Creating “Our Own” Vision For The Future The Woodbury County Experience

1. Rob Marqusee Director, Rural Economic Development 712.279.6609 rmarqusee@sioux-city.org www.woodburyiowa.com Creating “Our Own” Vision For The FutureThe Woodbury County Experience Local Food From Local Farms: Benefits and Opportunities A Local Foods Educational Conference University of Nebraska-Lincoln East Campus Student Union 300 Nebraska East Union, Lincoln August 7, 2007

2. STATUS OF RURAL COMMUNITIES

3. Woodbury County Population Breakdown Loss In Population: Unincorporated Areas: 11.2%/Rural Cities: 9.7% 1970-2000 However: 20%+ Decline Outside of Corridor Forecast: Accelerated Decline After 2000 (DM Reg)

4. Statistical Impact of Policies • Woodbury County Ag - Rural Statistics • Sales of Livestock & Livestock Products • 1969: $358M vs. 2003: $80M • 78 percent decline over 35 years • Sales of Crops & Livestock • 1998-2003: $145M loss from crops & livestock • Farms & Average Farm Sizes (Farms/Acreage) • 1975: 1,930/268 vs. 2004: 1,140/387 • 78% Increase in Number of Farms 1000 Acres+ • Woodbury County Losses & Subsidies • Annual Loss: $24M Annual Subsidy: $23M • Difference of $1M Made Up By Additional Jobs (Statistics Provided By: Ken, Meter, Crossroads Resource Center, 2005 & U.S. Census)

5. Iowa Ag Stats & Forecast • Iowa Ag Statistics • 50%+ Of Farmland To Transfer in 10 Yrs • 25% Farmland Belong to Those >75 Age • Average Farmer Age 55+ (Woodbury: 60+) • Iowa Forecast • Fewer Owners of Land • Faster Decline in Rural Population • Less Income in Rural Areas • More Strain on Environment (Des Moines Register: July 17 & July 24, 2005)

6. FORCES IMPACTING RURAL ECONOMY

7. Total US Farm Subsidies Federal Subsidy Payments Nationwide Subsidy Total1995-2004 Corn Subsidies $41,862,104,072 Wheat Subsidies $19,834,815,250 CRP $16,618,868,852 Cotton Subsidies $15,778,310,711 Soybean Subsidies $13,017,619,420 Rice Subsidies $9,984,830,876 Sorghum Subsidies $3,719,719,743 Dairy Program Subsidies $3,130,626,423 Livestock Subsidies $2,627,217,935 Peanut Subsidies $2,020,826,354 Barley Subsidies $1,657,217,266 Tobacco Subsidies $528,207,013 Sunflower Subsidies $416,931,661 Sugar Beet Subsidies$348,911,959 Apple Subsidies$261,814,071 Oat Subsidies$192,890,353 Wool Subsidies$174,398,845 Canola Subsidies$173,275,831 Total Paid for Corn, CRP, & Soybean Subsidies: $71,498,592,344 Total Paid for All Listed Federal Subsidies: $274,353,383,635

8. A County ExamplePottawattamie County, Iowa Federal Subsidy Payments to Pottawattamie County Farmers Subsidy Number of Recipients 1995-2004 Total1995-2004 Corn Subsidies Recipients 3,064 Paid $171,922,900 CRP Recipients 689 Paid $10,860,030 Soybean Subsidies Recipients 2,348 Paid $43,921,870 Total Paid: $226,704,800 to Pottawattamie County Farmers All 2005 Federal Farm Subsidies Paid to Pottawattamie Farmers $37,294,007 (Does Not Even Create A Net Profit To Farmers) Source: Environmental Working Group

9. Farm Bill Debate Economists say the subsidies harm most farmers. That's because they lower crop prices, raise land prices and rents, and give subsidized farmers a financial advantage that has helped drive their neighbors out of business and keep young farmers from getting started. Many farmers, and farm state politicians of both parties, oppose large payments. Rep. Ron Kind, D-Wis., Sen. Byron Dorgan, D-N.D., and Sen. Chuck Grassley, R-Iowa, all want to limit payments to one-quarter the size Pelosi has endorsed in the House bill. "When you say to the biggest farms in the country, 'The bigger you get, the more money you get from the government,' then the farm program effectively subsidizes the destruction of family farming," said Chuck Hassebrook, executive director of the Center for Rural Affairs in Nebraska. "Most people in rural America think that is bad policy." July 27, 2007

10. Non-Localized Food SystemMoney Flowing Out of Local Area Consumers Federal Government Non-Local Corporate Ag Processing $ Non-Local “Inputs” Manufacturers Farmers $ Money Flows From Federal Government to Farmers to Grow Crops At A Loss (Cost of Production > Price Paid) Ag Interests Buys At Low Price = Makes Lion’s Share of Profit on Food Products In Effect: Federal Government Provides Indirect Subsidy of Large Corporate Ag Interests

11. ECONOMIC DEVELOPMENT OPTIONS

12. CurrentEconomic Development Strategies Economic Development Programs Are Based On: • Priority: Urban Projects (i.e., Industrial, Commercial, Residential) • Priority: Wage/Benefits Criteria • Priority: $ Incentives-Outside Prospects • Priority: Rural Programs Subject To Grant Writing Process • Small Farm Production Not A Business/Object of Business Retention • Focus: Transforming Rural Communities Into Another Purpose Programs Do Not Address Causes For Rural Decline

13. Effects of Current SystemLarge Economies of Scale/Low Margin • Outside Interests • Bulk of Profit • True Recipients of Incentives • Dictate Standards to Local & Fickle System Provides No Incentive For Small Farms & Promotes Loss of Farm Related Jobs • Local Economy • Small Margins-Push Large Farms • Focus: Wage-Based Employment/Benefits • Little Motive for Entrepreneurship • EconDev: Company Recruitment Prime Focus • Loss in Farm Labor/Rural Residents

14. Examples of Current Economic Development Strategies Billions of Taxpayer Dollars (“…without a peep”) • Biodiesel Project: IDED Gives $535K to Major Corp: 4-9 Jobs • Ethanol Supports: Five Subsidies ($4M): Sioux City Example • Regulations Favor Large Processing Houses/Seed Patents • Ethanol: 70¢ / per Gallon : $70M on 100M Gal. Facility (Mostly Non-Local) • Farm Subsidies: $275B / 10 yrs AverageWith Stated Impact on Local Economies • Primary Beneficiary: Non-Local Owners/Processing • Environment is Severely Compromised: Water/Top Soil • Less “Local” Control • National Health/Obesity Crises

15. Assisting the Good Life 6/15/07 “No official tally of business subsidies exists, but in separate studies Peter S. Fisher of the University of Iowa and Kenneth F. Thomas of the University of Missouri estimated that state and local subsidies aimed at creating jobs total about $50 billion annually. More subtle subsidies … are not counted in those figures and may be even larger.”

16. A Better Economic Development Option

17. Localized Development • Localized Approach: We Are In Control! • Address Market Forces (Which Caused Decline) • Localize Economy As Much As Possible: Integration • Diversify Production & Processing • Business Retention: Small Farms = Business • Troll For Outside Business Relocation (Least Efficient)| • Creating a Local Economic Development Context • Benefits to Local Economy of Local Food System: • Primary Beneficiaries: Existing Local Producers • Supporting Local Talent & Community Building • Low Cost Compared to Current Economic Development Strategies • Low Volume/High Margin Economic Development Strategy Example: Organics Conversion Policy

18. Woodbury County Approach Policies & Programs

19. Woodbury Policies • Organics Conversion Policy: 6.28.05 • 100% Tax Rebate on Ag Land Converted to Organic • Sustainability, Environmental, Diversification • Smaller Farms, More Labor, Higher Income • Woodbury Health Initiative: 8.2.05 (Sen. Harkin) • Local Foods/Mobile Farmers Market Rural County • School Wellness Food Programs & Attack Obesity • Local Food Purchase Policy: 1.10.06 • Mandatory Purchase of Locally Grown Organic • Supports Local Farmer, Local Broker & Markets

20. Collateral Results of Policies • Local Community College - Organic Courses/Lab • Whole Foods Market of Omaha • Local Foods Broker, Restaurant, & Ed. Center • Organic Farmer Networks - Mentoring • Annual Organic Growers Conference • Business inquiries from around the U.S. - Chamber • Northwest Iowa Farm/Farmer Exchange • Local Foods Brand: “Sioux City Sue” • U.S. House of Representatives Testimony • Organic Market: Project With Chamber, City, & County • Sustainable Foods for Siouxland – Education 501(c)(3) • Leopold Center Study Grants

21. Our Integrated Local Food System

23. Woodbury Market • Residents Pay $203,000,000 For Food AnnuallyPlus: $10,000,000+ Institutional Payments • Objective of PoliciesLocal Food = 10% of Demand • Achievable Results: $21M To Local Economy In Food Purchases$Millions In Local Goods Sold & New Facilities

24. Create Regional Economy • Create Integrated Local Foods Systems • Integrate Local Supply/Demand Chains • Local Can Lead to National Markets • Create High Margin/Low Volume Niche Markets • Open Local Area To Grant Funding Opportunities • Very Very Low Cost • Regional Policies & Programs Is Opportunity • Take Control Of Your Own Economic Future

25. What we are doing, as a community, is supporting our farmers and giving them a fair opportunity to serve our citizens and provide food at fair, competitive prices and making a decent living in the process. Organic Farming Is Economic Development!