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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 -How do you target ag in economic devt?
What Is Agriculture? • Farming • Forestry & forest products • Green industry • Processing & marketing • Farm support and services • Agritourism
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 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 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 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 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 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 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 Agriculture • Food attracts development -West Side Market in Cleveland -Detroit’s Eastern Market -Weinland Park plan in Columbus
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 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
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? • 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 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 • Venture capital • Revolving loans • Micro-loans • Low interest loans • Tax credits • CDBG investments • Business planning • R & E strategies • Special programs (tobacco funds)
Tools needed • More strategic planning • More community involvement • Relationship-building with food and ag community
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
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
Summary • Utilizing agriculture as an economic development strategy is probably the most important farmland preservation tool available
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 – firstname.lastname@example.org