Cost Benefit Analysis

Comprehensive Farm to School: A Cost-Benefit AnalysisSarah Foster, Wisconsin Farm to School Summit, June 27th 2013

Outline Comprehensive farm to school Fundamentals of a CBA Policy alternatives Fiscal and social costs and benefits Considered benefits Limitations Future implications

Comprehensive Farm to School

Local Procureme

nt

Nutrition/Ag

Education

Student Engageme

nt

What is a Cost-Benefit Analysis?

Measures economic efficiency of programs or policies

Monetize all costs and benefits

Net benefits = benefits-costs

Bottom line: Net benefits = adopt policy

Not the ultimate decision making tool (other factors such as equity, political climate)

Costs Benefits

Who Matters? Standing

District and state level (fiscal)

State level (social)

Policy Alternatives Current policy Alternative 1: Local procurement Alternative 2: Comprehensive farm to

school Alternative 2(a): Comprehensive farm to

school and adoption of HHFKA new meal standards

Fiscal and Social Costs Fiscal

Staff training, equipment, comprehensive F2S elements, administrative costs, reimbursement rate

Social METB- Cost to society of program or policy Opportunity cost of chaperone and

teacher time

Fiscal and Social Benefits Fiscal

Equipment scrap value (after 20 years), increased meal participation

HHFKA federal meal reimbursement (6 cents)

Social Decreased absenteeism Health benefits (avoided health care

costs)

Considered Benefits

Local economic activity Staff impacts Student academic

performance Satisfaction from farmer

relationships

Results

Policy Alternatives Net Benefits (per average district)

Alternative 1 -45,000

Alternative 2 $480,000

Alternative 2(a) $1.6 million

Sensitivity Analysis

Limitations Limited data on F2S effectiveness Introduction of HHFKA CBA focused on demand side, what about the supply

side? Funding for programming

Future Implications Data collection!

Health Economic

Further analysis of the supply side Market opportunity for agriculture

producers? Economic impact?

Acknowledgements

The rest of the CBA team! Norma-Jean Simon, Ryan Eisner, Leni Wolf, Miriam Palmer, Marc Harding Hanson

Emily Reynolds Dr. Weimer Amy Meinen

Dale Schoeller Andrea Bontrager Yoder CIAS DATCP DPI DHS

Questions?