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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:
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Niche Farming – a specific food item,
selling to a specific market, such as flowers, organic foods, etc
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Traditional farming – dairy, crops, etc
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Tourism related ag/business- farm stays,
farm tours, special events/venues (pumpkin patch, corn maze, etc) (see
Strategy 22: Tourism Promotion)
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Home business – which generates supplemental
income to allow farmers to continue to farm (see Strategy
20: Entrepreneurial Development)
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.
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Develop a local or regional commodity
exchange that allows farmers to grow and deliver produce to area consumers
on a large scale.
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Explore current national models through
the University Agricultural Department, the County Agricultural Extension,
Cornell University, and other national rural initiative projects (i.e.
New Hampshire Cooks) to determine a variety of models that might work in
the watershed.
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Determine the role of leadership for implementation.
Potential leaders might include the Grange, Future Farmers of America,
county extension, PFA or a new locally managed cooperative. This co-op
would increase the role of the local farmer as the middleman, thereby increasing
his bottom line.
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Hold a facilitated meeting between potential
suppliers and consumers to determine the framework for distribution, specific
needs, obstacles, etc.
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Promote Agricultural Alliances.
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:
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Identifying alliance opportunities by
working with various groups of farmers and agri-businesses to pinpoint
needs.
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Developing inventories of needs that can
be shared among members of the agricultural community to solicit providers
of solution-oriented services.
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Conducting educational sessions to demonstrate
the economics and feasibility of certain types of alliances.
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Bringing together potential players in
individual or group sessions to help negotiate agreements.
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Researching the experience of other regions
to provide illustrative examples of alliance opportunities, such as cooperative
marketing agreements.
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Establish a Revolving Loan Fund.
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:
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Identifying potential beneficiaries of
a revolving loan fund including agri-businesses seeking to expand or enhance
their operations.
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Documenting financial need and interest
in funding that might be available.
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Identifying specific funding sources and
prioritizing them by the likelihood of obtaining funding.
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Making application for funding by packaging
the individual requests for funding into one comprehensive grant request
to establish the program.
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:
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Meeting with agribusiness prospects to
identify their needs and the types of incentives that would cause them
to invest in added-value ventures.
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Evaluating comparable programs in other
counties, and fashioning a competitive abatement schedule.
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Promoting the program as a specific incentive
that makes the region special, selling it to businesses both inside and
outside of the county.
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Refocus Agricultural Training.
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:
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Identifying the expanded educational needs
of area farmers in the areas of labor management, specialization, etc.
by holding a special session with the farm community.
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Developing a new core curriculum of agricultural
technical assistance programs under the umbrella of "agricultural economic
development" as opposed to yield-improvement based training.
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Supporting vocational agriculture as a
high-tech career opportunity.
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Creating opportunities to showcase farming
and farm products at various non-agricultural events. Link efforts to farm-related
tourism. (See Strategy 22: Tourism
Promotion)
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:
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Number of jobs created in agricultural sectors
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Average agricultural wage of new jobs
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Number of business start-ups (home businesses
on farms or tourism related farm businesses)
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Investments in agricultural expansion
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Household income of farm households
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Agricultural productivity
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.