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MARSHALL - They may need some initial help to develop a connection with consumers, but small farms can make a difference in the rural economy, U.S. Secretary of Agriculture Tom Vilsack said Monday.

"The reality is we need all kinds of farms in this country," Vilsack said, from small organic farms to large commercial farms.

The main challenge will be helping small farmers open connections for local customers, Vilsack and U.S. Rep. Collin Peterson said. Vilsack and Peterson arrived in Marshall Monday for the Home Grown Economy conference held at Southwest Minnesota State University.

Vilsack said the USDA wants to help expand domestic agriculture markets and markets for locally grown food.

"Here in Minnesota, this is not a new idea," Vilsack said. The state is among the top 10 in the nation for organic farming, he said.

"You know this is a market that will develop into something when big chain stores start to have a local food section," Peterson said. "Demand is there. These big guys are starting to understand it."

"There's no precise definition of local" when it comes to locally grown food, Vilsack said - depending on the area, "local" can mean food produced 100 to 200 miles or less from its consumers. But the benefits of local agriculture are the same. Expanding the market for local agriculture stimulates rural economies and creates jobs, Vilsack said.

"When you purchase local, those dollars are kept in the community," Vilsack said.

Vilsack and Peterson said although there tend to be higher costs involved in small farming, there also tend to be higher profits, and small farms are easier to get started. The drawback, they said, is that in order to establish a local market, small farmers often have to compete with established supply lines.

Vilsack said one way the USDA can help small farmers could be to encourage the development of cold-storage facilities or slaughterhouses to support a local market. Other opportunities could include conserving and promoting local natural resources, and support for alternative energy development.

Vilsack also said USDA nutrition programs could make it easier to supply schools with locally grown foods for lunch programs. That would help give the farmers a steady customer, promote a healthy diet in the schools and provide opportunities for ag education.

"The government is not going to create this," Vilsack said. "What we're going to do is be a help to people who want to do this."

One of the USDA's first steps toward encouraging locally-grown food is the "Know Your Farmer, Know Your Food" initiative, Vilsack said. The program's goal is to start a dialogue with Americans on locally grown foods, and to gather information on how best to encourage local agriculture.

"It shouldn't be a challenge," Vilsack said of producing more locally-grown food in Minnesota. It's easy to have confidence in a supplier when it's someone from the community. "If you know the farmer who supplies your beef, you're going to have more confidence than if you're being supplied with beef from 1,500 miles away."