May 28, 2015
U.S. Farm Policy: Local and Regional Food Systems
What Are “Local Food Systems”? There is no established
limited or targeted to local or regional food systems, but are
definition of what constitutes a “local food.” Local and
generally available to provide support to all U.S. farms and
regional food systems generally refer to agricultural
ranchers. These include farm support and grant programs
production and marketing that occurs within a certain
administered by USDA as well as programs within other
geographic proximity (between farmer and consumer) or
federal agencies, such as the Departments of Commerce;
that involves certain social or supply chain characteristics in
Health and Human Services; and the Treasury.
producing food (such as small family farms, urban gardens,
or farms using sustainable agriculture practices). Some
Figure 1. USDA Estimates of Local Food Sales, Farm
perceive locally sourced foods as fresher and higher in
Value (2008 and 2012)
quality compared to some other readily available foods or
believe that purchasing local foods helps support local farm
economies and/or farmers that use production practices that
are perceived to be more environmentally sustainable.
Many federal programs that support local foods generally
define “local” based on the geographic distance between
food production and sales based on the number of miles the
food may be transported and/or require that food be sold
within the state where it is produced to be considered local.
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 (CSA), community

gardens, school gardens, and food hubs. Other types of
Source: CRS from USDA data: 2012 (S. A. Low, et al., Trends in U.S. Local
and Regional Food Systems: Report to Congress, AP-068, January 2015) and
operations may include on-farm sales/stores, internet
2008 (S. Low and S. Vogel, “Local Foods Marketing Channels Encompass a
marketing, food cooperatives and buying clubs, roadside
Wide Range of Producers,” Amber Waves, December 2011).
stands, “pick-your-own” operations, urban farms,
community kitchens, small-scale food processing and
Programs administered by USDA may be grouped into
decentralized root cellars, and some agritourism or on-farm
broad categories: marketing and promotion; business
recreational activities.
assistance and agricultural research; rural and community
development; nutrition and education; and farmland
Sales of locally produced foods comprise a small but
conservation. Examples include USDA’s farmers’ market
growing part of U.S. agricultural sales. Estimates vary but
programs, rural cooperative grants, and child nutrition
indicate that local food sales total between $4 billion to $12
programs, as well as USDA’s research and cooperative
billion annually. Estimates reported by the U.S. Department
extension service. (See listing of selected programs in text
of Agriculture (USDA) show the extent to which local food
box on next page.) This listing does not include broad-
sales have increased in recent years. For 2008, USDA
based conservation or research and cooperative extension
estimated that the farm-level value of U.S. local food sales
programs that also provide benefits to a range of
totaled about $4.8 billion (Figure 1). An estimated total of
agricultural producers, including producers engaged in local
107,000 farms were engaged in local food systems, about
food production systems, either directly or indirectly.
5% of all U.S. farms. USDA’s most recent estimates, for
2012, put U.S. local food sales at $6.1 billion, reflecting
The most widely used definition of what constitutes “local”
sales from nearly 164,000 farmers (about 8% of U.S.
foods for the purposes of U.S. federal support programs is
farms). Local foods accounted for an estimated 1.5% of the
from the 2008 farm bill (P.L. 110-246), which defined a
value of total U.S. agricultural production.
“locally or regionally produced agricultural food product”
as it pertains to eligibility under USDA’s Business and
USDA further reports that small farms rely more on direct-
Industry (B&I) Guaranteed Loan Program. Under the
to-consumer marketing channels (such as farmers’ markets,
definition, “locally or regionally produced agricultural food
roadside stands, on-farm stores, and CSAs) as compared to
product” means “any agricultural food product that is
larger farms. Farms making less than $75,000 in annual
raised, produced, and distributed in ... the locality or region
gross income account for 85% of all local food farms.
in which the final product is marketed, so that the total
Does the Federal Government Support Local Foods?
distance that the product is transported is less than 400
Many existing federal programs benefiting U.S. agricultural
miles from the origin of the product”; or “any agricultural
producers may also provide support and assistance for local
food product that is raised, produced, and distributed in ...
food systems. With few exceptions, these programs are not
the State in which the product is produced” (§6015).
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U.S. Farm Policy: Local and Regional Food Systems
Which U.S. Laws Address Local Food Systems?
Selected Federal Programs Supporting Local Foods
Authorizations for many of the selected programs listed
Marketing and Promotion
here are contained within periodic farm bills or within the
•
Specialty Crop Block Grant Program
most recent reauthorization of the child nutrition programs.
•
Farmers’ Market Promotion Program
•
• Farm Bill Programs. The 2014 farm bill (Agricultural

Local Food Promotion Program
•
Federal State Marketing Improvement Program
Act of 2014, P.L. 113-79) is the most recent omnibus
Business Assistance and Research
farm bill. In the run-up to the 2014 farm bill, several bills
•
Value-Added Agric. Product Market Development Grants
were introduced in Congress broadly addressing local
•
Beginning Farmer and Rancher Development Program
food systems. Some were “marker bills” addressing
•
USDA Microloan Program
provisions across multiple farm bill titles and
•
Small Business Innovation Research
recommending changes that would have provided
•
Sustainable Agriculture Research and Education
additional directed support for local and regional food
•
Agricultural Management Assistance
systems. Others addressed specific issues. Some
•
Community Outreach and Assistance Partnership Program
provisions from these bills were incorporated into the
•
Outreach/Assist. to Socially Disadvantaged Farmers/Ranchers
2014 farm bill. Although recent farm bills have contained
Rural and Community Development Programs
•
some specific programs that directly support local and

Rural Cooperative Development Grant
•
Business and Industry Guaranteed Loan Program
regional food systems, the local impact of new and
•
Community Facilities loans and grants
existing programs may depend on appropriated funding
•
Rural Business Development Grants
and the nature of implementation.
•
Rural Microentrepreneur Assistance Program
• Child Nutrition Programs. Child nutrition programs and
Nutrition Assistance Programs
the Special Supplemental Nutrition Program for Women,
•
Farmers’ Market Nutrition Programs
Infants, and Children (WIC) provide cash, commodity,
•
Supplemental Nutrition Assistance Program (SNAP) at
and other assistance under the Richard B. Russell
Farmers’ Markets
•
National School Lunch Act and the Child Nutrition Act.

Farm to School Program
•
Programs supporting School and Community Gardens
Local foods are sometimes promoted under these
•
Commodity Procurement programs (e.g., “DoD Fresh”)
programs. Section 32 of the act of August 24, 1935 (7
•
Healthy Food Financing Initiative
U.S.C. §612c) may provide for additional program
•
Community Food Projects
funding in some cases. Congress periodically reviews and
•
Food Insecurity Nutrition Incentive grants
reauthorizes expiring authorities under these laws. The
For information on these programs, see CRS Report R43950, Local Food
most recent reauthorization of the child nutrition
Systems: Selected Farm Bill and Other Federal Programs.
programs was the Healthy, Hunger-Free Kids Act of
2010 (P.L. 111-296).
The Obama Administration has implemented departmental
Other legislation introduced in past Congresses has
initiatives intended to support local food systems, such as
addressed specific issues, including proposals to provide
the “Know Your Farmer, Know Your Food” (KYF2)
targeted support for non-traditional and beginning farmers,
Initiative, among other activities. In general, these
focused at the farm production level, as well as proposals
initiatives are intended to eliminate organizational barriers
focused on nutrition and enhanced access to food.
among existing USDA programs and promote enhanced
collaboration among staff, leveraging existing USDA
What Issues Are Influencing the Debate in Congress?
activities and programs. These are not stand-alone
Some in Congress continue to express the need to change
programs, are not connected to a specific office or agency,
farm policies in ways that might further enhance support for
and do not have separate operating budgets.
local food systems and rural communities, arguing that U.S.
farm policy should be modified to reflect broader, more
Federal program funding for local foods has increased in
equitable treatment across a range of production systems,
recent years, and estimates of reported spending can often
including local food systems. Supporters often cite the
vary widely depending on which programs are included.
increasing popularity of local foods and a general belief that
USDA allocated more than $80 million in program-level
purchasing local foods helps support local farm economies
funding for local foods in FY2015. This estimate includes
and/or farmers that use certain production practices that
$26.6 million for two grant programs (the Farmers Market
some consider more environmentally sustainable.
Promotion Program and the Local Food Marketing
Promotion Program); $4.8 million for Community Food
Others in Congress oppose extending farm bill support to
Projects Competitive Grants; $1 million for matching
explicitly support local food producers, who are already
Federal-State Marketing Improvement Program grants; and
eligible for many farm bill programs. Other issues include
roughly $50 million for loans under USDA’s B&I program.
overall limited financial resources to support U.S.
This estimate does not include funding for state block
agricultural producers as well as concerns that local food
grants for specialty crops or funding for certified organic
systems might not provide for the most efficient and
production since the original intent of these programs was
productive use of available natural resources for producing
to support fruit and vegetable production and also organic
food, among other criticisms.
agriculture, respectively, and not local foods specifically.
Other federal programs may provide support, but the share
Renée Johnson, rjohnson@crs.loc.gov, 7-9588
of available spending for local foods is not known.

IF10232
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