kathleen merrigan

I quickly learned this past weekend that the 2012 Farm Bill deliberations aren’t just being watched by folks who live in rural America. A conference in New York City last week demonstrated that many people in our nation’s largest city are also following the Farm Bill reauthorization discussions closely.

As Agriculture Deputy Secretary Kathleen Merrigan talked with attendees following her speech at the 2012 Just Food Conference, questions about the 2012 Farm Bill were among the most frequently asked, with dozens of students and long-time food policy advocates wanting to know more.

Travis Forgues is an organic dairy farmer in the town of Alburgh in northwest Vermont, almost at the Canadian border and surrounded on three sides by Lake Champlain. Like many of the other dairy farmers in northern Vermont, Travis is a realist. He went to college. He tried city life. But he was born into farming, and that’s how he wanted to raise his own family. So Travis went to his dad and had a talk about organic farming, and he convinced his father, and then many others, to convert their land from conventional agricultural practices to organic. As Travis saw it, organics was a growing niche within American agriculture, and consumer demand for organically produced dairy was taking off. Better still, consumers were willing to pay more for organic products. Today, as a result of Travis’ work, nearly 130 dairy farmers across New England have signed on to the “New England Pastures” organic dairy cooperative for Organic Valley.

Earlier this month, Deputy Agriculture Secretary Kathleen Merrigan announced almost 300 Value Added Producer Grant recipients across the Nation.  Each one of those recipients has a story, and a dream that, with help from USDA, will become reality. From producing pumpkin puree and gourmet cheese to expanding a caviar production operation in Idaho (Yes, Idaho), Rural Americans are using these matching grants to grow their businesses and bring high quality products to market.

In his State of the Union Address, the President announced a plan for building a strong, successful and lasting economy. He spoke in particular about the need to source jobs domestically in order to bring employment back to the United States and the need for a strong manufacturing base to build our economy upon. Here at the USDA, we are doing our part by supporting rural businesses, building modern, reliable community infrastructure, and working with farmers and ranchers to export products grown in America.

Earlier this week, I participated in a webinar about domestic sourcing and opportunities for partnership between the federal and private sectors back home to America. As the representative for all federal programs, I highlighted many partnering opportunities across agencies like the Small Business Administration and Economic Development Administration, and described in depth the opportunities Rural Development provides to rural residents and businesses. In particular, I spoke about our rural business programs, like the Business and Industry Guaranteed Loan Program and the Rural Economic Development Loan and Grant Program which in the last year have assisted over 50,000 small and mid-size rural businesses across the country in creating or saving roughly 266,000 jobs.

Cross posted from the Huffington Post Food blog:

This week I was at the Federal Reserve Bank in Chicago to talk about the business of local food. The conversation focused on how USDA and other federal agencies can work together with the private sector to harness the economic potential of local food across the Midwest. Joining me were executives, economic developers, and experts from businesses you may have heard of -- Sysco, Chartwells, SuperValu, General Electric, Feeding America, Whole Foods Market and FamilyFarmed.org. There were also representatives from local, state and federal government ranging from USDA's agencies to the Illinois Commerce Department -- each recognizing how investments in local food can help stimulate the economy, create jobs and complement our country's current agricultural system.

According the USDA's own research, local food sales made through direct marketing sales like farmers markets, CSAs, and farm stands plus via supermarkets, restaurants and institutional buyers were close to $5 billion. Fruit, vegetable and nut growers selling into local and regional markets employ 13 fulltime workers per $1 million in revenue earned. Why is this? Part of it is consumer demand. In 2011, over 85 percent of the customers polled by National Grocers Association said they chose grocery stores based in part on whether they stock local products. Part of it is flexible business models that can nimbly and quickly respond to the market. Farms selling locally may grow a wider variety of crops, they may pack or process on the farm or use workers to transport and market their products. Regardless, local food has big potential for job creation and economic opportunity.

Earlier today, I had the honor of joining non-profit organizations, state and federal agencies, institutions, CEOs and others involved with agriculture and economic development to kick off the “The Many Faces of Know Your Farmer, Know Your Food” conference hosted at the Federal Reserve Bank of Chicago.  I was there to continue the work that President Obama highlighted in his State of the Union address last month.

Last week was an exciting week for America’s school lunchrooms.  Our new meal standards were announced and they will help improve the health of millions of children.  These new standards represent one of five major components of the Healthy, Hunger-Free Kids Act of 2010.  There’s more to come:

• The ability to take nutrition standards beyond the lunch line - for the first time ever, rules for foods and beverages sold in vending machines and other venues on school campuses will contribute to a healthy diet;
• Increased funding for schools – an additional 6 cents a meal will be available -- the first real increase in 30 years – tied to strong performance in serving improved meals;
• Common-sense pricing standards for schools will ensure that revenues from non-Federal sources keep pace with the Federal commitment to healthy school meals and properly align with costs; and
• Training and technical assistance will help schools achieve and monitor compliance.

Last week, Agriculture Deputy Secretary Kathleen Merrigan visited Fifth Generation Farms fresh market in Lake City, Fla., a farm family owned market selling local meats and produce.  When Fifth Generation Farms market opened in August 2011, it was the realization of a dream not only for Delvey and Cindy Dicks, but for their entire family as well.  For five generations, the Dicks family has been involved in farming and ranching in the North Central Florida area.  The Dicks knew that if the family farm was to remain productive for future generations, they would have to offset rising production input costs and the loss of summer tobacco crops.

As I’ve traveled the country, I’ve talked with more and more consumers who want a personal relationship with their food and are demanding to know more about it, where it came from and how it got to their plate.  I’ve also talked with more and more producers who see the growing market demand for local food as a ripe business opportunity.  One of USDA’s goals is to connect the two.

Both of us grew up in small towns, Kathleen in Greenfield, MA and Bob in Ancram, NY.  From our own experiences, we understand the challenges and the importance of a strong rural economy.

We recently visited Brevard, a town of about 6,000 people in North Carolina’s Transylvania County.  While there we held a White House Rural Council meeting at the Transylvania County Library with leadership from the Land-of-Sky Regional Council, the regional economic development commission AdvantageWest, business leaders from Asheville and Brevard, and several local elected officials.  We released a report from the Partnership for Sustainable Communities, Supporting Sustainable Rural Communities, at Brevard College, which focuses on how the federal government can help rural areas to be economically vibrant and environmentally sustainable.