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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

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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

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5.1

2.3

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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!