Humiston.monday

Committed to the future of rural communities

Dr. Glenda Humiston, State Director

Winning WithRural – Urban Partnerships

Leveraging Regional

Industry Clusters and

Value Chains for

Growth & Jobs

• Funding and Technical Assistance for:

– Business & Cooperatives Development

– Community Facilities & Rural Utilities

– Water, Sewer & Solid Waste Systems

– Single, Multi-Family & Farmworker Housing

FY 2012: $1.3 Billion

CA Portfolio: >$8 Billion


January 2010 – 43 Forums •Over 1,000 Californians Participated

•Consistent Recommendations Offered Throughout All of California

•Strong Partnerships Emerged

1st Quarter 2011 – 58 Forums •Almost 2,000 Californians Attended

•Update on Activities and New Economic Development Strategies

•Strong Support Received

•Many Requests for Collaboration

Forums Produce Recommendations


www.rurdev.usda.gov/Reports/CA-JobsReport-Feb10.pdf

http://www.rurdev.usda.gov/Reports/CA-JobsReport-Feb10.pdf

http://www.rurdev.usda.gov/Reports/CA-JobsReport-Feb10.pdf

Kauffman

FastTrac®

Survey

June 2012

Biggest Obstacle To Starting A Company Is:


Only 2% of annual

state job gains are

business relocations;

most are from:

•expanding existing businesses – 42%

•creating new companies – 56%

Jed Kolko, September 2010,Public Policy Institute of California

•Create Jobs!

• Improve Distribution

•Expand Access to New Markets


Regional Industry Cluster Projects

• Enhance Goods Movement Strategy

• Reduce Carbon Footprints

SACOG Rural–Urban

Connection Strategy

Digital 395 Broadband

Project


$1 billion manufacturing decrease in rural MN leads to loss

of 1,043 jobs and $208 million in revenue in Twin Cities!

If rural Minnesota’s

manufacturing

cluster grows 6%

($1 billion), the

urban area picks

up 16% of all jobs

gained and 38% of

additional output.

Rural & Urban Areas Very Interdependent

SOURCE: “Estimating Rural and Urban Minnesota’s Interdependencies”, Kate Searls, Minnesota Rural Partners, Inc., 2011

New Distribution Models

Feenstra, G., P. Allen, S. Hardesty, J. Ohmart, and J. Perez., “Using Supply Chain Analysis to Assess Sustainability of Farm-to-Institution Programs.” Journal of Agriculture, Food Systems, and Community Development


• Farmgate: $1.6 Billion

• Indirect: $3.3 Billion

• 21,000 Jobs


Shift Local Consumption to Local Production =

More Jobs & Economic Growth!

Agro-Tourism:

A Motorcycle

Rally on the

Cattle Ranch

to augment

income!


SOURCE: “Local Works: Examining the Impact of Local Business on the Economy” Case Studies from Arizona, Hawaii, Maine, New York, Michigan and Wisconsin

Capture the Multiplier Effect!


Bio-Green Planet

300+ California Firms Producing an Array of Bio-Based Products

February 2012: President

Obama signs Executive

Order Requiring Federal

Agencies and Contractors to

Utilize Biobased Products.


Commercial bioplastic is already made from cellulose – replacing petroleum-based plastics.

USDA scientists developed means to ferment a broader range of cellulosic materials – enabling large scale commercial production.

An estimated $375 billion market for chemical, plastic, and rubber products represents a substantial bioeconomy opportunity.

Biodegradable Plastics from Biomass



Link Various California Technology Clusters

• Coordinate economic development programs across the federal government.

• Up to 25 communities will be awarded $200,000 in 2013 to create strategies and initiate public-private partnerships.

• 5-6 communities will receive up to $25 million grants in 2014 from the EDA and supplemented by funding and additional resources from other federal agencies.Committed to the future of rural communities

A public/private partnership driven by CEOs of leading North State businesses to support innovative growth companies.

One of California’s 12 iHubs, and the only iHub focused on rural.

Innovate North State’s 5-Year Vision is to have the North State recognized as the most economically competitive rural region in the U.S. by 2017.


2013 NorCal Top 100 Manufacturers

• Microphor, Inc. in Willits • Northcal in Ukiah

Train Workforce & Entrepreneurs


Secretary Vilsack on the 2012 Farm Bill, October 24, 2012

“Every additional billion dollars of agricultural export sales helps to generate 8,400 jobs at home.”

www.export.gov



• Agriculture: food, fiber, open space, biofuels...

• Forests: wood, habitat, water, carbon sinks...

• Rivers/Coastal: fishing, food, tourism, energy...

• Parks/Public Land: tourism, recreation, habitat...

• Mining & Energy: solar, wind, geothermal, ore...

“Working Landscapes” Targeted

For Action at State Summit

~ $1 Trillion of California Economy

•34 Ways to Access Capital

•Recommendations on Policy and Resources

•Over 130 top experts and activists representing financial institutions, private businesses, economic development organizations and government agencies pledged to implement!

www.rurdev.usda.gov/Reports/CA-CalFOR.pdf


http://www.rurdev.usda.gov/Reports/CA-CalFOR.pdf

• California Organized Investment Network

• State Assistance Fund for Enterprise – Business and Industrial Development Corporation (SAFE-BIDCO)

• Tax-Exempt Industrial Development Revenue Bonds

• Revolving Loan Funds

• Lending Circles

…and much more!Committed to the future of rural communities

Purchasing cooperatives include: •Ace Hardware, •The Bike Cooperative, •Unified Grocers•and many more.

Worker cooperatives include:

•small bicycle & book stores,

•a fair-trade coffee roaster,

•a taxi company,

•an engineering firm…and more

Cooperatives


Direct Public Offerings


The U.S. has about 11,000

ESOP companies and about 11

million employee participants.

Employee Stock Ownership Plans

SOURCE: Pugh, W., Oswald, S. & Jahera, J., “The effect of ESOP adoptions on corporate performance: Are there really performance changes?” Managerial and Decision Economics, 21(5): 167, 2000


ESOP companies, as a

whole and by industry,

tend to outperform their

non-ESOP counterparts.

Corporate Investment in Shared Value


Goal:

$90 Million

Funds Raised to Date:

$270 Million

New Model for Financing Regions and/or Sectors


California Community Capital Collaborative


California Citizens Hold $859 Billion in

Retirement Accounts

SOURCE: Employee

Benefit Research

Institute, May 2010

Data from Averaging National Statistics

$43 Billionfor Investment inCalifornia if…

“Invest Local” Initiative

Residents Bring 5% of Their Retirement

Accounts Home



Buy Local

Invest Local

Build Clusters &Value Chains

Provide Infrastructure & Goods Movement

YOU Provide the Intangible Capital!


HumanCapital

Experience

Competencies

ManagementSkills

Workforce

KnowledgeCapital

Information

Research

Processes

Intellectual Property

SocialCapitalCustomers

Vendors

Partners

Brands

Reputation


Phone: 530-792-5800

www.rurdev.usda.gov/ca

California Rural DevelopmentU.S. Department of Agriculture

430 G Street, Agency 4169Davis, CA 95616

Humiston.monday

Technology

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