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Congressional Research Service
Informing the legislative debate since 1914


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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
addressed ongoing shifts in consumer preferences and
producer trends that favor local and regional foods. The
2018 farm bill (Agriculture Improvement Act of 2018, P.L.
115-334) combines and expands existing programs
administered by the U.S. Department of Agriculture
(USDA)  that provide financial and technical assistance for
local and regional food production. The 2018 farm bill also
provides additional support targeting urban agriculture, thus
further expanding support for local food systems, if that
food is sold and consumed nearby to where it is produced.

Local   Food Producers
There is no established definition or broad consensus of
what constitutes a local food or a local food system. In
general, a local food system tends to be based on the
location of where food production and its point of sale. This
could include the number of miles the food may be
transported from producer to consumer, or it may require
that food be sold within the state where it is produced to be
considered local by consumers. In addition, most USDA
farm programs that support local food systems generally
base eligibility upon the statutory definition of locally or
regionally produced agricultural food products:
    any agricultural food product that is raised, produced, and
    distributed in ... the locality or region in which the final product
    is marketed, so that the total distance that the product is
    transported is less than 400 miles from the origin of the product;
    or ... the State in which the product is produced. (7 U.S.C.
    § 1932)
In practice, local foods 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 agricultural practices). A wide
range of farm businesses may be considered to be engaged
in producing 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
operations include on-farm sales/stores, internet marketing,
food cooperatives and buying clubs, roadside stands, pick-
your-own  operations, urban farms, community kitchens,
small-scale food processing and decentralized root cellars,
and some agritourism or on-farm recreational activities.

Sales of locally produced foods comprise a small but
growing part of U.S. agricultural sales. According to the
2017 Census ofAgriculture, USDA  reports that 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. Table 1 includes food sold from farms both directly


to consumers as well as directly to retail markets,
institutions, and food hubs for local or regionally branded
products. USDA  further reports that small farms rely more
on direct-to-consumer marketing channels, such as farmers'
markets, roadside stands, on-farm stores, and CSAs. Farms
making  less than $75,000 in annual gross income accounted
for 85% of all local food farms in 2017.

Table  I. Direct-to-Consumer  Farm  Sales, 2012 & 2017
                           Sales
           #Farms        ($mill.) %Farms       %Sales
   Food Sold Directly to Consumers
   2012     144,530        1,310     6.9%        0.3%
   2017     130,056        2,805     6.4%        0.7%
   Food Sold Directly to Retail Markets, Institutions, and
   Hubs for Local/Regionally Branded Products
   2012        N/A          N/A       N/A         N/A
   2017      28,958        9,036      1.4%       2.3%
   Total Direct-to-Consumer Farm Sales
   2017     159,014       11,841     7.8%        3.0%
Source: CRS from USDA 2017 Census ofAgriculture data. %Farms
and %Sales represent the percentage of all farms and all farm sales.

Provisions in the 2018 Farm Bill
The 2018 farm bill builds on previous support for local food
systems in the previous two farm bills-the Agricultural
Act of 2014 (P.L. 113-79) and the Food, Conservation, and
Energy Act of 2008 (P.L. 110-246). Programs administered
by USDA   may be grouped into broad categories: marketing
and promotion, business assistance and agricultural
research, rural and community development, and nutrition
and education. Examples include USDA's farmers' market
programs, rural cooperative grants, USDA's research and
cooperative extension service, and child nutrition programs.
Many  of these programs are available to all U.S. farmers.
For more information, see CRS Report R43950, Local Food
Systems: Selected Farm Bill and Other Federal Programs.

One of the farm bill programs supporting local food
systems is the Local Agriculture Market Program (LAMP)
(§10102). LAMP  combines  and expands two competitive
grant programs: (1) the Farmers Market and Local Food
Promotion Program  (FMLFPP,  7 U.S.C. §3005) and (2) the
Value-Added  Agricultural Product Market Development
Grant program (VAPG,  7 U.S.C. §1632a(b)(7)). LAMP  is
intended to support regional partnerships, development
grants, and cooperative extension. The 2018 farm bill
simplifies USDA's application process and requires
additional program reporting and evaluation. It authorizes
LAMP   to receive mandatory funding of $50 million
annually, to remain available until expended. Mandatory
funding is provided via the Commodity Credit Corporation
and is not subject to appropriations. Funding allocations are
10%  for regional partnerships, 35% for producer grants,
47%  for development grants for other eligible entities, and


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