community food systems and cooperatives nebraska sustainability leadership workshop april 30, 2009...

Community Food Systems andCommunity Food Systems and CooperativesCooperatives

Nebraska Sustainability Leadership Nebraska Sustainability Leadership WorkshopWorkshop

April 30, 2009April 30, 2009

Norfolk, NENorfolk, NE

Michael HeavrinMichael Heavrin

Center for Rural Affairs – Lyons, NECenter for Rural Affairs – Lyons, NE

Value-Added ProgramsValue-Added Programs

► In 2002, Value-Added In 2002, Value-Added Agricultural Product Agricultural Product Market Development Market Development Grant was known as the Grant was known as the Value-Added Value-Added Development Grant Development Grant (VADG) Program(VADG) Program

► In 2003, the grant In 2003, the grant program became known program became known as the Value-Added as the Value-Added Producer Grant (VAPG) Producer Grant (VAPG) program.program.

Community Food SystemsCommunity Food Systems

The food and agricultural systems in the US The food and agricultural systems in the US has changed a great deal through the last has changed a great deal through the last half of the 20half of the 20thth Century: Century: Trend toward industrialization of agricultureTrend toward industrialization of agriculture Trend toward centralization of production and Trend toward centralization of production and

processing operativesprocessing operatives Farmer control over production, marketing and Farmer control over production, marketing and

labor is being replaced by corporate controllabor is being replaced by corporate control The farmer share of the consumer food dollar The farmer share of the consumer food dollar

was 41% in 1920, while in 1990, it had dropped was 41% in 1920, while in 1990, it had dropped to 9%. The number is now only about 4%.to 9%. The number is now only about 4%.


The food and agricultural systems in the US The food and agricultural systems in the US has changed a great deal through the last has changed a great deal through the last half of the 20half of the 20thth Century: Century: The nation is losing thousands of farmers The nation is losing thousands of farmers

annually.annually. Fewer farmers result in the deterioration of rural Fewer farmers result in the deterioration of rural

communities – both socially and economically.communities – both socially and economically. Today, few consumers really know where their Today, few consumers really know where their

food comes fromfood comes from In many areas of the country – especially in In many areas of the country – especially in

poverty areas – people are not able to access poverty areas – people are not able to access fresh, locally grown foodfresh, locally grown food


According to Washington State According to Washington State University, a “University, a “community food community food systemsystem” is one in which sustainable ” is one in which sustainable food production, processing, food production, processing, distribution and consumption are distribution and consumption are integrated to enhance the integrated to enhance the environmental, economic and the environmental, economic and the social and nutritional health of a social and nutritional health of a particular location.particular location.


Today, food system issues include:Today, food system issues include: Improving access to an adequate, affordable, Improving access to an adequate, affordable,

good tasting, fresh and nutritious diet.good tasting, fresh and nutritious diet.Supporting a stable base of family farms and Supporting a stable base of family farms and

ranches that can and will supply local food to ranches that can and will supply local food to a specific area.a specific area.

Most consumers prefer to buy from producers Most consumers prefer to buy from producers who use fewer chemicals and less energy, who use fewer chemicals and less energy, and who emphasize local inputs where and who emphasize local inputs where possible.possible.


Other issues include:Other issues include: Finding marketing and processing techniques that Finding marketing and processing techniques that

create more direct and beneficial links between create more direct and beneficial links between farmers and consumers.farmers and consumers.

Development of food and agriculture-related Development of food and agriculture-related businesses that create jobs, re-circulate money in businesses that create jobs, re-circulate money in the community, and provide for community the community, and provide for community economic development.economic development.

Value-Added Producer Grant programValue-Added Producer Grant program Farmers Market Promotion Program grantsFarmers Market Promotion Program grants

Creating food and agricultural policies that promote Creating food and agricultural policies that promote local food production, processing and consumption.local food production, processing and consumption.


It is essential that “community food systems” be It is essential that “community food systems” be established using a collaborative approach:established using a collaborative approach: Local participation and support is necessary.Local participation and support is necessary. Relevant stakeholders throughout the food system Relevant stakeholders throughout the food system

need to participate in organizational activities:need to participate in organizational activities: Local elected officialsLocal elected officials Farmers, ranchers or their associationsFarmers, ranchers or their associations Public health personnel and nutritionistsPublic health personnel and nutritionists Food processors and food retailersFood processors and food retailers Food and agricultural agency representativesFood and agricultural agency representatives Small businesses and lending institutionsSmall businesses and lending institutions Cooperative Extension, Non-Profits and UniversitiesCooperative Extension, Non-Profits and Universities Area transportation, storage, labeling and packaging Area transportation, storage, labeling and packaging

businessesbusinesses


Funding Resources are important to the Funding Resources are important to the successful formation of a community food successful formation of a community food system – some potential resources include:system – some potential resources include: USDA programs – VAPG, FMPP, CFPUSDA programs – VAPG, FMPP, CFP Community, regional or national private Community, regional or national private

foundations (i.e. Kellogg, Kraft, Noyes)foundations (i.e. Kellogg, Kraft, Noyes) Churches – national and localChurches – national and local Civic Groups (i.e. Chamber, Rotary, Elks)Civic Groups (i.e. Chamber, Rotary, Elks) Local, state or federal government programs Local, state or federal government programs

including CDBG; SARE; EPA and DOE Sustainable including CDBG; SARE; EPA and DOE Sustainable FuturesFutures

Individual donations, including fund raisersIndividual donations, including fund raisers


Due to the fact that farmers and ranchers Due to the fact that farmers and ranchers will need to drastically revise the way will need to drastically revise the way they work, it is essential that funds be they work, it is essential that funds be available to them in order to transition available to them in order to transition their farms from being “producers of their farms from being “producers of feed” to being “producers of food.” feed” to being “producers of food.” One such USDA grant program is One such USDA grant program is especially valuable – the Value-Added especially valuable – the Value-Added Producer Grant program.Producer Grant program.

Value-Added Producer Grant Value-Added Producer Grant ProgramProgram

► Program DescriptionProgram Description► Projected status of this year’s programProjected status of this year’s program

Newest funding amount is uncertain Newest funding amount is uncertain at this point, but USDA expects the at this point, but USDA expects the Notice to be released at any time.Notice to be released at any time.

► Grant Purpose, eligibility, terms, & Grant Purpose, eligibility, terms, & application processapplication process

► Opportunities for projectsOpportunities for projects► Funding; How & when to apply, Funding; How & when to apply,

preparing your application.preparing your application.


Philosophy of the ProgramPhilosophy of the Program

► Help producers expand the customer base Help producers expand the customer base (by opening (by opening EMERGING marketsEMERGING markets) for their ) for their products or commodities, and ensure that a products or commodities, and ensure that a greater portion of the revenues derived from greater portion of the revenues derived from the value-added activity is available to the the value-added activity is available to the producer – to allow farmers and ranchers producer – to allow farmers and ranchers capture a larger percentage of the consumer capture a larger percentage of the consumer food dollar; and assist producers in their food dollar; and assist producers in their efforts to diversify their operationsefforts to diversify their operations

Value-Added Producer GrantValue-Added Producer Grant

► Program designed to assist eligible Program designed to assist eligible agriculture producers or groups of producers agriculture producers or groups of producers add value to their commodity production.add value to their commodity production.

► This program provides grants for This program provides grants for planning planning activitiesactivities or for or for working capitalworking capital to implement to implement a value added venture.a value added venture.

► Created via the 2002 Farm Bill, Created via the 2002 Farm Bill, Reauthorized in 2008 Farm BillReauthorized in 2008 Farm Bill

What is an emerging market?What is an emerging market?

► An emerging market is aAn emerging market is a new or developing new or developing market for the applicant. That is, a market the market for the applicant. That is, a market the applicant has not traditionally supplied. The applicant has not traditionally supplied. The venture must be focused on this new or venture must be focused on this new or developing market.developing market.

► An example of this emerging market is the An example of this emerging market is the “community food system.” Farmers and “community food system.” Farmers and ranchers are encouraged by this grant ranchers are encouraged by this grant program to diversify their operations and program to diversify their operations and enable them to supply fresh, healthy and safe enable them to supply fresh, healthy and safe food products to their own area.food products to their own area.


► Nationwide Allocation Funded in NebraskaNationwide Allocation Funded in Nebraska► FY02 $37.0MM $1.6MM 13 projectsFY02 $37.0MM $1.6MM 13 projects► FY03 $28.7MMFY03 $28.7MM $3.7MM 18 projects $3.7MM 18 projects► FY04 $13.2MMFY04 $13.2MM $1.3MM $1.3MM 7 projects7 projects► FY05 $14.3MMFY05 $14.3MM $1.1MM 16 projects $1.1MM 16 projects► FY06 $19.7MMFY06 $19.7MM $1.2MM 18 projects $1.2MM 18 projects► FY07 $19.5MM $681,176 8 projectsFY07 $19.5MM $681,176 8 projects► FY08 $18.4MM $123,000 4 projectsFY08 $18.4MM $123,000 4 projects


► Three Categories of EligibilityThree Categories of Eligibility

Applicant EligibilityApplicant Eligibility

Product EligibilityProduct Eligibility

Purpose (value-added activity) Purpose (value-added activity) EligibilityEligibility


►Applicant Eligibility (4 CategoriesApplicant Eligibility (4 Categories)) Independent ProducersIndependent Producers Farmer or Rancher CooperativeFarmer or Rancher Cooperative Agriculture Producer GroupAgriculture Producer Group Majority-Controlled Producer Based Majority-Controlled Producer Based

Business VenturesBusiness Ventures

(Producers have 51% or greater ownership (Producers have 51% or greater ownership and control)and control)


1. 1. Independent ProducerIndependent Producer An individual producer of agricultural An individual producer of agricultural

commodities or products (including commodities or products (including products from aquaculture, fish products from aquaculture, fish harvesting, and wood lot enterprises).harvesting, and wood lot enterprises).

An association of producers such as a An association of producers such as a producer owned corporation, LLC, or producer owned corporation, LLC, or LLP solely owned by producers. LLP solely owned by producers.


1. 1. Independent Producer Independent Producer (continued)(continued)

A steering committee composed of A steering committee composed of agricultural producers in the process agricultural producers in the process of organizing an association to of organizing an association to operate a value-added venture.operate a value-added venture.

► An independent producer can not An independent producer can not produce under contract or joint produce under contract or joint ownership with any organization ownership with any organization other than their own.other than their own.


2. 2. Farmer or Rancher CooperativeFarmer or Rancher Cooperative A business incorporated under state A business incorporated under state

cooperative or corporation statutes that is cooperative or corporation statutes that is farmer or rancher owned, farmer or farmer or rancher owned, farmer or rancher controlled, and benefits are rancher controlled, and benefits are returned to the farmer or rancher owner returned to the farmer or rancher owner on the basis of patronage of the on the basis of patronage of the cooperative.cooperative.

Farmer or rancher owned cooperatives Farmer or rancher owned cooperatives must propose ventures that are entering must propose ventures that are entering into into emerging markets.emerging markets.


3. 3. Agricultural Producer GroupsAgricultural Producer Groups

Any organization that represents Any organization that represents independent producers such as a producer independent producers such as a producer trade association or a state or national trade association or a state or national commodity group. Agricultural Producer commodity group. Agricultural Producer Groups must propose ventures that are Groups must propose ventures that are entering entering emerging marketsemerging markets..

Corn Growers Association; Hog Producers Corn Growers Association; Hog Producers Association; Cattlemen; and Grange are Association; Cattlemen; and Grange are examples. examples.


► A corporation, LLC, LLP, or other type of A corporation, LLC, LLP, or other type of business structures where producers have business structures where producers have 51% or greater ownership and control of 51% or greater ownership and control of the entity. Majority-Controlled Producer the entity. Majority-Controlled Producer Based Business Ventures must propose Based Business Ventures must propose project activities that are entering project activities that are entering emerging marketsemerging markets..

4. Majority-Controlled Producer Based Business Ventures

* No more than 10 percent of the grant funds will be awarded to these ventures.


►Value-Added Products Value-Added Products Four distinct categories are considered Four distinct categories are considered

value-added. value-added.

►A Value-Added Product Must:A Value-Added Product Must: Expand the customer base for the product or Expand the customer base for the product or

commodity, ANDcommodity, AND Result in a greater portion of the revenues derived Result in a greater portion of the revenues derived

from the value-added activity that is available to from the value-added activity that is available to the producer.the producer.


►Value Added Product EligibilityValue Added Product Eligibility

1.1. The changing of the physical state The changing of the physical state or form of the product to the extent or form of the product to the extent that it cannot be returned to its that it cannot be returned to its original state. original state.

Examples include processing wheat into flour, corn into ethanol, Examples include processing wheat into flour, corn into ethanol, slaughtering livestock or poultry, or slicing tomatoes. slaughtering livestock or poultry, or slicing tomatoes.



2. A product produced in a manner 2. A product produced in a manner that enhances its value, as that enhances its value, as demonstrated through a business demonstrated through a business plan.plan. An example is organically produced products. An example is organically produced products. This category is not eligible for PLANNING funds.This category is not eligible for PLANNING funds.



3. The physical segregation of an 3. The physical segregation of an agricultural commodity or product in agricultural commodity or product in a manner that results in the a manner that results in the enhancement of the value of that enhancement of the value of that commodity or product.commodity or product.

Examples: include an identity preservation system for a Examples: include an identity preservation system for a variety or quality of grain desired by an identified end-variety or quality of grain desired by an identified end-user or the traceability of hormone-free livestock to the user or the traceability of hormone-free livestock to the retailer.retailer.



4. The term “value-added agricultural 4. The term “value-added agricultural product” includes any agricultural product” includes any agricultural commodity or product that is used to commodity or product that is used to produce renewable energy on a farm or produce renewable energy on a farm or ranch.ranch.

Examples: collecting and converting Examples: collecting and converting methane from animal waste to generate methane from animal waste to generate energyenergy


►PlanningPlanning a defined program of economic a defined program of economic

activities to determine the viability of activities to determine the viability of a potential value-added venture a potential value-added venture including feasibility studies, including feasibility studies, marketing plans, business plans and marketing plans, business plans and legal evaluations.legal evaluations.

►Working CapitalWorking Capital Funds which are used to operate the Funds which are used to operate the

venture and pay the normal expenses venture and pay the normal expenses associated with the operation of the associated with the operation of the venture.venture.

► Completed feasibility study & business Completed feasibility study & business plan on specific venture requiredplan on specific venture required..


Costs that are Costs that are Not Eligible Not Eligible include:include:► Plan, repair, rehabilitate, acquire, or construct a Plan, repair, rehabilitate, acquire, or construct a

facilityfacility► Purchase, rent, or install processing equipmentPurchase, rent, or install processing equipment► Pay for the preparation of the grant activityPay for the preparation of the grant activity► Pay expenses not directly related to the funded Pay expenses not directly related to the funded

ventureventure► Pay costs incurred prior to receiving the grantPay costs incurred prior to receiving the grant► Fund political and lobbying activitiesFund political and lobbying activities► Pay any expenses related to agricultural productionPay any expenses related to agricultural production


►Maximum Planning Grant Amount $100,000Maximum Planning Grant Amount $100,000 Priority points for smaller requestsPriority points for smaller requests

►Maximum Working Capital Grant is $300,000Maximum Working Capital Grant is $300,000

- Priority points for smaller requests- Priority points for smaller requests►Applicants must provide matching non-Applicants must provide matching non-

federal funds at least equal to the grantfederal funds at least equal to the grant Matching funds must also meet the purpose Matching funds must also meet the purpose

eligibilityeligibility

►NOSA can be downloaded from web-site.NOSA can be downloaded from web-site.

VAPG Application ProcessVAPG Application Process

► An An ApplicationApplication consists of these things: consists of these things: SF-424 “Application for Federal Assistance”SF-424 “Application for Federal Assistance” SF-424A “Budget Information - Non-Construction Programs”SF-424A “Budget Information - Non-Construction Programs” SF 424 B “Assurances - Non-Construction Programs”SF 424 B “Assurances - Non-Construction Programs” Table of ContentsTable of Contents Proposal SummaryProposal Summary Eligibility StatementEligibility Statement Proposal NarrativeProposal Narrative

► Project TitleProject Title► Information SheetInformation Sheet► Goals of the ProjectGoals of the Project► Evaluation CriteriaEvaluation Criteria

Verification of Matching FundsVerification of Matching Funds

VAPG VAPG Opportunities/Scenarios/ExamplesOpportunities/Scenarios/Examples

►Goat producers initiating a feasibility study.Goat producers initiating a feasibility study.►Meat Cooperative requesting funds to complete a Meat Cooperative requesting funds to complete a

business plan and marketing plan.business plan and marketing plan.►Cooperative requesting funds to hire a marketing Cooperative requesting funds to hire a marketing

manager.manager.►Producer requesting funds for advertising costs Producer requesting funds for advertising costs

and office equipment. and office equipment. ►Cooperative requesting funds to pay for attorney Cooperative requesting funds to pay for attorney

fees.fees.

VAPG Future Funding VAPG Future Funding PeriodsPeriods

►Call for applications once a yearCall for applications once a year►Application announced via NOFA Application announced via NOFA ► Information can be found on USDA RD website Information can be found on USDA RD website

or can be mailed to you by contacting the Center or can be mailed to you by contacting the Center for Rural Affairs or USDA RD:for Rural Affairs or USDA RD:

[email protected]@ne.usda.gov

[email protected]@cfra.org

►Template based on this year’s NOFA found at:Template based on this year’s NOFA found at: http://fpc.unl.edu/marketing/grant.htmhttp://fpc.unl.edu/marketing/grant.htm

Other USDA Rural Other USDA Rural Development Funding Development Funding

ResourcesResources►Business & Industry Guaranteed loan Business & Industry Guaranteed loan

programprogram►Business & Industry Cooperative Stock Business & Industry Cooperative Stock

Purchase ProgramPurchase Program►Rural Business Opportunity Grant (RBOG)Rural Business Opportunity Grant (RBOG)►Rural Business Enterprise Grant (RBEG)Rural Business Enterprise Grant (RBEG)►Rural Cooperative Development Grant Rural Cooperative Development Grant

ProgramProgram

Cooperative Cooperative MarketingMarketing

Center for Rural AffairsCenter for Rural AffairsRural Opportunities & Rural Opportunities & Stewardship ProgramStewardship ProgramKathie Starkweather, DirectorKathie Starkweather, Director

Nebraska Sustainability Leadership Workshop

Madison County Extension Office

April 30, 2009

Norfolk, Nebraska

What is a Cooperative?What is a Cooperative?

► Cooperatives are Cooperatives are ownedowned and and controlledcontrolled by the people who use them.by the people who use them.

► Cooperatives operate for the Cooperatives operate for the benefit benefit of membersof members, rather than earn profits , rather than earn profits for investors.for investors.

► Cooperatives are incorporated under Cooperatives are incorporated under State Law.State Law.

What are the differences between a What are the differences between a cooperative and other businesses?cooperative and other businesses?

►Differences can be Differences can be expressed in three basic expressed in three basic principles:principles:

►the User-Owner Principlethe User-Owner Principle►the User-Control Principlethe User-Control Principle►the User-Benefit Principlethe User-Benefit Principle

►Cooperatives are a form of Cooperatives are a form of corporation, and as such, corporation, and as such, have some protection from have some protection from riskrisk

Why organize as a marketing Why organize as a marketing cooperative?cooperative?

► Increase supply for larger marketsIncrease supply for larger markets► Improve bargaining positionImprove bargaining position►Reduce costsReduce costs►Expand new and existing market Expand new and existing market

opportunitiesopportunities► Improve product or service qualityImprove product or service quality► Increase incomeIncrease income►Enhance the local economyEnhance the local economy►Efficient management of riskEfficient management of risk

Cooperatives involve:Cooperatives involve:

►Member-Ownership and ControlMember-Ownership and Control►Risk Management advantagesRisk Management advantages►Benefits (Common marketer)Benefits (Common marketer)►Opportunity for larger marketsOpportunity for larger markets►Quality and production standards are Quality and production standards are

uniformuniform►Connections Connections (Market and Production)(Market and Production)

Nebraska Food CooperativeNebraska Food Cooperative

Our Mission: To foster a local food community and promote a culture of stewardship by cultivating farmer-consumer relationships, promoting the enjoyment of healthful food, increasing food security through diversity, and enhancing overall rural sustainability.

Join the Co-op

Join the Co-op as a ShopperClick here to join so you can purchase from the cooperative.

Join the Co-op and register to sellWant to buy and sell through the Co-op? First complete this membership form. Then you will have the opportunity to continue to the producer application.

Current members register to sell (you will need to login first)Click here if you have products you would like to offer for sale and you're already a member.

Gift MembershipsClick here if you would like to purchase a membership for someone. (You don't need to be a Food Co-op member to purchase a gift membership.)

If you've already registeredIf you've registered as a member but haven't yet paid for your membership, click here.

Renew Your MembershipClick here if you would like to renew your membership.

Steps in Organizing a Marketing Steps in Organizing a Marketing CooperativeCooperative

► Identify a market, product or projectIdentify a market, product or project►Form a leadership group of potential Form a leadership group of potential

members (steering committee)members (steering committee)►Authorize Feasibility StudyAuthorize Feasibility Study►Prepare a Business PlanPrepare a Business Plan►Secure Legal AssistanceSecure Legal Assistance

►Organizational structureOrganizational structure►Liability issuesLiability issues►Articles of IncorporationArticles of Incorporation


►Contact CPA for financial adviceContact CPA for financial advice►Contact resource persons for advice Contact resource persons for advice

regarding risk managementregarding risk management►Insurance coverageInsurance coverage►Farm LiabilityFarm Liability►Product LiabilityProduct Liability►Risk analysisRisk analysis

►Hold a meeting of potential members to Hold a meeting of potential members to determine interest in forming a marketing determine interest in forming a marketing cooperativecooperative


►Conduct a survey of producers to Conduct a survey of producers to determine feasibility of forming a determine feasibility of forming a marketing cooperativemarketing cooperative

►Raise start-up capitalRaise start-up capital►Seed Contribution from membersSeed Contribution from members►Grant FundingGrant Funding

► USDA Value-Added Producer GrantsUSDA Value-Added Producer Grants► Nebraska Cooperative Development CenterNebraska Cooperative Development Center► FoundationsFoundations

►LoansLoans►InvestorsInvestors


►Compile an inventory of current and Compile an inventory of current and future product availability and supplyfuture product availability and supply

►Present a financial analysis to potential Present a financial analysis to potential members (CPA)members (CPA)

►Develop a marketing planDevelop a marketing plan►Hold a general membership meeting to Hold a general membership meeting to

discuss current plan and determine discuss current plan and determine whether or not to proceed.whether or not to proceed.


►Prepare Articles of IncorporationPrepare Articles of Incorporation►File the Articles of Incorporation with File the Articles of Incorporation with

the Nebraska Secretary of State Office the Nebraska Secretary of State Office in Lincolnin Lincoln

►Establish membership standardsEstablish membership standards►Prepare Cooperative BylawsPrepare Cooperative Bylaws►Hold a general membership meetingHold a general membership meeting

►Adopt Cooperative BylawsAdopt Cooperative Bylaws►Elect Board of DirectorsElect Board of Directors►Board will elect officers of the BoardBoard will elect officers of the Board


►Call first meeting of the Cooperative Call first meeting of the Cooperative Board of DirectorsBoard of Directors

►Board of Directors should elect officers Board of Directors should elect officers ►Secure working capital as outlined in Secure working capital as outlined in

the Business Plan:the Business Plan:►Membership / Stock CertificateMembership / Stock Certificate►Grant FundingGrant Funding►Loan FundingLoan Funding►Investor FundingInvestor Funding


►Hire necessary staff (Complete with Hire necessary staff (Complete with compensation package and job compensation package and job descriptions):descriptions):

►Manager of the CooperativeManager of the Cooperative►Marketing RepresentativeMarketing Representative►CPACPA►AttorneyAttorney►Logistical CoordinatorLogistical Coordinator

► Transportation / ShippingTransportation / Shipping► StorageStorage► Distribution of productsDistribution of products

►Certifying Officer (Farms/Feed Facilities)Certifying Officer (Farms/Feed Facilities)►Quality Assurance / Control Officer (Meat)Quality Assurance / Control Officer (Meat)


►Contract with buyersContract with buyers►Contract with distributorsContract with distributors►Contract with shippersContract with shippers►Contract with Cold Storage facilities Contract with Cold Storage facilities

where necessarywhere necessary►Acquire facilities (if necessary)Acquire facilities (if necessary)

►Begin operationsBegin operations

Potential ProblemsPotential Problems

PitfallsPitfalls

►Lack of rewarding marketLack of rewarding market►Lack of a clearly identified missionLack of a clearly identified mission► Inadequate planningInadequate planning

►It is not enough for the cooperative to decide It is not enough for the cooperative to decide WHAT SHOULD be done -- it must also WHAT SHOULD be done -- it must also determine HOW THINGS should be donedetermine HOW THINGS should be done

►Detailed plans must be adopted to achieve the Detailed plans must be adopted to achieve the goals of the cooperative, and to accomplish goals of the cooperative, and to accomplish the Co-op’s Missionthe Co-op’s Mission

PitfallsPitfalls

►Lack of “Member” Leadership:Lack of “Member” Leadership:►Input and prospective of producers is critical Input and prospective of producers is critical

to the success of a cooperative.to the success of a cooperative.►Role of producers should include contributing Role of producers should include contributing

their knowledge and expertise.their knowledge and expertise.

►Lack of “Member” Commitment:Lack of “Member” Commitment:►A cooperative MUST have broad base support A cooperative MUST have broad base support

-- not just support of “leaders.”-- not just support of “leaders.”►If members are not totally committed to the If members are not totally committed to the

project, it will probably not succeed.project, it will probably not succeed.

PitfallsPitfalls

►Failure to use outside professionals:Failure to use outside professionals:►Advisors and/or consultants.Advisors and/or consultants.►Farmers are experts at producing their products, Farmers are experts at producing their products,

but usually not experts in forming and operating but usually not experts in forming and operating a new cooperative.a new cooperative.

►It is essential for a new cooperative to put It is essential for a new cooperative to put together a team of outside experts:together a team of outside experts:

► AttorneyAttorney► CPA / AccountantCPA / Accountant► Financial Institution / LenderFinancial Institution / Lender► Insurance AgentInsurance Agent► Consultant familiar with the industryConsultant familiar with the industry

PitfallsPitfalls

►Failure to supply the demand of Failure to supply the demand of markets being tapped.markets being tapped.

►Failure to identify and minimize risk:Failure to identify and minimize risk:►LiabilityLiability►CompetitorsCompetitors►Governmental regulationsGovernmental regulations►Environmental issuesEnvironmental issues►Industry trendsIndustry trends►Unproven technology/methodsUnproven technology/methods►Employing competent staffEmploying competent staff

PitfallsPitfalls

► Inadequate staff:Inadequate staff:►Farmers are usually engaged in the full-time Farmers are usually engaged in the full-time

business of farming.business of farming.►Farmers generally do not have the time, Farmers generally do not have the time,

interest or expertise to manage a cooperative interest or expertise to manage a cooperative business.business.

►A competent manager MUST be hired to A competent manager MUST be hired to coordinate staff functions and direct business coordinate staff functions and direct business activities of the cooperative.activities of the cooperative.

►Staff persons generally should NOT be active Staff persons generally should NOT be active members of the cooperative.members of the cooperative.

PitfallsPitfalls►Not having enough capital:Not having enough capital:

►The first few months in the life of a cooperative The first few months in the life of a cooperative are very rough -- too many bills and not enough are very rough -- too many bills and not enough income.income.

►It takes time to turn a profit, so members It takes time to turn a profit, so members should be ready to step in and cover the should be ready to step in and cover the legitimate expenses of the cooperativelegitimate expenses of the cooperative..

►Operations will probably not show a profit for at Operations will probably not show a profit for at least four to seven years (IRS figures an least four to seven years (IRS figures an average of five years).average of five years).

►A financing plan should be adopted early to be A financing plan should be adopted early to be sure the cooperative can “weather the storm.”sure the cooperative can “weather the storm.”

PitfallsPitfalls► Ineffective or inadequate Ineffective or inadequate

communication:communication:►Communication is critical to the success of a Communication is critical to the success of a

cooperative venturecooperative venture►Learn these points quickly:Learn these points quickly:

► Who should knowWho should know► What should be communicatedWhat should be communicated► How should the message be communicatedHow should the message be communicated► When the message should be communicatedWhen the message should be communicated

►Overly Optimistic AssumptionsOverly Optimistic Assumptions►Failure to be a Failure to be a COOPERATIVECOOPERATIVE member member

of the groupof the group

Center for Rural Center for Rural AffairsAffairs

Cooperative Marketing Cooperative Marketing AssistanceAssistance

Available from the Center for Available from the Center for Rural AffairsRural Affairs

Marketing Alliances ProjectMarketing Alliances Project

Partnership WorkPartnership Work

►Center for Rural AffairsCenter for Rural Affairs►College of Saint MaryCollege of Saint Mary►Creighton University School of Law Creighton University School of Law

Community Economic Development Law Community Economic Development Law ClinicClinic

►Rural Community Advancement ProjectRural Community Advancement Project►Nebraska Cooperative Development Nebraska Cooperative Development

CenterCenter►University of NebraskaUniversity of Nebraska


►Articles of Incorporation - Draft to be Articles of Incorporation - Draft to be reviewed by an attorneyreviewed by an attorney

►Cooperative BylawsCooperative Bylaws►Labeling assistanceLabeling assistance

►USDA FSIS Approval assistanceUSDA FSIS Approval assistance►Form preparation assistanceForm preparation assistance►Linkage to personnel at USDA when necessaryLinkage to personnel at USDA when necessary►Linkage to label expediters when necessaryLinkage to label expediters when necessary


►Risk Management AssistanceRisk Management Assistance►Limiting liability of individual membersLimiting liability of individual members►Insurance explanationInsurance explanation

► Farm LiabilityFarm Liability► Product LiabilityProduct Liability

►Legal structureLegal structure► Limited Liability CompanyLimited Liability Company► Limited Liability PartnershipLimited Liability Partnership► CorporationCorporation► S-CorporationS-Corporation

►Communication assistanceCommunication assistance►Facilitation of meetingsFacilitation of meetings


►Linkage to funding sourcesLinkage to funding sources►USDA Value-Added Development GrantsUSDA Value-Added Development Grants►USDA RBEGUSDA RBEG►USDA Renewable Energy GrantsUSDA Renewable Energy Grants►USDA FMPPUSDA FMPP►North Central Region SARENorth Central Region SARE Nebraska Cooperative Development CenterNebraska Cooperative Development Center►Private foundationsPrivate foundations►Other USDA Grant programsOther USDA Grant programs►Government grant sourcesGovernment grant sources


Linkage to other collaboratorsLinkage to other collaboratorsUSDA Rural DevelopmentUSDA Rural DevelopmentCollege of Saint MaryCollege of Saint MaryCreighton University School of Law Community Creighton University School of Law Community Economic Development ClinicEconomic Development ClinicRural Community Advancement ProjectRural Community Advancement ProjectUniversity of Nebraska Cooperative ExtensionUniversity of Nebraska Cooperative ExtensionNebraska Cooperative Development CenterNebraska Cooperative Development CenterNebraska Department of AgricultureNebraska Department of AgricultureNebraska Rural Development CommissionNebraska Rural Development CommissionNebraska Department of Economic DevelopmentNebraska Department of Economic DevelopmentRC&D DistrictsRC&D Districts


►Marketing assistance & trainingMarketing assistance & training►Feasibility/Pre-Feasibility StudiesFeasibility/Pre-Feasibility Studies►Market identificationMarket identification►Business Plan DevelopmentBusiness Plan Development►Market Plan DevelopmentMarket Plan Development►Linkage to existing professionals:Linkage to existing professionals:

►AttorneysAttorneys►Insurance companiesInsurance companies►Accountants / CPA’sAccountants / CPA’s►LendersLenders

Other Center ProjectsOther Center Projects►Land Link ProjectLand Link Project

►Michael Heavrin and Wyatt FraasMichael Heavrin and Wyatt Fraas► Beginning farmer assistanceBeginning farmer assistance► Linkage between retiring farmers and new Linkage between retiring farmers and new

farmersfarmers

►Family Farm Sustainable Agriculture Family Farm Sustainable Agriculture ProjectProject

►Wyatt FraasWyatt Fraas►Martin KleinschmitMartin Kleinschmit

► Farming and ranching practices demonstration Farming and ranching practices demonstration ► Farming and ranching educationFarming and ranching education► Technical assistance for farmers and ranchersTechnical assistance for farmers and ranchers

Other Center ProjectsOther Center Projects►Rural Enterprise Assistance ProgramRural Enterprise Assistance Program

►Jeff ReynoldsJeff Reynolds►Peggy MahaneyPeggy Mahaney

Eugene Rahn -- NC NebraskaEugene Rahn -- NC Nebraska Adriana Dungan – NE Nebraska & Hispanic BDAdriana Dungan – NE Nebraska & Hispanic BD Dena Beck -- SW and SC NebraskaDena Beck -- SW and SC Nebraska Nancy Flock – SW and SC NebraskaNancy Flock – SW and SC Nebraska Janelle Moran -- SE NebraskaJanelle Moran -- SE Nebraska Jerry Terwilliger – PanhandleJerry Terwilliger – Panhandle Monica Braun – Women's Business Development CenterMonica Braun – Women's Business Development Center

► Business plan assistanceBusiness plan assistance► Technical assistance on all aspects of small business formationTechnical assistance on all aspects of small business formation► Linkage to other small businessLinkage to other small business► Meeting facilitationMeeting facilitation► Loan assistanceLoan assistance

Other Center ProjectsOther Center Projects

► Executive DirectorExecutive Director►Chuck HassebrookChuck Hassebrook

► Rural Opportunities and Stewardship Program Rural Opportunities and Stewardship Program DirectorDirector

►Kathie StarkweatherKathie Starkweather► Rural Research and Analysis Program DirectorRural Research and Analysis Program Director

►Jon BaileyJon Bailey► Rural Policy Program DirectorRural Policy Program Director

►Chuck Hassebrook (Interim)Chuck Hassebrook (Interim)► Rural Enterprise Assistance Program DirectorRural Enterprise Assistance Program Director

►Jeff ReynoldsJeff Reynolds

Any Questions?Any Questions?

Center for Rural AffairsCenter for Rural Affairs

Rural Opportunities and Stewardship ProgramRural Opportunities and Stewardship Program

Michael HeavrinMichael Heavrin

(402) 687-2100, Ext 1008(402) 687-2100, Ext 1008

[email protected]@cfra.org

Renewable Energy and Energy Renewable Energy and Energy Efficiency ProgramEfficiency Program

Energy ProgramsEnergy ProgramsUSDA RURAL USDA RURAL

DEVELOPMENTDEVELOPMENTThe Food, Conservation, and Energy Act of 2008The Food, Conservation, and Energy Act of 2008

Renewable Energy for America Program (Section 9007)Renewable Energy for America Program (Section 9007) Biorefinery Assistance (Section 9003)Biorefinery Assistance (Section 9003) Repowering Assistance (Section 9004)Repowering Assistance (Section 9004) Bioenergy Program for Advanced Fuels (Section 9005)Bioenergy Program for Advanced Fuels (Section 9005) Biomass Research and Development (Section 9008) Biomass Research and Development (Section 9008) Rural Energy Self-Sufficiency Initiative (Section 9009)Rural Energy Self-Sufficiency Initiative (Section 9009)

What is the Section 9007 What is the Section 9007 Program?Program?

► Designed to assist Designed to assist farmers, ranchersfarmers, ranchers and and rural small businessesrural small businesses with energy with energy projectsprojects

► Provides Provides GrantsGrants & & Loan GuaranteesLoan Guarantees for: for:

Renewable Energy ProjectsRenewable Energy Projects

andand

Energy Efficiency ProjectsEnergy Efficiency Projects


► Plus Plus NOWNOW provides provides Grant fundingGrant funding for: for:

Energy Audits & Renewable Energy Energy Audits & Renewable Energy Development Assistance Development Assistance

andand

Feasibility Study FundingFeasibility Study Funding


► USDA has funded approximately USDA has funded approximately 1,2481,248 loan & grant projects worth loan & grant projects worth $93,853,183$93,853,183 since the Program began in FY 2003.since the Program began in FY 2003.

► For FY 2008, For FY 2008, 1,1571,157 applications nationwide applications nationwide were filed, requesting were filed, requesting $1,205,714,554 $1,205,714,554

► Nebraska received Nebraska received 207207 applications in applications in FY08, FY08, 170 170 received funding including received funding including 44 Combination Grant/Guaranteed Loans.Combination Grant/Guaranteed Loans.


Who is Eligible?Who is Eligible?

► Agricultural producers and rural small Agricultural producers and rural small businesses can applybusinesses can apply

What Projects are Eligible?What Projects are Eligible?

► Any Any renewable energyrenewable energy and and energy energy efficiency projectefficiency project as defined in the as defined in the law. law.

► Renewable Energy – Energy derived from:Renewable Energy – Energy derived from: windwind solarsolar renewable biomassrenewable biomass ocean ocean (including tidal, wave, current & thermal)(including tidal, wave, current & thermal) geothermalgeothermal hydroelectric sourcehydroelectric source hydrogen derived from renewable biomass or water using one of the above hydrogen derived from renewable biomass or water using one of the above

energy sourcesenergy sources


► Renewable Biomass – any organic material that is available Renewable Biomass – any organic material that is available on a renewable or recurring basis. Includes:on a renewable or recurring basis. Includes:

Renewable plant material, includingRenewable plant material, including► Feed grainsFeed grains► Other agricultural commoditiesOther agricultural commodities► Other plants and treesOther plants and trees► AlgaeAlgae

Waste material, includingWaste material, including► Crop residueCrop residue► Other vegetative waste material Other vegetative waste material (including wood waste & wood residues)(including wood waste & wood residues)► Animal waste and byproducts Animal waste and byproducts (including fats, oils, greases, & manure)(including fats, oils, greases, & manure)► Food waste and yard wasteFood waste and yard waste

Materials, pre-commercial thinnings, or invasive species from Materials, pre-commercial thinnings, or invasive species from National Forest System land & public lands National Forest System land & public lands (See Section 9001 for further (See Section 9001 for further definition)definition)


►Energy efficiency Energy efficiency projectsprojects typically typically involve involve installing installing or or upgrading equipmentupgrading equipment to to significantly reduce significantly reduce energy (BTU) use.energy (BTU) use.


• Pre-commercial or commercially Pre-commercial or commercially available and replicable technology available and replicable technology

Grant requests $200,000 or less, Grant requests $200,000 or less, commercially available technology onlycommercially available technology only

• Projects must be technically Projects must be technically feasiblefeasible

• Must have sufficient revenues to Must have sufficient revenues to provide for O&Mprovide for O&M


What Projects are Eligible? What Projects are Eligible?

► Energy Efficiency ProjectsEnergy Efficiency Projects Energy Audit Required showing BTU SavingsEnergy Audit Required showing BTU Savings

► Renewable Energy ProjectsRenewable Energy Projects Business Level Feasibility Study RequiredBusiness Level Feasibility Study Required

If If TPC $200,000+TPC $200,000+

Business Level Business Level Feasibility StudyFeasibility Study

An acceptable feasibility study, completed by an independent third party, should include, but not be limited to, a discussion of the project’s:

1. Economic feasibility2. Market feasibility3. Technical feasibility4. Financial feasibility5. Management

feasibility

Grant Request cannot exceed 25% of Grant Request cannot exceed 25% of project costsproject costs

Maximum grant requestMaximum grant request $500,000 for Renewable Energy$500,000 for Renewable Energy $250,000 for Energy Efficiency$250,000 for Energy Efficiency

Minimum grant request: Minimum grant request: $2,500 for Renewable Energy $2,500 for Renewable Energy $1,500 for Energy Efficiency $1,500 for Energy Efficiency

Grant ProgramGrant Program

Applicant must demonstrate Applicant must demonstrate financial needfinancial need

CompetitiveCompetitive funding process- funding process- awarded only once a year!awarded only once a year!

Grant ProgramGrant Program

Guaranteed Loan cannot exceed 75% Guaranteed Loan cannot exceed 75% of total eligible project costs.of total eligible project costs.

Minimum Guaranteed Loan = $5,000Minimum Guaranteed Loan = $5,000Maximum Guaranteed Loan = $25MM Maximum Guaranteed Loan = $25MM

Simplified Application process for loans $600,000 Simplified Application process for loans $600,000 or lessor less

Guaranteed Loan ProgramGuaranteed Loan Program

Maximum Percentage of GuaranteeMaximum Percentage of Guarantee$600,000 or less = 85% $600,000 or less = 85% $600,001 to $5 million = 80%$600,001 to $5 million = 80%$5 million to $10 million = 70%$5 million to $10 million = 70%$10 million to $25 million = 60%$10 million to $25 million = 60%

Interest Rate set by LenderInterest Rate set by Lender

Guarantee fee = 1% of guaranteed portion, Guarantee fee = 1% of guaranteed portion, with annual renewal fee of ¼ of 1% of the with annual renewal fee of ¼ of 1% of the

guaranteed portion.guaranteed portion.

No Prepayment Penalty No Prepayment Penalty

Guaranteed Loan ProgramGuaranteed Loan Program

Combination Combination Grant/Guaranteed LoanGrant/Guaranteed Loan

CombinationCombination requests cannot exceed 75% of total requests cannot exceed 75% of total eligible project costeligible project cost

Combo requests funded bi-weeklyCombo requests funded bi-weekly

100% of eligible combo’s funded to date100% of eligible combo’s funded to date(One state has rec’d 88 combo awards for $6.8MM to date in FY2008)(One state has rec’d 88 combo awards for $6.8MM to date in FY2008)

By making an application for a guaranteed By making an application for a guaranteed

loan you help ensure yourself funding loan you help ensure yourself funding from from

a a grant!grant!

► Guaranteed Loan TermsGuaranteed Loan Terms Real EstateReal Estate

►30 years maximum30 years maximum

Machinery and EquipmentMachinery and Equipment►20 years or the useful life20 years or the useful life

Working CapitalWorking Capital►7 years maximum7 years maximum►Term W.C. Only, No Lines of CreditTerm W.C. Only, No Lines of Credit

Guaranteed Loan Program Guaranteed Loan Program


► EquityEquity $600,000 or less = 15% Cash equity injection$600,000 or less = 15% Cash equity injection $600,000 - $25MM = 25% Cash equity injection$600,000 - $25MM = 25% Cash equity injection

Grant funds can be used as equity for Combo’sGrant funds can be used as equity for Combo’s

Real Property can be substituted for equity if Real Property can be substituted for equity if pledged as collateral pledged as collateral


► Collateral Collateral

Documented collateral value must be Documented collateral value must be sufficient to protect the interest of the lender sufficient to protect the interest of the lender & the Agency.& the Agency.

Discounted collateral value normally equal to Discounted collateral value normally equal to loan amount. loan amount.

Collateral should be discounted with sound Collateral should be discounted with sound loan-to-value policies.loan-to-value policies.

Loans must have at least a parity position Loans must have at least a parity position with any unguaranteed loans.with any unguaranteed loans.


► AppraisalsAppraisals

$600,000 or less = Summary Appraisal in $600,000 or less = Summary Appraisal in accordance with USPAPaccordance with USPAP

$600,000 + = Self-Contained appraisal$600,000 + = Self-Contained appraisal

BENEFITS OF COMBO’SBENEFITS OF COMBO’S

Reduce competition among grant only Reduce competition among grant only funding!funding!

Quicker notification of award!Quicker notification of award!

Lenders can assist existing customers or Lenders can assist existing customers or attract new via combination application!attract new via combination application!

Assist with Increasing Energy Independence!Assist with Increasing Energy Independence!

Grants assurance for local businesses & farmers via Combination applications…..

Quicker notification of funding…..

Economic develop partnering with a local lender….

Partner with

USDA RURAL DEVELOPMENT

Deb Yocum-Renewable Energy CoordinatorPh. 402-437-5554

[email protected]

Contact Information

Energy & Community Food Energy & Community Food SystemsSystems

As the cost of energy continues to rise, As the cost of energy continues to rise, it will become more and more it will become more and more important to reduce the amount of important to reduce the amount of energy needed to grow, raise, process, energy needed to grow, raise, process, package, label, store, ship and sell package, label, store, ship and sell food products. Community Food food products. Community Food Systems would dramatically reduce Systems would dramatically reduce the amount of energy required to feed the amount of energy required to feed people in this country.people in this country.


Nebraska, being a rural state with many Nebraska, being a rural state with many miles of roads between food producers miles of roads between food producers and food consumers, is blessed with an and food consumers, is blessed with an amazing resource that can be used for amazing resource that can be used for economic development and the economic development and the production of an incredible amount of production of an incredible amount of renewable energy that can assist the renewable energy that can assist the nation in providing enough clean, nation in providing enough clean, affordable energy from within our own affordable energy from within our own borders – that resource is WIND.borders – that resource is WIND.


Wind – clean, renewable, inexhaustible, Wind – clean, renewable, inexhaustible, safe, and low cost energy. According safe, and low cost energy. According to the American Wind Energy to the American Wind Energy Association, the United States now Association, the United States now generates 28,206 mega-watts (MW) of generates 28,206 mega-watts (MW) of electricity (March, 2009) – that makes electricity (March, 2009) – that makes the USA Number 1 in the amount of the USA Number 1 in the amount of electricity generated from wind. electricity generated from wind.

Wind EnergyWind Energy

►The potential wind energy generation The potential wind energy generation capacity, however, is estimated at capacity, however, is estimated at 10,777 billion kilowatts (kWh) – more 10,777 billion kilowatts (kWh) – more than twice the electricity generated in than twice the electricity generated in the United States today. Wind can the United States today. Wind can generate electricity without consuming generate electricity without consuming any natural resources or emitting any any natural resources or emitting any pollution or greenhouse gases. pollution or greenhouse gases.


► Nebraska has the potential of generating Nebraska has the potential of generating 868,000,000,000 kWh of electricity – 8.05% 868,000,000,000 kWh of electricity – 8.05% of the nation’s wind generation capacity and of the nation’s wind generation capacity and approximately 16.1% of the current total approximately 16.1% of the current total electricity generated in the United States. electricity generated in the United States.

► Nebraska ranks 6th among the states when Nebraska ranks 6th among the states when it comes to wind generation potential. it comes to wind generation potential.

► The state, however, now produces only 153 The state, however, now produces only 153 MW or 150,000,000 kWh of electricity from MW or 150,000,000 kWh of electricity from wind power wind power


Currently, the installed wind power state Currently, the installed wind power state “gigawatt” club includes the following nine “gigawatt” club includes the following nine states (in order):states (in order): Texas 7,907 MW Texas 7,907 MW Iowa 2,883 MW Iowa 2,883 MW California 2,653 MW California 2,653 MW Minnesota 1,804 MW Minnesota 1,804 MW Washington 1,479 MW Washington 1,479 MW Oregon 1,363 MW Oregon 1,363 MW New York 1,261 MW New York 1,261 MW Colorado 1,068 MW Colorado 1,068 MW Kansas 1,014 MW Kansas 1,014 MW


Indiana keeps its title as fastest growing state Indiana keeps its title as fastest growing state with the large 400.3-MW project that was with the large 400.3-MW project that was brought online. States tallying the most brought online. States tallying the most rapid growth in wind capacity in the first rapid growth in wind capacity in the first quarter include: quarter include: Indiana 75% Indiana 75% Maine 55% Maine 55% Nebraska 53% Nebraska 53% Idaho 49% Idaho 49% New York 34% New York 34%

Nebraska Wind Nebraska Wind Energy Energy ConferenceConference

Eric LantzEric LantzEnergy Analyst Energy Analyst NRELNREL

April 19, 2023April 19, 2023

Wind Energy and Wind Energy and Economic Economic

Development In Development In NebraskaNebraska

A few prefacing pointsA few prefacing points►Economic Development TheoryEconomic Development Theory►Economic development is driven by spending Economic development is driven by spending and investmentand investment

►Economic impacts cascade through the Economic impacts cascade through the economy providing direct, indirect, and induced economy providing direct, indirect, and induced impactsimpacts

►The rural nature of wind projects can increase The rural nature of wind projects can increase the benefit to rural regions but project the benefit to rural regions but project ownership and business involvement is critical ownership and business involvement is critical to ensuring benefits remain local.to ensuring benefits remain local.

►Analysis ThemesAnalysis Themes►Building wind power provides economic Building wind power provides economic development to Nebraska and the countrydevelopment to Nebraska and the country

►Local manufacturing is the single largest Local manufacturing is the single largest factor that can influence the outcome of factor that can influence the outcome of economic development impacts, but project economic development impacts, but project ownership also matters. ownership also matters.

Projects currently under development Projects currently under development are expected to have direct impacts in are expected to have direct impacts in

NebraskaNebraskaElkhorn Ridge Wind Energy Project – 82 Elkhorn Ridge Wind Energy Project – 82

MWMWBloomfield, NebraskaBloomfield, Nebraska

►15% of the total $140 million investment is 15% of the total $140 million investment is expected to go to Nebraska goods and servicesexpected to go to Nebraska goods and services►Lifetime property tax payments: $5.7 millionLifetime property tax payments: $5.7 million►Land lease payments in excess of $325,000 Land lease payments in excess of $325,000 per yearper year►Work for more than 100 construction workers Work for more than 100 construction workers over the 9-month construction periodover the 9-month construction period►Project revenue payments to Nebraska Project revenue payments to Nebraska individuals and businesses that are at least individuals and businesses that are at least 33% of gross power production revenues33% of gross power production revenues

Projects currently under development Projects currently under development are expected to have direct impacts in are expected to have direct impacts in

NebraskaNebraskaCrofton Hills Wind Farm – 42 MWCrofton Hills Wind Farm – 42 MW

Crofton, Nebraska Crofton, Nebraska ►Lifetime property tax payments: $3.2 Lifetime property tax payments: $3.2 millionmillion►Work for 50 construction workersWork for 50 construction workers►4 permanent jobs4 permanent jobs►Landowner lease and project revenue Landowner lease and project revenue payments in excess of $300,000 per yearpayments in excess of $300,000 per year►Project revenue payments to Nebraska Project revenue payments to Nebraska individuals and businesses that are at least individuals and businesses that are at least 33% of gross power production revenues33% of gross power production revenues

Building 1,000 MW supports thousands Building 1,000 MW supports thousands of FTEs in Nebraskaof FTEs in Nebraska

Total Full Time Equivalents Supported by Construction, Manufacturing, and Related Activities

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

CBED High Trad High CBED Low Trad Low

Full Time Equivalents

Induced Impacts

Indirect Impacts

Direct Impacts

Total GDP Contribution: $260 million to $514 million

Operating 1,000 MW supports hundreds Operating 1,000 MW supports hundreds of long-term jobs in Nebraskaof long-term jobs in Nebraska

Wind and Related Industry Jobs Supported by Wind Plant Operations

0

100

200

300

400

500

600

CBED High CBED Low Trad High Trad Low

Long-term Jobs

Induced Impacts

Indirect Impacts

Direct Impacts

Annual GDP Contribution: $30 million to $55 million

Lifetime* Results SummaryLifetime* Results Summary

*Based on construction period and 20 years of operations

Lowest Lowest ScenarioScenario

Highest Highest ScenarioScenario

7,800 MW7,800 MW

Total FTE JobsTotal FTE Jobs 64,00064,000 117,000117,000

Total Economic Output Total Economic Output (millions)(millions) $7,800 $7,800 $14,100 $14,100

Total Land Lease Total Land Lease Payment (millions)Payment (millions) $547 $547 $641 $641

Total property tax Total property tax payments (millions)payments (millions) $570 $570

1,000 MW1,000 MW

Total FTE JobsTotal FTE Jobs 7,6007,600 14,50014,500

Total Economic Output Total Economic Output (millions)(millions) $870 $870 $1,640 $1,640

Total Land Lease Total Land Lease Payment (millions)Payment (millions) $70 $70 $82 $82

Total property tax Total property tax payments (millions)payments (millions) $73 $73

ConclusionsConclusions►Across all scenarios, the economic Across all scenarios, the economic development impact of utility-scale development impact of utility-scale wind power is large.wind power is large.

►Present trends suggest that the C-Present trends suggest that the C-BED development trajectory will BED development trajectory will remain popular and may dominate remain popular and may dominate wind development in Nebraska. wind development in Nebraska.

►The greatest economic The greatest economic development benefits to Nebraskans development benefits to Nebraskans are derived under conditions where are derived under conditions where local ownership is high and local ownership is high and manufacturers are located in manufacturers are located in NebraskaNebraska

community food systems and cooperatives nebraska sustainability leadership workshop april 30, 2009...

Documents

food retailers food

community food systems

development of food

grown food slide

local food production

sustainable food production

food system issues

nutritionists food processors