“Local” Foods as

Economic Recovery

Ken Meter
Crossroads
Resource Center
(Minneapolis)

New West Conference

Boise, Idaho
June 4, 2010
“Finding Food in Farm Country” Studies

plus Maui & Hawai’i

50 regions in 22 states & one province

 Local Farm & Food Economies

The perspectives of the

communities where food is
produced and eaten...

…are often overlooked

Vision for local food economies

Build:
Health
Wealth
Connection
Capacity
 Local action matters

State and local governments

spend $50 billion each year to
subsidize economic development

Wall Street Journal, Oct. 11, 2008

 “Local” is a shorthand....

Photo: DSC
 Goal: to build
Community-Based
Food Systems

Photo: DSC
 “Greater
Treasure
Counties: Valley”
Ada
Canyon
Elmore
Gem
Owyhee
Payette
Washington
Harney (OR)
Malheur (OR)

Map: Idaho State University

 Greater Treasure Valley

• 690,911 residents
• Earn $24 billion income
each year
Source: Federal Census 2000, BEA
 Households

0
5,000
10,000
15,000
20,000
25,000
less than $10,000

$10,000 - $14,999

$15,000 - $19,999

$20,000 - $24,999

$25,000 - $29,999

$30,000 - $34,999

$35,000 - $39,999

$40,000 - $44,999
(28%) below
150,544 people

$45,000 - $49,999
185% of poverty

$50,000 - $59,999

$60,000 - $74,999

$75,000 - $99,999
Household income in Treasure Valley, 1999

$100,000 - $124,999

$125,000 - $149,999

$150,000 - $199,999

$200,000 or more
 Health suffers

63% of Boise metro

region’s residents are
overweight (38%) or
obese (25%)

Source: Centers for Disease Control (2008)

 Health in Greater Treasure Valley

Estimated costs for treating

diabetes are estimated at $399
million per year

Source: American Diabetes Association (2010)

 Greater Treasure Valley’s
Food & Farm Economy

• 60% of farms sell

less than $10,000

• 15% sell more than

$100,000

Source: USDA Census of Agriculture 2007

 Greater Treasure Valley — key products

Census of Agriculture (2007) — some data** suppressed

 Greater Treasure Valley’s
Key Commodities

Substantial Data is
suppressed for
“confidentiality”

Census of Agriculture (2007)

 Greater Treasure Valley’s
Food & Farm Economy

• 880 farms sell direct to consumers

(36% decrease)

• $5.7 million sales

(181% increase)

Source: USDA Census of Agriculture 2007

 Greater Treasure
Valley’s Food & Farm
Economy

Direct sales are 0.3% of farm

sales — 
just less than national average

Source: USDA Census of Agriculture 2007

 Farm Production Balance in
Greater Treasure Valley / Idaho & Oregon, 1969-2008
2,500

Cash Receipts
2,000
Production expenses
Balance
$ millions (current)

1,500

1,000

500

0
1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007
Bureau of Economic Analysis
 Farm Production Balance in
Greater Treasure Valley / Idaho & Oregon, 1969-2008
3,000

Cash receipts
2,500 Production expenses
Balance
$ millions (2007 dollars)

2,000

1,500

1,000

500

0
1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007
Bureau of Economic Analysis
 Farm Production Balance in
Greater Treasure Valley / Idaho & Oregon, 1969-2008
3,000

Cash receipts
2,500 Production expenses
Balance
$ millions (2007 dollars)

2,000

1,500

1,000 $94 million more than 1969

500

0
1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007
$5 billion gained since 1987
Bureau of Economic Analysis
 Greater Treasure Valley farmers sell an
average of $1.8 billion of crops and
livestock

Spend $1.6 billion to raise them

(1987-2008 average)

Average gain: $221 million per year

Bureau of Economic Analysis

 62% of all farms
reported net
losses in 2007 —
after subsidies

USDA Census of Agriculture 2007

 Crop and livestock sales in
Greater Treasure Valley / Idaho & Oregon, 1969-2008
2,000

1,800
Livestock
1,600 Crops
$ millions (2007 dollars)

1,400

1,200

1,000

800

600

400

200

0
1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007
Bureau of Economic Analysis
 Farm production expenses in
Greater Treasure Valley / Idaho & Oregon, 1969-2008
900

Feed purchased
800
Livestock purchased

700 Seed purchased

Fertlizer and Lime
$ millions (2007 dollars)

600 Petroleum products

Hired farm labor
500

400

300

200

100

0
1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007
Bureau of Economic Analysis
 $600 million of these farm inputs
are purchased from outside the region

Source: Ken Meter using data from Agriculture Census 2007

Also a region of food consumers...
 Finding Food in Farm Country
As farmers struggle...

• Consumers buy $1.87 billion

of food each year

• $1.7 billion from outside region

Source: Ken Meter using Bureau of Labor Statistics

 Greater Treasure Valley

Markets for food eaten at home

millions
Meats, poultry, fish, and eggs $ 236
Fruits & vegetables 210
Cereals and bakery products 140
Dairy products 126
“Other,” incl. sweets, fats, & oils 388

Source: Census & BLS

 Greater Treasure Valley

If consumers bought only 15% of

their food directly from local farms:

$165 million of new farm income

earned each year

Source: Ken Meter calculated from BLS & BEA data

The good news is...
 Current
Farm farm incomeBalance
Production compared
in to
Greater Greater
TreasureTreasure
Valley /Valley
Idaho consumer market
& Oregon, 1969-2008
3,000

Cash receipts
2,500 Production expenses
Balance
$ millions (2007 dollars)

2,000

1,500

1,000 Region’s consumer market

500

0
1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007
Source: BEA and BLS
 All told, Greater Treasure Valley…

• Gains $221 million in production

• Loses $600 million buying inputs

• Loses $1,700 million buying food

Potential wealth lost each year

 Finding Food in Farm Country

Total loss is:

• $2 billion each year!

• This is more than the value of all
food commodities raised in region
U.S. data
 Farm Production Balance in U.S., 1929 - 2009
Source: USDA/ERS. Chart by Ken Meter, 2009
450

400

350

300
$ billions (1999 dollars)

250

200

Cash receipts (adj)

150 Production expenses (adj)

Farm Production Balance (adj)

100

50

-
1929

1932

1935

1938

1941

1944

1947

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007
(50)
 Change in Farm Production Balance, 1969 - 2002

Map by Ken Meter, 2005

Source: BEA
 Corn sweeteners consumed
Corn sweeteners
in U.S.,consumed
1966 in
- U.S.,
2002 1966 - 2002

70

60

50

40

HFCS
30 Glucose
Dextrose

20

10

Source: USDA/ERS — chart by Ken Meter, 2006

 U.S. Youth Who are Overweight
Percent by Age
Percent
16
14.0%
14

12 10.7% 13%
10
10.7%
8

6 4.6%
4
4.1%
2

0
1963-70 1971-74 1976-80 1988-94 1999
Ages 6-11 Ages 12-17
>95th percentile for BMI by age and sex, based on NHANES I reference data
Source: Troiano RP, Flegal KM. Pediatrics 1998;101(3):497-504. NHANES
1999, National Center for Health Statistics. Chart by Melinda Hemmelgarn
Growing Power, Milwaukee
 Value Chain

Food
Service

Producer Processor Distributor Retailer Consumer

 Farmers' share of retail prices paid by
consumers, 1950-2004
900

800

700

600

500

400 marketing bill

farm value
300

200

100 41% 20%

Source ERS; chart by Ken Meter, 2007

 Value Network

Policy
Council
Non Profits

Consumer:
Producer
“Coproducer”

Processor
Retailer
Educator

Distributor Food
Service
Direct Food Sales
Innovative farm operations

Winter CSA
Milan, Minnesota

Fresh fresh organic greens

November to April

Sells only within 30 miles

Winter CSA — Milan, Minnesota
Winter CSA — Milan, Minnesota
Black Hawk region, Iowa
 Jobs, Fruit & Veggies, and
Black Hawk County region

If Black Hawk region residents

purchased locally grown fruits
and vegetables just 3 months out
of the year:
•  475 new jobs
•  $6.3 million in labor income
added to local economy

David Swenson, ISU Economist

Will Allen, Growing Power, Milwaukee
Growing Power, Milwaukee
Greensgrow Gardens, Philadelphia
Greensgrow Gardens, Philadelphia
Greensgrow Gardens, Philadelphia
 Viroqua, Wisconsin

Economic Development
Association buys former factory

100,000 square feet!

Regional food processing center

Viroqua, Wisconsin
Viroqua Business Cluster

Produce
Distributor 1

Produce
Distributor 2

Processors
TBD

Bakery &
Public Space
Nonprofits
 Viroqua Business Cluster

Hospital
Produce
Distributor 1
Root
cellar Produce
Distributor 2

Processors Organic
Food
TBD Valley
co-op

Schools Bakery &

Public Space Amishf
Nonprofits
armers
Viroqua, Wisconsin
Eau Claire, Wisconsin

Producers & Buyers Co-op

• Farmers
• Hospital Food Service
• Distributors
• Truckers

Model Adopted by Viroqua

Northfield, Minnesota

“Home on the Range” Poultry

Latino/Anglo Co-op
“Home on the Range” Poultry
Northfield, Minnesota
Production on scattered ¼-acre sites
Process at large scale, someday
Poultry Business Cluster

P
P

P
P

P P
Poultry Business Cluster

P
P

P Processing

P P
 Poultry Business Cluster
Eggs
Hazelnuts P
P Grains
P
Apples

P Processing Herbs
P

P Compost
P
Sweet corn
Regi Haslett-Marroquin
 Food spending cycles through
economy

Multiplier studies:

SW Wisconsin (farms) 2.2 – 2.6

NE Iowa (local food) 1.91
Oregon (schools) 1.87
Michigan (fruits & vegs) 1.34
Iowa (mainstream) 1.3

Sources: Larry Swain, UWRF, David Swenson, ISU, Kaiser Permanente/

Ecotrust, Hamm et al, MSU, Swenson, ISU
Vision for local food economies

Build:
Health
Wealth
Connection
Capacity
“Finding Food in Farm Country”

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