Back to Table of Contents

Strategy 26: Agricultural Diversification Promotion

Strategy Description:

Agriculture is an important niche for the regional economy, and perhaps even more important to the regional culture. The region needs to consider the impacts on agriculture from all other economic activity and identify ways to preserve and strengthen this sector as a viable economic activity as well as a cultural institution. Agriculture must be integrated into the economic mainstream to avoid self-isolation by the farm community.

Key Components:

In the watershed there are at least four primary areas of concern linked to agriculture. Each area presented its own unique problems and creative solutions. The identified areas of agricultural business to explore and assist are:

The primary goal of the strategy is, by 2020, to increase the viability of sustainable farming (ie: products grown locally then used locally). Because Centre County offers a variety of large local uses such as the local school systems, the University, the prison and the large number of restaurants in the area, this goal might be accomplished. The Pennsylvania Pride campaign (a menu notation) is in place and could be helpful. The obstacle to the success of this venture is the lack of a distribution tool, a local commodity exchange. In addition, there is a growing tourism component in the region that can complement tourism-related farm businesses; the entrepreneurial strategy supports this effort as well.

The re-use of existing buildings (see Strategy 24: Reuse and Redevlopment) might be linked to farm product distribution.

**The Technical Advisory Committee noted the importance of this strategy and recognized that the following tools may not be the appropriate measures. It recommended a continuing process to advance this strategy.

This component may promote alliances between small and large farmers, grain/vegetable and dairy farmers, and organic grain and organic dairy farmers. Also, it could encourage alliances among farmers, educational/research institutions, agri-businesses, and the county.

Some initial steps in promoting further agricultural alliances might include:

This component could provide that Centre County request USDA and/or HUD funds to establish specific revolving loan programs for agricultural added-value enterprises. These programs should be focused on secondary processing or technological improvements designed to help agri-businesses that cannot benefit from the agricultural tax assessment policies of the state. This includes larger farmers, farmers doing retail, agricultural support enterprises (e.g. feed mills), and processors of milk and vegetables.

The Centre County Planning Office should take the lead in establishing the loan program for agricultural industries. Some initial steps might include the following:

The county could expand tax abatements on improvements from 5 years to 10 years for agricultural value-added enterprises. This should be done by packaging the agricultural benefits as a specifically targeted industry for the region, setting it up as a priority industry with its own "Agricultural Industry Tax Abatement Program." Some possible initial steps include: The county should support agricultural educational efforts such as training in water quality management, labor management, business planning, futures program trading, marketing, estate and tax planning (critical to farm transfers), specialization, intensive grazing, and other low-cost input types of farming. Many resources and programs are available. It would be helpful to create a clearinghouse of these resources and points of contact. A new aspect of training might include the objective of improving the economic livelihoods of farmers and the communities in which they reside rather than simply their yields.

Another element of education might include creating a greater understanding of the profession of farming and an effort to more closely link the consumer to the product. This educational component would be directed to the non-farm community and youth. The labor shortages faced by farmers can ultimately only be addressed by managing the expectations of young people - if they are led to believe agriculture is a dead-end with no room for career growth, they can hardly be blamed for not choosing it. The value of agriculture as a highly technological industry combining a variety of experiences with opportunities for advancement need to be promoted to families and in schools.

The Graduate School of Agricultural Economics of Penn State could take the lead in implementing this program. Some initial steps might include:


Regional Application:

There will be varying levels of interest in and support for agricultural development and diversification among jurisdictions in the region. It will be important, however, that urban as well as rural leaders participate in the strategic thinking needed to support this strategy.

Implementation:

The strategy involves a cross-section of farm and non-farm business and community leaders. Key players/facilitators would include Penn State University, Centre County Planning Office, the state and federal agricultural agents, and the local Granges.

Indicators:

Funding:

Initial meetings and alliance building would cost little. The development of a commodities exchange could be very expensive – creative grants from state or federal agencies should be explored as well as funding from the Kellogg Foundation.