U.S. Farm Policy: Local and Regional Food Systems

U.S. Farm Policy: Local and Regional Food Systems

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Updated February 24, 2016
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,
Source: CRS from USDA data: 2012 (S. A. Low, et al., Trends in U.S.
community-supported agriculture (CSA), community
Local and Regional Food Systems: Report to Congress, AP-068, January
gardens, school gardens, and food hubs. Other types of
2015) and 2008 (S. Low and S. Vogel, “Local Foods Marketing
operations include on-farm sales/stores, internet marketing,
Channels Encompass a Wide Range of Producers,” Amber Waves,
food cooperatives and buying clubs, roadside stands, “pick-
December 2011).
your-own” operations, urban farms, community kitchens,
small-scale food processing and decentralized root cellars,
Programs administered by USDA may be grouped into
and some agritourism or on-farm recreational activities.
broad categories: marketing and promotion; business
assistance and agricultural research; rural and community
Sales of locally produced foods comprise a small but
development; nutrition and education; and farmland
growing part of U.S. agricultural sales. Estimates vary but
conservation. Examples include USDA’s farmers’ market
indicate that local food sales total between $4 billion to $12
programs, rural cooperative grants, and child nutrition
billion annually. Estimates reported by the U.S. Department
programs, as well as USDA’s research and cooperative
of Agriculture (USDA) show the extent to which local food
extension service. (See listing of selected programs in text
sales have increased in recent years. For 2008, USDA
box on next page.) This listing does not include broad-
estimated that the farm-level value of U.S. local food sales
based conservation or research and cooperative extension
totaled about $4.8 billion (Figure 1). An estimated total of
programs that also provide benefits to a range of
107,000 farms were engaged in local food systems, about
agricultural producers, including producers engaged in local
5% of all U.S. farms. USDA’s most recent estimates, for
food production systems, either directly or indirectly.
2012, put U.S. local food sales at $6.1 billion, reflecting
sales from nearly 164,000 farmers (about 8% of U.S.
The most widely used definition of what constitutes “local”
farms). Local foods accounted for an estimated 1.5% of the
foods for the purposes of U.S. federal support programs is
value of total U.S. agricultural production.
from the 2008 farm bill (P.L. 110-246), which defined a
“locally or regionally produced agricultural food product”
USDA further reports that small farms rely more on direct-
as it pertains to eligibility under USDA’s Business and
to-consumer marketing channels (such as farmers’ markets,
Industry (B&I) Guaranteed Loan Program. Under the
roadside stands, on-farm stores, and CSAs) as compared to
definition, “locally or regionally produced agricultural food
larger farms. Farms making less than $75,000 in annual
product” means “any agricultural food product that is
gross income account for 85% of all local food farms.
raised, produced, and distributed in ... the locality or region
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
The Obama Administration has implemented departmental
Selected Federal Programs Supporting Local Foods
initiatives intended to support local food systems, such as
the “Know Your Farmer, Know Your Food” (KYF2)
Marketing and Promotion

Specialty Crop Block Grant Program
Initiative, among other activities. In general, these

Farmers’ Market Promotion Program
initiatives are intended to eliminate organizational barriers

Local Food Promotion Program
among existing USDA programs and promote enhanced

Federal State Marketing Improvement Program
collaboration among staff, leveraging existing USDA
Business Assistance and Research
activities and programs. These are not stand-alone

Value-Added Agric. Product Market Development Grants
programs, are not connected to a specific office or agency,

Beginning Farmer and Rancher Development Program
and do not have separate operating budgets.

USDA Microloan Program

Small Business Innovation Research
Federal program funding for local foods has increased in

Sustainable Agriculture Research and Education

recent years, and estimates of reported spending can often

Agricultural Management Assistance

Community Outreach and Assistance Partnership Program
vary widely depending on which programs are included.

Outreach/Assist. to Socially Disadvantaged Farmers/Ranchers
USDA allocated more than $80 million in program-level
Rural and Community Development Programs
funding for local foods in FY2015. This estimate includes

Rural Cooperative Development Grant
$26.6 million for two grant programs (the Farmers Market

Business and Industry Guaranteed Loan Program
Promotion Program and the Local Food Marketing

Community Facilities loans and grants
Promotion Program); $4.8 million for Community Food

Rural Business Development Grants
Projects Competitive Grants; $1 million for matching

Rural Microentrepreneur Assistance Program
Federal-State Marketing Improvement Program grants; and
Nutrition Assistance Programs
roughly $50 million for loans under USDA’s B&I program.

Farmers’ Market Nutrition Programs
This estimate does not include funding for state block

Supplemental Nutrition Assistance Program (SNAP) at
Farmers’ Markets
grants for specialty crops or funding for certified organic

Farm to School Program
production since the original intent of these programs was

Programs supporting School and Community Gardens
to support fruit and vegetable production and also organic

Commodity Procurement programs (e.g., “DoD Fresh”)
agriculture, respectively, and not local foods specifically.

Healthy Food Financing Initiative
Other federal programs may provide support, but the share

Community Food Projects
of available spending for local foods is not known.

Food Insecurity Nutrition Incentive grants
Which U.S. Laws Support Local Food Systems?
Other legislation introduced in past Congresses has
Authorizations for many of the selected programs listed
addressed specific issues, including proposals to provide
here are contained within periodic farm bills or within the
targeted support for non-traditional and beginning farmers,
most recent reauthorization of the child nutrition programs.
focused at the farm production level, as well as proposals
focused on nutrition and enhanced access to food.
 Farm Bill Programs. The 2014 farm bill (Agricultural
Act of 2014, P.L. 113-79) is the most recent omnibus farm
What Issues Are Influencing the Debate in Congress?
bill. In the run-up to the 2014 farm bill, several bills were
Some in Congress continue to express the need to change
introduced in Congress broadly addressing local food
farm policies in ways that might further enhance support for
systems. Some were “marker bills” addressing provisions
local food systems and rural communities, arguing that U.S.
across multiple farm bill titles and recommending changes
farm policy should be modified to reflect broader, more
that would have provided additional directed support for
equitable treatment across a range of production systems,
local and regional food systems. Others addressed specific
including local food systems. Supporters often cite the
issues. Some provisions from these bills were incorporated
increasing popularity of local foods and a general belief that
into the 2014 farm bill. Although recent farm bills have
purchasing local foods helps support local farm economies
contained some specific programs that directly support
and/or farmers that use certain production practices that
local and regional food systems, the local impact of new
some consider more environmentally sustainable. Others in
and existing programs may depend on appropriated
Congress oppose extending farm bill support to explicitly
funding and the nature of implementation.
support local food producers, who are already eligible for
many farm bill programs. Other concerns include limited
 Child Nutrition Programs. Child nutrition programs
financial resources to support U.S. agricultural producers
and the Special Supplemental Nutrition Program for
and concerns that local food systems might not provide for
Women, Infants, and Children (WIC) provide cash,
the most efficient and productive use of available natural
commodity, and other assistance under the Richard B.
resources for producing food, among other criticisms.
Russell National School Lunch Act and the Child
Nutrition Act. Local foods are sometimes promoted under
For more information, see CRS Report R44390, The Role of
these programs. Section 32 of the act of August 24, 1935
Local and Regional Food Systems in U.S. Farm Policy and
(7 U.S.C. §612c) may provide for additional program
CRS Report R43950, Local Food Systems: Selected Farm
funding in some cases. Congress periodically reviews and
Bill and Other Federal Programs.
reauthorizes expiring authorities under these laws. The
most recent reauthorization of the child nutrition programs
Renée Johnson, Specialist in Agricultural Policy
was the Healthy, Hunger-Free Kids Act of 2010 (P.L. 111-
296).
IF10232
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U.S. Farm Policy: Local and Regional Food Systems

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