1. Robert Tse
USDA SC2 Lead
USDA Rural Development
Federal-Local Partnerships
to Implement Place-Based
Economic Development
Strong Cities Strong Communities
Fresno Pilot
San Francisco, CA
San Francisco Hilton
August 26, 2013
2.
3. Our planet has, at most, 12 percent
more arable land available for
intensive crop production.
"The only environmentally
sustainable alternative is to double
productivity on fertile, non-erodible
soils,”
Dr. Robert Thompson
Senior Fellow Global Agricultural Development and Food Security, Chicago
Council on Global Affairs, former Director of Agriculture and Rural Development
and Senior Advisor for Agricultural Trade Policy, World Bank
October 7, 2011 the Johns Hopkins School of Advanced International Studies
4. More Food Production Please !!!
The New Oliver Twist circa 2050
“We find that yields in these top four crops
are increasing at 1.6% [maize], 1.0%
[rice], 0.9% [wheat], and 1.3% [soybeans]
per year, non-compounding
rates, respectively, which is less than the
2.4% per year rate required to double global
production by 2050.”
Yield Trends Are Insufficient to Double Global Crop Production
by 2050 -- PLOS ONE
June 19, 2013
5. World Economies
California is 9th Largest … France is 5th
$2,560
$1,901
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
UnitedStates
China
Japan
Germany
France
UnitedKingdom
Brazil
Italy
California
India
Canada
Russia
Spain
Mexico
SouthKorea
2010 Based on market exchange rates (in current U.S. dollars), U.C. Davis Ag Issues Center
Gross Domestic Product of Top 15 Economies in World
$ Billion$ Billion
6. Global Agriculture Powers
California is 9th … France is 7th
640.0
459.4
304.7
69.7
39.3
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
700
Top3Countries
Market exchange rates used (current US dollars) U.C. Davis AIC
Value of Agricultural Production (2007-2009 Average)
$ Billion$ Billion
7. California Agriculture Leads U.S. in
Production and Exports
Ag Production
State
Rank
2012 e
Total Value
$Billion
California 1 $43.1
Iowa 2 $31.5
Texas 3 $25.1
Nebraska 4 $22.4
Minnesota 5 $20.4
Ag Exports
State
Rank
2011
Total Value
$Billion
California 1 $17.8
Iowa 2 $10.6
Illinois 3 $8.2
Texas 4 $7.6
Nebraska 5 $6.9
• California exports account for 14% of U.S. total agricultural exports
• California’s agriculture profile differs significantly from other states.
• Dominated by dairy, and specialty crops vs. grains, oilseeds
• Ag Production = Cash Receipts
• Source: USDA ERS estimate, CDFA has separate state export statistics from the U.C. Agricultural Issues Center
10. San Joaquin Valley
Dominates California Ag Production
$1,000 All Crops
State Total 51,488,191
San Joaquin Valley 30,243,586
Fresno 6,884,582
Tulare 5,629,264
Kern 5,364,363
Merced 3,259,866
Stanislaus 3,069,823
San Joaquin 2,246,920
Kings 2,219,529
Madera 1,569,239
Fresno
14%
Tulare
11%
Kern
11%
Merced
6%
Stanislaus
6%
SanJoaquin
4%
Rest of
State
41%
Gross Value
59%
2011 USDA NASS CA
11. MILK, MARKET, FL
UID
21%
TREENUTS
16%
ALL GRAPES
9%
HAY & SILAGE
8%
CATTLE, CALVES, MI
LK COWS ETC
7%
CITRUS
5%
POULTRY AND
EGGS
5%
STONE FRUIT
4%
Cotton Lint
3%
TOMATOES, PROCE
SSING
2%
REST OF
PRODUCTS
20%
$896 Million
$643 Million
$30.2 Billion - 2011
Gross Domestic Receipts
$6.6 Billion
$4.8 Billion
$6.6 Billion
$2.4 Billion
$2.1 Billion
$1.1 Billion
Robert Tse USDA RD CA
12. San Joaquin Valley Export Profile
Grape, Nut & Dairy Complex Dominate
Treenuts
35%
Dairy
15%
Oranges &
Mandarins, 5%
Cotton, 3%
Proc & Fr
Tomatoes, 3%
Animal Prdts, 3%
$106
Million, Hay, 1%
Cherries, $99
Million 1%
Garlic, $36.5
Million, 0.4% Rest of Prdts
26%
$3.3
Billion
$1.4
Billion
$807
Million
$2.5
Billion
$9.5 Billion Exports
Imputed Estimate
Robert Tse USDA RD CA
13.
14. White House Strong Cities, Strong
Communities “SC2” Pilot Project:
– New Approach - Inter-departmental federal team works with
SC2 City
– Work directly with local government, private sector and other
institutions to leverage federal resources
– Support the work being done at the local level to encourage
economic growth and community development.
–Focus on collaboration
–Draw on Regional Economic Underpinning
15. SC2 Fresno: 10 Focus Areas
Downtown
Revitalization
Business
Development
Economic
Development
& Innovation
High Speed Rail
Transportation
Land Use Planning
Livable
Communities/Housing
Resource
Management
Workforce
Development & Adult
Education
Homelessness
16. Urban Rural Economic Nexus
For every $1 Billion increase in rural
agribusiness output, between 22% - 30%
is spent in urban areas (business or
consumer/ investment spending)
Minnesota Study
Pilot Study: Estimating Rural and Urban
Minnesota’s Interdependencies, Minnesota Rural
Partners, Inc., Kate Searls, 2012
17. • Regional Collaboration
• Regional Food Systems
• Community Building
• Alternative Energy
• Strategic Partners
• Capital Markets
• Broadband
USDA Priorities SC2 Focus Area
Economic
Development
&
Innovation
URBAN – RURAL
BROADBAND
STRATEGY
AG TECHNOLOGY
ECONOMIC
CLUSTER
18. Infrastructure
BROADBAND
RURAL WIRELESS BROADBAND
NEW AGRICULTURE TECHNOLOGY
PRODUCTION WATER ENERGY
ENVIRONMENT FOOD SAFETY
RURAL TELE-HEALTH / TELE-MEDICINE
DISTANCE LEARNING
TRANSPORTATION & LOGISTICS
PUBLIC SAFETY
DIRECT MARKET ACCESS TO GLOBAL MARKETS
RURAL AGRO TOURISM & RECREATION
FOUNDATION FOR ECONOMIC
GROWTH AND OPPORTUNITY
19. Rural Wireless Broadband:
Critical Platform for New Ag Tech
New Frontier in Ag Tech: Remote Sensing
• High Capacity – Wireless Broadband
infrastructure in rural areas including at
the farm field level.
• High capacity broadband in width and
breadth.
• Critical for Remote Sensing Technology –
field to pump
Broadband driver of technology adoption
Broadband platform for multiple sectors
21. Multi Sector Users
of Wireless Broadband Infrastructure
Wireless
Broadband
Ag
Tech
Tele Health
Medicine
Distance
Learning
Transportation
Logistics
Public
Safety
Direct
Market
Access
Rural Agro
Tourism
23. Ag Tech - New Ag Regional Cluster
Development of new agricultural
technology and its adoption in the San
Joaquin Valley offers continued growth
of the regional agriculture economy and
the potential to develop an agriculture
technology cluster centered on Fresno.
Robert Tse USDA RD CA
35. Ag Tech Cluster
Tele Health Tele
Med
Down Town
Redevel
Public Safety
City
Administration
General Plan
Big Data
Farm
Field
Tele
Med
Trans &
Logistic
Public
Safety
Distance
Learning
Direct
Market
Access
Rural
Wireless
Broadband
AgTourismFresnoFAT
36. Final Thoughts
• Broadband is critical to the economic future of
rural and urban areas
• Rural areas are much greater users of
broadband than conventional thinking
• An Ag Tech Economic Cluster is being
developed in Fresno and the lynchpin is
broadband
• Rural and Urban Economies Are Intertwined
Prosperity is a shared benefit
Average percent increase is 1.2% a yearPlos One analysis of global agricultural production
22% of a $1 Billion increase in rural agribusiness output is spent on urban business spending30% of a $1 Billion increase in rural agribusiness output is spend on urban consumer spending and investing activityp. 22 Pilot Study: Estimating Rural and Urban Minnesota’s Interdependencies, Minnesota Rural Partners, Inc. Kate Searls
Best Practice: USDA Fit Dept strategy to Fresno City Benefit with 2 related Strategies:Urban Ural Broadband and Ag Tech Econ Cluster
Broadband as broad infrastructure platform for economic developmentCross Over:MarketingDistance learningTele-medicineHealth monitoringTransportation & LogisticsFood SafetyNational Security – tracking containersEnvironmental monitering
1 New Ag Technology2 Bus Investment – begins and nurtured3 Public Policy support and development SC24 Innovation SC2 development5 Wireless Rural BroadbandSo future Global demands food / shift to proteins, fruits & vegetablesIn really good position drive innovation double crop production New Ag Technology (water efficiencies), Attract business investments, Build comprehensive Wireless Rural Broadband platformMultiple benefits (telemedicine /distance learning – this makes up the Ag Tech ClusterReason project closely watched /supported by White House Office of Science and Tech Policy (USDA and RD)Positive impact globally: Meet Global Food Demands /Less use agricultural chemicals / New means controlling pests don’t require toxic chemicals agriculture / Adapting climate changes (ie hotter, drier, more extreme temperature ranges), / Economic DevelopmentNewspaper article ASHLEY SWEARENGIN AND PETE WEBER: Valley economic development opportunities By Ashley Swearengin and Pete Weber Saturday, Mar. 03, 2012 “Research conducted by State's Centers of Excellence - projects involved with California's Ag Value chain could create 182,000 jobs in the next 5 years”
Best Practice: utilize existing resources and link them
Key Concept SlideStrategic PartnersUSDA and DOE - product of two labs – Livermore and ARS Pacific WestFunnel through local entity Fresno StateLocal Bus Incubator Central Valley Business Incubator CVBIAg Tech Show Case
Another Finding from IBM regarding our Infrastructure was not the lack of access to broadband in the downtown focus area but rather the lack of broadband adoption that impacts our downtown revitalization efforts, the small business’s digital divide is impacting their growth (noted that just with a digital presence, small business’s can recognize $8 more revenue, but by actively managing a digital presence, that revenue increases to $23K) This is a Quick Win for the city.Rural now has a Global presence – Mexican Pastries / Advertise on Craig’s listOnce adoption rate takes off, will be even more important to have Ultra High Speed broadband for research capabilities example a R&D company work with Lawrence Livermore Labs to send data to their Super Computer to crunch the data
Another Finding from IBM regarding our Infrastructure was not the lack of access to broadband in the downtown focus area but rather the lack of broadband adoption that impacts our downtown revitalization efforts, the small business’s digital divide is impacting their growth (noted that just with a digital presence, small business’s can recognize $8 more revenue, but by actively managing a digital presence, that revenue increases to $23K) This is a Quick Win for the city.Rural now has a Global presence – Mexican Pastries / Advertise on Craig’s listOnce adoption rate takes off, will be even more important to have Ultra High Speed broadband for research capabilities example a R&D company work with Lawrence Livermore Labs to send data to their Super Computer to crunch the data
We’re taking a unique step and moving the city forward in reverse action by focusing on a rural wireless broadband strategy 1st in order to drive our Ag Economy. This in turn drives technology adoption in the city which has a direct impact to our city’s economic development that expand Ag technology businesses and future Ag Technololgy research and development businesses that we are strategically targeting to locate in the underutilized downtown area
Putting this concept all together looks complex but shows how all 6 components of the strategy work together:With wireless broadband in the rural area, benefits not only the Farm Field, but also Telemedicine greatly benefits veterans that are locating in the rural area and aren’t getting the healthcare access as they should because of having to drive into the city… Distance Learning Obama initiative so all have equal access to quality educationRobert Trans & Logistics/Public Safety/ Direct Market AccessFood SafetyAgro TourismThese 6 components then drive the development of the AgTech Cluster/TeleHealth/Downtown Redevelopment with new AgTech Research businesses located there which is why Ultra high speed broadband for downtown is now on Mayor Swearengin 2nd term agenda / Public Safety???/ which also then drive Better Government for the City’s Administration/General Plan/using Big Data (example: by connecting Ag land data from the rural area through broadband, the city can use modeling tools to analyze the true impact that developing a residential neighborhood on fertile land truly has – calculating the crop revenues of a 25 year period compared to developer fees and property taxes can greatly aide in better planning decisions.
New opportunity to work with local governments to establish Ultra High-speed Broadband in targeted zones that simultaneously serve as a carrot for technology related business growth and leverage existing city assets.
1: Regional Approach - City Rural cannot go it alone - Economies are intertwined - Urban – where does your food come from - Rural – Capital, Technology and Customers are Urban (2/3 world by 2050)2: Coalition Building Critical - Not enough resources alone; tie parallel lines together; share ideas - Gov’t linkages: Federal: USDA and DOE, EDA DOC (SC2); State: CTA and CETF; Local: Fresno city CIO - NGO: SJVP; SJVBBConsortium; Central Valley Business Incubator; Fresno State; CITRIS (Berkeley) - Private: John Deere; IBM – Smarter Cities; PG&E; Telecomm3: Assess Your Assets. You have more than you think - Organizations and skills – Fresno CIO; SJVBBC; CETF - PG&E use of towers for BB transmission - John Deere dealer – own broadband transmission network – unlicensed frequency - Public Schools – prior investment into internet connectivity – distance learning - Fresno City – fire alarm conduits in downtown and older part of Fresno could be retro-fitted for fiber optic cable for ultra high speed broadband for down town FresnoBe Open to Continuous Change
1: Regional Approach - City Rural cannot go it alone - Economies are intertwined - Urban – where does your food come from - Rural – Capital, Technology and Customers are Urban (2/3 world by 2050)2: Coalition Building Critical - Not enough resources alone; tie parallel lines together; share ideas - Gov’t linkages: Federal: USDA and DOE, EDA DOC (SC2); State: CTA and CETF; Local: Fresno city CIO - NGO: SJVP; SJVBBConsortium; Central Valley Business Incubator; Fresno State; CITRIS (Berkeley) - Private: John Deere; IBM – Smarter Cities; PG&E; Telecomm3: Assess Your Assets. You have more than you think - Organizations and skills – Fresno CIO; SJVBBC; CETF - PG&E use of towers for BB transmission - John Deere dealer – own broadband transmission network – unlicensed frequency - Public Schools – prior investment into internet connectivity – distance learning - Fresno City – fire alarm conduits in downtown and older part of Fresno could be retro-fitted for fiber optic cable for ultra high speed broadband for down town FresnoBe Open to Continuous Change
John Deere and driverless tractorWe need the broadband infrastructure to drive it.