State Government Works with Farmers To "Grow Up" Florida Agriculture

Florida is a long State, arcing along the northeastern edge of the Gulf of Mexico and stretching some 850 miles from beyond Pensacola to Key West. Tourism and business advertisements usually depict Florida as mostly beaches, coasts, and bass fishing lakes a place for vacations and retirement villages with an agricultural industry of only citrus.

In reality Florida, and especially the State's agricultural industry, is quite diversified. Most of our agribusiness is carried on inland, away from the coastlines and low water areas, on what we call the "central ridge" of the State. In fact, about half of Florida's counties are rural and have agricultural economies.

The majority of Florida's rural counties lie across the northern, nearly 400mile-long portion of the State. This is an area with Old South character and towns where several pre-Civil War plantation homes still exist.

In reviewing economic development activities in other States, we have observed that, like Florida, most States wish to assist in improving the economic plights of farmers and rural communities. However, the majority of ongoing programs seem to be more rural than specifically oriented to agriculture. Many of these programs are composites, with the different component parts located in a number of different agencies and educational institutions. Since the problems of Florida's rural counties are similar to those of many other rural counties across the United States, our efforts may be of interest to farmers in other States and to their State and local government leaders.

In 1986, the Florida State government, led by Commissioner Doyle Conner and a few other leaders, concluded that good planning and followup action would improve the economic well-being of Florida's rural counties. The major obstacle was answering the questions: What exactly needs to be done, and where should we begin?

We decided to focus on only a specific aspect of rural development to concentrate efforts and maximize the impact of the limited dollars that would be available. Since agriculture constitutes the economic base of rural counties, our focus became "agricultural economic development."

We began by reviewing literature about related projects, not only in the State of Florida but also in other States and those of the Federal Government. As a result, we developed a discussion document and a working draft of an "Agricultural Economic Development Policy Act" (AED). Before enactment by the Florida Legislature in 1987, numerous modifications were made, indicating to us that many important policy issues were being raised and easy courses of action were not apparent.

The 1987 AED Policy Act (Chap. 87229) was enacted for a duration of only 2 years to allow us to continue our reviews, learn, provide hands-on agricultural economic development assistance, and draft long-term plans and programs.

Hands-On Assistance

In 1986, a small group of catfish growers met to discuss their future in growing fish in northwestern Florida. Each of their businesses had saturated the roadside and fish-out markets near their farms. Therefore, they needed to establish a fish processing operation or to link with an established operation in order to generate a new outlet for their fish.

Since the group was made up of only 14 small-scale growers, they decided that their individual needs would best be served as a unit. With help from the County Extension Office and the Florida Department of Agriculture and Consumer Service (FDACS), plus a few dollars out of their pockets, they soon became the West Florida Food Fish Producers Association (WFFFPA), a nonprofit corporation. Theron Cook was elected president.

Little progress was made until early 1988, when WFFFPA contacted Commissioner Conner for planning and developmental assistance from FDACS under the AED program. As a consequence, AED program staff working with Ole Ellis and Tommy McDonald of the Washington County Chamber of Commerce and David Solger, Washington County Extension Director (representing other area county chamber and Extension offices) began to provide organizational and business planning assistance to WFFFPA.

Soon WFFFPA applied for commercial agribusiness assistance under the FDACS AED program, to establish a vertically integrated agribusiness by combining fish production and processing operations. Commercial business assistance was granted in the form of leasing harvesting, processing, and marketing equipment to WFFFPA. However, assistance was contingent upon WFFFPA: 1) being able to contract out for the processing and marketing operations, or 2) being able to finance the operational costs and employ a qualified manager to run its own processing operation.

The member-growers of WFFFPA soon realized they would have difficulty financing their individual fish production expansion, let alone building or leasing and operating a processing facility. They would not have sufficient ability or cash-flow to stand on their own. They would have to "grow up" a little.

We use the term "grow up" to mean developing new agribusinesses and jobs from within the county using local resources and people. For rural leaders, "growing up" is a realistic alternative to the traditional economic development strategy of improving the economy of one county at the business loss of another by enticing a company to relocate from another State or county. Of course, if relocation occurs, there is no net increase in jobs.

After learning how to recruit and screen potential contract processors, WFFFPA entered into a contingency contract with a fish processor, and requested approval to move forward in establishing its vertically integrated agribusiness. This request was approved. However, to ensure business success, the State agencies cooperating together under the AED Policy Act would continue to provide technical help. FDACS AED program staff would oversee activities and give needed assistance, as well as acquire and monitor equipment setup. Other agencies, such as the Washington County Extension Service and Chamber of Commerce, would provide local development assistance (further organization, member recruitment, fish production seminars, business finance, banker education).

Because a processing facility, as well as harvest and transport services, are now available to WFFFPA, a stronger interest in catfish production has developed; new ponds are being built and existing ponds are being modified and restocked for production. WFFFPA began 1988 with 15 producing members; by October 1988, membership had grown to 35. At the present rate of progress and growth, more than 100 grower-members can be anticipated by the end of 1989.

Washington County Extension Director Solger recently commented that "the increase in people looking for information to grow fish ... was a result of the processing market outlet being established." A true estimate of the volume of fish and the overall economic impact of local processing and marketing cannot be made at this time. However, growth is being closely tied to marketing ability.

Have We Grown Up?

We have learned that the strategy of "growing up" or nurturing the development of local businesses is important to rural counties where agriculture is the major contributor to the economy and inextricably linked to other rural businesses in the community and region. For many counties, it may be the only economic development opportunity.

It is also important to understand the key elements that have undergirded Florida's statewide, interagency agricultural economic development efforts. These elements are: (1) leadership at both the State and local levels, (2) willingness to look at new ideas and strategies, (3) indepth planning, (4) the desire for something positive to occur, and (5) continuous action.

The development of WFFFPA into an economically viable agribusiness represents one example of applying the strategy of "growing up" businesses and jobs from within the local county. Other agribusinesses have been or are being developed in Florida under the new Agricultural Economic Development Policy Act and program. Our focus has been on farmers and their natural resources.

Clifton Savoy, Administrator, Agricultural Economic Development Program, Florida Department of Agriculture and Consumer Services, Tallahassee, FL.