Niman Ranch’s Outsized Impact on Local Economies
Above: Niman Ranch supports more than 600 U.S. family farmers and ranchers–many are second- and third-generation farmers who inherited land from their parents and grandparents.
Since the beginning, Niman Ranch has set out to be a different kind of meat company — one focused on holistically boosting the family farms in its network, the animals they raise and the environment in which they produce them. In a head-to-head analysis with conventional producers, Niman Ranch’s values-driven approach to business was found to be a boon for local farming communities, producing a higher number of jobs and positively contributing to the regional economy in Iowa.
The study, conducted by Dave Swenson, an economist at Iowa State University, quantified for the first time Niman Ranch’s significant contributions to the local economy in jobs and labor income. The report found that Niman Ranch’s contributions are nearly double those of conventional producers. Swenson’s analysis focused on the impact in Iowa specifically, but the conclusions can be applied more broadly as Niman Ranch farmers are found in 20 states across the U.S.
Niman Ranch is well-known for its premium pork, beef and lamb which are available in fine-dining restaurants, values-driven fast casual chains and grocers across the country. The company works with a network of over 600 small- and mid-size independent family farms that all uphold high standards of sustainable and humane farming practices. In return, farmers receive a stable, premium market for their products.
“We focus on the triple-bottom-line,” said Chris Oliviero, former general manager of Niman Ranch, referencing the business concept that places equal value on people, planet and profits. “This study reinforces that as we make more commitments to increasing our positive environmental impacts, we don’t have to compromise on our support for family farmers and their communities,” Oliviero continued.
Overall, Iowa’s 195 Niman Ranch farms created 339 jobs statewide. For every 100,000 hogs produced, Niman Ranch produces 2.5 times more jobs across the state than its conventional counterparts.
These workers, in turn, contribute millions to the Iowa economy through taxes and household purchases. Niman Ranch farmers and their employees also participate in every aspect of Iowa life.
“Regional economies are built on local economies. Local economies are built around needs and people,” said Ron Mardesen, an Iowa farmer who has sold pigs to Niman Ranch for over 20 years. “Smaller independent family farmers need a place to buy gas, we need a place to buy groceries, we need a place to buy feed, we need a veterinarian, we need a school for our children, we need a place to worship.”
“Niman farms depend on having more people working on them, and that is a selling point. More people working locally helps create stronger linkages to the local and regional economy,” said Swenson.
Local Job Creation Has a Main Street Effect
Niman Ranch farmers also lead the way with higher industry average wages and individual profits from hog production.
“This is the Main Street effect,” according to Swenson. “The small farmers in Niman’s network hire more people, spend more regionally and their employees also spend their money closer to home.”
The study showed that for every $1 million in direct sales, Niman farms produce 14 jobs and generate an additional $1.03 million in other economic outputs, including labor income and value-added spending.
“We can’t reverse the decline in rural economies ourselves, but our farmers are making a real difference,” shared Oliviero. “Our support helps them stay in their communities and grow. When they grow, our farmers and everyone they buy from, and those they employ, contribute to their home economies. This makes our towns, communities and businesses stronger and more stable,” he continued.
Niman Ranch farms make contributions that go beyond just purchases, transactions and dollars. They are part of strong, vibrant communities and are helping build the next generation of farmers.
“Pride of ownership and pride of earner-ship are both byproducts of a Niman Ranch farm,” said Mardesen. “Many Niman Ranch farms are multigenerational farms. Many rely on part-time help. On my farm, for example, over the years I have hired over 20 young people to help part-time on the farm. Watching these young people leave here and go on to establish successful businesses of their own is a gift I am truly proud of.”
Niman Ranch is so committed to supporting young farmers that it has a scholarship and grant program. Since its inception in 2006, the Niman Ranch Next Generation Foundation has awarded over $1.5 million in direct support for young farmers.
Significant Positive Contribution to the Local Economy
When comparing the two approaches — conventional and Niman Ranch — to hog production in Iowa, Swenson looked at the outputs generated per 100,000 marketed animals. The data clearly show that Niman Ranch’s economic contributions per 100,000 hogs are significantly higher than of conventional producers.
“This study shows the multiplier effect. If we can keep farmers in business, then they will keep contributing to the economy,” said Oliviero.
According to the study, conventional producers hired nearly 115 workers and generated almost $36 million in hog value, worker income and other expenditures in Iowa per 100,000 hogs. In direct comparison, Niman Ranch’s economic contributions are significantly higher. Niman Ranch producers hired 290 workers and generated almost $60 million from hog sales, related expenses and worker incomes.
“Local economies would prosper if more adopted Niman Ranch’s approach, instead of conventional production,” said Swenson. “The more hogs Niman produces, the better the results for the regional economy.”
The Market Supports Niman’s Approach
Niman Ranch farmers uphold high sustainable and humane farming standards, with higher costs of production than conventionally raised animals.
It’s clear, however, that Niman farmers receive more for their animals than conventional producers: Niman Ranch pays its partner hog farmers a premium that is tied to the cost of inputs. This payment model ensures margin is built into the program, shielding farmers from the rollercoaster of the conventional market and providing critical stability. This model allows farmers to budget and plan. This assurance results in more innovation, measured growth and adoption of sustainable practices.
“Our farmers are guaranteed a premium payment for their hogs, and that helps them create more stable businesses,” said Oliviero. “If their businesses are stable, they can make the necessary investments in regenerative methods and adding more employees.”
A recent survey of Niman Ranch farms found high adoption rates of regenerative practices including diversified crops and livestock, planting cover crops, reduced tillage, pollinator habitat and more.
It is also clear that Niman Ranch’s rigor and holistic approach provides benefits for farmers, their businesses and the local community, which help everyone build for the future.
“By contemporary standards my farm is small. I cannot generate the volume large enough to keep up with the big boys. I can, however, concentrate on quality,” said Mardesen. “The premium Niman Ranch pays me allows me to manage my farm in a positive, productive way. Niman Ranch gives me the chance to plan for the future of the farm, instead of worrying about there being a future for the farm.”
Article by Katherine Miller, a partner and advisor to Niman Ranch. Katherine is an award-winning communications executive, campaign strategist, and social media expert. The author of “At the Table: The Chef’s Guide to Advocacy” and the upcoming “Beyond the Table: An insider’s Guide to Creating and Running a Sustainable Food Business”, Miller works with foundations, companies, and nonprofits to design and implement new programs and initiatives.