Ramble On

Saturday, March 27, 2010

Page County EDA 2008 Strategic Plan Recap, Part 2 - Agriculture

Continuing the review of the Page County EDA’s 2008 Strategic Plan update today, focused on the topic of sustainable agriculture.


 
The updated 2008 plan summarizes the state of Page County agriculture by highlighting the declining number of farms: from 1,327 farms in 1940 to less than 400 in 2008; 5,800 acres of farmland repurposed between 1997 and 2002; and a decline in the market value of production from $115 million in 1997 to $108.7 million in 2002. As outlined here, the challenges contributing to this decline include: competition from producers elsewhere, the pressure to sell land for development, and rising costs of feed, fuel, and fertilizer.

 
Especially interesting right now is any discussion about poultry farming in the County, since there is a lot of pressure on the folks trying to make a living this way. The farmers own the land and buildings, but the poultry is owned by the large companies – Tyson, Cargill, Pilgrim’s Pride – who are beginning to make better economic decisions about where to locate their operations, with the result that Page County is often not optimal. And when I use the term “better economic decisions” I am referring to the simple fact that these large companies are acting in their own self interest to minimize their costs. The implementation often involves consolidation of farms, suppliers, and processing in close proximity to each other to minimize transportation time and costs – a decision process that does not favor Page County.

 
To be the selected location, economic theory suggests there needs to be a natural advantage, such as a major center of production for feed corn or some other input resource, or a point of intermodal transfer for transportation. Page County has none of these – and the decline of farms and farm production income is the result.

 
On the other hand, these consolidated centers of production are not operated in the most sustainable ways – I’d bet that there are a lot of challenges containing and managing waste materials, and energy use is not a top priority for management. With the Shenandoah River facing stress from other past and present sources in the watershed, there is yet another reason that Page County may not be the best location for these operations. Even so, Page County remains the second largest poultry producer in Virginia.

 
From the poultry industry, the plan turns to sustainable agriculture for two pages. For all the hustle and bustle that I see from week to week on this topic during the summer, the relative lack of importance it is given in this plan is surprising, since the plan sets up the concept of a three-legged stool for the Page County economy – tourism, agriculture, and industry.

 
The plan outlines three strategies for developing sustainable agriculture in Page County, but provides little detail on how to implement them – doesn’t even call for the first step in implementation, an assessment.

 
Here are the three strategies:

  • Plant substitute crops – soybeans and hay: soybeans to tap into the bio-diesel market with the side benefit of creating animal feed as a by-product; hay to cater to the growing number of horse farms in Page County.
  • Emphasize sustainable approaches – take advantage of the growing demand for local produce and the areas proximity to larger markets in Harrisonburg and Northern Virginia.
  • Repurpose resources – create an agri-tourism destination; transition poultry farms to horse farms; and create non-traditional agro-enterprises such as wineries in Page County.

These strategies and sub-strategies offer an excellent summary of current American culture’s relationship with agriculture. Of seven insights, only one of them even acknowledges a connection with food production, and one other considers agricultural production as an input to industry; all seven require major capital investment; and two of them are linked to the other economic stool-leg of tourism.

 

Past blog posts here have considered the economics of hay farming, as well as the sustainable agriculture approaches listed here. I haven’t been able to get further into an assessment of these subjects to determine whether they could be relied upon for a family’s livelihood, as much as I would like to believe they offer that potential.

 

I mentioned the absence of real planning here - at least in this plan - and the absence of any kind of metrics to measure progress. What are the recommendations for developing sustainable agriculture in the 2008 Page County Economic Plan? Fine-sounding concepts, “innovation, communication, and cooperation” are emphasized and a program of forums, engagement, and even an agriculture summit are proposed, but they are given lower priority than educating Page County’s political leadership.

 

Compared to the 2004 plan, this 2008 plan is short on details and imagination. Having completed a review now of tourism and agriculture, the next step is to review the strategy and goals for industry; given the appearance of much current emphasis on that sector – Project Clover, the purchase of developable industrial land – I’m anticipating there will be more detail there. That’s a pity, because as the plan itself says, Page County agriculture is a “$108 million industry” comprised of “400 small businesses.”

 

An industry and small businesses that were not given a priority in the 2008 plan, that is.

 

3 comments:

Unknown said...

Jim, your analysis of the plan(s) is producing some very important questions for the Page County community. It seems like your timing is right, as we look to the future and hope to make better decisions, focus on priorities, actually make progress toward achieving goals that are set forth...it's incredibly important to have a solid plan with a sound strategy.

I hope your focus on this topic will produce some reasonable actions and improvements to the existing strategy.

Thanks for taking your time to do this!

Unknown said...

Jim, I don't know if you know it or not, but years ago there was a chicken processing plant here, near Stanley.

It processed about 80,000 chickens a day, running several shifts a day. When it closed down, lots of local folks were out of work.

The plant shut down because of several reasons, I think some were it became obsolete as it was quite small and outdated. It also had a permit to discharge into the river and I believe there were pollution problems.

At that time the plant in Harrisonburg was processing 1 million plus chickens a day. I think the big companies just decided it was better to haul them over there.

At that time a processed whole chicken (fryer size) could be sold at the plant for around $1.70 wholesale. Thats about a million $ a week gross at 80,000 a day.

There is still a small plant in New Market. I am pretty sure it is an independant plant and not tied to Big Chicken. I see trucks there all the time with Independant Brands of Chicken on them. Some from New York, some from other areas of the country. Brands you and I have never heard of.

I wonder if Page could ever have another plant? A new, modern facilty, packaging independant branded chickens. Maybe use the "Made in Virginia" label that has become popular.

Of course the problem would be the farmers would have to break their ties with Big Chicken. This would be quite an undertaking. On the other hand, now all Big Chicken does is take 99% of the profit involved out of the county, and the only thing they leave us with are the droppings.......

Anonymous said...

I happened to be driving through New Market one day during shift change at the processing plant. It looked to me like the workers were all Latino; there is also a Latino market (grocer) on Main Street in New Market - what is the net economic effect of a business in a locale that imports workers and exports its product (outside the community?) And the net effect of a business that opens to serve those workers? vs. the externalities of having that business there (truck traffic, effluent, etc.)

I also wonder what the fact that a Brazilian food company bought Pilgrim's Pride means for jobs (they also own Swift - pork.) And what a Chinese paper plant setting up US headquarters in Shenandoah County means. Will be interesting to follow.