In a recent discussion by Richard Pirog of the Leopold Center based at Iowa State University, a comparison was made between local, regional and global foods. For our discussion, local foods are sold in smaller volumes across shorter distances. They include farmers markets, Community Supported Agriculture, farm stands, restaurants and institutions using locally grown foods.
Regional foods are sold in larger volumes across entire cities, multiple counties or states. This includes regional supermarkets, colleges, and hospitals, small restaurant chains and state government institutions. These foods are not necessarily direct sales to the consumer.
Global foods are those foods that are basically shipped from all parts of the world.
It is interesting that in one study cited by Pirog, eighty to eighty-five percent of respondents to a survey perceived that local and regional food systems were safe while only 12 percent perceived that global foods were safe. In fact, fifty-three percent of those surveyed felt that global foods were either very unsafe or somewhat unsafe.
What is the economic significance of local and regional foods? In one analysis cited by Pirog, it was assumed that the population of Iowa would consume five servings/day of fresh fruits and vegetables and that 25 percent, or three months of the year, of this consumption would be provided by Iowa farmers. What would be the economic significance? A serving is identified as ˝ cup of cut-up fruits and vegetables or ˝ cup of cooked vegetables, which is not a lot.
Other assumptions made in this study indicated that the increased production in fruits and vegetables would reduce corn and soybean production as land is limited in Iowa. Half of the new fruit and vegetable sales would be direct-market sales while the other half would be wholesaled and retailed conventionally. Existing food store retail sales (the actual retail margins) would be reduced by an amount proportionate to coincide with the new direct market sales. Finally, all of the production to meet this goal of 25 percent is for in-state consumption. Thus, it would primarily replace imports into the state.
With these assumptions, it was interesting to see the outcomes. The total economic impact showed that there would be a net increase of 4,100 jobs in Iowa from this consumption of fruits and vegetables. The total industrial output would have a net return of $302,382,000 with a labor income of $112,551,000. It is interesting to note that this increase in jobs is roughly equal to the increase in permanent, but not construction, jobs that the ethanol industry will provide in Iowa once the plants are completed.
In other words, there is more than one way to increase the economic impact of agriculture in Iowa as well as in Nebraska and it does not require multi-million dollar investments to do it. It does take a change in mindset as to what can be done.
Nebraska soils, including Washington County, are some of the best soils in the world. They will not only grow corn and soybeans but also fruits and vegetables. Yes, we are at the disadvantage to far away places in the fact that we have winters, but even providing fruits and vegetables for short periods of time does have a tremendous economic impact.
Because of our location, Washington County is ideally located to take advantage of this economic activity. But, it again takes a change in mindset and attitudes of many to accomplish this goal.
