Putting USDA Programs to Work:

Transcription

1 Committed to the future of rural communities Putting USDA Programs to Work: Partnerships and Investments in Rural Communities Dr. Glenda Humiston, State Director, California Rural Development

2 Committed to the future of rural communities Funding and Technical Assistance for: Business & Cooperatives Development Community Facilities & Rural Utilities Water, Sewer & Solid Waste Systems Single, Multi-Family & Farmworker Housing FY 2012: $1.3 Billion CA Portfolio: $ 7.2 Billion

3 Single Family Housing Direct Loans Guaranteed Loans Self-Help Housing Multi Family Housing Farm Labor Housing Loans and Grants Rural Rental Housing Rental Assistance Housing Preservation Grants

4 Community Facilities First Responders, Libraries, Healthcare, Public Buildings, Schools, Food Banks, etc. Rural Utilities Water Systems Wastewater Broadband Electric

5 Business & Cooperative Programs Business & Industry Loans & Loan Guarantees Intermediary Relending Rural Microentrepreneur Assistance Program Rural Energy Assistance Program Rural Business Enterprise Grants Value Added Producer Grants Rural Business Opportunity Grants Cooperatives

6 CHALLENGES Lack of Investments in the Rural Sector Credit Availability and Access is Limited Complex & Conflicting Regulations Workforce Training and Education Infrastructure Deficiencies OPPORTUNITIES Forums Forums Demand for Local / Healthy Food Provide New Energy Sources Efficiencies Through Regional Clusters Potential for Jobs in Value Chains

7 Industry clusters of opportunity: similar, related, or complementary businesses linked by core products or services. These businesses are economically interdependent and may have common supply chains, labor needs, technologies, and markets.

8 Only 2% of annual state job gains are business relocations, most are from: expansion of existing businesses 42% creation of new establishments 56%

9 JOBS! HUSBANDRY HARVEST PROCESS COOLING CUT & WRAP PACKAGE STORAGE TRANSPORT MANAGE DISTRIBUTE MARKET WHOLESALE RETAIL TOURISM SERVICE SUPPORT RESEARCH

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11 Farmgate: $1.6 Billion Indirect: $3.3 Billion 21,000 Jobs Shift Local Consumption to Local Production = More Jobs & Economic Growth!

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13 Moving Food Along the Value Chain: Innovations in Regional Food Distribution USDA Agricultural Marketing Service 8 U.S. Case Studies Supplying the growing demand for local and regional food products Creating additional economic opportunities Expanding healthy food access

14 offering opportunities to collaborate with other stakeholders in expanding healthy food access and building needed USDA Unveils KYF2 Compass KYF Compass is interactive & web-based: infrastructure.

15 A partnership of federal and state agencies, educational institutions and NGOs Training any aspect to be a successful farmer or rancher. Financing loan programs, development accounts, grants & other programs to help finance the enterprise. Technical Assistance business planning, land transfer, licensing, regulations, technologies, farm techniques, etc. Networking opportunities for farmers and ranchers to exchange ideas and find farmer-to-farmer support.

16 Cooperatives Can Solve Gaps Purchasing cooperatives include: Ace Hardware, The Bike Cooperative, Unified Grocers and many more. Worker cooperatives include: small bicycle & book stores, a fair-trade coffee roaster, a taxi company, an engineering firm and more

17 Mission: The Farmer-Veteran Coalition works to mobilize veterans to feed America.

18 Forest Products Woody Biomass Reduce Fire Produce Water Wildlife Habitat Biomass Value Chain Opportunities Cost of Fires, Insurance, etc. Ecosystem Credits Tourism Agricultural Waste Municipal Waste Value-Added Wood BIOMASS PRODUCTS OSB Pellets Heat Electricity Compost Biofuels BioChar Polymers Biochemicals JOBS Trucking Manufacturing Distribution Storage Repair Distribution Management E-Commerce Support Research

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21 Clusters Along the Food Value Chain

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23 Get Ahead of Water Issues California Roundtable on Water and Food Supply just released a report on priority actions to expand storage infrastructure, improve flow and management of information, more effectively coordinate across scales, and tap new and diverse funding streams to improve water security in California.

24 Every additional billion dollars of agricultural export sales helps to generate 8,400 jobs at home. Secretary Vilsack on the 2012 Farm Bill, October 24, 2012

25 Leveraging Resources Council on Foundations partners with USDA Improve the quality of life of rural Americans Create new sources of rural wealth leverage assets Promote partnerships in workforce investment strategies Develop innovative & sustainable means of collaborating Joint convenings, webinars and teleconferences to advance common work

26 34 Ways to Access Capital Recommendations on Policy and Resources Over 130 top experts and activists representing financial institutions, private businesses, economic development organizations and government agencies pledged to implement!

27 California Organized Investment Network State Assistance Fund for Enterprise Business and Industrial Development Corporation (SAFE-BIDCO) Tax-Exempt Industrial Development Revenue Bonds Revolving Loan Funds Social Impact Bonds Crowdfunding and more!

28 Equity capital in rural areas is as successful as equity capital in tech-oriented metro regions. A study of 18,000 investments found no statistical difference between rural and metro regions measuring key variables: jobs created, type of industry, length of investment, exit type, or performance. Patricia Scruggs et al, The Role of Equity Capital in Rural Communities, March 2010,

29 Start Invest Local Initiatives California Citizens Hold $859 Billion in Retirement Accounts $43 Billion for Investment in California if Residents SOURCE: Employee Benefit Research Institute, May 2010 Data from Averaging National Statistics Brought 5% of Their Retirement Accounts Home

30 Committed to the future of rural communities California Rural Development U.S. Department of Agriculture 430 G Street, Agency 4169 Davis, CA Phone: