usda program update ohioepa blighted property workshop michael rutherford business & cooperative...
TRANSCRIPT
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USDA Program UpdateOhioEPA
Blighted Property Workshop
Michael RutherfordBusiness & Cooperative Program Director
Ohio Rural DevelopmentMay 8, 2015
Marietta Ohio
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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”
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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
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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
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Increasing the local food supply Supporting infrastructure Improved access to local foods
How is USDA involved?
USDA and Local/Regional Food Systems
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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
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USDA and Local/Regional Food Systems
Infrastructure
Aggregating Processing Distributing Marketing
Rural Development State Offices: http://www.rurdev.usda.gov
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Massillon
330-830-7700
Marietta
740-373-7113
Columbus
614-255-2400
Hillsboro
937-393-1921
Findlay
419-422-0242
USDA Ohio Rural Development
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• 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
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• 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
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• 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
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• 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
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• Real Estate• Machinery & Equipment• Term Working Capital• Business Acquisitions• Tourism & Recreation• Hotels & Motels• Refinancing (including existing lender debt)
Eligible Loan Purposes
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• 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
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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
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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:
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• 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
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• 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
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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
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• 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
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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
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USDA and Local/Regional Food Systems
Increased access: Mobile markets
USDA’s Farmers Market and Local Food Promotion Program
www.ams.usda.gov/fmpp
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USDA and Local/Regional Food Systems
Increased access: Farm to School
USDA’s Farm to School Programwww.fns.usda.gov/farmtoschool/farm-school
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The Know Your Farmer, Know Your Food Initiative
www.usda.gov/knowyourfarmer
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www.usda.gov/knowyourfarmer
Know Your Farmer, Know Your Food:
Resources for Navigating USDA
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• 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
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www.usda.gov/knowyourfarmer
Find Resources to Fit the Need
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Michael [email protected]
614-255-2420
www.usda.gov/kyfcompass
www.usda.gov/knowyourfarmer
Thank You!