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The Economics of Local Food

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Tim Crosby

on 28 August 2013

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Transcript of The Economics of Local Food

The Economics
of Local Food

Policy Work
More Info
Tim Crosby Director, Slow Money NW slowmoneynw.org
Oregon
“ For every food dollar spent locally by the two school districts, an additional 87 cents was spent in Oregon, generating
a multiplier of 1.87 for farm to school spending.


“Dollars spent in Oregon agriculture
reverberated into 401 of 409 of the state’s economic sectors.


- Ecotrust, " Farm to School Investment Yields a Healthy Return into State Coffers", March 18 '09
Vermont
Illinois

A 20 percent increase in local production, processing, and purchasing will generate $20 to $30 billion of new economic activity annually within the state’s borders.
Thousands of new jobs will be created for farmers and farm-related businesses.”

Illinois Local and Organic Food and Farm Task Force, " Local Food, Farms & Jobs: Growing the Illinois Economy", March 2009
“Just in the city of Detroit,
shifting twenty percent of food spending would increase annual output by nearly half a billion dollars
. More than 4,700 jobs would be created, paying $125 million more in earnings. The city would receive nearly $20 million more in business taxes each year.”

Michael Shuman, “Economic Impact of Localizing Detroit’s Food System”,
Fair Food Foundation
Michigan
Maine
" Every $100 spent at locally owned businesses contributes an additional $58 to the local economy. By comparison, $100 spent at a representative national chain store in Portland yields just $33 in local economic impact."

" Shifting just 10% of consumer spending in Cumberland County from national chains to locally owned businesses would result in an additional $127 million in economic activity, supporting 874 new jobs and generating over $35 million in wages."

- Maine Center for Economic Policy, " Going Local: Quantifying the Economic Impacts of Buying from Locally Owned Businesses in Portland, Maine", Nov 2011
Executive Order 2011-2
Puget Sound Regional Council
Clark
Cowlitz
King (Multiplier study)
Kitsap
Pierce
Snohomish
Thurston
Whatcom
39,284 Number of WA farms (2007 Ag Census)

34,864 Farm proprietors employment (BEA Regional Economic Account, 2008)
82,497 Farm workers (2007 Ag Census)
117,361 Total Farm jobs (2007 Ag Census)

33,996 Processing jobs (Choose WA website)


2,934 2.5% Growth model for farm jobs (target gap is 15.5%)
850 2.5% Growth model for processing jobs

3,784 Direct Job growth

1.813 WA State I/O Employment Multiplier, average Crop:Animal (2002)
6,860 I/O Job Growth
State Revenue Potential
State Job Potential
$3,888 Annual national per capita food expenditures (US GAO report, Jan 2010)
6,549,224 WA state population (2008 Census)

$25,463,382,912 WA food expenditures (people * purchases)
$6,792,856,000 Market Value of WA agriculture products (2007 Ag Census; total farmgate value)
$11,700,000,000 Market value of in-state value-added food processing (ChooseWA website)
$6,970,526,912 Gross Opportunity Gap (total food expenditures minus market values)

$5,092,676,582 20% Target of all food expenditures that could be spent regionally
$1,145,852,231 4.5% Estimated amount of current regional purchasing market
$3,946,824,351 Additional gains above current regional market, targeted towards instate businesses

$9,275,037,226 2.35 WA State Total Output Multiplier, Average between crop and animal production
http://slowmoneynw.org
http://bit.ly/zFEyX5
timcrosby@comcast.net
206-300-9860
Economic Research
Mass Balance Study (draft)
For Western WA
Measures the gap between what we produce and what we eat.
For every 1 pound of food we produce in Western Washington, we eat 1.47 pounds.

Without Dairy: For every 1 pound of food we produce, we eat 3.19 pounds.
Draft research, "Western Washington Foodshed Study", U W Program of the Environment, www.wix.com/wafoodshed/western-wa-foodshed#!
Healthy
Schools
Hospitals
Houses
Farms
Bodies
USDA
" Marketing of local foods,
via both direct-to-consumer and intermediated channels,
grossed
$4.8 billion in 2008—about four times higher
than estimates
based solely on direct-to-consumer sales."

" Fruit and vegetable farms with local food sales employed 61,000 workers in 2008, or
13 FTE employees per million
dollars of sales, while fruit and vegetable farms not engaged in local food sales employed only
3 FTE employees per million
dollars of sale."

- USDA report, "Direct and Intermediated Marketing of Local Foods in the United States", Nov 2011
National research highlights > WA State data > Relationships > Regional opportunities
WA State Data
People
Planet
Profit
Health
Wealth
Sustainable
food
Right size
farm to market opportunities.
Healthy
Air
Water
Soil
Fair Wage
Fair Price
Business assistance
to improve farmer's
bottom line.
Technical assistance
to improve yields.
Connects food and farm businesses with investors.
Connects these businesses to business experts.
Offers a new farmer loan fund that
reduces risk to credit unions and community banks.
Fair, equitable treatment
of farm labor secures labor
when labor pool is tight.
Sustainable
production systems
are profitable.
Investing in soil fertility
reduces input costs.
lbs. of food
lbs. of food
Production
Processing
Storage
Distribution
Markets
Financing
Policy
Relationships
Farmland
Preservation
Inputs
Waste
True Cost of Food
Access to Farmland
People who eat healthy food
are usually healthier.
Help farmworkers
become
farm owners.
Relationships
Indicators
Soil Fertility
Appropriate-scale
technology
Financing
www.vsjf.org
Access to healthy foods
reduces government
support and costs,
builds health,
builds wealth.
Cost of Production
+
Reasonable rate
of return
Natural Capital
Rural Vitality
Equity
Mass Balance Study (draft)
Draft research, "Western Washington Foodshed Study", U W Program of the Environment, www.wix.com/wafoodshed/western-wa-foodshed#!
Appropriate
scale
food safety
Full transcript