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Barriers to Economic Development in Immokalee,
Florida 1/8/2018
Barrier to growth • Agricultureistheoverwhelmingeconomicdriverinthecommunity• Agricultureaccountsfor60%ofallemploymentand20%ofallbusinessestablishments
• MuchofthecapitalearnedinImmokaleedoesnotstayinImmokalee• Casino• Migrantworkers-send$backtosupportfamiliesintheirhomelands• Middleclassworkers(schoolteachers,police,…)donotliveinImmokalee(AvaMaria)
• MuchoftheresidenIalandcommercial(nonagriculture)landinImmokaleeisprivatelyowned(40%?)• successfullysucceededinblockingtheImmokaleeMasterPlan• LiNleeconomicincenIvetoinvestintheland-CashCows
• ThoseImmokaleeciIzenswhodowelleconomicallytendtoleaveImmokalee• Substandardhousing• SubstandardfaciliIes
• ThosemiddleclassemployeesworkinginImmokaleeliveelsewhere(AvaMaria,forexample)• In2005therewere263businesseswithanaverageemploymentof6,816andanaveragewageof$23,649
Large percentage of Immokalee ci=zens are Illiterate Unskilled Poorly educated Impoverished
2016 Census Bureau data
Mediumearningsperworker
Mediumincomeperfamily
Immokalee
$22,249 $26.684
LehighAcres
$30.787 $40,226
• ImmokaleeisunincorporatedwhichcreatesdifficultyincollecIngdata
• ThefollowingDataisdatedandwhiledirecIonallycorrectisnoisey
Demographics 2010 Census Data • 75.6%Hispanic• 46.7%bornoutsideUSA• 29.7%graduatedhighSchool• 3.8%havecollegeDegree• PopulaIon 24,154• Personsperhousehold 4.85%• Unemploymentrate 12.8%• Mediumworkerincome $16,139• 35.6%ofhomesarerental• 30.7%areoccupiedbyowners;
• homeaverage4rooms• Mediumvalueofowneroccupiedhousing $78,700• MediumHouseholdincome $26,684• Percapitaincome $9,814• PersonsinPoverty 43.9%
Countermeasures
• CharitableorganizaIons• Childandinfantcare• Medicalcare• EducaIon• Shelters• food
• economicdevelopmentineastcollier• Newplannedtowns-construcIonworkers,skilledworkers
• ITECK• Businesses-Collier,Artrex,• Airport
Immokalee School Data January5,2018
Demographics Collier County vs. Immokalee
Hispanic
Hai3an
Forignborn
Speakenglishathome
SpeakspanishSpeakcreole
belowpovertyline
Economicallyneedy
Migrant
DemographicDataCollierCountyvs.immokalee
CollierCounty Immokalee
CollierCounty Immokalee
Hispanic 49% 81%
Hai3an 11% 15%
Forignborn 23% 43%
Speakenglishathome 47% 22%
Speakspanish 42% 65%
Speakcreole 7% 9%
belowpovertyline 14% 42%
Economicallyneedy 64% 97%
Migrant 9% 43%
MediumHouseholdincome/leighAcres
$62,126/$40,226 26,684
Early childhood educa<on resources
Type Gold Seal
Accredited
Offer VPK Quality
Unknown
Total
Providers
Child care Facilities 5 4 5 14
Family Providers (Lrg and Sm) 0 1 30 31
Non-public Schools 0 1 0 1
Public Schools 0 5 0 5
Total 5 1 1 3 5 5 1
TheGuadalupeCentercurrentlyservesatotalof270childrenagessixweekstofiveyearsold.
Source:FloridaKindergartenscreener(FLKRS)test
Schools in Immokalee
• ElementarySchools• EdenPark• Highlands• ImmokaleeCommunity• LakeTrafford• Pinecrest• VillageOaks
• MiddleSchools• Immokalee
• HighSchools• Immokalee
• Alterna6veSchools• ImmokaleeTechnologyAcademy• ImmokaleeTechnologyCenter• Immokaleeteenparen3ng• NewBeginningsImmokalee• Stepstothefuture• ThePaceProgram• ThePhoenixProgram
Elementary Schools
English
MathScience
Immokalee BestSchools Collier
Source:Colliercountytestscores
Percent>3 English Math ScienceImmokalee 32 44 31BestSchools 80 81 76Collier 55 63 54
Middle School Test Results
English
MathScience
Immokalee BestSchools CollierC
Source:Colliercountytestscores
Percent>3 English Math Science
Immokalee 38 26 24
BestSchools 68 65 61
CollierC 57 52 51
High School Test Scores
English
Algebra!
Algebra2
Geometry
Biology
History
Immokalee BestSchools CollierC
Source:Colliercountytestscores
Percent>3 English Algebra! Algebra2Geometry Biology History
Immokalee 32 19 34 40 50 58
BestSchools 75 82 82 78 85 84
CollierC 55 68 72 66 68 68
CollegeReadinessIndex
APteated
APPASSEDMathProficiency
EnglishProficiency
CollierHighschools
Immokalee Average
Immokaleehighschoolgradua3onrate:89%
Source:USNewsandworldreportsurvey
Take away from the radar charts
• Immokaleestudents’academicperformanceattheprekslightlylagstheoverallCollierschooldistrictandsubstan3allylagsthebestschoolsinColliercounty• ThepreKresourcesinImmokaleeareeffec3veinpreparingchildrenforelementaryschool
• ButImmokaleestudentssignificantlyfallbehindthedistrictattheendofelementaryschoolandthegapgrowsduringmiddleschoolandhighschool• Academicinequali3esmagnifyasstudentstransi3onfrom“learningtoread”,whichtakesplacefromprekthroughearlyelementaryschool(3rd/4thgrade),to“readingtolearn”.
Agriculture: Immokalee’s Economic Engine
Makeclassawareofthemajorcurrentandfuturechallengesfacingtheagriculturalbusiness,farmworkersandimmigrantsintheImmokaleecommunityandhowthevariouscommunitysectorsarerespondingtoandaddressingthesechallenges
Agriculture is the economic engine of Immokalee
• Agricultureaccountsfor60%ofallemploymentand20%ofallbusinessestablishments• Immokalee’sCropsincludeCucumbers,bellpeppers,citrus• Athirdofourfreshtomatoes,and90%ofthenaDon’swintertomatoes,aregrowninFlorida
HoweverFloridaAgricultureandhenceImmokaleeareunderpressure:
Labor – Decline of Immigrant workers are entering the USA
• Florida'svegetableindustryisheavilyreliantonmigrantlabor.• manyoftheselaborersareundocumented
• "Theflowofnewarrivals(toworkonfarms)hasstopped,"• "It'sthepeoplenewlyinthiscountrywhowilldotheworkthatpeopleheredon'twanttodo."
• Mexico'sfallingferDlityratedroppedfrom7.2to2.5childrenperfamilyfrom1960sto2000,accordingtodatafromtheUnitedNaDons.• Lowwagesaren'ttheissue,acommissionof$2.50abox."Agoodpickercando10or12boxesperhour,"earningmorethan$200aday,• Theaverageisabouthalfthat.• Wageshavegrownfrom$7.80in2002to$10.35perhourin2011
Labor Shortage – H2A Visas • H2Avisaprogram-bringsintemporaryagricultureworkersfromLaDnAmerica.• Expensive.• Grower’sresponsibility• morethan$1,000intransportaDonandgovernmentvisafeesforeachlaborer• thecostofhousing• theworkers'hourlypay,whichbylawhastomeetorexceedthatofAmericanlaborers'.
• ChangestolawunderTrumpadministraDon
ShortfallofimmigraDonismiDgatedbyH2Avisasandthedropintheneedforworkers
Declining Resident Farm Workers
Year 2004 2005 2006 2007 2008 2009 2010 2011 2012
Resident 121,673 106,985 106,534 105,279 104,142 96,726 89,173 89,794 89,798
H2avisa 31774 31392 37149 50791 64404 60112 55921 55382 65345
153,447 138,377 143,683 156,070 168,546 156,838 145,094 145,176 155,143
• Source:U.S.BureauofLaborStaDsDcs,QuarterlyCensusofEmploymentandWages;U.S.DepartmentofLabor,NaDonal
Forces Challenging Immokalee’s Future
PressuresofFlorida’sAgriculture
CROPYIELD
CROPDISEASE
CONSUMPTION
DECLINES
EXPENSES
IMPORTS
INCREASES
DECLINEIN
LABORDEMAND
HURICANEIRMA
Year 2004 2005 2015 2016
OrangecropYield(millionboxes)
204 242 89 70.Diseasedestroyed75%ofFloridaorangeandgrapefruitcrop
Citrusgreening obliterated75percentofFlorida’sorangeandgrapefruitcrop
DecliningDomesHcDemandConsumpHon/person/year
5.49gallons 3.95gallons
LaborDemandDecline 18percentfewerworkersthanfiveyearsago
IncreasingExpenses
$850/acre $2,250/acre
DecliningLanduse(ACRES)
750,000incitrus
126,000abandonedgroves
130,000acresofghostorchards476,000acresincitrus
DecliningLanduse
Developershaveboughtup1millionacresoffarmlandinthelast10years
Imports-pricewar 1/5oftotalUSAconsumpHon
1/3oftomatoconsumpHon2.4billion/yr
• 8millionboxesofcitrusharvestedin2014inColliercounty
Whether Immokalee?
• Immokalee’spastandpresenthavebeenintricacyintertwinedwiththefortunesofagriculture• Agricultureisundersiege:decliningdemand,compeDDveimports;increasingexpenses,dieses;lesslandunderculDvaDon;lessneedformanpower• Immokaleeisaruralslum,whichifconDnuetorelyonagriculturewillfail,asmanyruraltownshaveinAmerica• ManyeffortsbymanygoodcapableorganizaDonsandagencyshaveworkedinImmokalee,butlijlehaschanged
The Future of Immokalee
• WhatistheimpactonImmokaleefutureofthedeclineofagriculturalproducDon,henceacorrespondingdeclineinfarmworkers.• HowisImmokaleerespondingtothischallenge?• WavingImpactFees• Businessincubator
Lipman Family Farms 02/16/2017
2
Macro Overview
u Florida agriculture is a multi billion dollar contributor to our economy, 2nd only to tourism.
u Florida farms cover more than 9 million acres and are a model of conservation.
u Farmers, due to advances like micro-drip irrigation, are using 50% of the water today than they were just 10 years ago. That is 13 billion gallons of water!
u Southwest Florida has been helping to feed the nation for decades. The winter months give us nearly perfect weather (80 degrees during the day and 60 at night) to grow vegetables.
3
Macro Overview
u But the pressures against farming are significant.
u When I entered the produce business in 1985, there were over 100 tomato growers in the state of Florida. Today there are 12...and that number will go down this year.
u Since we began harvesting in October, we have sold millions of boxes of beautiful tomatoes and vegetables...all at a loss.
u There is static demand so the perfect weather and improved farming techniques of today have given us an excess supply.
u Increased supply causes a rush to the bottom as farmers know that they need to "sell it or smell it".
4
Lipman Overview
u North America’s Largest Open Field Tomato Grower
u Divided into 2 Sections:
u Farming
u Florida
u South Carolina
u Virginia
u California
u Mexico
u Value Added
u Repack and Processing
u 13 Locations
5
Lipman Overview
u We employ thousands of people.
u Many of them are migrant laborers.
u In the 6 short years since I have been running this company, we have continually lost our ability to find people.
u Our average harvester makes over $30,000/year, far more than alternative jobs, but pressures have continued to shrink our supply of people.
u Florida is now a model of social responsibility, but this is tough work.
u Let me be very clear, regardless of what you hear from our national leaders...these are hard working, God fearing, law abiding people who do work that no one else wants to do
6
Lipman Overview
u Tomatoes are the world's largest vegetable category. (technically a fruit)
u Global production is around 130 million tons.
u About 2/3 is fresh market and the rest is used for processing.
u Lipman Farm #7 here in Naples is the largest continuous tomato farm in the US encompassing nearly 5,000 acres.
u Each year we lay over 3,000 miles of plastic mulch and plant around 9 million tomato plants.
u We use over 31,000 miles of twine to tie the crop.
7
Lipman Overview
u It takes about 100 days for a plant to be ready for harvest.
u The average yield is about 12 pounds per plant, but this year has been more than that.
u In the months of November and December we packed over 500,000 more boxes than last year on the same number of planted acres.
u That is why the market is so cheap.
u This time of the year, nearly 800 people harvest around 2 million pounds of tomatoes a day on our Naples Farm.
u That is nearly 50 tractor trailers of product.
u There are over 80 John Deere tractors on that one farm.
u In total, Lipman owns over 450 John Deere units.
8
Lipman Overview
Coastal Brokers 2011
The Produce Exchange 2014
Western Repacking
Sam’s Produce 2015
Legend Distributing 2014
Comb’s Produce 2012
North Carolina (Branscomb Produce 2012)
The Produce Exchange 2014
The Produce Exchange 2014
Tennessee
New Jersey
Florida
The Produce Exchange 2014
9
Lipman Future
u The Lipman Family has a long term view of business and allows the leadership team to do the right thing.
u There will most likely be fewer tomato farmers in Florida next year, but we will be here.
u We will plant the same number of acres and wait for the market to change.
u We have a debt free balance sheet that gives us the power to think long term.
u What does the future hold?
u Farming will be tough. We know that.
u Sustainability will be a given.
u Competition from Mexico will continue to put pressure on us and land costs will force more out of farming.
u The best farm land in Florida is along the coast. We know that is now nearly all developed.
u It will take committed families like the Lipmans to feed us.
u Abraham Lincoln referred to agriculture as the "vital interest of the nation". Never was a more accurate statement made!