Buy Local Food In Kitsap

Were you just too busy to make it to the KCAA monthly meeting in January?

Check out what you missed in the meeting minutes, posted below. I’m developing the format, so any formatting requests or suggestions are welcome. Hopefully the notes will provide you with resources to make the presenter information that much more valuable, even if you did attend the meeting.

The KCAA meets regularly, on the second Tuesday of the Month, at 6:30pm.

In March, we are beginning to meet at the Silverdale Grange on Clear Creek Road – hope to see you there!

January Notes:

Summary:

-         Agri-preneur Farm Business Training info sheet handed out at meeting (Info session Fri Jan 15)

-         Food Safety Modernization Act Facts & Survey – Jill Warning

-         Buy Local – Jim Trainer

-         WA State Food & Farm Policy – Joy Garratone (Contact your state representatives to support this issue)

-         FSA PRESENTATION:

• jeff.peterson@wa.usda.gov
• Jeff Peterson wants to know which local lenders are interested in agriculture; the lender can establish a relationship with FSA and provide you with more loans.
• Farmers – talk to your lenders and let them know about the FSA’s program to back your loan.
• Current Direct Loan Rate:
  • Operating Loan: 2.875%
  • Farm Ownership Loans: 4.75%
  • Farm Ownership Down Payment Loan 1.50%
  • Participation Loan: 5.00%
  • Emergency Loans: 3.75%
• Contact Info: 360.748.0083 ext. 2 (main office); Jeff Peterson ext. 118
• 8 FSA offices in state offer loan programs (other offices have other services) (Chelan, Franklin, Lewis, Okanogan, Grant, Spokane, Whatcom, Yakima Counties)
• Youth Program

Jeff Peterson: Farm Services Agency

Mission: “Farm Loan Programs provides loans, loan guarantees, and business planning to elegible farmers, ranchers, and others to promote, build and sustain family farms in support of a thriving agricultural economy.”

–Do you feel like you are part of a “thriving agricultural economy?”

–Loans to family size farms; emphasis on new & socially disadvantaged farmers, but there is money for others, too. (What does “family size farmers” even mean?)

• Beginning Farmer
  • Farmed less than 10 years
  • Own 30% or less of median farm size in County (10 acres or less for Kitsap County)
  • Other legal specifics
• Socially Disadvantaged Farmer
  • Applies to racial, ethnic and gender groups subjected to prejudice because of membership to that group
• Two Main Loan Programs:
  • Direct Loans (originate in FSA office)
    • Graduation Clause: at some point, when the farmer/farm has matured, FSA will ask you to move to a commercial lender
  • Guaranteed Loans (from commercial lenders; commercial lender brings loan to FSA, who backs it up (up to 90% of the loan))
    • Maximum limit of $1,112,000 (changes annually)
    • Interest rate determined by lender & borrower (going to get average rate that other farmers get; yet, the lender would not have made the loan without FSA’s support)
    • FSA fee 1%
• Types of Farm Loans
  • Farm Ownership Loan (FO) (Down Payment Program, Participation Loan, Regular FO Loan)
    • Eligibility: Demonstrate 3 yrs of operating/managing a farm (doesn’t have to be your farm) out of the last 10 years (FSA will look at the history, but no specific measurements will be applied)
    • Unable to obtain credit elsewhere at reasonable rates and terms to meet actual needs
    • Be owner of a family size farm after the loan is closed and must own and operate the farm purchased/improved after closing
    • Must produce ag commodity, food, or fiber.
    • Other criteria apply
  • Operating Loan (OL) (
  • Emergency Loan
• Jeff Peterson wants to know which local lenders are interested in agriculture; the lender can establish a relationship with FSA and provide you with more loans.
• Farmers – talk to your lenders and let them know about the FSA’s program to back your loan.
• Current Direct Loan Rate:
  • Operating Loan: 2.875%
  • Farm Ownership Loans: 4.75%
  • Farm Ownership Down Payment Loan 1.50%
  • Participation Loan: 5.00%
  • Emergency Loans: 3.75%
• Contact Info: 360.748.0083 ext. 2 (main office); Jeff Peterson ext. 118
• Banks are tightening things up; Jeff reports that applications to FSA for these loans are at an all-time high (in his experience)
• Smallest operating loan? NO LOAN is Too Small! (e.g. $200 loan for kids; $2000 for a piece of equipment- i.e. if you’re buying it from your neighbor but don’t have the cash available)
• It HAS to be a commercial farm!
• FSA can’t deal with horses – (b/c they are not food or fiber); (possibly if you were pulling a plow with a horse)
• JF poses CSA scenario: Jeff has little experience with farms that run CSAs…Can a small group of people act as a lender to support a farm; Jeff says “oooh, That’d be great!” If you had 50 people supporting a local farmer, tax records, etc… but, there seems to be a disconnect because JF was talking about 50 people offering $500 each to provide a farmer a $25,000 loan…and Jeff says he doesn’t know about that.
• Jeff says supporting the network is one way to support the farmers. BUY their products! “You gotta start somewhere, and Dirt’s a good place!”
• YOUTH LOANS: (SH said he will take this info to the youth group he is involved with)
  • Grow Respect, Responsibility & Resourcefulness
  • Finance your 4H or FFA project (or any similar organization)
  • Income producing, modest size, in connection with the org
  • Buy livestock, equipment, supplies; Buy/rent/repair tools & equipment; pay operating expenses (caveat: Start Simple)
  • The farm economy allows for niche production, and may allow for these kids to grow into a niche market as adults; even if they don’t continue as farmers, the program is a great boon for the local community.
  • Streamlined process; Jeff LOVES to come and help you out with this – get a group of kids together and have them fill the loan apps out together.
  • REQUIREMENTS:
    • Citizen, permanent resident or qualified non-citizen
    • Between 10-yr-old & 21-yr-old when loan closed
    • Live in rural city/town of less than 50,000 people
  • Fees:
    • UCC Filing Fee = $11
    • Cost of borrowing money = 2.875% currently

FOOD SAFETY MODERNIZATION ACT:

-         Jill Warning: jill.warning@gmail.com

-         Do members have concerns that they want aired to our legislators on this matter? Contact Jill if you do.

JIM Trainer: www.treezinc.com

-         “Buy Local” campaign

-         Since 2005: on a mission to push “Buy Local” for local businesses

-         Jim’s path:

• Been living in this county for 32 years, worked as the Parks Supervisor for the County for almost 20 years.
• Talked to County Commissioner; Comm’s’nr directed Jim to the Finance committee;
• THEN, Jim talked to EVERY Chamber of Commerce in Kitsap County…and no fires were lit
• Jim has been educating other county business organizations
• Went on Public TV to explain and promote “Buy Local”
• Met with Commissioner Bauer this year re:Buy Local
• Met with Kitsap Sun on “Buy Local”
• Planner hired a nursery out of Buckley to do planting in Kitsap County. Jim asked if the planner had contacted anyone in the county. Answer: “No.”
• Planting around the Kitsap County Fairgrounds – done by a group out of Oregon for about $1 million.
• County park service has multinational tree service remove trees.
• Firm from MN at Chico Creek doing the work.
• Jim’s frustrated that the city and county governments in this area do not support local business (not even to buy supplies).

-         NJ raised the point that about 15 years ago, there was some grumbling about favoritism – is that the root cause of this?

-         Bill Looney comment: we should support your move, we should be shopping local in smart ways (comparative advantage on bananas is one thing, but there are many areas that should be serviced or produced locally).

-         NJ mentioned “Think Local First” campaign

-         Sustainable growing. Can we apply political pressure to adopt an initiative similar to that of Portland (who Jim reports looks to local contractors first)

-         Letter writing campaign to Kitsap Sun on this issue?

-         BL mentioned Great Peninsula Future Festival and getting on board with that.

JF:

-         contacted by Joy Garratone – of Conservation District

-         gropu working for WA Food Policy Council

-         Kitsap County is forming a Food & Farm Policy Council

• SH steps up to say that there are still positions open; SH advocates for a youth position.

-         There is also a state effort

Vote coming up in legislature to support formation of this policy council – EMAIL your representatives about this.