-cooked

• Products that are aggregated & marketed as a

locally- produced food

• Helps expand customer base for products;

Applicant Name RD Funding

Eggtech $300,000

The Ohio Soybean Council $71,551

• 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

Community Facility Loans / Grants

(RCDI) Grants

WSOS Community Action (FY08) $261,475Ohio Valley Regional Development Commission (FY08) $108,000WSOS Community Action (FY07) $175,000The Ohio State University Research Foundation (FY 05) $105,825WSOS Community Action Commission (FY04) $300,000 Ohio Valley Regional Development Commission (FY02) $120,000

WSOS Community Action Commission (FY02) $700,000

Rural Community Development Initiative

USDA and Local/Regional Food Systems

• 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

Farm Storage Facility Loan

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

• Includes data on:

• Projects and resources

Find Resources to Fit the Need

Tony Logantony.logan@oh.usda.gov

614-255-2390

www.usda.gov/kyfcompass

www.usda.gov/knowyourfarmer

Thank You!