Investing Close to Home gains momentum

BY KIRK STARRATT

kstarrat@kentvilleadvertiser.ca

NovaNewsNow.com

We have become exporters of our investment dollars and the local economy, including the agricultural sector, is not as strong as it could be because of it.

This was one of the key messages from the Investing Close to Home public meeting featuring guest speakers and a panel discussion hosted by Friends of Agriculture in Nova Scotia (FANS) at the Port Williams Community Centre Wednesday evening, June 17.

FANS spokesperson Linda Best said enthusiasm for supporting the local economy was evident among the business people, community members and a good cross-section of farmers in attendance. Best said some of the farmers are doing fine while others are struggling in this economic climate. “When we’re producing 10 per cent or less of the food we’re consuming in Nova Scotia, given the changes in climate, the cost of transportation and the quality and safety of the food we get, it’s time to change those numbers,” she said.

One way to help is to buy locally produced food, but Best said this hasn’t been enough so far. We have to provide other means of support and there is a movement growing throughout North America and Europe to invest at home to support the local economy.

Put more money into local economy “If we’re going to protect our farmers and support agriculture, one way to do that is by putting more of our money into the local economy,” she said. For example, Nova Scotians invest about $600 million a year in RRSPs, but only about two per cent stays in the province.

Every dollar we spend on imported food goes to large corporations in jurisdictions outside Canada where the food is grown and processed. Buying locally keeps more money at home and we benefit many times over from the multiplier effect by keeping more dollars in our local economy.

About $40 million has been invested in Nova Scotia through Community Economic Development Investment Funds (CEDIFs) over the past four years. Best said a number of CEDIFs, which provide tax incentives to investors, are set up as a means to pool investment dollars for local businesses or organizations to draw from.

Best said she would like to see a CEDIF established that would allow farmers to access funds for marketing, promotion and transitioning to new practices that would, at the same time, provide a secure home for local investment dollars. “There are several CEDIFs currently built around agriculture,” Best said. “My hope is to, as soon as possible, establish another one.”

She said the CEDIF is unique to Nova Scotia so far, although there are similar community economic development tools in other jurisdictions. In a time when many people have taken financial hits on their RRSP portfolios and other investments due to poor market conditions, there are several examples of CEDIFs performing relatively well. Best said, to her knowledge, there have only been two CEDIF’s to date that haven’t been successful.

Committee doubles to 10

As an outcome of the public meeting in Port Williams, FANS has added another five members to its committee, for a total of 10. The committee’s mandate is to determine which economic development tools, such as the CEDIF, would be of the greatest benefit to the greatest number of people.

Best said the committee aims to be able to report on what local economic development options are available in time for the Nova Scotia Food Summit 2009, coming up at the Old Orchard Inn in Greenwich from Oct. 18-20. She said the event would be educational for all stakeholders across the spectrum, including consumers, who need a better understanding of how the food system works.

Everyone from soil specialists to health professionals will be on hand to help plan for food security for all Nova Scotians as part of an economically and ecologically sustainable food system.

She said the level of enthusiasm for supporting the local economy and local food producers was made evident when the FANS “April Flavours” dinner sold out more than a month in advance. There is an increasing awareness of the necessity to leverage the advantages of good, wholesome, local food for health, environmental and economic reasons, which are all crucial to our long-term sustainability.

In three of the last six years, net farm income in our province has been negative and Best said this suggests strongly that change is needed. We’re spending only 10 cents of every food dollar at home and a lot of that money goes to transportation costs, the stores that carry the products and so on. She said we have to educate ourselves to the benefits of keeping our money at home. Raising awareness will help affect positive policy change. “We outsourced the responsibility for our food and now it’s time to take it back.”

The guest speakers…

The FANS Investing Close to Home public meeting featured several guest speakers, including Valley Credit Union CEO Mike Wark, who spoke in general terms about how to invest locally. “There’s certainly a benefit to dealing with the Credit Union because we know that money is being re-employed in the local community,” Best said.

Chris Payne, CEDIF administrator, Nova Scotia Department of Economic and Rural Development, spoke about investing locally and gaining tax credits, as did Thomas Krausse of the Dandelion Community Investment Cooperative. Best said Dandelion is ready for investors and is selling shares for $500 each. Their aim is to mentor entrepreneurs and support local economic initiatives.

Farmer Brian Newcombe spoke about the Kings County Land Trust, which Best said is close to being ready to accept donations of money and land. The purpose is to protect farmland for future generations.

Allison Kouzovnikov, representing the Community Foundation of Nova Scotia, spoke about her organization. Best said the foundation operates as a granting organization, distributing donated funds to community groups. The foundation is now working with Spirit Nova Scotia to establish a local food fund to help support producers.

Best said Janet Larkman of the Business Alliance for Local Living Economies (BALLE), which now has a chapter in Halifax, gave a presentation about leveraging the power of local networks to help build economies that are community-based, green and fair.

Other speakers who made presentations in support of local investment included Edith Callaghan of Acadia University’s Arthur Irving Centre for the Environment and farmer Jen Scott, representing GPI Atlantic.

Biologist and researcher Janet Eaton moderated the panel discussion following the presentations.