The Role of Local and Regional Food Systems in U.S. Farm Policy

Sales of locally produced foods comprise a small but growing part of U.S. agricultural sales. Estimates vary but indicate that local food sales total between $4 billion and $12 billion annually. The U.S. Department of Agriculture (USDA) estimates that local food sales totaled $6.1 billion in 2012, reflecting sales from nearly 164,000 farmers selling locally marketed foods. This represents 8% of U.S. farms and an estimated 1.5% of the value of total U.S. agricultural production. Most (85%) of all local-food farms are smaller in size, with gross revenues under $75,000. A wide range of farm businesses may be considered to be engaged in local foods. These include direct-to-consumer marketing, farmers’ markets, farm-to-school programs, community-supported agriculture, community gardens, school gardens, food hubs and market aggregators, kitchen incubators, and mobile slaughter units. Other types of operations include on-farm sales/stores, Internet marketing, food cooperatives and buying clubs, pick-your-own or “U-Pick” operations, roadside farm stands, community kitchens, small-scale food processing and decentralized root cellars, and some agritourism or other types of on-farm recreational activities. There is no established definition of what constitutes a “local food.” Local and regional food systems generally refer to agricultural production and marketing that occurs within a certain geographic proximity (between farmer and consumer) or that involves certain social or supply chain characteristics in producing food (such as small family farms, urban gardens, or farms using sustainable agriculture practices). Some perceive locally sourced foods as fresher and higher in quality compared to some other readily available foods and also believe that purchasing local foods helps support local farm economies and/or farmers that use certain production practices that are perceived to be more environmentally sustainable. However, no such standards or practices are required under federal programs that support local foods. Many federal programs that support local foods generally define “local” based on the geographic distance between food production and/or sales such that “the total distance that the product is transported is less than 400 miles from the origin of the product”; or “any agricultural food product that is raised, produced, and distributed in ... the State in which the product is produced” (P.L. 110-246, §6015). Authorization for many of the federal programs that support local food farms is contained within periodic farm bills or within the most recent reauthorization of the child nutrition programs. The 2014 farm bill (Agricultural Act of 2014, P.L. 113-79) is the most recent omnibus farm bill. Other programs and program funding were authorized in the Healthy, Hunger-Free Kids Act of 2010 (P.L. 111-296), which includes programs that sometimes promote local food systems. Congress periodically reviews and reauthorizes expiring authorities under these laws. Many existing federal programs benefiting U.S. agricultural producers may also provide support and assistance for local food systems. With few exceptions, these programs are not limited or targeted to local or regional food systems but are generally available to provide support to all U.S. farmers and ranchers. These include farm support and grant programs administered by USDA, among other federal agencies. In addition, USDA has implemented departmental initiatives intended to support local food systems, such as the “Know Your Farmer, Know Your Food” Initiative, among other activities. These initiatives are not stand-alone programs but are intended to eliminate organizational barriers between existing USDA programs and promote enhanced collaboration among staff, leveraging existing federal activities and programs. In recent years funding to support local food systems has increased. For 2015, USDA awarded nearly $40 million in grants to support local food systems across several programs. In addition, nearly $50 million in loans is available exclusively to support local and regional food enterprises. Other USDA programs often also support local food systems; however, the share of total spending attributable to local foods is not known.