USDA Program UpdateOhioEPA

Blighted Property Workshop

Michael RutherfordBusiness & Cooperative Program Director

Ohio Rural DevelopmentMay 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: http://www.rurdev.usda.gov

Massillon

330-830-7700

Marietta

740-373-7113

Columbus

614-255-2400

Hillsboro

937-393-1921

Findlay

419-422-0242

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: http://www.fsa.usda.gov/FSA/stateOffices

• 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

www.ams.usda.gov/fmpp

USDA and Local/Regional Food Systems

Increased access: Farm to School

USDA’s Farm to School Programwww.fns.usda.gov/farmtoschool/farm-school

The Know Your Farmer, Know Your Food Initiative

www.usda.gov/knowyourfarmer

www.usda.gov/knowyourfarmer

Know Your Farmer, Know Your Food:

Resources for Navigating USDA

• Includes data on:USDA-funded local food

projectsFarmers markets and

other “context data” gathered by USDA agencies

• Projects and resources from

9 other federal departments

• Updated regularly

www.usda.gov/kyfcompass

The KYF Compass Map

www.usda.gov/knowyourfarmer

Find Resources to Fit the Need

Michael RutherfordMichael.rutherford@oh.usda.gov

614-255-2420

www.usda.gov/kyfcompass

www.usda.gov/knowyourfarmer

Thank You!