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JAN 24 mtj f USDA United States Department of Agriculture Food and Consumer Service Office of Analysis and Evaluation fllk-Xi/lL JL Conference on Access to Food September 18-19,1995 Report of the Proceedings November 1996 /Ueff'ooizz? Qy USDA Umt*d States Department of AorieuHura Food and Consumer Service 3101 Park Center Drive Alexandria, VA 22302-1500 CONFERENCE ON ACCESS TO FOOD SEPTEMBER 18 -19,1995 REPORT OF THE PROCEEDINGS November 1996 Enclosed for your information is a copy of the "Conference on Access to Food September 18-19,1995: Report of the Proceedings." The conference was held to bring together food access experts to share their knowledge and help the Department of Agriculture build an agenda to increase access to food for low-income Americans. This report is also available on the Food and Consumer Service (FCS) home page of the Internet at http://www.usda.gov/fcs. Select "What's New at FCS." Under "New Files," select "961101.TXT, Conference on Access to Food, September 18-19,1995: Report of the Proceedings." This file can be downloaded. The Food and Consumer Service is continuing its work on food access. One initiative is a toll free 800 number that individuals can call to obtain technical assistance on improving access to food. This "hot line" will be available from December 1,1996 through March 31,1997. The number is 1 (800) 386-3040. If you have any questions regarding this report, please contact Kilolo Kijakazi, Family Programs Staff, Office of Analysis and Evaluation, (703) 305-2123. AM tOUAt OPfOWTUMTY tMHOVCT Summary of "Conference on Access to Food September 18 - 19, 1995: Report of the Proceedings" Background The Food and Consumer Service held the Conference on Access to Food in Washington, DC, on September 18 - 19, 1995. It brought together retailers, academicians, researchers, community development corporations, and community residents to present and discuss strategies for improving access to nutritious and affordable food in underserved urban and rural areas. Among the 60 speakers who participated were many Federal Government representatives. Agriculture Secretary Dan Glickman and Under Secretary Eilen Haas gave keynote addresses. Other Federal speakers included representatives of the White House; the Rural Business and Cooperative Development Service (RBCDS), the Small Business Administration (SBA); the Departments of Housing and Urban Development (HUD), Health and Human Service (DHHS), and Commerce (DOC). Over 100 invited guests came from across the country to hear the speakers and to actively participate in the discussions. Guests represented Empowerment Zones and Enterprise Communities, private nonprofit organizations, foundations. State and local governments, Congressional staff, and the media. Their diverse backgrounds resulted in a very full discussion of food access issues from multiple perspectives. Workshop Highlights There were three plenary sessions and twelve workshops held during the conference. The highlights from them are presented below. There is a link between food access and economic development. Supermarkets, or other food distribution businesses, can affect inner city development in four ways: by serving as an anchor for commercial property investments; by providing jobs to community residents; by improving residential property values; and by increasing the number of customers for nearby businesses. Supermarket development is a key strategy for improving food access since these stores are the primary source of food for most people. Successful supermarket development requires sound marketing research, well written business plans, a solid public/private partnership, a good relationship with wholesalers, quality management, sufficient capital, and community support. Cooperative food stores can work well in both urban and rural areas. These stores are customer-owned and generally offer lower prices than supermarkets. They also require sufficient capital and community support. 9- Urban Agriculture allows for the involvement of a range of people from children to the elderly. It is the growth of food within the inner-city community in which it will be consumed. This can take place on large plots of land for retail or smaller plots for personal consumption. Farmers markets benefit low-income communities as well as farmers. Residents are able to purchase fresh fruits and vegetables at prices lower than most stores. Farmers can expand their market and gain direct access to customers. Public markets increase access to food and revitalize cities. These markets are a set of owner-operated stalls housed in a permanent structure and operate throughout the year. They provide nutritious affordable food, encourage entrepreneurship and foster the incubation of new businesses. The development and improvement of independent small and moderate stores can meet the unique needs of neighborhoods. Independent stores which join together to buy cooperatively and in bulk from wholesalers can offer a full-line of food at reasonable prices. Their smaller size also allows them to match the ethnicity of the community and adapt to the needs of their customers. Transportation options offer an alternative means of improving access. One option is to use van pools to take people to existing stores. A second involves promoting the development of essential businesses, like food stores, around transit hubs. There are several sources of funding which can be used for the development of supermarkets and other access strategies. Both private and public sources exist such as private equity capital from The Retail Initiative, and public funds from RBCDS, HUD, DOC, SBA, and DHHS. Food access and food security are linked. The latter is a prevention-oriented concept that looks at the access to food resources within a given community. 3 n Hotline >. Call 1-800-386-3040 for Information and Technical Assistance on Improving Community Access to Food The U.S. Department of Agriculture, Food and Consumer Service (FCS) is sponsoring a toll free "800? Food Access Hotline. The Hotline will offer information and technical assistance on strategies to improve access to nutritious and affordable food. These include attracting supermarkets, full-line grocery stores, fanners' markets, and public markets into communities, as well as developing food cooperatives and transportation options. The "800?number will crier the iollcwing types 01 services: Information Dissemination * A list oi reierences included in the research effort * A list oi lood access resource organizations * Deiinitions or rood access strategies * An annotated bibliography, available in January 1997 Technical Assistance * Discussion or strategies appropriate lor a particular situation * Recommendations on how to implement strategies and address problems that may arise in the process * Suggestions on additional sources ror technical assistance The Hotline will be operated and staffed by CRP, Incorporated under contract to FCS. Callers may make requests for informational services Monday through Friday from 9:00 a.m. to 5:00 p.m., EST. A technical assistance expert will be available on Mondays and Tuesdays from 11:00 a.m. to 3:00 p.m., EST to provide more specific support. We encourage your use of this service. 1(800)3863040 Z Conference on Access to Food September 18 and 19,1995 Report of the Proceedings November 1996 Author: Robin D. Koralek Submitted by: KRA Corporation 1010 Wayne Avenue Suite 850 Silver Spring, Maryland 20910 Project Director: Ed Rugenstein Submitted to: U.S. Department of Agriculture Food and Consumer Service Office of Analysis and Evaluation 3101 Park Center Drive Alexandria, VA 22302 Project Officer: Kilolo Kijakazi This document wasprepared under Contract Number 53-3198-4-023 between the Department of Agriculture and KRA Corporation ot Silver Spring, Maryland. The contents ofthis document do not necessarily reflect the views or policies of the Department, nor does mention of trade names, commercial products, or organizations imrly endorsement by the U.S. Government. / U.S. Department of Agriculture/Food and Consumer Service Conference on Access to Food September 18 and 19, 1995 Report of the Proceedings The Conference on Access to Food, held in Washington, D.C., on September 18 and 19, 1995, was sponsored by the U.S. Department of Agriculture (USDA) Food and Consumer Service (FCS). The conference was held to bring together food access experts to share their knowledge and help USDA build an agenda to increase access to food for low-income Americans. The Honorable Dan Glickman, Secretary, USDA, opened the conference and stated that "restricted or limited [food] access undermines [USDA's] ability to promote health through nutrition because if prices are too high, there is not enough bang for the buck for Food Stamps and WIC benefits, or if choices are limited . . . [Americans] can't make the choices that nutrition education efforts encourage them to make." Ellen Haas, Under Secretary, Food, Nutrition, and Consumer Services, said that access to food is a key component of USDA's comprehensive food policy. The three components are as follows: Nutrition Assistance Programs—Child Nutrition Programs, the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Food Stamp Program, and others form a network of food and nutrition assistance to ensure access to nutritious diets. Nutrition Education—The policy provides knowledge and skills allowing Americans to make healthy food choices. Access to Food—The policy ensures individuals the opportunity to purchase foods for a healthy diet through access to full-line food stores. Although access to food has been the least visible component of USDA's comprehensive food policy, it is an important one. Under Secretary Haas said that "without access to high quality, affordable food the effectiveness of our nutrition assistance programs and nutrition education initiatives are lessened." USDA is focusing its efforts on the problem of food access through several initiatives. Current efforts include a study of authorized food stamp retailers. This nearly completed study gathered information in a number of areas, including access to food. A second study, a national survey of food stamp households, is in its initial stages and asks recipients about their access to food. USDA is conducting another study that will identify strategies that communities have implemented to improve access to food. This study will provide technical assistance to communities that want to improve access but do not have the experience or resources. t The conference addressed issues of access to food in urban and rural underserved areas and provided a forum for discussing successful strategies for increasing access to food through the development of full-line, affordable food stores and alternative means such as farmers' markets and transportation options. It also provided a discussion forum for experts in supermarket and food store development, economic development, and food policy. Mr. Paul Pryde of the Capital Access Group, LLC discussed the link between food and economic development. Supermarkets, or other food distribution businesses, can affect inner city development in four ways: by serving as an anchor for commercial property investments; by providing jobs to community residents; by improving residential property values; and by "providing life" to nearby businesses. Several efforts to link improved food access to local economic development were also identified during the conference. Ms. Sheryll Cashin, Staff Director of the Community Empowerment Board at the White House, further underscored the importance of the connection between food access and economic development, especially with regard to the Empowerment Zone and Enterprise Community (EZ/EC) Program. She said that this program provides a context that can help reduce the timeframe required to get food access initiatives-like supermarket development-implemented. EZs and ECs are working within a comprehensive strategic plan with input from residents, state and local governments, and business leaders. These are the same groups needed to implement food access initiatives. The 2-day conference included three plenary sessions covering issues such as food access and community and economic development. A series of concurrent workshops allowed for presentations and open discussion among conference attendees on a variety of topics. Presenters included retailers representing small and moderate food stores as well as supermarkets; wholesalers; community and economic development specialists; food access advocates; representatives from financial institutions; academicians; community residents; and others. The conference attracted more than 150 participants representing Empowerment Zones and Enterprise Communities; nonprofits; private industry; financial institutions; advocacy groups; academia; foundations; and Federal, State, and local governments. Several food access alternatives were discussed during the conference, ranging from supermarket development to improved transportation options. When addressing improved access to food, supermarket development is often the first option considered. However, in some communities, supermarket development may not be possible in the immediate future. In these instances, other options may be considered. For example, improved transportation may allow residents to reach a full-line supermarket a few miles away. Farmers' markets or public markets can provide quality produce and other foods at reasonable costs with little overhead investment while keeping profits in the community. In densely populated urban areas, space is often at a premium; a smaller independent store could provide quality, nutritious food in a much smaller space. In addition, several presenters discussed the issue of food security. The three key themes that emerged from the conference were: • Supermarket development l • Alternatives to supermarkets • Food security Each of these topics is discussed in detail below. Supermarket Development The supermarket industry is the primary source of food for the majority of Americans. However, according to Mr. Andy Fisher of the Community Food and Security Coalition, between the 1970s and the 1990s supermarkets abandoned the inner city and many other distressed communities. Inadequate access to proper foods is frequently due to lack of access to supermarkets or to supermarkets with good quality produce and other foods at a reasonable price. Consequently, an important component of community development is the revitalization of inner-city neighborhoods and other distressed communities through the establishment of supermarkets. Many communities are focusing revitalization efforts on the establishment of much-needed supermarkets. There are different types of supermarkets that can be brought into a community, ranging from large regional chains, local chains, and franchises, to voluntary operators who are financed and serviced by a wholesaler, who typically provides independent stores with inventory and assistance in a variety of areas such as layout and marketing. To successfully develop a supermarket, panel presenters recommended the following: • Invest in credible, unbiased marketing research that demonstrates a need for a supermarket in that area. In addition, research should show that local residents will shop at a supermarket in this location. • Develop a well-researched, well-written business plan that incorporates potential problems and solutions. • Develop a solid partnership between the private sector, local government, and the community. This should include financial commitments from a variety of sources. • Develop a good relationship with a wholesaler—one that provides guidance in the areas of marketing, construction, legal issues, and accounting, among others. • Foster community support, or a sense of ownership, on the part of local residents. • Secure adequate working capital, or cash, on sensible terms. Adequate cash is necessary to attract the kind of management needed to implement and operate a full-scale food store. In addition, capital is needed for marketing and advertising once the store is in operation. Access quality management and technical assistance. 1 Several presenters stressed that access to adequu's funding is a central issue when developing a supermarket in an economically distressed area. According to Ms. Pamela Fairclough of the Comrainity Food Resource Center, there are multiple costs associated with supermarket development. "Soft costs" are those that are needed to cover preliminary market analysis, feasibility studies, environmental reviews, zoning changes, and draft architectural and engineering plans. For the most part, these activities are not financeable up front so the supermarket developer has to cover these costs. Alternatively, if the supermarket is being developed by a Community Development Corporation (CDC), these startup costs will have to be financed by CDC or other development corporations. Construction and renovation costs may come from conventional banks, wholesalers, or out of pocket. Finally, permanent financing for operating the supermarket must be secured from similar sources. There are numerous sources of capital *br financing supermarket development. Among these are conventional banks. CDCs, private flinders, wholesalers, foundations, community groups, and government entities. The collateral for these loans is often the store inventory and the property lease. Often, developers need to be aggressive and creative when securing capital; perhaps looking at a mixture of funding sources in order to secure adequate funds. Conventional banks are often a source of financing for commercial ventures. Many banks have community development subsidiaries or components and finance commercial development in targeted inner-city developments and other distressed areas. The Community Reinvestment Act (CRA) is a Federal law that governs the banking community's responsibility to invest capital in low-income neighborhoods. This law requires banks to lend where they do business, thus banks are often looking for CRA-eligible projects. However, according to Ms. Pamela Fairclough, the stringent documentation required to receive a bank loan often prohibits supermarket operators from applying for a loan. In addition, operators in economically distressed communities may not qualify for a bank loan because of their level of equity investment and the high risk associated with the project. It is important to remember that banks are looking to make money so they will carefully study the project team and history. Mr. Lamont Blackstone of The Retail Initiative, Inc. (TRI) discussed the way in which his organization invests in inner city retail development. TRI invests equity capital on behalf of ten institutional investors including the City of Philadelphia's public pension fund. There is a large pool of investment capital in the form of both public and private pension funds that needs to be tapped and channeled into inner city development. The challenge, according to Mr. Blackstone, is to ". . . develop a strategy that will allow these institutional investors to invest their capital profitably and at market rates of return, or close to market rates of return, at the same time investing that capital at levels of risk that [investors] deem acceptable." Ms. Ann Rosewater, Deputy Assistant Secretary for Policy and External Affairs, Department of Health and Human Services (DHHS), discussed several programs offered by her Department which can fund food access initiatives. First, DHHS monies finance the EZ/EC program. Second, this Department strengthens community development corporations through their Urban and Rural Economic Development Program. In addition, they fund business development, microenterprise, business incubation, and building renovation. f Transportation Options According to Mr. Michael Freedberg of The Center for Neighborhood Technology, the issue of access to supermarkets in the inner city is magnified by the low percentage of people who have access to cars. The dislocation of supermarkets and grocery stores from the inner city has left few acceptable food stores for residents. The Center for Neighborhood Technology in Chicago is addressing this issue by putting together an alternative transportation strategy that examines the critical needs of a community and how transportation systems can meet that goal. They have formed a commission to look at compact land development around transit hubs. Suggestions to improve access include placing markets, day care centers, and other community amenities around the public transit stops in the inner city. Through promoting microdevelopmer* around the individual transit stops, transit stops can become the center of activity in the community and begin to have a regional impact along the transportation corridor. By demonstrating the impact of having retail services at this transit station on ridership, the commission has been able to forecast reduced automobile traffic and show how that will help the region meet its air quality goals under the Clean Air Act. This has enabled them to leverage millions of dollars in transportation funds that would otherwise have gone to suburban highway construction. Food Security Food security advocates believe that the concept of food security has replaced the concept of hunger among social welfare and antihunger advocates in the United States, creating a change in the way that we think about hunger as a problem in this country. It moves the concept of hunger from being an individual's problem to that of a community need. Food security is a prevention-oriented concept that looks at the access to food resources within a given community. The Community Food Security Coalition defines food security as "all persons obtaining at all times a culturally acceptable, nutritionally adequate diet through local non-emergency sources."1 The concept of food security incorporates and addresses the ability of individuals to prepare foods and their level of economic resources to purchase food; a community's access to land for growing food and enhancing community food supplies; the ownership of food-related businesses; the connections of farmers and food processors to communities and markets; and the ability of community organizations to ensure access and availability of food. According to Dr. Kate Clancy of Syracuse University, a food secure community is one where "all of its members have access through normal, non-charitable means to adequate, culturally appropriate, nutritious food supplies whenever they need them." Using Biddle's definition of community development: "a social process by which human beings can become more competent to live with and gain some control over local aspects of a frustrating and changing world," food security is an integral aspect of community development. That is, a community is not fully "developed" until it is food secure and community x"The Community Food Security Empowerment Act. January 1995." The Community Food Security Coalition, Hartford, CT. /o 13 111 development cannot take place without attention to food security. However, there has not been a great deal of interaction between food security and community organizing/community development work in this country. This may be due, in part, to the fact that many community development projects, while useful, are driven by economics rather than by human growth. In addition, food has become such a commodity, and so taken for granted, that people assume it is available only through commercial transactions. Food security advocates believe that there are many ways to attain food security and all of these options should be explored simultaneously. Among these options are cooperatives, food exchanges, community service, public markets, enhanced transportation, urban agriculture, and farmers' markets. Community development projects should be strongly encouraged to incorporate "food centered thinking" into their "working planning activities". The Community Fo'xl Security Act of 1995 was initially introduced to Congress on July 11, 1995, as a means of promoting food security. These provisions were enacted as part of the Federal Agriculture Improvement and Reform Act of 1996 (P.L. 104-127). The legislation provides for $1 million in fiscal year 1996 and up to $2.5 million per year from fiscal year 1997 through 2002 for assistance to community food projects. These projects should be "designed to meet the food needs of low-income people, increase the self-reliance of communities in providing for their own food needs, and promote comprehensive responses to local food, farm, and nutrition issues." The Act is intended to yield a variety of food projects such as urban agriculture, community gardens, fanners' markets, inner city food store development, and microenterprises creating linkages between sectors of the food system. "Seeds of Change: Strategies for Food Security in the Inner-city,"2 a study conducted at the University of California, Los Angeles (UCLA), identified numerous solutions to the problem of lack of access to nutritionally adequate diets. These solutions include working with smaller stores to enable them to sell nutritional items at lower prices, urban agriculture, farmers' markets, joint ventures between CDCs and supermarkets, microenterprises, buying clubs, and food policy councils. Food security advocates believe that there is no single answer to the dilemma of food access; rather, a mixture of approaches must be developed and implemented. Summary The conference closed with a discussion of what should be done next to increase and ensure access to food in inner city and rural communities. Mr. Michael Fishman, Acting Director, Office of Analysis and Evaluation, FCS, USDA commented that "there is room for everybody under the tent of food access, that there is enough need out there that the challenge is. . . to try to help people get the access to food that they need." Presenters discussed ways in which private, non-profit, local, and Federal entities need to get involved in the promotion of access to food. 2"Seeds of Change: Strategies for Food Security for the Inner City." The Southern California Interfaith Hunger Coalition, Los Angeles, California. 1993. 14 // Mr. Roy Priest, Director of the Office of Economic Development, HUD, said "... we've got to look at integrated strategies. . . . you've got to bring together a collaborative framework that allows you to address [issues] holistically. And if you don't do that, then I think you're going to have a very difficult time being able to create any kind of long-term, sustained change in these communities. Mr. Zy Weinberg of Public Voice for Food and Health Policy said that "... successful supermarket development and operation must be a community-wide effort, with the collaboration of [a] whole range of non-profits. . ., for-profit companies, including banks, the grocery industry and its suppliers, unions, and government at all levels, Federal, state, and local. . ." Ms. Karen Brown of the Food Marketing Institute supported this by saying "... revitalization will come only through public-private partnerships involving coalitions of business, community, and government leaders at the local level." The creation of food security must include a variety of efforts within a community—projects such as farmers' markets and public markets, urban agriculture, food groups collaborating with community development corporations and food retailers, and food policy councils, among others. As Mr. Andy Fisher said, "there is no magic solution to food insecurity ... it is really a kind of basket of solutions that needs to be addressed and needs to be developed." Ih 15
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Title | Conference on Access to Food, September 18 and 19, 1995 report of the proceedings |
Date | 1996 |
Contributors (individual) | Koralek, Robin D. |
Contributors (group) |
KRA Corporation. United States Dept. of Agriculture Food and Consumer Service Office of Analysis and Evaluation. |
Subject headings |
Food relief--United States Nutrition policy--United States |
Type | Text |
Format | Pamphlets |
Physical description | 15 p. ;28 cm. |
Publisher | The Office, |
Language | en |
Contributing institution | Martha Blakeney Hodges Special Collections and University Archives, UNCG University Libraries |
Source collection | Government Documents Collection (UNCG University Libraries) |
Rights statement | http://rightsstatements.org/vocab/NoC-US/1.0/ |
Additional rights information | NO COPYRIGHT - UNITED STATES. This item has been determined to be free of copyright restrictions in the United States. The user is responsible for determining actual copyright status for any reuse of the material. |
SUDOC number | A 98.2:AC 2 |
Digital publisher | The University of North Carolina at Greensboro, University Libraries, PO Box 26170, Greensboro NC 27402-6170, 336.334.5304 |
Notes | TEST |
Full-text | JAN 24 mtj f USDA United States Department of Agriculture Food and Consumer Service Office of Analysis and Evaluation fllk-Xi/lL JL Conference on Access to Food September 18-19,1995 Report of the Proceedings November 1996 /Ueff'ooizz? Qy USDA Umt*d States Department of AorieuHura Food and Consumer Service 3101 Park Center Drive Alexandria, VA 22302-1500 CONFERENCE ON ACCESS TO FOOD SEPTEMBER 18 -19,1995 REPORT OF THE PROCEEDINGS November 1996 Enclosed for your information is a copy of the "Conference on Access to Food September 18-19,1995: Report of the Proceedings." The conference was held to bring together food access experts to share their knowledge and help the Department of Agriculture build an agenda to increase access to food for low-income Americans. This report is also available on the Food and Consumer Service (FCS) home page of the Internet at http://www.usda.gov/fcs. Select "What's New at FCS." Under "New Files," select "961101.TXT, Conference on Access to Food, September 18-19,1995: Report of the Proceedings." This file can be downloaded. The Food and Consumer Service is continuing its work on food access. One initiative is a toll free 800 number that individuals can call to obtain technical assistance on improving access to food. This "hot line" will be available from December 1,1996 through March 31,1997. The number is 1 (800) 386-3040. If you have any questions regarding this report, please contact Kilolo Kijakazi, Family Programs Staff, Office of Analysis and Evaluation, (703) 305-2123. AM tOUAt OPfOWTUMTY tMHOVCT Summary of "Conference on Access to Food September 18 - 19, 1995: Report of the Proceedings" Background The Food and Consumer Service held the Conference on Access to Food in Washington, DC, on September 18 - 19, 1995. It brought together retailers, academicians, researchers, community development corporations, and community residents to present and discuss strategies for improving access to nutritious and affordable food in underserved urban and rural areas. Among the 60 speakers who participated were many Federal Government representatives. Agriculture Secretary Dan Glickman and Under Secretary Eilen Haas gave keynote addresses. Other Federal speakers included representatives of the White House; the Rural Business and Cooperative Development Service (RBCDS), the Small Business Administration (SBA); the Departments of Housing and Urban Development (HUD), Health and Human Service (DHHS), and Commerce (DOC). Over 100 invited guests came from across the country to hear the speakers and to actively participate in the discussions. Guests represented Empowerment Zones and Enterprise Communities, private nonprofit organizations, foundations. State and local governments, Congressional staff, and the media. Their diverse backgrounds resulted in a very full discussion of food access issues from multiple perspectives. Workshop Highlights There were three plenary sessions and twelve workshops held during the conference. The highlights from them are presented below. There is a link between food access and economic development. Supermarkets, or other food distribution businesses, can affect inner city development in four ways: by serving as an anchor for commercial property investments; by providing jobs to community residents; by improving residential property values; and by increasing the number of customers for nearby businesses. Supermarket development is a key strategy for improving food access since these stores are the primary source of food for most people. Successful supermarket development requires sound marketing research, well written business plans, a solid public/private partnership, a good relationship with wholesalers, quality management, sufficient capital, and community support. Cooperative food stores can work well in both urban and rural areas. These stores are customer-owned and generally offer lower prices than supermarkets. They also require sufficient capital and community support. 9- Urban Agriculture allows for the involvement of a range of people from children to the elderly. It is the growth of food within the inner-city community in which it will be consumed. This can take place on large plots of land for retail or smaller plots for personal consumption. Farmers markets benefit low-income communities as well as farmers. Residents are able to purchase fresh fruits and vegetables at prices lower than most stores. Farmers can expand their market and gain direct access to customers. Public markets increase access to food and revitalize cities. These markets are a set of owner-operated stalls housed in a permanent structure and operate throughout the year. They provide nutritious affordable food, encourage entrepreneurship and foster the incubation of new businesses. The development and improvement of independent small and moderate stores can meet the unique needs of neighborhoods. Independent stores which join together to buy cooperatively and in bulk from wholesalers can offer a full-line of food at reasonable prices. Their smaller size also allows them to match the ethnicity of the community and adapt to the needs of their customers. Transportation options offer an alternative means of improving access. One option is to use van pools to take people to existing stores. A second involves promoting the development of essential businesses, like food stores, around transit hubs. There are several sources of funding which can be used for the development of supermarkets and other access strategies. Both private and public sources exist such as private equity capital from The Retail Initiative, and public funds from RBCDS, HUD, DOC, SBA, and DHHS. Food access and food security are linked. The latter is a prevention-oriented concept that looks at the access to food resources within a given community. 3 n Hotline >. Call 1-800-386-3040 for Information and Technical Assistance on Improving Community Access to Food The U.S. Department of Agriculture, Food and Consumer Service (FCS) is sponsoring a toll free "800? Food Access Hotline. The Hotline will offer information and technical assistance on strategies to improve access to nutritious and affordable food. These include attracting supermarkets, full-line grocery stores, fanners' markets, and public markets into communities, as well as developing food cooperatives and transportation options. The "800?number will crier the iollcwing types 01 services: Information Dissemination * A list oi reierences included in the research effort * A list oi lood access resource organizations * Deiinitions or rood access strategies * An annotated bibliography, available in January 1997 Technical Assistance * Discussion or strategies appropriate lor a particular situation * Recommendations on how to implement strategies and address problems that may arise in the process * Suggestions on additional sources ror technical assistance The Hotline will be operated and staffed by CRP, Incorporated under contract to FCS. Callers may make requests for informational services Monday through Friday from 9:00 a.m. to 5:00 p.m., EST. A technical assistance expert will be available on Mondays and Tuesdays from 11:00 a.m. to 3:00 p.m., EST to provide more specific support. We encourage your use of this service. 1(800)3863040 Z Conference on Access to Food September 18 and 19,1995 Report of the Proceedings November 1996 Author: Robin D. Koralek Submitted by: KRA Corporation 1010 Wayne Avenue Suite 850 Silver Spring, Maryland 20910 Project Director: Ed Rugenstein Submitted to: U.S. Department of Agriculture Food and Consumer Service Office of Analysis and Evaluation 3101 Park Center Drive Alexandria, VA 22302 Project Officer: Kilolo Kijakazi This document wasprepared under Contract Number 53-3198-4-023 between the Department of Agriculture and KRA Corporation ot Silver Spring, Maryland. The contents ofthis document do not necessarily reflect the views or policies of the Department, nor does mention of trade names, commercial products, or organizations imrly endorsement by the U.S. Government. / U.S. Department of Agriculture/Food and Consumer Service Conference on Access to Food September 18 and 19, 1995 Report of the Proceedings The Conference on Access to Food, held in Washington, D.C., on September 18 and 19, 1995, was sponsored by the U.S. Department of Agriculture (USDA) Food and Consumer Service (FCS). The conference was held to bring together food access experts to share their knowledge and help USDA build an agenda to increase access to food for low-income Americans. The Honorable Dan Glickman, Secretary, USDA, opened the conference and stated that "restricted or limited [food] access undermines [USDA's] ability to promote health through nutrition because if prices are too high, there is not enough bang for the buck for Food Stamps and WIC benefits, or if choices are limited . . . [Americans] can't make the choices that nutrition education efforts encourage them to make." Ellen Haas, Under Secretary, Food, Nutrition, and Consumer Services, said that access to food is a key component of USDA's comprehensive food policy. The three components are as follows: Nutrition Assistance Programs—Child Nutrition Programs, the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), the Food Stamp Program, and others form a network of food and nutrition assistance to ensure access to nutritious diets. Nutrition Education—The policy provides knowledge and skills allowing Americans to make healthy food choices. Access to Food—The policy ensures individuals the opportunity to purchase foods for a healthy diet through access to full-line food stores. Although access to food has been the least visible component of USDA's comprehensive food policy, it is an important one. Under Secretary Haas said that "without access to high quality, affordable food the effectiveness of our nutrition assistance programs and nutrition education initiatives are lessened." USDA is focusing its efforts on the problem of food access through several initiatives. Current efforts include a study of authorized food stamp retailers. This nearly completed study gathered information in a number of areas, including access to food. A second study, a national survey of food stamp households, is in its initial stages and asks recipients about their access to food. USDA is conducting another study that will identify strategies that communities have implemented to improve access to food. This study will provide technical assistance to communities that want to improve access but do not have the experience or resources. t The conference addressed issues of access to food in urban and rural underserved areas and provided a forum for discussing successful strategies for increasing access to food through the development of full-line, affordable food stores and alternative means such as farmers' markets and transportation options. It also provided a discussion forum for experts in supermarket and food store development, economic development, and food policy. Mr. Paul Pryde of the Capital Access Group, LLC discussed the link between food and economic development. Supermarkets, or other food distribution businesses, can affect inner city development in four ways: by serving as an anchor for commercial property investments; by providing jobs to community residents; by improving residential property values; and by "providing life" to nearby businesses. Several efforts to link improved food access to local economic development were also identified during the conference. Ms. Sheryll Cashin, Staff Director of the Community Empowerment Board at the White House, further underscored the importance of the connection between food access and economic development, especially with regard to the Empowerment Zone and Enterprise Community (EZ/EC) Program. She said that this program provides a context that can help reduce the timeframe required to get food access initiatives-like supermarket development-implemented. EZs and ECs are working within a comprehensive strategic plan with input from residents, state and local governments, and business leaders. These are the same groups needed to implement food access initiatives. The 2-day conference included three plenary sessions covering issues such as food access and community and economic development. A series of concurrent workshops allowed for presentations and open discussion among conference attendees on a variety of topics. Presenters included retailers representing small and moderate food stores as well as supermarkets; wholesalers; community and economic development specialists; food access advocates; representatives from financial institutions; academicians; community residents; and others. The conference attracted more than 150 participants representing Empowerment Zones and Enterprise Communities; nonprofits; private industry; financial institutions; advocacy groups; academia; foundations; and Federal, State, and local governments. Several food access alternatives were discussed during the conference, ranging from supermarket development to improved transportation options. When addressing improved access to food, supermarket development is often the first option considered. However, in some communities, supermarket development may not be possible in the immediate future. In these instances, other options may be considered. For example, improved transportation may allow residents to reach a full-line supermarket a few miles away. Farmers' markets or public markets can provide quality produce and other foods at reasonable costs with little overhead investment while keeping profits in the community. In densely populated urban areas, space is often at a premium; a smaller independent store could provide quality, nutritious food in a much smaller space. In addition, several presenters discussed the issue of food security. The three key themes that emerged from the conference were: • Supermarket development l • Alternatives to supermarkets • Food security Each of these topics is discussed in detail below. Supermarket Development The supermarket industry is the primary source of food for the majority of Americans. However, according to Mr. Andy Fisher of the Community Food and Security Coalition, between the 1970s and the 1990s supermarkets abandoned the inner city and many other distressed communities. Inadequate access to proper foods is frequently due to lack of access to supermarkets or to supermarkets with good quality produce and other foods at a reasonable price. Consequently, an important component of community development is the revitalization of inner-city neighborhoods and other distressed communities through the establishment of supermarkets. Many communities are focusing revitalization efforts on the establishment of much-needed supermarkets. There are different types of supermarkets that can be brought into a community, ranging from large regional chains, local chains, and franchises, to voluntary operators who are financed and serviced by a wholesaler, who typically provides independent stores with inventory and assistance in a variety of areas such as layout and marketing. To successfully develop a supermarket, panel presenters recommended the following: • Invest in credible, unbiased marketing research that demonstrates a need for a supermarket in that area. In addition, research should show that local residents will shop at a supermarket in this location. • Develop a well-researched, well-written business plan that incorporates potential problems and solutions. • Develop a solid partnership between the private sector, local government, and the community. This should include financial commitments from a variety of sources. • Develop a good relationship with a wholesaler—one that provides guidance in the areas of marketing, construction, legal issues, and accounting, among others. • Foster community support, or a sense of ownership, on the part of local residents. • Secure adequate working capital, or cash, on sensible terms. Adequate cash is necessary to attract the kind of management needed to implement and operate a full-scale food store. In addition, capital is needed for marketing and advertising once the store is in operation. Access quality management and technical assistance. 1 Several presenters stressed that access to adequu's funding is a central issue when developing a supermarket in an economically distressed area. According to Ms. Pamela Fairclough of the Comrainity Food Resource Center, there are multiple costs associated with supermarket development. "Soft costs" are those that are needed to cover preliminary market analysis, feasibility studies, environmental reviews, zoning changes, and draft architectural and engineering plans. For the most part, these activities are not financeable up front so the supermarket developer has to cover these costs. Alternatively, if the supermarket is being developed by a Community Development Corporation (CDC), these startup costs will have to be financed by CDC or other development corporations. Construction and renovation costs may come from conventional banks, wholesalers, or out of pocket. Finally, permanent financing for operating the supermarket must be secured from similar sources. There are numerous sources of capital *br financing supermarket development. Among these are conventional banks. CDCs, private flinders, wholesalers, foundations, community groups, and government entities. The collateral for these loans is often the store inventory and the property lease. Often, developers need to be aggressive and creative when securing capital; perhaps looking at a mixture of funding sources in order to secure adequate funds. Conventional banks are often a source of financing for commercial ventures. Many banks have community development subsidiaries or components and finance commercial development in targeted inner-city developments and other distressed areas. The Community Reinvestment Act (CRA) is a Federal law that governs the banking community's responsibility to invest capital in low-income neighborhoods. This law requires banks to lend where they do business, thus banks are often looking for CRA-eligible projects. However, according to Ms. Pamela Fairclough, the stringent documentation required to receive a bank loan often prohibits supermarket operators from applying for a loan. In addition, operators in economically distressed communities may not qualify for a bank loan because of their level of equity investment and the high risk associated with the project. It is important to remember that banks are looking to make money so they will carefully study the project team and history. Mr. Lamont Blackstone of The Retail Initiative, Inc. (TRI) discussed the way in which his organization invests in inner city retail development. TRI invests equity capital on behalf of ten institutional investors including the City of Philadelphia's public pension fund. There is a large pool of investment capital in the form of both public and private pension funds that needs to be tapped and channeled into inner city development. The challenge, according to Mr. Blackstone, is to ". . . develop a strategy that will allow these institutional investors to invest their capital profitably and at market rates of return, or close to market rates of return, at the same time investing that capital at levels of risk that [investors] deem acceptable." Ms. Ann Rosewater, Deputy Assistant Secretary for Policy and External Affairs, Department of Health and Human Services (DHHS), discussed several programs offered by her Department which can fund food access initiatives. First, DHHS monies finance the EZ/EC program. Second, this Department strengthens community development corporations through their Urban and Rural Economic Development Program. In addition, they fund business development, microenterprise, business incubation, and building renovation. f Transportation Options According to Mr. Michael Freedberg of The Center for Neighborhood Technology, the issue of access to supermarkets in the inner city is magnified by the low percentage of people who have access to cars. The dislocation of supermarkets and grocery stores from the inner city has left few acceptable food stores for residents. The Center for Neighborhood Technology in Chicago is addressing this issue by putting together an alternative transportation strategy that examines the critical needs of a community and how transportation systems can meet that goal. They have formed a commission to look at compact land development around transit hubs. Suggestions to improve access include placing markets, day care centers, and other community amenities around the public transit stops in the inner city. Through promoting microdevelopmer* around the individual transit stops, transit stops can become the center of activity in the community and begin to have a regional impact along the transportation corridor. By demonstrating the impact of having retail services at this transit station on ridership, the commission has been able to forecast reduced automobile traffic and show how that will help the region meet its air quality goals under the Clean Air Act. This has enabled them to leverage millions of dollars in transportation funds that would otherwise have gone to suburban highway construction. Food Security Food security advocates believe that the concept of food security has replaced the concept of hunger among social welfare and antihunger advocates in the United States, creating a change in the way that we think about hunger as a problem in this country. It moves the concept of hunger from being an individual's problem to that of a community need. Food security is a prevention-oriented concept that looks at the access to food resources within a given community. The Community Food Security Coalition defines food security as "all persons obtaining at all times a culturally acceptable, nutritionally adequate diet through local non-emergency sources."1 The concept of food security incorporates and addresses the ability of individuals to prepare foods and their level of economic resources to purchase food; a community's access to land for growing food and enhancing community food supplies; the ownership of food-related businesses; the connections of farmers and food processors to communities and markets; and the ability of community organizations to ensure access and availability of food. According to Dr. Kate Clancy of Syracuse University, a food secure community is one where "all of its members have access through normal, non-charitable means to adequate, culturally appropriate, nutritious food supplies whenever they need them." Using Biddle's definition of community development: "a social process by which human beings can become more competent to live with and gain some control over local aspects of a frustrating and changing world," food security is an integral aspect of community development. That is, a community is not fully "developed" until it is food secure and community x"The Community Food Security Empowerment Act. January 1995." The Community Food Security Coalition, Hartford, CT. /o 13 111 development cannot take place without attention to food security. However, there has not been a great deal of interaction between food security and community organizing/community development work in this country. This may be due, in part, to the fact that many community development projects, while useful, are driven by economics rather than by human growth. In addition, food has become such a commodity, and so taken for granted, that people assume it is available only through commercial transactions. Food security advocates believe that there are many ways to attain food security and all of these options should be explored simultaneously. Among these options are cooperatives, food exchanges, community service, public markets, enhanced transportation, urban agriculture, and farmers' markets. Community development projects should be strongly encouraged to incorporate "food centered thinking" into their "working planning activities". The Community Fo'xl Security Act of 1995 was initially introduced to Congress on July 11, 1995, as a means of promoting food security. These provisions were enacted as part of the Federal Agriculture Improvement and Reform Act of 1996 (P.L. 104-127). The legislation provides for $1 million in fiscal year 1996 and up to $2.5 million per year from fiscal year 1997 through 2002 for assistance to community food projects. These projects should be "designed to meet the food needs of low-income people, increase the self-reliance of communities in providing for their own food needs, and promote comprehensive responses to local food, farm, and nutrition issues." The Act is intended to yield a variety of food projects such as urban agriculture, community gardens, fanners' markets, inner city food store development, and microenterprises creating linkages between sectors of the food system. "Seeds of Change: Strategies for Food Security in the Inner-city,"2 a study conducted at the University of California, Los Angeles (UCLA), identified numerous solutions to the problem of lack of access to nutritionally adequate diets. These solutions include working with smaller stores to enable them to sell nutritional items at lower prices, urban agriculture, farmers' markets, joint ventures between CDCs and supermarkets, microenterprises, buying clubs, and food policy councils. Food security advocates believe that there is no single answer to the dilemma of food access; rather, a mixture of approaches must be developed and implemented. Summary The conference closed with a discussion of what should be done next to increase and ensure access to food in inner city and rural communities. Mr. Michael Fishman, Acting Director, Office of Analysis and Evaluation, FCS, USDA commented that "there is room for everybody under the tent of food access, that there is enough need out there that the challenge is. . . to try to help people get the access to food that they need." Presenters discussed ways in which private, non-profit, local, and Federal entities need to get involved in the promotion of access to food. 2"Seeds of Change: Strategies for Food Security for the Inner City." The Southern California Interfaith Hunger Coalition, Los Angeles, California. 1993. 14 // Mr. Roy Priest, Director of the Office of Economic Development, HUD, said "... we've got to look at integrated strategies. . . . you've got to bring together a collaborative framework that allows you to address [issues] holistically. And if you don't do that, then I think you're going to have a very difficult time being able to create any kind of long-term, sustained change in these communities. Mr. Zy Weinberg of Public Voice for Food and Health Policy said that "... successful supermarket development and operation must be a community-wide effort, with the collaboration of [a] whole range of non-profits. . ., for-profit companies, including banks, the grocery industry and its suppliers, unions, and government at all levels, Federal, state, and local. . ." Ms. Karen Brown of the Food Marketing Institute supported this by saying "... revitalization will come only through public-private partnerships involving coalitions of business, community, and government leaders at the local level." The creation of food security must include a variety of efforts within a community—projects such as farmers' markets and public markets, urban agriculture, food groups collaborating with community development corporations and food retailers, and food policy councils, among others. As Mr. Andy Fisher said, "there is no magic solution to food insecurity ... it is really a kind of basket of solutions that needs to be addressed and needs to be developed." Ih 15 |
OCLC number | 888048018 |
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