1. 12 Cutting-­‐Edge Tools
To Finance
The Local Food Revolution
Local Dollars,
Local Sense

3. Overview
I. Reflections from Cleveland
II. Lessons on Competitive Strategy
III. Cutting-Edge Capital Tools

4. 5/29/2013 4
I. Reflections from Cleveland

5. 5/29/2013 5
I. Reflections from Cleveland

6. our bakeoff with 12 farmers'
markets and 225 community
gardens reported, serving
truckloads of fresh food to its
population of over 450,000. A
nearly 600 percent increase in
total number of farmers' markets
and a sizable increase in
community gardens since 2006
explain Cleveland's ascent in this
- Sustain Lane

7. Amazing Diversity

8. The Study Design
Benefits
Obstacles
Ways to Achieve
Strategic Focus

9. A Regional Approach

10. 25% Shift Reemploys 27,000
9,998
5,091
4,081
8,493
Jobs
Farmers
Retailers
Processors
Other

11. Wal-Mart Local Food?

12. Direct $$$ Benefits
and local tax

13. Indirect $$$ Benefits
Tourism
Business Magnet
Entrepreneurship
Unemployment Benefits
($127 million)
Fiscal Health
Capital Improvements
Rural Development
Economic Security

14. Other Benefits
Public Health
Global Image
Environmental

15. Other Benefits
Public Health
Global Image
Environmental

16. Other Benefits
Public Health
Global Image
Environmental

17. Carbon Footprints

18. Big Challenges
Infrastructure
Land
Consumer Demand
Capital
Entrepreneurship
Competitiveness

19. Big Challenges
Infrastructure
Land
Consumer Demand
Capital
Entrepreneurship
Competitiveness

20. Big Challenges
Infrastructure
Land
Consumer Demand
Capital
Entrepreneurship
Competitiveness

21. Big Challenges
Infrastructure
Land
Consumer Demand
Capital
Entrepreneurship
Competitiveness

22. Big Challenges
Infrastructure
Land
Consumer Demand
Capital
Entrepreneurship
Competitiveness

23. Big Challenges
Infrastructure
Land
Consumer Demand
Capital
Entrepreneurship
Competitiveness

24. Big Challenges
Infrastructure
Land
Consumer Demand
Capital
Entrepreneurship
Competitiveness

25. II. The Competitiveness of Local

26. U.S. Jobs Market by Firm Size
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
500+ Employees
100-499 Employees
0-99 Employees

27. Competitiveness of
Canadian Small Business
23%
24%
25%
26%
27%
28%
29%
30%
2000 2001 2002 2003 2004 2005 2006 2007 2008
% GDP
% GDP

28. Profitability of Local in 2006
(Net Income/Net Revenue)
0%
5%
10%
15%
20%
25%
Sole Proprietors
Partnerships
C-Corporations

29. Why Global Is Becoming Less
Competitive
Service Economy
Rising Oil Costs
Home-Based Biz

30. Why Global Is Becoming Less
Competitive
Service Economy
Rising Oil Costs
Home-Based Biz

31. Why Global Is Becoming Less
Competitive
Service Economy
Rising Oil Costs
Home-Based Biz

32. The Big Picture

33. Price v. Value
Economist Thinking
Starbucks
New Seasons

34. Strategies for Local
Competitiveness
Collaboration
Quality
Vertical Integration
Speed
Distribution Efficiency

35. Strategy #1 Collaboration
Indian Springs
Mississippi
Producer Cooperative

36. Indian Springs

39. Strategy #2 Quality
Cape Croker, Ontario
Sole Proprietorship

43. Strategy #3 Vertical Integration

52. Strategy #4 Speed
Lorentz Meats
Cannon Falls, MN
C-Corp

56. Strategy #5
Distributional Efficiency
Oklahoma Food Coop
Statewide
Producer & Consumer
Cooperative

57. Diseconomies of Global Food
0
10
20
30
40
50
60
70
80
90
100
1900 2006
Year
Distribution
Inputs
Farmer

61. III. Cutting-Edge Capital Tools

62. The Biggest Barrier

63. Financial Assets Detail
($ Billions in 2005)

64. The Impact of $1+ Trillion Shift

65. Capital Requirements for
25% Shift in Cleveland ($735 M)
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
Capital Needed ST Savings LT Savings
$ Millions

66. The Accredited Investor

67. Tapping the Other 99%

69. (2) Coop Investment

71. (4) Sponsorships

72. (5) Internet Lending

73. (6) Slow Munis

74. (7) Pre-Selling

75. (8) Local Stock

76. Recent Legislation

78. (9) Local Stock Exchanges

79. Community Portals

80. (10) Grassroots Loan Funds

81. (11) Investment Clubs

82. (12) Self-Directed IRAs

83. What Beats the Street?
5/29/2013 83
12.5%
2.6%
5.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Boasted Annual
S&P RoR
Actual S&P
Annual RoR
Local Investment
Goal (Tax
Deferral)

84. Are Canadian Markets Better?
5/29/2013 84
Real Annual RoR:
2.2%

85. Local Investments Beating 5%
Equal Exchange
Community Grocers
Weaver Street

86. Municipal Actions
Bank Local
Web Listing
Self-Directed RRSPs
More Reform

88. The Treasure in Our Backyards

89. The Treasure in Our Backyards

90. The Treasure in Our Backyards

91. The Treasure in Our Backyards

92. The Treasure in Our Backyards

93. The Treasure in Our Backyards

94. The Treasure in Our Backyards

95. The Treasure in Our Backyards

96. For More Information:
Michael Shuman
202-669-1220
shuman@igc.org
www.cuttingedgecapital.com