2018 Farm Bill Primer: Support for Local Food Systems

2018 Farm Bill Primer: Support for Local Food Systems

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June 18, 2019
2018 Farm Bill Primer: Support for Local Food Systems
Over the past decade, food policy in the United States has
to consumers as well as directly to retail markets,
addressed ongoing shifts in consumer preferences and
institutions, and food hubs for local or regionally branded
producer trends that favor local and regional foods. The
products. USDA further reports that small farms rely more
2018 farm bill (Agriculture Improvement Act of 2018, P.L.
on direct-to-consumer marketing channels, such as farmers’
115-334) combines and expands existing programs
markets, roadside stands, on-farm stores, and CSAs. Farms
administered by the U.S. Department of Agriculture
making less than $75,000 in annual gross income accounted
(USDA) that provide financial and technical assistance for
for 85% of all local food farms in 2017.
local and regional food production. The 2018 farm bill also
provides additional support targeting urban agriculture, thus
Table 1. Direct-to-Consumer Farm Sales, 2012 & 2017

further expanding support for local food systems, if that
Sales
food is sold and consumed nearby to where it is produced.
#Farms
($mill.)
%Farms
%Sales
Food Sold Directly to Consumers
Local Food Producers
2012
144,530
1,310
6.9%
0.3%
There is no established definition or broad consensus of
2017
130,056
2,805
6.4%
0.7%
what constitutes a local food or a local food system. In
Food Sold Directly to Retail Markets, Institutions, and
Hubs for Local/Regionally Branded Products
general, a local food system tends to be based on the
2012
N/A
N/A
N/A
N/A
location of where food production and its point of sale. This
2017
28,958
9,036
1.4%
2.3%
could include the number of miles the food may be
Total Direct-to-Consumer Farm Sales
transported from producer to consumer, or it may require
2017
159,014
11,841
7.8%
3.0%
that food be sold within the state where it is produced to be
Source: CRS from USDA 2017 Census of Agriculture data. %Farms
considered local by consumers. In addition, most USDA
and %Sales represent the percentage of al farms and al farm sales.
farm programs that support local food systems generally
base eligibility upon the statutory definition of locally or
Provisions in the 2018 Farm Bill
regionally produced agricultural food products:
The 2018 farm bill builds on previous support for local food
any agricultural food product that is raised, produced, and
systems in the previous two farm bills—the Agricultural
distributed in … the locality or region in which the final product
Act of 2014 (P.L. 113-79) and the Food, Conservation, and
is marketed, so that the total distance that the product is
Energy Act of 2008 (P.L. 110-246). Programs administered
transported is less than 400 miles from the origin of the product;
by USDA may be grouped into broad categories: marketing
or … the State in which the product is produced. (7 U.S.C.
§1932)
and promotion, business assistance and agricultural
In practice, local foods generally refer to agricultural
research, rural and community development, and nutrition
production and marketing that occurs within a certain
and education. Examples include USDA’s farmers’ market
geographic proximity (between farmer and consumer) or
programs, rural cooperative grants, USDA’s research and
that involves certain social or supply chain characteristics in
cooperative extension service, and child nutrition programs.
producing food (such as small family farms, urban gardens,
Many of these programs are available to all U.S. farmers.
or farms using sustainable agricultural practices). A wide
For more information, see CRS Report R43950, Local Food
range of farm businesses may be considered to be engaged
Systems: Selected Farm Bill and Other Federal Programs.
in producing local foods. These include direct-to-consumer
marketing, farmers’ markets, farm-to-school programs,
One of the farm bill programs supporting local food
community-supported agriculture (CSA), community
systems is the Local Agriculture Market Program (LAMP)
gardens, school gardens, and food hubs. Other types of
(§10102). LAMP combines and expands two competitive
operations include on-farm sales/stores, internet marketing,
grant programs: (1) the Farmers Market and Local Food
food cooperatives and buying clubs, roadside stands, “pick-
Promotion Program (FMLFPP, 7 U.S.C. §3005) and (2) the
your-own” operations, urban farms, community kitchens,
Value-Added Agricultural Product Market Development
small-scale food processing and decentralized root cellars,
Grant program (VAPG, 7 U.S.C. §1632a(b)(7)). LAMP is
and some agritourism or on-farm recreational activities.
intended to support regional partnerships, development
grants, and cooperative extension. The 2018 farm bill
Sales of locally produced foods comprise a small but
simplifies USDA’s application process and requires
growing part of U.S. agricultural sales. According to the
additional program reporting and evaluation. It authorizes
2017 Census of Agriculture, USDA reports that the farm-
LAMP to receive mandatory funding of $50 million
level value of U.S. local food sales totaled about $11.8
annually, to remain available until expended. Mandatory
billion, reflecting sales from nearly 159,000 farmers (about
funding is provided via the Commodity Credit Corporation
8% of U.S. farms). Local foods accounted for an estimated
and is not subject to appropriations. Funding allocations are
3% of the value of total U.S. agricultural production in
10% for regional partnerships, 35% for producer grants,
2017. Table 1 includes food sold from farms both directly
47% for development grants for other eligible entities, and
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2018 Farm Bill Primer: Support for Local Food Systems
8% for administrative expenses. The farm bill also
of Supplemental Nutrition Assistance Program (SNAP)
authorizes appropriations of “such sums as are necessary.”
benefits for farmers markets with multiple locations. The
2018 farm bill reauthorized and reduced funding for
By merging the existing stand-alone programs (FMLFPP
Community Food Projects, a competitive grant program
and VAPG) into LAMP—while still maintaining the
that may fund local food system projects and also
underlying activities of the individual programs—Congress
reauthorized through FY2023 the Senior Farmers Market
addressed concerns regarding funding availability to
Nutrition Program.
continue these programs. Previously, both FMLFPP and
VAPG were “programs without baseline.” Consolidation of
The 2018 farm bill also creates several new authorities to
these programs into LAMP provides both new funding and
specifically support urban, indoor, and other emerging
permanent baseline for these programs, thus ensuring that
agricultural production. These provisions would support
they have future funding if policymakers decide that the
local and regional food systems if that food is sold and
programs should continue beyond FY2023. For more
consumed near where it is produced. These farm bill
information about baseline funding issues, see CRS Report
provisions establish an Office of Urban Agriculture and
R45425, Budget Issues That Shaped the 2018 Farm Bill.
Innovative Production at USDA and an Urban Agriculture
and Innovative Production Advisory Committee to
Value-added producer grants support agricultural producers
encourage and promote urban, indoor, and other emerging
related to the processing and/or marketing of new products,
agricultural practices (§12302). Other provisions establish
with the goal of creating new products and expanding
new competitive grants and pilot programs and require
marketing opportunities. FMLFPP funds may also be used
USDA to conduct additional program reporting (§12302,
to fund local processing activities and cover processing,
§7212). For more information on these and other provisions
storage, distribution, and aggregation. However, by statute
in the 2018 farm bill, see CRS In Focus IF11210, 2018
these programs may not be used for the purchase of general
Farm Bill Primer: Support for Urban Agriculture. Finally,
purpose equipment (e.g., trucks), or the construction of
the 2018 farm bill includes numerous other provisions
buildings or structures. One exception is food safety
supporting new and beginning, limited resource, socially
equipment and related upgrades, for which up to $6,500 of
disadvantaged, and veteran farmers and ranchers, which
the amount of the recipient’s grant may be used. Project
also broadly support local and regional farming. For more
proposals under FMLFPP must demonstrate a benefit to the
information, see CRS In Focus IF11227, 2018 Farm Bill
local and regional food system rather than benefiting a
Primer: Beginning Farmers and Ranchers. The text box
single agricultural producer, vendor, or individual.
below provides the name and farm bill section of each
According to USDA, currently, FMLFPP funds cover about
program.
13% of the applications received each year.
Considerations for Congress
Other farm bill programs supporting local food systems
USDA is currently implementing the 2018 farm bill’s
include loan programs supporting production as well as
provisions supporting urban agriculture. Congress could
processing and storage facilities and also a range of rural
continue to track USDA’s progress in implementing these
and community development programs. For example,
provisions as part of its general farm bill oversight.
USDA’s Business and Industry Loan Guarantee program
can target up to 5% of its annual appropriation for food-
Selected Farm Bill Provisions Supporting Local Foods
related projects in rural and urban areas. Such areas might
Marketing and Promotion, and Business Assistance
include underserved food desert areas or areas with a
 Local Agriculture Market Program (§10102)
substantial number or share of residents with low levels of
 Specialty Crop Block Grant Program (§10107)
access to retail outlets selling healthy and affordable foods,
 Farming Opportunities Training and Outreach (§12301)
based on USDA’s definition. A similar program—the
 USDA Microloan Program (§5202)
Healthy Food Financing Initiative—also supports local food
 Urban, Indoor, and Other Emerging Agricultural Production
development in underserved areas. Some food development
Research, Education, and Extension Initiative (§7212)

projects might also be considered essential community

Urban Agriculture (§12301)
 Food Safety Education Initiatives (§10106)
facilities and be eligible for loan and grant funding under
the Community Facilities program. USDA’s Rural
Rural and Community Development Programs
Business-Cooperative Service supports funding for local
 Rural Cooperative Development Grant (§6412)

and regional foods development projects, and the Rural

Business and Industry Guaranteed Loans (local set-aside, §6416)
 Community Facilities Direct Loans and Grants (§6101)
Business Development Grant and Rural Microentrepreneur
 Rural Business Development Grants (§6411)
Assistance programs provide support for innovative
 Rural Microentrepreneur Assistance Program (§6422)
community food projects. For food projects that are, or
 Appropriate technology transfer for rural areas program (§6414)
could be, organized under a cooperative charter, there are
 Under Secretary of Agriculture For Rural Development (§12407)
several loan and grant programs that specifically target rural
Nutrition Assistance Programs
producer and/or consumer cooperatives.
 Gus Schumacher Nutrition Incentive Program (§4205)
 Senior Farmers Market Nutrition Program (§4201)
Some provisions of the farm bill’s Nutrition title revised
 SNAP Redemption at Farmers’ Markets (§4006(a))
local food system-related programs and policies. The Gus
 Community Food Projects (§4017)
Schumacher Nutrition Incentive Program increased funding
 Healthy Food Financing Initiative (§4204)
for projects that improve low-income households’ access to
fruits and vegetables. The law streamlined the acceptance
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2018 Farm Bill Primer: Support for Local Food Systems

IF11252
Renée Johnson, Specialist in Agricultural Policy
Tadlock Cowan, Analyst in Natural Resources and Rural
Development

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