Local and Urban Food Systems: Selected Farm Bill and Other Federal Programs

Over the past decade, food policy in the United States has responded to ongoing shifts in consumer preferences and producer trends that favor local and regional food systems as well as agricultural production in urban areas. Sales of locally produced foods comprise a small but growing share of U.S. farm sales. Most recent available data reported by the U.S. Department of Agriculture (USDA) indicate the farm-level value of U.S. local food sales totaled about $11.8 billion, reflecting sales from nearly 159,000 farmers (about 8% of U.S. farms). Local foods accounted for an estimated 3% of the value of total U.S. agricultural production in 2017. (USDA does not collect separate data and statistics on urban farming operations in the United States.) As part of the 2018 farm bill (Agriculture Improvement Act of 2018, P.L. 115-334), Congress increased support for local and regional food systems, building on efforts in the 2014 farm bill (P.L. 113-79, Agricultural Act of 2014) and the 2008 farm bill (P.L. 110-246, Food, Conservation, and Energy Act of 2008). The 2018 farm bill also provided support for urban, indoor, and other emerging agricultural production, creating new programs and authorities, and providing additional funding for such operations. The law combined and expanded existing USDA programs and provides financial and resource management support for both local and urban food production, while also supporting traditional farm enterprises. Other programs that may support local and regional food systems were authorized in 2010 as part of the most recent child nutrition reauthorization (Healthy, Hunger-Free Kids Act of 2010, P.L. 111-296). A wide variety of farm businesses are considered to be engaged in producing local foods. These include direct-to-consumer marketing, farmers’ markets, community-supported agriculture (CSA), community gardens, school gardens, farm to school programs, and food hubs. Other types of operations include on-farm sales/stores, internet sales, food cooperatives and buying clubs, roadside stands, “pick-your-own” operations, urban farms, community kitchens, small-scale food processing and decentralized root cellars, and agritourism activities. Urban farming operations also include those that grow food in vacant city lots, city parks, churchyards, schoolyards, backyards, and community gardens. However, urban operations further represent a diverse range of systems and practices, including large-scale innovative systems and capital-intensive operations, vertical and rooftop farms, hydroponic greenhouses (e.g., soilless systems), and aquaponic facilities (e.g., growing fish and plants together in an integrated system). More than 30 USDA grant and loan programs provide support and assistance for local and urban food producers and producer groups. With few exceptions, these programs are not limited or targeted to local or urban food systems but are generally available to provide support to all U.S. farms and ranchers. These grant and loan programs may be grouped into several broad program categories, including marketing and promotion; business assistance and agricultural research; rural and community development; urban and indoor production; nutrition and education; and farmland conservation. Examples include farmers’ market and local food promotion programs, rural cooperative grant and loan programs, child nutrition programs, and USDA’s research and extension activities. Other USDA grant and research programs provide specific support for urban agricultural systems. More than $100 million is available annually through USDA to support local and urban food systems across several programs (not including funding through other USDA programs for which information is not available on the share of total spending available to support local and urban food systems only).