CFJC: Issues: Food and Economic Development

Issue Paper:
Food and Economic Development
By Mark Vallianatos and Leslie Mikkelsen

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What is the problem?
Those sectors of California's economy that are part of the food system - agriculture and food processing, distribution, and retail - do not live up to their economic potential or their potential for guaranteeing food security for all State residents. California boasts the largest agriculture, food processing, and food retail industries in the U.S. But the State's agriculture and food economy do not provide enough living wage jobs¹ or operate in ways that revitalize rural and urban communities. Many low-income California residents go hungry in the midst of the State's agricultural bounty, both from lack of resources to buy food, and from living in neighborhoods that lack adequate access to nutritious and fresh food.

How can Economic Development help solve the problem? Does the issue lend itself to campaigns that engage the grassroots, media and advocates?
The State Government operates a number of economic development² and social welfare programs and also administers Federal programs in these areas. The programs can be modified or better targeted to take advantage of the potential of innovative and small-scale food operations to serve un-met food needs; provide employment opportunities; and reduce poverty. The food/economic development nexus could lend itself to grassroots campaigns and new alliances, as it links pressing issues of poverty, hunger etc. and can give rise to compelling success stories of food enterprises hiring local workers and making fresh food accessible to communities.

What are the policy opportunities?

Economic development opportunities that would increase access to healthy foods and create jobs in low-income neighborhoods. The policy focus would be to ensure that more of the State and Federal economic development funding stream go to food enterprises that increase fresh food access, pay living wages, and empower neighborhoods:

attract full service supermarkets and farmers markets to under-served neighborhoods
help put healthy restaurants, street vendors, farm stands, entrepreneurial gardens, etc. on the road to profitability.
support innovative value added food processing operations
help businesses get the equipment and training to handle fresh produce
support transportation services that get residents to healthy food retail establishments

Overall link between income and food security. There are a number of strategies for reducing poverty and ensuring all Californians can meet their basic needs. Food systems advocates will not be leaders on many of these issues, but building links between these strategies and advocates is critical:

expanding minimum wage and living wage requirements
supporting public assistance through TANF, SSI, earned income tax credit, federal nutrition programs, etc.
supporting affordable housing, child care, transportation and health care programs

Beyond economic development programs: the State as market participant. The State of California is not just a regulator and distributor of revenues; it's one of the biggest economic actors in the world. Whether as purchaser of food, or investor in food enterprises through pension funds, State money should serve the public interest and reinforce policy goals. Further the State's weight in the private marketplace can leverage change³.

¹The average annual wage for farm workers and graders and sorters in California's agricultural sector is less than $15,000 - low enough to put a family of four below the federal poverty level. Most jobs in food processing pay a little more, around $18-23,000 per year, but not a "living wage' (enough to pay for families' basic needs like housing, food, child care, and health insurance.) Source: California Employment Development Department.
²California offers businesses a variety of grants, loans and loan guarantees, and tax breaks and sponsors regional business incubators and economic development agencies.
³For example, when States and Cities across the county decided to give a preference for buying products with recycled content, they helped create a market for recycled products.

The California Food and Justice Coalition is a project of the