To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
SUBJECT:
title
Supplemental Budget for Economic Development Fiscal Year 2019-20 to Provide Matching Funds for United States Department of Agriculture Grants to Support Humboldt County's Dairy Industry (4/5 Vote Required)
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve a supplemental budget for Economic Development fiscal year 2019-20 budget to provide matching funds for a United States Department of Agriculture (USDA) Value Added Producer Grant and a USDA Rural Development Opportunity Grant. (4/5th Vote Required)
Body
SOURCE OF FUNDING:
Transfer in from Economic Development Set-Aside Trust Fund (3842)
DISCUSSION:
According to data reported by the National Farmers Union (NFU), the average dairy farm has shown a positive net income only once in the last decade, in 2014. In 2018, the average value of production exceeded the total cost of producing each hundredweight of milk in only one state, California, and nationwide, dairy farmers lost an average of $3.21 per hundredweight of milk produced.
National market conditions for milk-based products, milk derivatives and processes, combined with localized events (such as the closure of Loleta Cheese and recently announced plans for Organic Valley to downsize or leave the market entirely) have resulted in a negative impact to Humboldt County's dairy industry.
These conditions have driven dairy stakeholders in Humboldt County to approach the County Administrative Office (CAO) of Economic Development for assistance. Local dairymen and dairy experts agree that, if not but for assistance from the county, a loss of jobs and other negative impacts to those ancillary businesses who are dependent on Humboldt County's dairy industry is inevitable.
Because local funding is limited, Economic Development engaged with its counter parts at the USDA to identify opportunities for leveraging county...
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