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Dr. Glenda Humiston State Director, California RD

Collaborative Economic Development: Building Momentum with Lean Resources. July 28, 2011. Dr. Glenda Humiston State Director, California RD. A Broad Array of Support. Funding for Business & Cooperative Development Community Facilities Water & Sewer Systems Single and Multi-Family Housing

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Dr. Glenda Humiston State Director, California RD

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  1. Collaborative Economic Development: Building Momentum with Lean Resources July 28, 2011 Dr. Glenda Humiston State Director, California RD

  2. 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

  3. 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

  4. 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 Off-Farm Portion of Income On-Farm Portion of Income SOURCE: USDA ERS Composition of U.S. Farm Household Income by Source

  5. OPPORTUNITIES • Improve Access to Healthy Food • Grow Regional Economies • Create Jobs in Value Chains • Provide New Energy Sources HARVEST STORAGE WASH/PREP COOK BIOFUELS BUTCHER PROCESS PACKAGE COOLING MARKET DISTRIBUTE RENEWABLES CUT/WRAP

  6. 77% of the Economic Activity is Off Farm California Agriculture

  7. Agriculture Value Chain Opportunities

  8. SOURCE: CA Center of Excellence Agriculture Value Chain Opportunities

  9. OSB • Pellets • Heat • Electricity • Compost • Biofuels • Polymers • Composites • Biochemicals • Trucking • Manufacturing • Distribution • Storage • Repair • Management • E-Commerce • Support Services • And More… • Value-Added Wood Products • Slash Removal: • Biomass Products • Fire Reduction • Water Production • Wildlife Habitat Manufacturing On-Site Processing Save Cost of Fires, Insurance, etc. Ecosystem Credits Tourism Biomass Value Chain Opportunities

  10. California Bio-Energy Employers by Sector Biomass Value Chain Opportunities

  11. Creating Opportunities in the Knowledge Era Percentage of Male Workers Employed in Each Economic Sector Tertiary Occupations: professional, technical, managers, officials and proprietors; clerical, sales and service workers; etc. 58% Value Chain Infrastructure Allows Rural Regions to Exploit these Trends for Jobs and Economic Development 42% 38% 37% Secondary Occupations: craftsmen, foremen, operatives, repairers, truck drivers, etc. 21% Primary Occupations: farmers, fishermen, foresters, miners, etc. 4%

  12. 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 Northern Sierra Biomass Project North Coast Food System Port West Sac Central Sierra Value-Added Livestock Port of Oakland Fresno Kings Tulare Port of Stockton Ports of L.A. & Long Beach Southern California Renewable Energy

  13. 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 Resources Regional Exploits Economies of Scale

  14. “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

  15. Resource Conservation & Development Councils Community Colleges & Job Training Economic Development Corporations NonProfits GoED Local Government Venture Capital & Micro-Finance Micro Enterprise Support State & Federal Programs BALLE Research Institutions Cooperative Extension Financial Institutions CAMEO Diverse Collaboration

  16. Intangible Value as a % of Total Market Capitalization by Sector “Intangible Capital” Growing in All Sectors

  17. The Pieces That Are Often Taken for Granted and Receive Little Investment

  18. 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. Coops Can Do Many Things!

  19. Look For Opportunity in New Ways

  20. USDA Loan Guarantees and Intermediary Relending • 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 Bringing OUR Capital Home Direct Public Offering • Impact Investing • Expanded Use of Bonds • Retirement Accounts Invested Locally • Program Mission Related Investments • and ??? LEVERAGING NEW MARKET TAX CREDITS (NMTC)

  21. Adaptive Management

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