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US re-envisions its rural economy

01 Jun, 2010 01:58 PM
THE Obama Administration has a vision to rebuild the country's rural economy that includes creating a parallel universe of local and regional markets and "food hub" distribution centers that will help small - maybe even all - farmers market their production closer to home.

Earlier this month, the US Department of Agriculture released a "gap analysis" that maps the locations of small livestock producers by county and compares production to the availability of small slaughter processing facilities as well as rendering plants. The study was conducted as part of USDA's Know Your Farmer, Know Your Food initiative.

US Agriculture Secretary Tom Vilsack said local food marketing is one of the ways USDA hopes to rebuild the rural economy, which he noted has been on the decline for many years.

The Administration also supports initiatives aimed at deploying more broadband telecommunications technology in rural areas as well as renewable energy projects.

On a recent press call, Vilsack reported that the chief executive officer of Wal-Mart Stores Inc. "was in our office recently trying to figure out how to expand the connection between farmers and their local store."

Vilsack predicted that if a major retailer such as Walmart is looking at local suppliers, other big chains probably will not be far behind.

USDA Deputy Secretary Kathleen Merrigan suggested that more information will be forthcoming on USDA's initiative to help local areas establish livestock slaughter facilities or mobile slaughter - perhaps this month.

Meanwhile, maps showing where current small livestock operations are located in reference to local slaughter plants - by animal species as well as a consolidated map - are available from USDA's Food Safety & Inspection Service.

USDA's Agricultural Marketing Service is surveying the locations of regional food hubs as part of the Know Your Farmer initiative.

Food hubs are aggregation points - similar, in some ways, to co-operatives - where farmers can bring goods that are inspected and graded for resale to wholesalers.

The food hubs provide storage and logistics services for buyers and sellers and have been "hugely successful" in some areas of the country, a USDA official reported.

The food hubs often are "hybrids" that combine a traditional wholesale market with a retail farmers market, the official added.

In yet another aspect of the initiative, the Natural Resources Conservation Service (NRCS) has developed a pilot project for farmers who wish to extend their growing season using "hoop houses."

NRCS chief Dave White explained that the hoop houses, which shelter plants under plastic, not only extend the growing season but provide some soil and water conservation benefits for landowners.

Interest in the hoop houses "has been astounding", he reported: More than 1000 growers have contracts under the three-year pilot project.

The hoop house pilot project, which is expected to be offered again this year, is funded with $10 million from the Environmental Quality Incentive Program, which is "less than 1 per cent" of the program's total funding, White reported.

As part of its rural development strategy, USDA will host the "The National Summit of Rural America: A Dialogue for Renewing Promise" on June 3 at Jefferson College in Hillsboro, Mo.

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Date: Newest first | Oldest first
Expect no such initiative here.Four processors now kill 49% of the cattle.Votes at the MLA AGM can be controlled by approx 40 entities out of the 200 000 people that pay the MLA cattle tax.JBS now has a representative on the MLA board .Your average cattle producer has his cattle price controlled by a top heavy processor and retail sector.Meanwhile governments do nothing (pathetic).
Posted by Brad Bellinger, 2/06/2010 7:27:13 AM
Totally agree with Brad, don't expect any similar initiative in Oz. We have cheap politicians playing petty games and pretending they rule the country, but what we need is the educated leaders with a solid vision and a courage to do the right thing.
Posted by Andrew, 2/06/2010 11:08:59 AM
It sounds a bit like an attempt to re-badge the subsidy system. However there is some merit there, economies of scale definitely have an upper limit. When any process gets too big, it invariably falls prey to management inefficiencies and waste.
Posted by Qlander, 2/06/2010 1:29:57 PM
Brad is on the money...... our lame duck ACCC and biased TPA give the big boys the upper hand at every turn.... the little people are excluded from effective collective bargaining and statue law stifles any competitive edge that's left. Then they import produce to shaft any incentive for the local producer in the name of pricing parity. Maybe it's time we imported politicians for all the national good they do for Australian Citizens..... and they would come much cheaper, without the transport overheads.
Posted by pepper, 2/06/2010 5:35:51 PM
Hoop houses are popping up with amazing frequency here in Michigan. My wife and I built one, and we've gotten a 8 week jump on the growing season. This initiative is what small businesses/merchant sites were/are to the internet. I routinely buy better car parts on ebay locally at a better price than my mechanic can on his distribution. The same can certainly hold true for the food I consume. This is an exciting initiative, in spite of its many armchair naysayers.
Posted by Dana Shields, 6/06/2010 12:29:08 AM

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