On-Farm Portion of Income

1

• 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
2

• Regional Collaboration
• Regional Food Systems
• Community Building
• Alternative Energy
• Strategic Partners
• Capital Markets
• Broadband

USDA Priorities
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

California Recommendations
4

• Purchase of Development Rights Conservation
  Easement Programs
• Urban Rural Partnerships

• Reputation for Excellence Quality Through
  Marketing Campaigns
• Incentives for Agricultural Support Industries
• Use of Reclaimed Water for Irrigation
• And much more

California Has Innovated 25 Years yet, the Same
Challenges Remain
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• 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
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We Need to Change our Rural Economic Development
Paradigm
State and local subsidies to lure businesses to
an area are now over 50 Billion nationally
taxpayer money that could instead be invested in
growing local businesses. The Federal Government
spends an additional 58 Billion on
subsidies. The arms race for jobs and economic
development has alarmed researchers at the
Federal Reserve Banksthey called on Congress to
end the conflict between states. MEANWHILE
Surveys of business executives show that they are
most concerned that an area meet their labor,
market, transportation and infrastructure needs.
State and/or local subsidies is rarely a deciding
factor!
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Small-Scale Livestock and Poultry Operations Need
Infrastructure to Thrive
Marketing locally raised grass-fed beef results
in 2,130 more per head in gross earnings. Using
value-added multipliers, the additional returns
of 2,130 to the rancher for each steer will
result in an additional 11,550 of value-added in
other local industries and the regional economy.
One small-scale processing facility with annual
capacity of 2,000 cattle carcasses employing 15
people could potentially create 29 additional
jobs and 23 million for a regional economy as a
result of increased ranching and processing
returns.
Rebuilding Local Food Systems
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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.
Value Chain Infrastructure Allows Rural Regions
to Exploit these Trends for Jobs and Economic
Development
58
42
38
37
Secondary Occupations craftsmen, foremen,
operatives, repairers, truck drivers, etc.
21
Primary Occupations farmers, fishermen,
foresters, miners, etc.
4