rural economy

Strong local food systems are one of U.S. Department of Agriculture (USDA) Secretary Vilsack’s four key pillars to revitalize rural economies.  On Monday, he announced the award of over $52 million to support local and regional food systems and the organic industry through five USDA grant programs. Most of the grants were authorized through the 2014 Farm Bill.

As part of that announcement, my agency—the Agricultural Marketing Service (AMS)—awarded over $27 million in competitive grants to expand marketing through the new Farmers Market and Local Food Marketing Promotion Program, as well as over $1 million in matching grants through the Federal-State Marketing Improvement Program (FSMIP). For years, AMS has led USDA efforts to support local and regional food systems by awarding grants that give farmers and ranchers around the country tools to reach consumers, strengthen ties between urban and rural communities and help meet the growing demand for locally and regionally produced food.

These days, it seems like it’s easier than ever to turn a good idea into reality. This is the era of Kickstarter, where entrepreneurs can connect with potential investors at the click of a button.

Of course, it takes more than money to grow an idea. It takes an atmosphere that fosters creativity and rewards innovation. And at a deeper, less obvious level, it requires strong, secure infrastructure—roads and bridges, but also internet access and community facilities like hospitals and schools—that improves connectivity and access to information, moves products to market, and makes communities competitive and attractive to new businesses and investments.

Rivers, roads and rails—the shortest distance between two points is not always a straight line. Finding the best path forward can be difficult as city traffic gets worse each year, frustrating commuters and thwarting deliveries. Also in the transportation mix are farmers traveling the same roads trying to bring the freshest produce to city markets.  With the $7 billion-per-year market for local and regional food continuing to grow, more and more goods are being transported along local routes.

Developing creative ways to navigate transportation challenges is critical for farmers and consumers alike to meet the increasing demand for local and regional food.  Farmers relying on local and regional food systems may not have the scale or capacity to use established food freight systems. That’s why USDA’s Agricultural Marketing Service (AMS) has taken a fresh look at food distribution issues, especially for the local and regional markets.

A recent trip back home to Louisiana sparked memories of a simpler time when old trucks full of fresh produce rumbled down dusty roads to deliver goods to the local market. The 2012 Census of Agriculture tells us that 50,000 farmers and ranchers nationwide are now selling to local retailers and that 150,000 of them are selling their products directly to consumers. Although these farmers and ranchers are still using this direct approach, the agricultural industry is certainly more dynamic today.  This means that producers need to follow a strategic business model.

The reality is that food can go through a lot of steps to reach the consumer. Before it is served on the table, food travels from the field to the truck to the packing house to the store. My agency, the USDA’s Agricultural Marketing Service (AMS), has many programs that support business entities involved in the food chain, including farmers markets and food hubs. For example, we invest in projects that help farmers and businesses understand emerging trends, create new markets, and stimulate our nation’s rural economies.

Agriculture is one of the brightest spots in our economy, and the American brand of agriculture is surging in popularity worldwide. Trade and market access support good-paying jobs and drives economic growth. A strong rural economy is critical to the overall economic health of the United States.

The past five years represent the strongest in history for agricultural trade with U.S. agricultural product exports totaling $619 billion over five years. Agricultural exports in fiscal year 2013 alone reached $140.9 billion, the highest level on record, and supported nearly one million jobs here at home.

This week, I visited Canonsburg, Pennsylvania, a small city outside of my hometown of Pittsburgh to kick off the first of five Made in Rural America forums designed to help rural small businesses access the information they need to grow through exports.

The global appetite for high-quality, American-made products is well established. Over the past five years, rural America has achieved record agricultural exports, but the rural economy is diverse. Last fiscal year, agricultural exports reached a record $140.9 billion and we are on track for another record year, with fiscal year 2014 agricultural exports projected to reach $149.5 billion. Last year was also the fourth-straight record-setting year for U.S. exports as a whole, reaching $2.3 trillion.

This week, USDA and its partners launched a new conservation initiative, the Regional Conservation Partnership Program (RCPP), a program that goes beyond traditional government support for conservation and allows businesses and other for-profit partners to invest in regional conservation projects. RCPP takes conservation off the farm and out of the forest and moves it into the board room.

The RCPP will competitively award funds to conservation projects designed by local partners and specifically tailored to local needs. Eligible partners include private companies, universities, non-profit organizations, local and tribal governments and others joining with agricultural and conservation organizations and producers to invest money, manpower and materials to their proposed initiatives.

Rural Americans have always had a strong connection to the land. Since 2009 alone, more than 500,000 farmers, ranchers and rural land owners across the country have embarked on record conservation projects with USDA as a partner. This week, USDA built on those efforts by announcing two new conservation programs that provide producers with even stronger tools to protect land and water resources across rural America.

The Agricultural Conservation Easement Program (ACEP) and the Voluntary Public Access and Habitat Incentive Program (VPA-HIP) were both established under the 2014 Farm Bill. ACEP, which streamlines several existing USDA easement programs, makes available $366 million per year to a variety of public and private partners for conservation easements. The easements provided through ACEP help ensure the long-term viability of our food supply by preventing conversion of productive lands to non-agricultural use, while simultaneously protecting critical wetland resources.

Located in Virginia’s horse country, just an hour outside of Washington, DC, is the historic town of Middleburg. Deeply embedded in the town’s roots is a vibrant agricultural sector that is the driving force behind this small community’s success. Each Saturday morning from the spring through the fall, you can find a variety of fresh fruits, vegetables, meats and baked goods at the Middleburg Community Farmers Market (MCFM). Raising the market’s visibility is vital to its continued success, so the MCFM recently updated its information in the USDA’s 2014 National Farmers Market Directory – connecting customers to fresh, quality items produced by its local farmers.

The directory, maintained by the Agricultural Marketing Service, is designed to provide consumers with convenient access to information about your farmers market listing including: market locations, directions, operating times, product offerings, accepted forms of payment, and more. Thousands of farmers market managers around the country are taking a few minutes to update their market listing.

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.