regional food hub resource guide

Every community wants to support initiatives that promote economic growth and create new jobs, but sometimes it can be hard to decide on the best way to accomplish these goals.  Now there is a new resource to help communities make the economic case for investments in local food. Today, Secretary Tom Vilsack announced the availability of “The Economics of Local Food Systems: A Toolkit to Guide Community Discussions, Assessments and Choices” at the Good Food Festival’s Financing and Innovation Conference in Chicago. Secretary Vilsack highlighted USDA’s continued support of local and regional food systems, much of which is coordinated through USDA’s Know Your Farmer, Know Your Food initiative.

For over a century, my hometown of Chicago has been a cultural, financial, and agricultural hub.  And as a hub, it has a long history of supporting innovation and opportunity.  From the first cattle drives came the great Chicago Stockyards that supplied meat to the nation.  From the early trading of the Chicago Butter and Egg Board came the Chicago Mercantile Exchange. The city’s richly-woven tapestry of cultural diversity and the success of its food businesses prove Chicago’s value as an ideal business cultivator.

That is why it was so fitting that AMS Deputy Administrator Arthur Neal and I were invited to present at the Good Food Festival & Conference in Chicago on March 14. Hosted by Jim Slama of FamilyFarmed.org, the event is the oldest sustainable and local food trade show in America. Each year it brings together stakeholders including farmers, entrepreneurs, policy makers, and food industry representatives.

Food is a great equalizer.  Whether sharing it with loved ones around our holiday table or worrying about how we’re going to fit lunch in to our busy work days--food is something we all have in common.  But we don’t always think about the path it takes to get to our plates or even the store shelves.  And while there are many different ways it gets to us, we’re seeing food hubs play an increasingly important role for everyone along the way--farmer to corner store, chef to school lunch.

Food hubs are innovative business models emerging more and more across the country. They bring farmers and suppliers together, with 81 percent of food hubs focusing on increasing opportunities for local farms and allowing smaller producers to pool their products and fulfill larger contracts. Ninety-one percent of food hubs are near cities, connecting rural farmers to larger suburban and urban communities.  Oftentimes, farmers who work with food hubs offer a wider variety of products and are able to continue selling their goods later into the growing season.  That translated into an average of over $3.7 million in sales in the last year.  And USDA’s efforts have helped expand the number of regional food hubs operating around the country.  There are over 230, a 65 percent increase since 2009.

What can farmers and ranchers do if they’re interested in selling locally but don’t have the resources to run their own trucks, processing plants or marketing strategies?  What can institutional buyers, --like schools, hospital and retailers -- do to offer more local food to their customers? A regional food hub is one possible answer.