COMMENTARY: Cultivating the homegrown economy from field to fork is sound

Agri News

Thursday, April 24, 2008
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COMMENTARY:
Cultivating the homegrown economy from field to fork is sound

By Terry VanDerPol

On March 30 and March 31 Congressman Collin Peterson sponsored the second Homegrown Economy Conference at the University of Minnesota in Crookston.

Over 100 people attended the local foods reception and film clips on Sunday and 190 participated in the conference on Monday. Speakers, panelists and films spoke about local and regional food systems as an economic engine for farms and Main Streets.

Peterson's leadership in advocating for local food systems that can deliver good food to the region's tables and the strength of diverse economic activity to rural communities demonstrates sound public service and serves as a beacon to other officials at the federal, state and local levels.

Presenters, panelists, and participants' questions indicated strong interest and increasingly sophisticated activity in marketing, purchasing and consuming local, sustainably grown foods. Gigi DiGiacomo, University of Minnesota Senior Fellow in Agricultural Systems Endowed Chair, presented recent survey results of grocery stores showing high activity levels in sourcing food directly from farmers among rural grocers.

Primary on their list of reasons is "support the rural economy." Many farmers are finding success in marketing products directly to consumers, through farmers markets or to retailers and institutions. Produce sales are approaching $7 billion annually. Smaller farms are especially well-positioned to take advantage of these markets with highly differentiated products and an oftentimes heroic approach to meeting the challenges of growing, harvesting, packing, processing, transporting and distributing the food themselves. Small, independent stores can distinguish themselves from the "big box," low-cost leaders by providing the locally and sustainably grown, high-quality food consumers are increasingly saying they want.

Supply chain issues are becoming increasingly important. Processing, product aggregation and distribution challenges are pressing for the disappearing middle of America's farming and food network. In order to significantly ramp up local and regional food activity, we need to foster mid-tier value chains.

A mid-tier value chain is a strategic partnership between medium-sized farmers and "food entrepreneurs" who process and distribute the food. Farmers in a value chain are strategic allies rather than "low-cost input suppliers" and profits are distributed equitably across the supply chain. All partners recognize that their profitability depends in large part on success along the entire chain.

The development of appropriate size, effective and efficient supply chains remains a challenge for advocates. Rural residents and communities have allowed the dismantling of a lot of infrastructure in the past generations, including skills and knowledge. We have entrenched the corollary habits of raising our crops and our children for export. Rebuilding the infrastructure and developing the value supply chains is critical to building a system which retains wealth in the communities in which that food is produced.

A most compelling example of what can be done is Woodbury County, Iowa. In addition to a property tax break for farmers who successfully convert to organic production, the county has a policy to buy local, organic food.

This commitment has brought investment from the private sector and inspired at least one of the county's town councils to provide support for new organic farmers. The county developed a food label, opened a commercial kitchen, and provided space and support for a year-round "local and organic" market. This activity has attracted the attention of at least one larger organic processor, and a group of area farmers and entrepreneurs are coming together to produce and market a locally grown tomato sauce.

In his opening remarks, Peterson said, "We can support this at the federal level and the state and local levels. I think the market is there...It's not going to be easy. We're going against some big money. We have to provide the infrastructure to get some support to get established. It's going to be tough but we're making progress."

He's set a strong standard for leadership in the development of regional food systems and, by implication, signaled confidence in the ability of people of the 7th District to meet that challenge. If rural communities are to realize the economic potential from demand for local and sustainably grown food, people from across the various sectors need to join farmers, chefs, restaurateurs, grocers and consumers at the table.

VanDerPol directs Land Stewardship Project's Community Based Food Systems and Economic Development Program and farms near Granite Falls, MN.

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