Hearing of the Biotechnology, Horticulture and Research Subcommittee of the House Agriculture Committee - Opening Statement of Rep. Davis, Hearing on Direct Marketing

Hearing

Good morning and welcome. Today, we will hear from producers involved in direct marketing ventures, such as local farmers markets, direct to restaurant or grocery store sales, value added sales, and community supported agriculture. Entrepreneurial efforts of individual producers certainly drive success in direct marketing ventures. Nevertheless, as producers seek to develop new marketing channels for their products, it is important for the subcommittee to get their perspective on the opportunities they see, the challenges they encounter, and what programs can help facilitate further development of these alternative marketing channels.

As many of you are aware, the Agriculture Committee has engaged in considerable oversight and legislative effort regarding issues pertaining to marketing agricultural products. Direct marketing is enjoying a resurgence driven both by economic considerations, as well as the desire among consumers for better relationships with those involved in food production. An evaluation of census data comparing 2007 to 2012 figures shows steady increase in producer participation in each type of alternative marketing channel. Clearly, consumer demand is driving market development. What is also clear is that direct marketing creates opportunities not only for agricultural economic development, but can also serve as a primary mechanism for reconnecting producers and consumers.

While much of today's discussion will focus on the economic factors that drive participation in direct marketing ventures, I do want to take a moment to comment on how essential the direct connection our witnesses have with consumers can aid us in bridging the gap between urban and rural constituencies. Facilitation of these business relationships can aid in a larger challenge the committee has been focusing on related to the perceived disconnect between consumers and food producers.

Early on in this Congress, several of us had the opportunity to hear from Mr. Charlie Arnot who is the CEO of the Center for Food Integrity. Mr. Arnot and his team have done considerable work to better understand consumer expectations regarding transparency in our food systems. Their research responds to consumer demand for factual, easy to understand and relevant information. A central objective throughout his team's research is to evaluate what steps can be taken to build consumer trust and confidence in today's food systems.

With the average individual being at least three generations removed from production agriculture, strengthening ties between producers and consumers is a particularly worthy goal as we attempt to enact policies that maintain and enhance food security.

According to Mr. Arnot's research, when evaluating whom consumers hold responsible for trust-building and transparency, consumers view farmers second only to food companies in all aspects of food production. Though many opportunities exist to enhance transparency, I think it would be helpful to hear from producers who have familiarity in direct marketing and about their experiences engaging consumers in an open dialogue.

Among our witnesses, I am pleased to welcome one of my constituents, Mr. Andy Heck. Mr. Heck currently works as a farm to school educator for GenHkids, not-for-profit based in Springfield, Illinois that works with schools, community organizations and families to improve the health of children. Just a few months ago, my district staff had the opportunity to volunteer at one of GenHkids community gardens in Springfield and see firsthand the fresh produce that is provided to the community and donated to local charities. I am thankful for the good work that GenHkids does day in and day out to provide healthy food to families in Central Illinois.

Prior to joining the GenHkids team, Andy farmed full-time for over 10 years, growing a diversity of vegetables and fruits in the Springfield area; marketing produce directly to local restaurants, through a community supported agriculture program, to local retail outlets and at the Old Capitol Farmers Market Downtown Springfield. Andy was named the Illinois Sustainable Agriculture Farmer of the year in 2012 by the Illinois Department of Agriculture.

I now yield to the subcommittee ranking member, Ms. Delbene for her opening remarks.

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