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Utilizing Agriculture as an Economic Development Tool 2013 Ohio Farmland Preservation Summit January 17, 2013 Mike Hogan Extension Educator & Associate Professor Ohio State University Extension. Getting Started. Introductions: -Name -Community - Afilliation

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Utilizing agriculture as an economic development tool 2013 ohio farmland preservation summit

Utilizing Agriculture as an

Economic Development Tool

2013 Ohio Farmland Preservation Summit

January 17, 2013

Mike Hogan

Extension Educator& Associate Professor

Ohio State University Extension


Getting started

Getting Started

  • Introductions:

    -Name

    -Community

    -Afilliation

    -How do you target ag in economic devt?


What is agriculture

What Is Agriculture?

  • Farming

  • Forestry & forest products

  • Green industry

  • Processing & marketing

  • Farm support and services

  • Agritourism


Why target agriculture

Why Target Agriculture

  • Agriculture is big business in Ohio:

    -Food and agriculture cluster contributes $105 billion, or 12% of Ohio’s total economic output of $898 billion

    -Cluster’s share of the $477 billion gross

    state product is $51 billion, or 11%

    -75,000 farms sell more than $7 billion

    worth of products


Why target agriculture1

Why Target Agriculture

- Ohio’s gross state product improved by 1.3% from

2008 to 2010, with 30% of that improvement

coming from the food & ag cluster

  • Food & ag cluster accounts for 14% of Ohio’s

    employment, or 1 in 7 jobs

  • Number in jobs in cluster grew by 1% from 2008

    to 2010, a period when total employment in Ohio

    declined by 3%


Why target agriculture2

Why Target Agriculture

-Food and agriculture cluster is the largest sector of Ohio’s economy when the value of production and supply chain is counted, (farms, processing, wholesaling, retailing, & food service).


Why target agriculture3

Why Target Agriculture

-Farming (one portion of supply chain in food and

ag cluster) is important in every Ohio county

-Mercer - $394 million cash receipts

-Darke - $355 million cash receipts

-Fairfield - $77 million cash receipts

-Vinton - $4 million cash receipts

-Franklin - $43 million cash receipts

-Cuyahoga - $9 million cash receipts


Why target agriculture4

Why Target Agriculture

-Impact of this economic output:

-Mercer - $394 million = $2.7 billion

-Darke - $355 million = $2.5 billion

-Fairfield - $77 million = $539 million

-Vinton - $4 million = $28 million

-Franklin - $43 million = $301 million

-Cuyahoga - $9 million = $63 million


Why target agriculture5

Why Target Agriculture

  • The public views agriculture differently than in the past

  • They desire authenticity and a connection to their food

  • Access to healthy, fresh food is valued

  • They want to support the local economy

  • They see environmental benefits of farm ecosystems


Why target agriculture6

Why Target Agriculture

  • Local foods becoming a larger share of the food and agriculture sector:

    -$7 billion in US sales predicted for 2013

    -7,000 farmers markets compared to just

    340 markets in 1970

    -Direct sales from farmers to consumers

    increasing 5% each year in Ohio, to more

    than $60 million


Why target agriculture7

Why Target Agriculture

  • Food attracts development

    -West Side Market in Cleveland

    -Detroit’s Eastern Market

    -Weinland Park plan in Columbus


Why target agriculture8

Why Target Agriculture

“Ohio agriculture and related public policy has long been focused on distant markets, rather than on Ohio consumers, to the detriment of the state economy”

-Ken Meter

2011 Ohio Food System Report

“Food and agriculture are the sleeping giant of economic development”

-Amalie Lipstreu


Why target agriculture9

Why Target Agriculture

  • $30 billion leaks out of Ohio each year from the food and agriculture sector:

    -Farmers purchase $4 billion in inputs from

    outside the state

    -Consumers buy $26 billion in food

    produced outside of Ohio


From smokestack chasing to community based economic development

From smokestack chasing to community-based economic development


Community based agriculture food e conomic development

Community-Based Agriculture & Food Economic Development

  • Integrated local effort

  • Capitalizes on local resources to retain and grow food and agriculture

  • Advances sustainable farming and businesses

  • Yields economic, environmental, and social benefits for community

  • Recognizes full spectrum of food and agriculture cluster


What does ag economic development look like

What does ag economic development look like?

  • Community-based agriculture and food economic development

  • Short supply chains

  • Value chains

  • Agriculture of the middle

  • May require public investment


What does ag economic development look like1

What does ag economic development look like?

  • Systems perspective

  • Infrastructure development

  • Food and agriculture part of overall economic development strategy in a community

  • Jobs may not be the only metric


Tools needed

Tools needed

  • Venture capital

  • Revolving loans

  • Micro-loans

  • Low interest loans

  • Tax credits

  • CDBG investments

  • Business planning

  • R & E strategies

  • Special programs (tobacco funds)


Tools needed1

Tools needed

  • More strategic planning

  • More community involvement

  • Relationship-building with food and ag community


Summary

Summary

  • Ag may require some different economic development strategies, but will benefit from application of conventional economic development strategies

  • Ag should be part of a comprehensive economic development approach, not separate


Summary1

Summary

  • To be successful with utilizing agriculture as an economic development tool, think big----as in food and agriculture cluster concept

  • To be successful with utilizing agriculture as an economic development, think local


Summary2

Summary

  • Utilizing agriculture as an economic development strategy is probably the most important farmland preservation tool available


Contact

Contact

Mike Hogan

OSU Extension – Fairfield County

831 College Ave.

Lancaster, OH 43130-1081

Voice – 740.653.5419

FAX – 740.687.7010

Cell – 330.324.6341

email – [email protected]


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