Dr. Glenda Humiston State Director, California RD
description
Transcript of Dr. Glenda Humiston State Director, California RD
Dr. Glenda HumistonState Director, California RD
Collaborative
Economic
Development:
Building Momentum
with Lean Resources
July 28, 2011
A Broad Array of Support
• Funding for – Business & Cooperative Development– Community Facilities– Water & Sewer Systems– Single and Multi-Family Housing
• Loans, Guaranteed Loans, Grants
• Technical Assistance
• Staff Support for Applicants
January 2010 – 43 Forums •Over 1,000 Californians Participated
•Consistent Recommendations Offered Throughout All of California
•Strong Partnerships Emerged
January 2011 – 58 Forums •Almost 2,000 Californians Attended
•Gave Update on Activities and Shared New Economic Development Strategy
•Strong Support Received
•Many Requests for Collaboration
Report Recommendations
On-Farm Portion of Income
Off-Farm Portion ofIncome
SOURCE: USDA ERS
Composition of U.S. Farm Household Income by Source
CHALLENGES
• Increased Need for Off-Farm Employment
• Lack of Investments Directed at Rural Sector
• Credit Availability and Access is Limited
• Complex & Conflicting Regulations
• Workforce and Income Issues
• Infrastructure Deficiencies
OPPORTUNITIES• Improve Access to Healthy Food• Grow Regional Economies• Create Jobs in Value Chains• Provide New Energy Sources
HARVEST
WASH/PREP
PROCESS
MARKET
STORAGE
COOK
PACKAGE
DISTRIBUTE
BUTCHER
COOLING
CUT/WRAP
BIOFUELS
RENEWABLES
California Agriculture
77% of the Economic Activity is Off Farm
Agriculture Value Chain Opportunities
SOURCE: CA Center of Excellence
Agriculture Value Chain Opportunities
Biomass Value Chain Opportunities
• Value-Added Wood Products
• Slash Removal:
• Biomass Products
• Fire Reduction
• Water Production
• Wildlife Habitat
Manufacturing
On-Site Processing
•OSB •Pellets •Heat •Electricity •Compost•Biofuels•Polymers•Composites•Biochemicals
Save Cost of Fires, Insurance, etc.
Ecosystem Credits
Tourism
•Trucking •Manufacturing•Distribution•Storage •Repair•Management•E-Commerce•Support Services•And More…
California Bio-Energy Employers by Sector
Biomass Value Chain Opportunities
Creating Opportunities in the Knowledge Era
21%
Tertiary Occupations: professional, technical, managers, officials and proprietors; clerical, sales and service workers; etc.
37%
42%38%
4%
Secondary Occupations: craftsmen, foremen, operatives, repairers, truck drivers, etc.
Primary Occupations: farmers, fishermen, foresters, miners, etc.
Value Chain Infrastructure Allows Rural Regions to Exploit these Trends for Jobs and Economic Development
Percentage of Male Workers Employed in Each Economic Sector
58%
North Coast FoodSystem
Northern Sierra
BiomassProject
Central Sierra
Value-AddedLivestock
Port West Sac
Port of Oakland
Port ofStockton
Ports of L.A. &Long Beach
Southern California
RenewableEnergy
Fresno Kings Tulare
SOLUTIONS• Regional Collaboration on
Needed Infrastructure
• Strategies that Promote Investment in Rural Areas
• New Financial Tools
• Relationship Capital Among Diverse Stakeholders
• Empower Local Leaders and Institutions to Improve Policy
• Economies of Scale• Utilize Cooperatives
• Connect Local Food Access With Transportation for Export
No more than 2% of annual state job gains can be attributed to business relocations nationally while more than 95% comes from the expansion of existing businesses (nearly 42%) and the birth of new establishments (56%).Jed Kolko, “Business Relocation and Homegrown Jobs,” Public Policy Institute of California, September 2010
Collaboration Stretches Finite ResourcesRegional Exploits Economies of Scale
“Economic Gardening” nurtures the local economy rather than “hunting” for big business relocations.
•Help Existing Businesses Thrive & Grow
•Create Opportunities for Entrepreneurs
•Provide Value-Chain Infrastructure
•Improve Quality-of-Life Factors in Rural Communities and Regionally
Economic Gardening
Community Colleges &
Job Training
Economic Development Corporations
Venture Capital & Micro-Finance
Resource Conservation &
Development Councils
Micro Enterprise
Support BALLE
GoED
Local Government
State & Federal Programs Research
Institutions
NonProfits
Diverse Collaboration
CAMEOCooperative Extension
Financial Institutions
“Intangible Capital” Growing in All Sectors
Intangible Value as a % of Total Market Capitalization by Sector
The Pieces That Are Often Taken for Granted and Receive Little Investment
Coops Can Do Many Things!
Purchasing cooperatives include:
•Ace Hardware,
•The Bike Cooperative,
•Unified Grocers
•and many more.
Worker cooperatives include:
•small bicycle & book stores,
•small retail businesses,
•a fair-trade coffee roaster,
•a taxi company,
•an engineering firm,
•…and an adult theatre.
Look For Opportunity in New Ways
Bringing OUR Capital Home
LEVERAGING NEW MARKET TAX CREDITS (NMTC)
Direct
Public
Offering
California USDA Rural Development & the Federal Reserve Bank of San Francisco
FINANCIAL OPPORTUNITIES ROUNDTABLE
CalFOR aims to develop tools and strategies that will:•Mobilize capital markets •Capture local investment potential •Fuel regional economic growth
USDA Loan Guarantees
and Intermediary Relending
• Impact Investing• Expanded Use of Bonds
• Retirement Accounts Invested Locally• Program Mission Related Investments
•and ???
Adaptive Management