using agriculture as an economic development tool mary holz-clause interim associate vice president
TRANSCRIPT
Using Agriculture as an Economic
Development Tool
Mary Holz-ClauseInterim Associate Vice President
What is Economic Development?
Economic development is a process that begins when a community acts to make itself ready to accommodate the retention, startup, location, or
expansion of an enterprise ... Economic development occurs when a local economy is vitalized by the creation of one or more jobs, an increase in community wealth, or the useful distribution of capital that arrives from outside sources ... (The process of economic development) never ends
during the life of a community.(http://www.iedconline.org/)
The International Economic Development Council says:
Community Development
• Community development is strengthening the capacity of the people, infrastructure and institutions to work with the citizens to affect the change they want.
To succeed globally, every region must be able to leverage its unique set of assets, ideas, and
skills to compete in the global marketplace.
U.S. Council on Competitiveness
Why?
Why?
Why?
Why?Nine County Population Projection
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• Industrial recruiting is $$$$...– Doesn’t work well in a global
economy.
• Key is entrepreneurs…– Local roots, local wealth, local
jobs.
• Like a farm system…– Entrepreneurs need coaches
and support.Center for the Study of Rural America, FRBKC
Historical Economic Development--
Competition
Economic Development Strategies
• Traditional Strategies:– Target individual firms (recruitment) –
• Cluster Based Strategies:– Focus on a group interdependent
firms– Cluster of competitive firms will
achieve an economically competitive advantage
How Do We Make Community/Economic Development Work?
Cargill Biorefinery Eddyville, Iowa
The common good in a global economy is helping regions compete.
There will be no one-size solution.
Initiatives must be regional in scope and flexible to adapt to regional needs.
Community/Regional Development
What do we mean by this term called “Clusters”?
Cluster Development
• Groups of industries in similar product chains
• Utilize similar products and feedstock• Utilize similar labor pool• Generate mutually beneficial
relationships by concentration of services and special technologies
• Creating an attitude/environment for business success
Why Clusters Work• Allows for specialization• Reduces transaction costs• Concentrates skilled labor and services• Allows for cost sharing of services• Gain efficiencies by proximity/logistics• Access to markets• Regional synergy
Examples of Clusters• Napa Valley• India IT Cluster• Silicon Valley• Detroit Automotive cluster• Arizona
– Aerospace, semiconductors and computer electronics
• Oregon– Wood products food processing, tourism
Iowa Clusters• IDED/Govenor’s Strategic Planning
Council• Life sciences• Information solutions• Advanced manufacturing
• Insurance – Des Moines
• Geographic regions - Iowa Great Lakes, Loess Hills, Villages of Van Buren County
• Bio-refinery cluster-- Eddyville
• Organics - Fairfield
Economic Development Indicators
• Clear goals and cooperative collaboration• Aggressive leadership• Existing business expansion/job creation• New firms/recruitment with job creation• Aggressive recruitment and retention programs• Strong educational support• Strong capital recruitment support• Regional collaboration in economic
development• Industry cluster strategies the compliment
existing businesses
Economic Development General Assessment
• Local economic analysis• Local infrastructure analysis• Local social/cultural mores• Local leadership and potential• Local links to state/fed support• Local premium features• Local models of entrepreneurship
What’s Ag Got To Do With It??
Value Added Agriculture
Increasing the value of an agricultural commodity through changes in genetics, processing, or diversification; or increasing the consumer appeal of an agricultural product.
USDA Rural Development
Ag as Economic Development
• Wineries• Agritourism• Niche marketing companies• Co-located ancillary business• Distribution alliances• Further processing• Primary processing
Think “Balance”
• Growth of existing business • Recruiting outside, existing
businesses into the area• Facilitating “new” opportunities for
business start-up
What Can Extension Bring?
• Leadership• Management• Facilitation• Development of plans• Evaluation and reporting• Interpersonal skills• Volunteer management• Team work• Access to technical information
Extension Relevance Strategies
• Active linkage to economic development networks
• Report your work as economic development
• BE the source…BE the source• Facilitate and Lead• Create continuity• Bring on the experts• Pull together ISU Ext teams
Extension is “Bringing It”Tools
• Strategic Planning Techniques• Investment Analysis Check-Sheet• Feasibility Check-sheets• Business Plan Template• Decision Templates• Location Decision Guidelines
Extension is “Bringing It”Tools
• Assist companies with marketing and business plans
• Conduct feasibility studies• Assist in technology transfer• Develop value-added resources• Monitor trends and developments that
provide new opportunities• Perform marketplace research for
companies
Extension is “Bringing It”Great Web-Based
• Market Makerhttp://ia.marketmaker.uiuc.edu/
• AgMRC www.agmrc.org
• Ag Decision Maker
• eXtension
Search for market demographics, local producers, and businesses in the food supply chain.
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Economic Development Principle No. 1
Imagine Everything and… Discount Nothing
Economic DevelopmentPrinciple No. 2
Believe!
Why?
Because nobody else will do it for you…