Robert Tse USDA SC2 LeadUSDA Rural Development

Federal-Local Partnerships to Implement Place-Based

Economic DevelopmentStrong Cities Strong Communities

Fresno Pilot

Annual Training ConferenceSan Francisco, CASan Francisco HiltonAugust 26, 2013

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 ThompsonSenior 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 BankOctober 7, 2011 the Johns Hopkins School of Advanced International Studies

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

World EconomiesCalifornia is 9th Largest … France is 5th

United St

atesChina

Japan

German

y

France

United Kingd

omBraz

ilIta

ly

Californ

iaIndia

Canad

aRussi

aSp

ain

Mexic

o

South

Korea$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2560

1901.1

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

Global Agriculture PowersCalifornia is 9th … France is 7th

China

EU-27b

United St

ates

Brazil

Japan

Russia

France

Mexic

o

Californ

ia

Canad

aKorea

Australi

a

South

Africa

0

100

200

300

400

500

600

700

0

20

40

60

80

100

120

140640.0

459.4

304.769.7123333333

333

39.26820661

Top

3 Co

untr

ies

Market exchange rates used (current US dollars) U.C. Davis AIC

Value of Agricultural Production (2007-2009 Average)

$ Billion$ Billion

California Agriculture Leads U.S. in Production and Exports

Ag ProductionState Rank

2012 eTotal Value

$Billion

California 1 $43.1Iowa 2 $31.5

Texas 3 $25.1

Nebraska 4 $22.4

Minnesota 5 $20.4

Ag ExportsState Rank

2011Total Value

$Billion

California 1 $17.8Iowa 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

California’s Central Valley

San Joaquin Valley Dominates California Ag Production

$1,000 All Crops

State Total 51,488,191San Joaquin Valley 30,243,586Fresno 6,884,582Tulare 5,629,264Kern 5,364,363Merced 3,259,866Stanislaus 3,069,823San Joaquin 2,246,920Kings 2,219,529Madera 1,569,239

Fresno13%

Tulare11%

Kern10%

Merced6%

Stanislaus6%

San

Joaq

uin

4%King

s4%M

ader

a3%

Rest of State41%

San

Joaq

uin

Valle

y

Gross Value

59%

2011 USDA NASS CA

2011

San Joaquin Valley Agriculture Production Profile

MILK, MARKET, FLUID21%

TREENUTS16%

ALL GRAPES9%HAY & SILAGE

8%

CATTLE, CALVES, MILK COWS ETC

7%

CITRUS5%

POULTRY AND EGGS5%

STONE FRUIT4%

Cotton Lint3%

TOMATOES, PROCESS-ING2%

REST OF PRODUCTS

20%$896 Million

$643 Million

$30.2 Billion - 2011Gross Domestic Receipts

$6.6 Billion

$4.8 Billion

$6.6 Billion

$2.4 Billion

$2.1 Billion

$1.6 Billion$1.5 Billion

$1.1 Billion

Robert Tse USDA RD CA

San Joaquin Valley Export ProfileGrape, Nut & Dairy Complex Dominate

Treenuts35%

Dairy15%

Grape Prdts8%Oranges & Mandarins, 5%

Cotton, 3%

Proc & Fr Tomatoes, 3%

Animal Prdts3%

$106 Million, Hay, 1%

Cherries, $99 Mil-lion 1%

Garlic, $36.5 Mil-lion, 0.4% Rest of Prdts

26%

$3.3 Billion

$1.4 Billion

$807 Million

$288 Million

$309 Million

$439 Million

$240 Million

$2.5 Billion

2011$9.5 Billion Exports Imputed Estimate

Robert Tse USDA RD CA

White House Strong Cities, Strong Communities

“SC2” Pilot Project

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

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

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 StudyPilot Study: Estimating Rural and Urban Minnesota’s Interdependencies, Minnesota Rural Partners, Inc., Kate Searls, 2012

• Regional Collaboration

• Regional Food Systems

• Community Building

• Alternative Energy

• Strategic Partners

• Capital Markets

• Broadband

USDA Priorities SC2 Focus AreaEconomic

Development &

Innovation

URBAN – RURAL BROADBAND STRATEGY

AG TECHNOLOGY ECONOMIC CLUSTER

InfrastructureBROADBAND

RURAL WIRELESS BROADBANDNEW 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

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 adoptionBroadband platform for multiple sectors

New Ag Technology

Multi Sector Users of Wireless Broadband Infrastructure

San Joaquin Valley Fresno

Agriculture Technology Economic Cluster

Robert Tse USDA RD CA

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.

THE VISION

Opportunity

Ag & Technol

ogy Econo

my

New Ag Technol

ogyBusiness Investm

entAG TECH CLUSTER

Public Policy

Support

Wireless Rural

Broadband

InnovationResearchCollaborationAG TECH CLUSTER

Global Trends

California Opportunity

JOBS

NEW

Robert Tse USDA RD CA

Ag Tech - New Ag Regional Cluster

Combine two California core strengths: Agriculture and Technology

Ag Tech Cluster

Business Investment

RESEARCH TO INNOVATION

Pure Research

LivermoreDOE

Ag Research

ARSUSDA

Applied Research

Fresno State

Business Innovatio

n Business Incubator

Feeding the Ag Tech Cluster

Tech Transfer to Commercialization

Ag TechShowcase

Aug 13 2013

LEADERSHIP

USDA RD

DOE CIO

USDA ARS

MOU

FresnoMayor Fresno

CIO

FresnoBus Dev

Fresno StateOCED

WETCenter

Central Valley Bus Incubator

PSJVSJVBBC

Ag Tech Showcase

Ag Tech Cluster

SC2

USDA RDDOE

LLNL

Local Regional Partners

Federal Agencies

IBM Selected Fresno for its Smarter Cities Global Challenge 2013. A IBM team spent three weeks in Fresno and made the following recommendations:

Leverage the unique regional agricultural assets

to nurture growth and support

the Ag Tech Cluster

Drive Broadband AdoptionFocus on adoption of

internet marketing technologies for downtown businesses

Continue to support educational issuesOn digital literacy

FRESNO RURAL URBAN BROADBAND STRATEGY

Down TownBroadband Infrastructure

Ultra High Speed Broadband

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 Mark

et Acces

s

Urban Ultra High Speed BroadbandBe

tter

Gov

erna

nce

Rural Wireless

Broadband

Urban U

ltra High Speed Broadband

Food Safety

Ag T

ouris

mFr

esno

FAT

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

Best PracticesRegional Approach•City and Rural

Coalition Building• Government• NGO• Private

Assess Your Assets• You Have More Than

You Think

Best PracticesRegional Approach•City and Rural

Coalition Building•Government•NGO•Private

Assess Your Assets•You Have More Than You Think

Expect Continuous ChangeAnd Absorb It

Technology is Here!http://www.youtube.com/watch?v=q8dBOGAfUIk

Thank you