USDA Program Update OhioEPA Blighted Property Workshop Michael Rutherford Business & Cooperative Program Director Ohio Rural Development May 8, 2015 Marietta Ohio

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 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 Support for Local and Regional Food NRCS: EQIP conservation practices for livestock producers FSA: Farm loans, microloans and Farm Storage Facility Loans RD: Local food infrastructure, regional food hubs AMS and FNS: Marketing programs, food access efforts NIFA: Training and research along the supply chain ARS, ERS and NASS: Research and data; policy analysis

USDA and Local/Regional Food Systems Infrastructure Aggregating Processing Distributing Marketing Rural Development State Offices:

Massillon Marietta Columbus Hillsboro Findlay USDA Ohio Rural Development

Nearly $610 million total funding across all programs $11.2 million in Community Programs $27.14 million in Water & Environmental $36.3 million in Business & Cooperative programs $535 million in Single & Multi-family Housing RUS Electric 2014 Ohio RD Funding

Rural Business & Cooperative Programs Rural Energy for America Program (REAP) Rural Housing Programs Community Development Programs Rural Utilities Service Rural Electrification and Transmission Broadband Program Areas

Business and Industry Loan Guarantee Intermediary Relending Program Rural Economic Development Loans & Grants Rural Business Development Grants Value Added Producer Grants Cooperative Development Renewable Energy Programs Rural Business Programs

Applicant may be sole proprietor, cooperative, corporation, or LLC - For-profit or not-for-profit Eligible businesses include manufacturing, wholesaling, retailing or service-oriented Must provide employment or improve economic or environmental climate. B&I Guaranteed Loans

Real Estate Machinery & Equipment Term Working Capital Business Acquisitions Tourism & Recreation Hotels & Motels Refinancing (including existing lender debt) Eligible Loan Purposes

Minimum loan = $400,000 $750,000 to $5 million = 80% guarantee $5 - $10 million = 70% guarantee Average loan = $3 million One-time 2% fee on guaranteed portion of loan Annual renewal fee =.25% Guarantee Limits

Value-Added Producer Grant Help agricultural producers generate new products, create and expand marketing opportunities and increase producer income. Maximum: $100K / planning $300K / working capital Cash or eligible in-kind matching funds equal to at least the grant amount requested Business & Cooperative Grants

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

FSA Assistance: Local/Regional Food Systems Farm Service Agency  Beginning Farmer Loans  Microloans and Farm Storage Facility Loans (for cold storage!)  Youth Project Loans Farm Service Agency State Offices:

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 Farm Storage Facility Loan

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

The Know Your Farmer, Know Your Food Initiative

Know Your Farmer, Know Your Food: Resources for Navigating USDA

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 The KYF Compass Map

Find Resources to Fit the Need

Michael Rutherford Thank You!