COMMUNITIESUnlimited - NACo · Compact, fully automated, waterless, multiple feedstocks Generates ASTM standard fuel that can be blended with petroleum diesel or used alone (B100)

Deborah Markley Tami Hornbeck Facilitator Storyteller

COMMUNITIESUnlimited

Leadership Team Welcoming Remarks

• Vicky Williamson • Amber Thurston • Melody Harmon • Chris Brown • Ryan Lee • Charlie Smith • Brad Johnson

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Introducing… WealthWorks… is an approach to economic development that connects a region’s assets

to market demand in ways that build rooted wealth for local people, places and firms.

brings together a range of public, private and non-profit sector partners who have self-interest in the outcomes and an openness to discovering shared or common interests.

focuses on building a sector rather than individual and unrelated businesses.

Prosperity Summit Stakeholders… Take a moment to reflect on your self-interest in being here today and where you see an opportunity in Agriculture/Sustainable Agriculture. Write down on a card. Go around and share name/organization and your self-interest in this sector.

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Overview of WealthWorks Goal: Advance a region’s prosperity by building

wealth that sticks

WealthWorks is a bridge between community development (voice, empowerment, organizing) and

economic development (attraction, retention, entrepreneurship).

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Principles or Design Elements 1. Focus on creating wealth, broadly defined, and

aspire to do no harm. 2. Build lasting livelihoods by intentionally including

economically-marginalized residents. 3. Root wealth in local people, places and firms

through local ownership and influence. 4. Use a systems approach – WealthWorks Value

Chains – to build value in existing and emerging sectors.

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#1: Investing in and Building 8 Capitals

Wealth is not just money.

Wealth is the reservoir of all assets that can

contribute to the well-being of people, places

or economies. Every place has wealth.

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Defining Wealth Broadly The Capital The Definition Individual Skills, education, physical health, and mental wellness

Intellectual Knowledge, resourcefulness, creativity, and innovation

Social Trust, relationships, and networks

Cultural Traditions, customs, and ways of doing

Natural Natural resources

Built Infrastructure – for example, buildings, sewer systems, broadband, roads

Political Influence on decision makers and shakers

Financial Savings and investment

All are required to grow and sustain a healthy economy over the long-term!

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Building Your Stock of Wealth Turning on the tap = Investment

To maintain or increase the quantity and quality of the capital, you need to invest.

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Building Your Stock of Wealth Letting water out = consumption

As long as the investment coming into the bathtub comes in faster than the water that drains out, the stock will increase.

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Building Your Stock of Wealth Reinvestment is key to maintenance

Aspire to Do No Harm You don’t build your stock of wealth by draining one form at the expense of another.

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#2: Build Lasting Livelihoods

“Lasting livelihoods” means… − Low-income residents are doing better today, with

improved skills to qualify for higher-paying jobs. − They are earning more and building careers. − They are putting something aside for the future, e.g.,

building assets, so they are more resilient. − They have better future prospects so they can give back

their time, talent, and even treasure to the community.

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Recognize Your Assets, Including Those on the Margins

• Many places harbor underutilized assets ̶ people’s know-how and energy, natural resources, buildings, influence, connections… – that are not contributing to the broader economy.

• Underutilized assets can be connected, developed, and linked to markets in ways that create wealth.

• Economically-marginalized people and places are resources – and they (and everyone) will do better if they are connected to larger economies.

• Need to include all, but too often economically-marginal are excluded

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Many Roles for Low-income People and Firms

• As explorers helping to identify opportunity and demand

• As producers/entrepreneurs adding value to a good or service connected to market demand, and increasing skill and ability in the process

• As employees of businesses producing goods or services, or of organizations supporting WealthWorks value chains

• As consumers of higher quality/lower cost goods or services produced by or leveraged by WealthWorks value chains

• As investors, owners, or co-owners, gaining, retaining and building wealth that sticks

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#3: Wealth without Ownership isn’t Rooted Capitals that are “owned” locally build wealth.

• Ownership means you capture and control the flow of benefits from the capitals over time. It creates enduring, stable benefits.

• Benefits – e.g., income, know-how, better technology – flowing from local ownership of capitals can be re-invested and re-circulated locally, enriching many.

• Preserving local ownership or control over your capitals can increase the chances of preserving local jobs.

• Local ownership is an anchor that helps wealth stick.

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Dimensions of Ownership

Ownership and control looks like… − Many locally-owned businesses committed to the

community − Local access to certificates or two-year degrees

through the community college − Local endowment in the community foundation or

affiliate − Other examples?

R

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#4: Tie wealth to place and connect regionally

WealthWorks Value Chains connect local production to regional demand to bring fresh money into rural

communities, defined as:

A network of people, businesses, institutions, and non-profits

who collaborate to meet market demand for specific products or services –

each advancing individual self-interest while together creating greater local wealth.

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Relationships…Relationships… Relationships

• Build relationships with other community partners to focus on a sector (today’s Summit!!)

• Build relationships with demand • Build relationships with other producers, suppliers, etc. • Build relationships with support partners (e.g., educational

institutions, financial institutions, Cooperative Extension) • And many, many others!

Coordination role is central and critical!

Storyteller is here to share her experience.

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WealthWorks in Action

Turning the challenges of region

into opportunities by building upon assets and resources

to develop a new economic sector.


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Arkansas Delta: Landscape of Contrasts

Poverty rate > 22% Extractive agricultural

economy based on commodity crops

Many minority farmers and small scale farmers struggle to stay on land

ADTEC renewable energy training programs can’t place graduates due to lack of jobs

Rich with entrepreneurial spirit

Economic base: Agriculture – Some of most fertile farmland in the country

870,000 acres of land fallow during winter season

Excellent network of two-year colleges

Culture: Fried catfish, hushpuppies, french fries, living off the land – hunting, fishing farming

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Researching Camelina varieties on ASU and PCCUA test plots since 2011 as energy crop

Winter oilseed crop for Delta: Plant in October, harvest early May

Crushed into oil and Omega 3-rich meal for feed

Rotational crop for soybeans, summer vegetables

Camelina

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Micro-Bio-Refinery

2011: Technology developed at Mid-South Community College as a teaching tool; 200,000 gallon annual capacity

Compact, fully automated, waterless, multiple feedstocks

Generates ASTM standard fuel that can be blended with petroleum diesel or used alone (B100) in any diesel engine

Interest in commercializing the technology

Low capital investment for entire refinery installation

Waste Vegetable Oil

DeWitt had successful recycling program initiated in 2012; adding WVO Recycling

Hub of 10 county waste vegetable oil recycling district through efforts of Southeast Arkansas Economic Development District

Cost savings for city water, sewage systems

Sources of WVO -Jail -Hospital -Schools -Campgrounds -Lodges -Fried Fish Caterers -Restaurants -Convenience Stores

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• Arkansas Green Energy Network value chain has 20 active partners and over 75 support partners

ο Non-profit organizations ο Municipalities

ο Investors ο Entrepreneurs

ο Colleges and universities ο Farmers

• Communities Unlimited, formerly alt.Consulting, is coordinating organization

ο Started in 1998

ο Community Development Financial Institution

ο 501[c][3] economic development organization working with over 320 entrepreneurs each year

• Creating 100 jobs through farm to fuel demand driven model

• Replicating model across 25 communities in the Delta region

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Local farmers and community to local refinery

to…

meet local demand and regional customers.

Local Demand

Micro-Refinery

Camelina Oil

Camelina

Waste Vegetable

Oil

Regional Demand

Chamber of Commerce Home - based food entrepreneurs Local government City employees Community college

-RET grads -Online entrepreneur program -Staff, facilities personnel

Small scale and large scale farmers Residents – Recycling Students Restaurants Bankers Local truck drivers Hospital Nursing Homes

Inclusivity

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Renovated facility = 40 new jobs $$ to tax base

100 acres will generate between 4,000 - 5,500 gallons of biodiesel.

15 local businesses

3

rural communities

2100 gal

WVO recycled 2 New jobs

1500 gal

Biodiesel = = =

Im

pact

– 6

mon

ths

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Time for a …

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From Asset Based to Wealth Building

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What Makes a Community Great? What are the positive assets in your

community? What would land Titus County on a “Top 10 Places to Live” list?

These are the assets you have to build upon.

• Take a few minutes to ponder this. • Write your two strongest ideas on post its – one per

post it.

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Remember Our Goal – Rooted Wealth The Capital The Definition Individual Skills, education, physical health, and mental wellness

Intellectual Knowledge, resourcefulness, creativity, and innovation

Social Trust, relationships, and networks

Cultural Traditions, customs, and ways of doing

Natural Natural resources

Built Infrastructure – for example, buildings, sewer systems, broadband, roads

Political Influence on decision makers and shakers

Financial Savings and investment

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Discussion Questions

• Look around at the flip chart sheets. • Did anything surprise you? Are you stronger in

one form of capital than you thought? • Were there any assets that you struggled to place

into one of these categories? • What about ownership? Are there areas where

there’s not much decision making control over the assets in the county?

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Drilling Down into Your Sector

• We have a sense of the assets in Titus County. • But, what about in the Sustainable Agricultural

sector? • What do you have to build on there?

Table Exercise: The Spider Diagram

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Top Forms of Capital

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Rich with entrepreneurial spirit

Economic base: Agriculture

Excellent network of two-year colleges

Culture: living off the land – hunting, fishing

farming

Individual

Natural Resources

Investments

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Fallow land in winter Abandoned facilities

Relationships

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Feasibility

Growing Camelina

Arkansas Delta

Business Feasibility Study

For

Ford Foundation

Study Prepared by:

alt.Consulting

319 University Loop W est

State University, AR 72467

870.335.8535

Delta Sun Biodiesel Com Business Plan and Financial Pro

Contact Information: Business Plan Prepared by:

alt.Consulting State University, AR 72467

870.335.8535

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Delta Biodiesel Refinery Capacity

Estimated Camelina Yield/Acre Lbs. 1,000 1,250 1,500 1,750 2,000 2,250

Assumed Moisture Content at Harvest 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0%

Crop Yield dry/Lbs./Acre 920 1,150 1,380 1,610 1,840 2,070

Extracted Oil Fraction 30.0% 30% 30% 30% 30% 30% 30% Oil Production dry/Lbs./Acre/Year 276 345 414 483 552 621

Bulk Density of Oil Lbs/Gallon 7.5 7.5 7.5 7.5 7.5 7.5 7.5

Oil Production Gallons/Acre/Year 37 46 55 64 74 83

Refinery Capacity

Acres Needed Per Refinery 200,000 5,435 4,348 3,623 3,106 2,717 2,415

Acres Needed Per Refinery 100,000 2,717 2,174 1,812 1,553 1,359 1,208

Acres Needed Per Refinery 50,000 1,359 1,087 906 776 679 604

Acres Needed Per Refinery 25,000 679 543 453 388 340 302

Acres Committed/Farmer 50 50 50 50 50 50 50

# Farmers Needed Acreage/Acres Commited by Farmer 200,000 109 87 72 62 54 48




Business Development Tools

Leveraging Investment

Source Purpose Amount

USDA National Institute of Food and Agriculture

Camelina Research $276,877

Economic Development Administration

Online Entrepreneurship Training

$102,590

Arkansas General Improvement Fund

WVO Collection Equipment, micro-refinery

$125,000

Delta Regional Authority Micro-Refinery $50,000

Private Investment Tanks and Lines for Refinery $50,000

Arkansas Advanced Energy Association

Launch Event $8000

Farmers Camelina production Fuel, seed, weed control

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Capital Impact

Intellectual Mindset shift from exporting outputs to creating more local opportunities; introduction of a new crop

Individual Online agri-entrepreneurship training through 2-year colleges

Social Creating deep collaboration between city government, entrepreneurs, non-profits, colleges, policy makers

Built Turning environmental hazard into viable business

Political Four state legislators actively supporting AGEN through GIF funds

Natural Regional waste vegetable oil recycling, clean fuel used by farmers and city

Financial Securing private investment for local entrepreneurs, creating new opportunities for other entrepreneurs

Cultural Lifting up agricultural and entrepreneurial culture as agents for local change

Building Multiple Forms of Capital

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Leaders Farmers

Entrepreneurs Investors

Local Ownership

Making wealth stick means local

ownership and control!

AGEN Developed Ownership Models

1. Local entrepreneurs own businesses. Use own capital or secure local investors

2. Local municipality owns equipment and leases it to entrepreneurs to operate. Creates source of revenue for city. DeWitt example

3. Local farm co-op owns equipment. Coop members grow crop, co-op processes biofuel and sells it back to members.

Time for a …

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Networking Instructions

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• In the work you do, which capital(s) are you best at building? Write on an index card, with your name.

• Which capital(s) do you know the least about building? Write in smaller letters on the other side of your card.

• Find someone who is good at building a capital that you are not so good at building and get lunch together.

• When you sit down, ask your partner to give you an example of their wealth creation talents. Share yours in return. Repeat with others at your lunch table.

• Leave all the cards in the center of your table for the facilitator to collect.

Exploring Value Chains

WealthWorks Value Chains connect local production to regional demand to bring

fresh money into rural communities, defined as:

A network of people, businesses, institutions, and non-profits

who collaborate to meet market demand for specific products or services –

each advancing individual self-interest while together creating greater local wealth.

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Connecting a Value Chain • Demand: Final consumers/end market • Functions: Those things that have to happen to deliver the

product or service • Transactional partners: Those people, businesses, or

organizations that play a direct role in sourcing, aggregating, distributing, processing, purchasing the product, etc.

• Support: Those people, businesses, or organizations that provide the infrastructure that helps the transactional partners to produce

We are really talking about a Value Chain System!

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Remember our Goal Build rooted wealth, community prosperity,

lasting livelihoods. Look for ways to build wealth by… • Filling a gap in the value chain (e.g., creating a waste oil recycling

business) • Removing a barrier (e.g., providing GAP certification to minority farmers) • Building multiple capitals that are rooted in place (e.g., creating a green

building program at the community college) • Finding ways to include residents on the economic margins in the activity

(e.g., providing entrepreneurial training to self-employed, low income contractors to build green houses)

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Disadvantaged Farmers grow seed

Restaurants generate used oil

Oil Collection Biz

Researchers test seed

Seed collection,

storage, cleaning

Micro-Refinery

Two-Year College Training Program

Meal Collection / Processing

Glycerin Collection /

Refining

MidSouth ASTM Testing

Fuel Aggregator

Non-Commercial Use

FedEx

Biodiesel Stations

Farmers On /Off Road

Livestock Farmers

Cosmetic Mfgs

Green Financing Network

Bioenergy Value Chain

Manufacturer of Micro-Refinery

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Demand for biofuel Local municipalities, school districts, farmers, truckers

Regional companies - Valero, FedEx

Local and

State Policy

Support

MSCC Mini Refinery Micro Refinery

Spring-board Diesel Mfg Dist

Gir Ener

gy Mfg

Angel Investor

Net work Loan

Funds

Waste Vegetable Oil Collection Businesses

Source of WVO: restaurants,

convenience stores, schools,

hospitals,prisons,casinos, etc.

Community Mktg

Strategy Ed/promo materials

Community Recycling Programs

Progressive Community Leadership

Trans-porta-

tion

Camelina Seed Processing Company

Growers of Camelina:

Minority, Non-Minority Farmers

Camelina research

ASU, PCCUA

Camelina Agronomic

Service Business

USDA Support

Programs: NAP, Cover Crops, Crop Insurance

ADTEC RET

Train ing

Fuel Blend

er Distri butor

Animal Feed Composting

Cosmetic mfg

By Prod uct

Meal

By Product Gly ce rol

AGEN Opportunities for Entrepreneurs

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Policy, advoc

acy

Business consulting

Funding

Support pillars

Arkansas Green Energy Network – Farm to Fuel Value Chain

Regulatory

ADTEC degrees,certifications

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DeWitt: Where demand started • Landfill closed; sudden increase in miles for hauling garbage. • No room in city budget for fuel price increases. Need stable prices. • City vehicles utilize 10,000 gallons per year. • School district has among longest school bus routes in the state. Utilize 30,000 gallons

per year. • Farmers and residents have expressed interest in purchasing fuel. First meeting with the Arkansas Green Energy Network in March 2012. • Commitment to purchase fuel produced in DeWitt. • Patient demand. • Key to success of strategy!

Local consumption key to profitability during ramp up, regional demand key to reaching scale.

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Valero: Needs biofuel to meet Renewable Fuel Standards

Farmers are number one user of diesel in local economies of the Delta region

• Technology/research commercialization • Funding • Seed production, processing • Regulatory and fuel testing costs • Feedstock availability • Waste oil collection contractors

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Gaps, Barriers, Bottlenecks

Interventions

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• Bioenergy Installations • Financing Models • Policy Support for Renewable Energy • Network Building • Technical Assistance • Marketing

Economic Development Opportunities

Opportunity to generate income from land not used during winter months

New businesses and jobs • Agronomic services

• Camelina processing

• Waste vegetable oil collection

• Biofuel processing

• By product businesses

Community and regionally based collaboration for economic development

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Mapping YOUR Value Chain

• Focus on a specific product or service • Identify demand, functions, transactional partners,

and support partners on colored cards • Arrange your map • Where are the gaps, barriers, bottlenecks –

Opportunities for Change? • Strategies for addressing these?

Keep your eye on the wealth building prize – where

are there opportunities to build more capitals, more local ownership, more inclusion for people on

the margins.

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Time for a …

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Build Collaborative Networks That Flex Forging and nurturing relationships between business,

organizations, government, and people based on self-interests

• Find your voice and talk to folks you’ve never talked to before, using language you’ve never used before.

• Identify people you think might “value” the product, service, or associated benefits created by your efforts.

• Explore their value propositions.

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Uncovering Motivation for Engaging What is their self-interest in engaging further?

What benefits can we/the product offer that they value? This is their “value proposition”.

Three levels of Interests:

Self: What’s in it for me? Shared: What’s in it for us?

Common: What’s in it for other people/the region?

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The Coordinator

Value chains do not self-organize. Coordinators often already have assets to support the goals of their

value chains, but may need to deploy them in a different way.

• Hold and steward the vision of the value chain • Build relationships among and between partners in the value

chain • Guide activities and partnerships to build multiple forms of capital • Ensure low-income people, firms, and places participate and

benefit • Help create and deploy structures to manage risk • Maintain flows of information to keep mutual benefit going and

growing

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Partnering with Demand: City of DeWitt

• Ownership and Funding - cost structure • Legal assistance – purchase contracts • Technical assistance for WVO collection for

fuel quality and cost effective production • Marketing • Local intentional collaboration invaluable!

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Arkansas Green Energy Network = 22 Members

Partner Function Self-Interest ASU Department of

Agriculture Crop research on Camelina,

technical assistance to farmers Demonstrate impact of their

work on economic development

Phillips Community College UofA DeWitt Campus

Camelina research, technical assistance to farmers

Create local jobs for graduates, raise profile of college

Mid-South Community College Build micro-refineries Commercialize technology,

create new jobs for graduates

AR Advanced Energy Foundation Policy work to support biofuel Demonstrate renewable energy

as economic driver

City of DeWitt Waste vegetable oil recycling, site of chainlet

Price stability, new jobs, lifting up community

Entrepreneur Produce biofuel, produce meal from Camelina Build new venture

Farmers Grow Camelina, develop new production methods

Profitable winter crop with short growing season

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Arkansas Green Energy Network – Larger Collaborative

Policy, advoc

acy

Business consulting

Funding

Support pillars

Regulatory

ADTEC degrees,certifications

Overcome barriers, problem solving • Processing design • Camelina, other energy crops • Policy • Costs

Systems efficiency, expertise Fill gaps

• Marketing • Investment

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The Arkansas Advanced Energy Foundation believes that the commercial development and deployment of biopower, bioproducts, biofuels and other alternative fuels is a “natural” strategy for Arkansas to strengthen rural communities through job creation and new wealth.

AAEF: Arkansas Biofuel Economy

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Our goal is to provide deep and lasting impact in communities by combining fundamental infrastructure services with economic entrepreneurial growth strategies.

As coordinator we: • Facilitate and organize meetings of larger

collaborative and working groups • Provide communication for value chain • Coordinate partners to fill gaps, provide

expertise • Raise awareness and visibility • Provide accountability and pacing to stay on

target • Have served as TA provider for value chain • Keep intentionality at forefront • Help secure funding

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Next Steps

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What are some logical next steps to move from discussion to action in your sector?

• Who else has a self-interest or a shared interest in being engaged further?

• What else do you need to know before you can move forward, i.e., research needs?

• Are there gaps or barriers identified today that could be addressed next?

• What are concrete next steps you might take coming out of this Summit?

Group and Individual Follow up

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As a group… • Who, what, and when for next steps

As individuals… • Write one thing you will personally

do to follow up on the Summit in the next month.

• Share your commitment with the person next to you.

• Take your card home and post it somewhere easy to see!

Leadership Team Follow up

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• Sharing materials • Thoughts on next steps • Thank you!

For More Information

Deb Markley [email protected]

www.energizingentrepreneurs.org

Tami Hornbeck [email protected] www.communitiesu.org

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mailto:[email protected]

http://www.energizingentrepreneurs.org/

mailto:[email protected]

http://www.communitiesu.org/

Documents

COMMUNITIESUnlimited - NACo · Compact, fully automated, waterless, multiple feedstocks Generates ASTM standard fuel that can be blended with petroleum diesel or used alone (B100)