Research

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Economic Impacts of regional food trade on Detroit and Seattle regions

A report from Detroit, MI discussed the economic impact of a regional food economy. From the report:

” 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.

” Were this spending shift to occur in the five counties surrounding Detroit – Macomb, Monroe, Oakland, Wayne, and Washtenaw – the increase in regional output would be roughly $3.5 billion. Nearly 36,000 jobs in the region would be created, paying $900 million more in earnings. Government entities in the region would receive $155 million more in business taxes.”

Click here for the Shuman-Detroit report.

What is most intriguing is that the economic impact numbers align very closely to the numbers derived from a separate study by Sustainable Seattle. That 2008 report found that ” A shift of 20% of our food dollars into locally directed spending would result in a nearly half billion dollar annual income increase in King County alone and double that in the Central Puget Sound region.”

Posted by nabctim on June 25th, 2009

Jersey Fresh Economic Analysis

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Separating out the economic return of growing local food for regional consumption is gaining momentum as more governments and communities measure the economic return of going local. New Jersey is one state that has measured such efforts. The state supports a Jersey Fresh program with an annual expenditure from state funds. From the 2004 NJ Agriculture Annual Report comes this fact:

Jersey Fresh Economic Impact – Using federal funds, a study was conducted to determine the economic impact of the Jersey Fresh Promotional Program. The study showed that each dollar spent on the Jersey Fresh program increased farm revenues by $31.54. That increase boosted farm-related businesses by an additional $22.95 of sales in agricultural support industries. In total, each dollar spent on Jersey Fresh promotion resulted in $54.49 of increased economic output in the State. With a current budget for Jersey Fresh being about $800,000, this means an increase in farm revenues of $25.2 million, and a total increase in economic output for the state of $43.6 million.

Pretty good return.

Posted by nabctim on April 8th, 2009

Local food spending benefits economy

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Portland, Oregon’s Ecotrust just released an economic analysis that researched the impact of farm to school spending across the state’s economy and found that “Investing in locally produced foods for the school lunchroom fortifies the state’s economy with dollars previously spent elsewhere.”

The research focused on two public school districts that were part of a controlled study “to test the impact of proposed ‘farm to school’ policies currently being debated in the Oregon Legislature.” From the report:

” 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.
” The analysis revealed that dollars spent in Oregon agriculture reverberated into 401 of 409 of the state’s economic sectors.”

Posted by nabctim on March 19th, 2009

U.S. Food Market Estimator

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The Leopold Center for Sustainable Agriculture (Iowa State University) continues to generate innovative work (as does WSU’s CSANR program). Leopold’s Marketing and Food Systems initiative has created The U.S. Food Market Estimator which is “designed to help users determine the potential demand, by county in the United States, for more than 200 different food items. This is an expansive tool, using data collected each year by the U.S. Department of Agriculture’s Economic Research Service (ERS).”

Also from their website:

“The tool provides information for 204 food products, including various dairy and meat products, fruit, vegetables and grains. Users select how they want results to be shown: by number of servings, pounds produced, truckloads transported, even cubic feet of warehouse space needed to store a particular product. Products can be shown individually, or as groups of products at key stages of the food supply chain. Results can be adjusted to reflect a particular market share, or the unit of measure changed from pounds to other units in order to suit a variety of needs such as number of servings, truckloads per day or cubic feet of warehousing needed each week.

How does this tool work?

” The U.S. Food Market Estimator uses the USDA-ERS Food Availability Data System, an annual estimate of the amounts of 204 food items available at a per capita rate for human consumption in the United States. This tool multiplies the national per capita rate by the county 2007 Population Estimate (from the U.S. Census) to determine the potential market for each food product at the county level.”

For each of the 204 food products in the Food Availability Data System, the ERS provides pertinent information for farm production (such as farm weight, carcass weight, dairy weight, etc.), as well as amounts received by retailers and sold by retailers. The system accounts for amounts lost to spoilage, trimming, and other factors at key points in the supply chain.”

Make sure to read the documents so that you understand the assumptions behind the numbers, and what the results really mean.

Posted by nabctim on February 25th, 2009

USDA 2009 Farm Sector Income Forecast

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The USDA Economic Research Service has shared it’s Farm Income and Costs: 2009 Farm Sector Income Forecast. Some of the highlights (so to speak) are below. Please visit their website to see explanations of the highlights.

Net Farm Income Forecast To Be Down 20 Percent in 2009.
- Net farm income is forecast to be $71.2 billion in 2009, down $18.1 billion (20 percent) from the preliminary estimate of $89.3 billion for 2008. Still, $71.2 billion would be 9 percent above the average of $65 billion earned in the previous 10 years.

Posted by nabctim on February 24th, 2009

2007 Puget Sound Ag Stats

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The USDA 2007 Ag Census was released in early February. Please see the 2002 Puget Sound Ag Stats posting for previous information.

While we wait for USDA to generate spreadsheets for easier data comparison across all measurements, here are the highlights:

We have more farms creating higher value products off of fewer total acres.

We now have over 12% more farms across the 12 Puget Sound counties. We gained over 3% in total market value but lost almost 5% of our farmland in the process.

Below is a screenshot and a pdf link of the highlights.

2007 Puget Sound Ag Census Highlights

Some of the changes are worth noting. The highs and lows of each highlighted category:

Kitsap County lost over 77% of it’s 2002 market value while Island County gained over 46% over the same period.
Pierce County lost almost 2% of it’s farms while Mason County gained 47%.
Whatcom lost 30% of it’s producing farmland while King gained 18%.

Posted by nabctim on February 13th, 2009

Food and climate impacts

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As we develop a regional food network we are considering the needs of the market, the food chain, the region’s comunities, and the environment. The best scenario is that we can find solutions that benefit all.

Part of our considerations involve how to increase regional food production while keeping a eye on climate impacts. Some of the best research around climate friendly production practices is right here in state, at WSU’s Center for Sustainable Agriculture and Natural Resources. Some of the best climate friendly food research is happening in England as part of the Food Climate Research Network.

Posted by nabctim on January 23rd, 2009

Food Depot

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Trying to put together the various supply chain studies and work being done in the region is a large task, and it is one that is fundamental to this developing network. There is work being done to develop regional food processing, identify cold storage, and integrate distribution options.

Does this mean a coordinated space(s), a food depot? Perhaps. We are primarily wanting to utilize existing resources wherever possible, especially from our regional partners.

Posted by nabctim on December 16th, 2008

Puget Sound Ag Stats

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As I continue to research the potential market size of the Puget Sound Food Network, I dove in to the USDA Ag Census tables and WSDA data and came up with these numbers:

In the 12 Puget Sound counties there are over 10,000 farms on over 600,000 acres selling $1.1 Billion of agricultural products. Regional food processing is a $6.3 Billion industry and creates almost 20,000 jobs.

I compiled the farm data of the 12 Puget Sound counties in to a pdf, the Puget Sound Ag Census. The 2007 USDA Ag Census is scheduled to be released in early February and we expect that while there may be fewer overall acres they may be even more economic value to these products since the market for local food has taken off over the last 3-5 years.

WSDA data comes from some great maps they periodically update. Below are the two main maps.

WSDA State Crop Production Map 2008

WSDA State Food Processing Map (2008)

Posted by nabctim on December 15th, 2008

Produce Auction

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So we have been told by a few folks that an Amish or Dutch style auction would be useful in our region. We have been doing research and have found some fascinating auctions around the country. Please email Tim or post a comment below if you have interest or knowledge about produce auctions.

The idea we are researching would happen something like this: The Puget Sound Food Network would organize a live, and connected online, food auction that allows food producers to offer their product to the highest bidder. The method for the bidding can vary between a traditional auction with price starting low and going higher, or to a Dutch style auction where the price starts at the high number and goes down. A connected, eBay style auction space could be developed to allow an ongoing auction to occur right up to the date of the live auction, with minimum bids and a “BuyNow” price offering. The online auction may be of more interest to small farms while the live auction may be of more interest to midsize farms.

Delivery of the product would vary. The product would already be at the live auction, so it could be taken away by the buyer, delivered by the seller that day, or a pre-arranged delivery vehicle would be present to move the sold goods to the appropriate destinations. Delivery of online items would be coordinated either directly between buyer and seller or with interested distributors.

The location and timing of a live auction would occur when enough product is available, and in the county of most interest to the most participants. Multiple auctions could occur through the growing season depending on interest.

More information about produce auctions can be found online at various locations. Some locations I found:

U Kentucky has a quick 3 page pdf
Central Missouri Exension has a roadmap available for event organizing and contains info about policies, procedures, and packing and grading.
The Homerville, OH Produce Auction has extensive list information including pricing trends and the methods towards their success.

Please let us know what you think of the overall idea.

Thanks,

Tim Crosby

Posted by nabctim on December 2nd, 2008