Leopold Center - Leopold Center funds 13 new projects for beginning, transitioning farmers

2-16-06
LEOPOLD CENTER FUNDS 13 NEW PROJECTS FOR BEGINNING, TRANSITIONING FARMERS

AMES, Iowa – The Leopold Center for Sustainable Agriculture has awarded 13 grants for new projects that will help beginning and transitioning farmers explore and test strategies for entering new markets.

The projects, which total more than $264,000 for the first year of work, were selected in a competitive process sponsored by the Leopold Center's Marketing and Food Systems Initiative. Grants for 10 of the new projects are for one year, and the other three grants will run for two years. The initiative also has renewed grants totaling more than $125,000 for nine projects that began in 2005.

“These projects will give farmers solid information about the costs and risks associated with various niche markets, as well as resources to help develop these enterprises," said initiative leader Rich Pirog.

Pirog said one new project engages an Iowa State University researcher in Woodbury County, which recently approved tax abatements for farmers who transition to organic agriculture. The researcher will use input-output models to determine how increases in organic production impact the local and regional economy.

"The idea is that increased organic production may lead to rural economic development, and we want to see how that plays out because farmers making this transition need community support," Pirog explained.

Another project will focus on transaction costs – the costs in a business that are associated with transportation, warehousing, processing orders and customer service. According to some national estimates, transaction costs can range from 4 to 30 percent of sales. The new project will include case studies to illustrate transaction costs associated with niche dairy, meat and produce businesses.

Other grants will be used to develop a new online program for beginning farmers to evaluate risks associated with niche enterprises over time, quality assurance systems for niche livestock producers, and a feasibility study for a mobile, on-farm processing unit for freezing produce.

The Leopold Center also is funding a new two-year project to help small and midsize producers connect with retail and foodservice distributors. The project includes day-long workshops offered in four Iowa communities by ISU Extension's Value Added Agriculture program. "Bridging the Gap: Selling to Foodservice and Retail" will be offered March 7 in Fairfield, March 8 in Atlantic, March 9 in Sergeant Bluff and March 10 in Waterloo.

The Leopold Center continues to support new sustainable agriculture programs at two Iowa community colleges. Marketing grants will be used to develop a master plan and community incubator kitchen for a proposed Midwest Center for Entrepreneurial Agriculture (MCEA) on 145 acres adjacent to Marshalltown Community College in Marshalltown. Indian Hills Community College in Centerville has received a second-year grant to continue work on curriculum for its new Land-Based Business/Entrepreneurship program.

Other renewed grants include development of Iowa's first American Viticultural Area (AVA) in northeast Iowa. An AVA is a grape-growing region distinguishable by geographic features that can be used to brand and promote local wines. In southwest Iowa, ISU Extension field specialists have been surveying nearly 1,500 food vendors, restaurants, nursing homes about their interest in buying local or regional-produced foods.

For more information about the Leopold Center’s Marketing and Food Systems Initiative, contact Pirog at (515) 294-1854. A list of all grants and recipients also is available on the Center's web site at: <www.leopold.iastate.edu/research/marketing_files/2006grants.htm>.

2006 Leopold Center Marketing and Food Systems New Competitive Grants