Local grocer vital to agriculture
Commentary by Greg Henderson, Drovers editor
| Wednesday, June 30, 2010
The plight of the rural grocery store is an indicator of the economic health of a rural community. And in too many instances in America, the rural grocery store has fallen on hard times.
According to research by Kansas State University, since 2006, 82 of 213 grocery stores serving Kansas communities with populations of 2,500 or less, have closed. The absence of a grocery or other store selling essential food items within a 10-mile radius is termed a "severe food desert," says David Procter, director of the Center for Engagement and Community Development at Kansas State University, which organized and hosted a Rural Grocery Store Summit (at K-State) recently.
According to Procter, 51 percent of Kansas communities now lack a grocery store. As a result, rural citizens are finding it more difficult to find access to fresh produce and a variety of nutritious foods.
Community and business leaders are greatly concerned about the trend for rural grocery stores because those stores typically provide an anchor for the community. But it’s more than just about the availability of wholesome food. As an employer, the local grocery store has generated full and part-time employment opportunities, often with better benefits than larger employers, and revenue from sales taxes to support education, economic development and community improvements.
Leah Tsoodle, K-State Research and Extension agricultural economist and researcher of grocery shopping preferences in Kansas communities, says for every $100 spent within a community, $45 stays within the community and may be circulated within the community as many as seven times. For every $100 spent outside the community, only about $15 is likely to return to the community.
Proctor says small business such as grocery stores drive local economies, “yet given the combined loss in sales volume, consolidation of wholesalers, increase in minimum orders for delivery, and rising cost of transportation, smaller retailers face increasing challenges that may mean closing their doors. Once the grocery store is gone, the closing (or consolidation) of the school often is not far behind," he said. And, without a grocery store and a school, a community will typically have trouble attracting new residents, and that means property values also will decline.
This disturbing trend about rural grocery stores is also unwelcome news for agriculture. Further decline in rural economies and good schools means that fewer children from farm and ranch families will choose to remain in agriculture. It also means fewer potential employees will choose to stay in rural communities and make a career on a farm, ranch or feedlot.
But, in some Kansas communities at least, leaders are developing plans to help rejuvenate local groceries and other businesses. The first steps include research into shopping preferences of rural customers, and identifying sources of funding to renovate buildings and improve product offerings.
Change is constant in every community, and the changes in rural communities over the past decade have been dramatic. But it doesn’t have to mean the death of those communities. Farmers and ranchers, obviously affected by changes to their own operations, cannot afford to ignore the plight of other local businesses. You should make the effort to shop locally when you can, and volunteer to help when community leaders initiate projects aimed at rural revitalization.
Indeed, the economic health of your local grocer may be as important to your farming and ranching operation as timely rains and bumper crops.
