Woodbury County Iowa Rob Marqusee Director Rural Economic

Woodbury County Iowa Rob Marqusee Director, Rural Economic Development 712. 279. 6609 rmarqusee@sioux-city. org www. woodburyiowa. com Creating “Our Own” Vision For The Future The Woodbury County Experience Local Food From Local Farms: Benefits and Opportunities A Local Foods Educational Conference University of Nebraska-Lincoln East Campus Student Union 300 Nebraska East Union, Lincoln August 7, 2007

Woodbury County Iowa STATUS OF RURAL COMMUNITIES

Woodbury County Iowa Woodbury County Population Breakdown Loss In Population: 1970 -2000 Unincorporated Areas: 11. 2%/Rural Cities: 9. 7% However: 20%+ Decline Outside of Corridor Forecast: Accelerated Decline After 2000 (DM Reg)

Woodbury County Iowa Statistical Impact of Policies • Woodbury County Ag - Rural Statistics – Sales of Livestock & Livestock Products • 1969: $358 M vs. 2003: $80 M • 78 percent decline over 35 years – Sales of Crops & Livestock • 1998 -2003: $145 M loss from crops & livestock – Farms & Average Farm Sizes (Farms/Acreage) • 1975: 1, 930/268 vs. 2004: 1, 140/387 • 78% Increase in Number of Farms 1000 Acres+ – Woodbury County Losses & Subsidies • Annual Loss: $24 M Annual Subsidy: $23 M • Difference of $1 M Made Up By Additional Jobs (Statistics Provided By: Ken, Meter, Crossroads Resource Center, 2005 & U. S. Census)

Woodbury County Iowa Ag Stats & Forecast • Iowa Ag Statistics – 50%+ Of Farmland To Transfer in 10 Yrs – 25% Farmland Belong to Those >75 Age – Average Farmer Age 55+ (Woodbury: 60+) • Iowa Forecast – – Fewer Owners of Land Faster Decline in Rural Population Less Income in Rural Areas More Strain on Environment (Des Moines Register: July 17 & July 24, 2005)

Woodbury County Iowa FORCES IMPACTING RURAL ECONOMY

Woodbury County Iowa Total US Farm Subsidies Federal Subsidy Payments Nationwide Subsidy Total 1995 -2004 Corn Subsidies CRP Soybean Subsidies Sorghum Subsidies Livestock Subsidies Barley Subsidies Sunflower Subsidies Apple Subsidies Wool Subsidies $41, 862, 104, 072 $16, 618, 868, 852 $13, 017, 619, 420 $3, 719, 743 $2, 627, 217, 935 $1, 657, 217, 266 $416, 931, 661 $261, 814, 071 $174, 398, 845 Wheat Subsidies Cotton Subsidies Rice Subsidies Dairy Program Subsidies Peanut Subsidies Tobacco Subsidies Sugar Beet Subsidies Oat Subsidies Canola Subsidies Total Paid for Corn, CRP, & Soybean Subsidies: Total Paid for All Listed Federal Subsidies: $19, 834, 815, 250 $15, 778, 310, 711 $9, 984, 830, 876 $3, 130, 626, 423 $2, 020, 826, 354 $528, 207, 013 $348, 911, 959 $192, 890, 353 $173, 275, 831 $71, 498, 592, 344 $274, 353, 383, 635

Woodbury County Iowa A County Example Pottawattamie County, Iowa Federal Subsidy Payments to Pottawattamie County Farmers Subsidy Number of Recipients 1995 -2004 Total 1995 -2004 Corn Subsidies Recipients 3, 064 Paid $171, 922, 900 CRP Recipients 689 Paid $10, 860, 030 Soybean Subsidies Recipients 2, 348 Paid $43, 921, 870 Total Paid: $226, 704, 800 to Pottawattamie County Farmers All 2005 Federal Farm Subsidies Paid to Pottawattamie Farmers $37, 294, 007 (Does Not Even Create A Net Profit To Farmers) Source: Environmental Working Group

Woodbury County Iowa Farm Bill Debate July 27, 2007 Economists say the subsidies harm most farmers. That's because they lower crop prices, raise land prices and rents, and give subsidized farmers a financial advantage that has helped drive their neighbors out of business and keep young farmers from getting started. Many farmers, and farm state politicians of both parties, oppose large payments. Rep. Ron Kind, D-Wis. , Sen. Byron Dorgan, D-N. D. , and Sen. Chuck Grassley, RIowa, all want to limit payments to one-quarter the size Pelosi has endorsed in the House bill. "When you say to the biggest farms in the country, 'The bigger you get, the more money you get from the government, ' then the farm program effectively subsidizes the destruction of family farming, " said Chuck Hassebrook, executive director of the Center for Rural Affairs in Nebraska. "Most people in rural America think that is bad policy. "

Woodbury County Iowa Non-Localized Food System Money Flowing Out of Local Area Federal Government Non-Local Corporate Ag Processing Consumers $ Farmers Non-Local “Inputs” Manufacturers $ Money Flows From Federal Government to Farmers to Grow Crops At A Loss (Cost of Production > Price Paid) Ag Interests Buys At Low Price = Makes Lion’s Share of Profit on Food Products In Effect: Federal Government Provides Indirect Subsidy of Large Corporate Ag Interests

Woodbury County Iowa ECONOMIC DEVELOPMENT OPTIONS

Woodbury County Iowa Current Economic Development Strategies Economic Development Programs Are Based On: • • • Priority: Urban Projects (i. e. , Industrial, Commercial, Residential) Priority: Wage/Benefits Criteria Priority: $ Incentives-Outside Prospects Priority: Rural Programs Subject To Grant Writing Process Small Farm Production Not A Business/Object of Business Retention Focus: Transforming Rural Communities Into Another Purpose Programs Do Not Address Causes For Rural Decline

Woodbury County Iowa Effects of Current System Large Economies of Scale/Low Margin Outside Interests System Provides No Incentive For Small Farms & Promotes Loss of Farm Related Jobs • Bulk of Profit • True Recipients of Incentives • Dictate Standards to Local & Fickle Local Economy • Small Margins-Push Large Farms • Focus: Wage-Based Employment/Benefits • Little Motive for Entrepreneurship • Econ. Dev: Company Recruitment Prime Focus • Loss in Farm Labor/Rural Residents

Woodbury County Iowa Examples of Current Economic Development Strategies Billions of Taxpayer Dollars (“…without a peep”) • Biodiesel Project: IDED Gives $535 K to Major Corp: 4 -9 Jobs • Ethanol Supports: Five Subsidies ($4 M): Sioux City Example • Regulations Favor Large Processing Houses/Seed Patents • Ethanol: 70¢ / per Gallon : $70 M on 100 M Gal. Facility (Mostly Non-Local) • Farm Subsidies: $275 B / 10 yrs Average With Stated Impact on Local Economies • Primary Beneficiary: Non-Local Owners/Processing • Environment is Severely Compromised: Water/Top Soil • Less “Local” Control • National Health/Obesity Crises

Woodbury County Iowa Assisting the Good Life 6/15/07 “No official tally of business subsidies exists, but in separate studies Peter S. Fisher of the University of Iowa and Kenneth F. Thomas of the University of Missouri estimated that state and local subsidies aimed at creating jobs total about $50 billion annually. More subtle subsidies … are not counted in those figures and may be even larger. ”

Woodbury County Iowa A Better Economic Development Option

Woodbury County Iowa Localized Development • Localized Approach: We Are In Control! – – – Address Market Forces (Which Caused Decline) Localize Economy As Much As Possible: Integration Diversify Production & Processing Business Retention: Small Farms = Business Troll For Outside Business Relocation (Least Efficient)| Example: Organics Conversion Policy • Creating a Local Economic Development Context • Benefits to Local Economy of Local Food System: – – Primary Beneficiaries: Existing Local Producers Supporting Local Talent & Community Building Low Cost Compared to Current Economic Development Strategies Low Volume/High Margin Economic Development Strategy

Woodbury County Iowa Woodbury County Approach Policies & Programs

Woodbury County Iowa Woodbury Policies • Organics Conversion Policy: 6. 28. 05 – 100% Tax Rebate on Ag Land Converted to Organic – Sustainability, Environmental, Diversification – Smaller Farms, More Labor, Higher Income • Woodbury Health Initiative: 8. 2. 05 (Sen. Harkin) – Local Foods/Mobile Farmers Market Rural County – School Wellness Food Programs & Attack Obesity • Local Food Purchase Policy: 1. 10. 06 – Mandatory Purchase of Locally Grown Organic – Supports Local Farmer, Local Broker & Markets

Woodbury County Iowa Collateral Results of Policies • • • Local Community College - Organic Courses/Lab Whole Foods Market of Omaha Local Foods Broker, Restaurant, & Ed. Center Organic Farmer Networks - Mentoring Annual Organic Growers Conference Business inquiries from around the U. S. - Chamber Northwest Iowa Farm/Farmer Exchange Local Foods Brand: “Sioux City Sue” U. S. House of Representatives Testimony Organic Market: Project With Chamber, City, & County Sustainable Foods for Siouxland – Education 501(c)(3) Leopold Center Study Grants

Woodbury County Iowa Our Integrated Local Food System

Woodbury County Iowa

Woodbury County Iowa Woodbury Market • Residents Pay $203, 000 For Food Annually Plus: $10, 000+ Institutional Payments • Objective of Policies Local Food = 10% of Demand • Achievable Results: $21 M To Local Economy In Food Purchases $Millions In Local Goods Sold & New Facilities

Woodbury County Iowa Create Regional Economy • Create Integrated Local Foods Systems – Integrate Local Supply/Demand Chains • Local Can Lead to National Markets – Create High Margin/Low Volume Niche Markets • • Open Local Area To Grant Funding Opportunities Very Low Cost Regional Policies & Programs Is Opportunity Take Control Of Your Own Economic Future

Woodbury County Iowa What we are doing, as a community, is supporting our farmers and giving them a fair opportunity to serve our citizens and provide food at fair, competitive prices and making a decent living in the process. Organic Farming Is Economic Development!