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“Strengthening the ability of the land grant
university system to execute its rural development
mission.”
The North Central Regional Center for Rural Development works with
extension professionals, researchers, and their partners to enhance rural
development outcomes in the twelve state north central region (see map above
for the states). The NCRCRD is jointly funded by the USDA and Land Grant
Universities in the twelve state region. The NCRCRD is part of a group of four
centers that together cover the entire United States. The four centers work
collaboratively on issues that cross regional boundaries.
Building Strong Economies and Healthy Food
systems from the Bottom Up
Presented by: Anthony Flaccavento
September 28, 2016
The presentation will begin at 3:00 PM – ET
This presentation is hosted by:
Mission: Develop regionally integrated, sustainable food systems
Work: Michigan Good Food Charter, food access and health,
farm to institution and farm to school, healthy food financing,
food hubs, food systems planning and food policy, beginning
farmers, organic agriculture, and regional food systems in a
global context
Networks: Michigan Food Hub Network, Michigan Farm to
Institution Network, Michigan Local Food Council Network,
Michigan Meat Network
Building a Healthy Food System
& Economy from the Bottom Up
Michigan State University
September 26th, 2016
Anthony Flaccavento
www.bottomupeconomy.org
Framing the Challenges we Face
1. Food System and Ecological Challenges
2. Social and Cultural Challenges
3. Economic and livelihood challenges
1. Farm and food system challenges
Some Context: The Cost of Low Prices to Farmers
050
100150200250300350
1910 1930 1950 1970 1990
Input Farming Marketing
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Low farm gate prices drive extractive
farming practices.
1970: gas - $.36
milk - $1.40/gal
farmer - $11/cwt
2015: gas - $2
Milk - $3.25/gal
farmer - $13.50
Many costs – to people,
animals and the
environment – are
‘externalized’
Talking about complex issues:
“Take Five with Tony”
takes on economic externalities
Supply Chain’s increase convenience,
efficiency
Production Processing/packing
Distribution Wholesale/retail
..BUT numerous costs are not
included, are “externalized”
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CAFOs, workers and consumers Cheap food = very low wages
Our portions keep getting bigger
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…and we do too! Eating well is more
expensive, less
convenient
By 1990, over half the US population lived within a 3 minute drive of a McDonalds
Fast food companies spend over $4 Billion/yr on advertising
Growth in population, growth in consumption
Worldwide, available productive land has decreased from 14 acres per person to 3.7
acres per person over the past century, a drop of almost 75%.
* Climate change, declining water resources, phosphorus scarcity…
2. Social and cultural issues:
“Ubiquitous Abundance”
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Competing with the 24/7 culture of
convenience
[Less ubiquitous] Abundance?
The decline of our public life
“The victory of consumers is not synonymous with the victory of
citizens.” Benjamin Barber
Who Controls the story?
1980’s: Fifty companies owned 90% of all media outlets
2014: Six companies own 90%
Result: Less local news, far fewer reporters, less depth, diversity of coverage and the predominance of trickle down perspectives
Exceptions: Food Sleuth Radio
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3. Economic Issues: Trickle Down
Economics…
… isn’t trickling down
Over 93% of new income gained since end of recession has accrued to the wealthiest 1 %.
Wages for middle class and working folks have been stagnant for 30+ years
The Walton family has more assets than 100 million Americans
Concentration throughout the Farm
and Food System
11.1
5.1
2.3
0.19 0.10
1
2
3
4
5
6
7
8
9
10
11
12
Commodities Corn Conservation Local and Organic Fruites and
Veggies
Billio
ns
of
$
Category
Annual Expenditures of Federal Agriculture Funds
Commodities
Corn
Conservation
Local and Organic
Fruites and Veggies
Workers’ wages divorced from our
productivity
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Problems with Economic Concentration
Cornell Study (2001) compared counties dominated by one or two large firms with those that had many small firms.
“Big business” counties had:
*Greater income inequality
*Lower housing standards
*More low birth weight babies
*Higher disability levels
*Higher crime rates
(Mitchell)
State and local payments to large firms now total
$50 Billion per year.
Peters and Fisher
Illinois study of economic impact of local vs. chain:
restaurants – 25% more impact
retail – 63%
services – 90%
Investing in Local businesses:
Wealth & Income Concentration
When 93% of all new income goes to top 1%...
…and income for ‘bottom’ 60%’ is stagnant…
…and wealth has declined dramatically for working folks, especially people of color…
…and local banks that lend to small businesses are themselves going out of business, then
building a fair, healthy, sustainable food system requires building a better economy!
Building the alternative: Phase
one: the local foods movement
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The Local Food Movement’s Roots: Getting
More of the Food Dollar to Farmers
Farmers markets not just for ‘foodies’
Conventional Farmers TransitioningA bit of progress
2012: First census in generations to show net increase in number of farmers
Local, regional food sales exceed $5 Billion (USDA, 2011)
SNAP use at farmers markets increased from $2.7 million (2008) to $19.4 million (2015)
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Tools to Increase Food Access: Food Hubs400+ Food hubs nationwide
Linking smaller farmers to much bigger
markets Non-profit Food Hub: DC Kitchens
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Community-owned retail can increase
food access, reduce food milesMoving Beyond Foodies and Locavores
Can we reach the next tier of consumers:
Vaguely concerned and
sporadically motivated food
shopper
HOW?
From kale and kohlrabi to cucs and
burgers?
Long-term: Tackling the big issues
Building a Healthy (just, sustainable)
economy from the bottom up:
Six Key Transitions to get us there
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First Transition
Renewing Households and Communities:
From Consumptive Dependence to Productive Resilience
“A living economy depends upon local control. Wall Street has learned that its ability to generate unearned profits is best served by a system that minimizes local self-reliance and maximizes each locality’s dependence on distant resources and markets”
David Korten
Transition 1: From Consumptive
Dependence to Productive Resilience
Intensive production in small spaces –
Growing Power
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Tool libraries – More than 50 in US How Smart KY First 4 years: 160+ households, majority low to
moderate income
Avg savings of $51per month
10 jobs created
Clean Energy Collective – 24 projects
in eight states
Transition one: Supportive Policy
Enabling lower income people to save (2013
Study by Reid Cramer and Elliot Schreur):
Mortgage interest deduction benefits: Wealthy
get 75%; bottom 60% get 8%
Recommend: Universal 401K plan
Recommend: Financial security credit
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Second Transition
Unleashing Local, Living Economies:
From Trickle Down Problems to Bottom Up Solutions
“The green economy should not just be about reclaiming thrown-away stuff. It should be about reclaiming thrown-away communities. It should not just be about recycling materials to give things a second life. We should also be gathering up people and giving them a second chance.”
Van Jones
Transition 2: Unleashing Local Living
Economies
ACME Panel,
Radford, VA
PUSH Buffalo, linking good jobs with
community and ecological restoration
Bren Smith’s “Vertical Ocean
Farming”
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Producing multiple products while
restoring the ecosystemHealthier meats, more productive
pasture, fewer inputs
Organic no-till
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Good farming practices fight climate
change
Organic farming increases soil carbon: Rodale Institute study showed increase in 3500 lbs. of CO2/acre/year for organic grain production
If all U.S. cropland went organic,
CO2 sequestered would equal 158
million cars, nearly 70% of U.S.
fleet
Habitat for Humanity, Solar
installation, Bellingham, WA
Diverse, local economies…
Create more jobs: Analysis by Stacy Mitchell
found that for every $10 million in sales,
independent retailers employ about 50
people; for Big Box retailers, 21; for Amazon,
14.
Spur innovation: Small businesses generate
16x more patents (per employee) than large
Transition two: Supportive Policy
Dramatically change agricultural and
economic development subsidies
Utilize Community Benefits Agreements where
public funds are used
Fundamentally change Trade Policy!
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VERY uneven playing fields
A new approach to trade deals
Huge, corporate trade deals are NOT needed for trade between nations:
* Already have $740 billion in trade with
Pacific Rim nations, with no TPP.
* Exports have been increasing, trade deficit shrinking with these countries, with no TPP
Take Five series on trade policy
Third Transition
Building Broadly Based, Durable Prosperity: From Concentrated Wealth to Worker Ownership and Community Capital
“It’s time to dream a deeper dream, the dream of an economy that is built around ideals like fairness, community, and sustainability –an economy that in its normal functioning tends to create fair and just outcomes, benefits the many rather than the few, and enables an enduring human presence on earth”
Marjorie Kelly
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“Give a man a fish, feed him for a day.
Teach him how to fish, feed him for a
lifetime”
Unless…
He doesn’t have a net, a boat, access
to the water…
True “capital” enables productive
activities
Revitalizing degraded parts of Grand
Rapids, MI
Building local capital
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The Wild Ramp, Community based
retail store
La Montanita Cooperative Distribution
Center
New Hampshire Community Loan Fund,
Manufactured home loan programLocal currencies to increase $
circulation in communities
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Regionalized, diverse, bottom up
economies
Improve health, reduce crime and
incarceration, reduce obesity
Increase participation in community groups,
civic life
Post Katrina: local businesses re-opened
twice as fast as chain stores, in order to
provide needed goods and services
Transition three: Supportive Policy
Level the playing field between big banks and
community banks and credit unions
Support worker cooperatives through tax
incentives for business transfer, integration into
business & econ development curricula, increasing
availability of investment
New forms of local investment, eg Slow Money
Phoenix: Changing building codes enabled
faster, less expensive reclamation of
downtown buildings
Three More Essential Transitions
… are in the book!
An organizing principal, from Wendell Berry:
Solving for Pattern
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What ‘Solving for pattern’ is not
2012: More than 50 % of all farms reported herbicide-resistant weeds
Organic, low-till farming fights
climate change and suppresses weeds
Just adding wheat to the rotation reduced
weeds, herbicide use and corn rootworm –
dramatically!
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Anthony Flaccavento
www.ruralscale.com
www.bottomupeconomy.org
You Tube: Take Five with Tony!