Local Food Systems: An Overview

 

Introduction

The term “food system” refers to the overlapping processes that connect the complex spectrum of food production to food processing, consumption, and ultimately disposal. It is sometimes described as including all processes involved in keeping us fed: growing, harvesting, processing (or transforming or changing), packaging, transporting, marketing, consuming, and disposing of food and food packages. The United States’ food system is predominantly characterized as a complex and globally integrated system in which products are routinely produced, processed, and transported up to thousands of miles to the point of consumption.

“Local Food Systems,” as used here, is meant to refer to a number of interrelated pieces that connect to make “local food” a component of the US agricultural food system. The term “community food system” is sometimes used interchangeably with the term “local food system.”

There is no single definition of the term “local food.” It is generally accepted that local food is food that has traveled less than 1,500 miles throughout its supply chain: from production to consumption. The term also often refers to food deriving from within the same geographic region to where it is consumed. Because there is no federally-established definition, the meaning of “local food” can vary substantially between state and local governments, nonprofit organizations, and the private sector.

Elements of a Local Food System

Local food sales are often conducted directly between the producer and the consumer, generally referred to as ‘direct marketing.’ The most common venues for direct marketing of local food are farmers’ markets, farm stands, pick-your-own operations, and community-supported agriculture (CSAs).

The 2012 Census of Agriculture was the first year that the United States Department of Agriculture (USDA) provided detailed data on direct-to-consumer sales, which totaled to $1.3 billion in sales revenue. The next and most recent Census of Agriculture in 2017 indicates direct-to-consumer sales have more than doubled to $2.8 billion. These two Census data points demonstrate a dramatic rise in local food sales over the last decade. Having access to these market trends is particularly valuable for farmers to understand long-term market trends so that they can continue to make sound business decisions.

In addition to direct marketing, there are a few other venues through which locally produced food is sold. Some farmers sell their products directly to restaurants. In 2016, the National Restaurant Association named locally-sourced food as the culinary trend that has grown the most over the past decade. The National Restaurant Association also predicts this food trend will continue growing over the next decade. Many retail grocery stores (including large, international chains) have begun featuring locally grown products. Many institutional purchasers such as local, state, or federal government entities, hospitals, and schools have started seeking out locally sourced food. A classic example of institutional purchasing is farm to school programs, which allow farmers to sell directly to public school systems.

There are many benefits associated with local food systems, which help explain why direct-to-consumer sales have been skyrocketing. Local food systems can keep money circulating within local economies, which is especially beneficial for rural communities. An increasing demand for local products can spark job creation in producing, processing and distributing food locally. Food produced locally is often fresher and has a higher nutritional value. In the event of a foodborne illness outbreak, contaminated food is easier to trace and contain when the food is sourced locally.

 

While local food systems result in many community benefits, they also come with some significant limitations. The growth trend and lack of a uniform definition for local food systems has allowed the term “local” to become a commonplace advertising term. Therefore, a consumer may purchase one product believing it to be local when it may have traveled the same distance or even more than a competing product. Buying food at direct-to-consumer outlets or doing research on the product before purchasing it are the best ways for consumers to ensure that their food is local. Even though buying directly from a producer eliminates the cost of a middle-man, local food still often creates a “sticker-shock” realization because food is either the same price or more expensive than non-local foods in a grocery store. Small-scale producers, who predominantly sell to local markets, often use environmentally-friendly methods of food production. Such methods may require a higher cost of production and, which translates to a more expensive product for consumers. Large chain producers have the technology to run more efficient operations and can generally afford to externalize costs that a smaller, local producer may not.

Legal Issues


State Laws and Regulations

Many federal laws and regulations are directly applicable to local food systems. There are also several federally-created programs administered at the state level, such as The Farmers’ Market Nutrition Programs and the School Nutrition Programs.

However, most regulation takes place at the state or local level, or a combination thereof. For example, there may be relevant zoning laws that impose limitations for operating a farm stand or similar enterprise. Additionally, public health and safety, food sampling restrictions, and the application of a sales tax are all regulated at local or state levels. Producers and others involved with sales of local food should be aware that laws may vary from state to state or even among counties within a particular state. Furthermore, the vast majority of states have farmers’ market associations that assist and facilitate the regulation of local food marketing.


General Liability Concerns- 
Growers and retailers of food may be held liable if a consumer were to sustain physical injuries or become ill from consuming certain food and food products. Two common causes of action are strict liability under tort law, and breach of implied warranty of merchantability under the Uniform Commercial Code (U.C.C.). Other common causes of action could include a negligence claim or breach of express warranty. For information on a closely related topic, visit the Commercial Transactions and Landowner Liability Reading Rooms. For information on limiting liability through business organizations, visit the Business Organizations Reading Room.


Premises Liability- 
Premises liability is an issue for owners, occupiers, or persons otherwise in control of premises who allow or invite customers onto their premises. This applies to farmers who have farm stands, pick-your-own operations, or CSAs, as well as to farmers’ markets. For more information regarding landowner liability, visit the Landowner Liability Reading Room.


Sale of Milk- 
In an effort to unify safety standards relating to milk and milk products, the Food and Drug Administration (FDA) has issued a model ordinance known as the Pasteurized Milk Ordinance (PMO). The PMO sets sanitation standards for the processing, handling, and labeling of Grade “A” milk, as well as for the inspection of dairy farms and milk plants. States are encouraged to adopt the PMO, in order to create a unified national system; however, there is no requirement that states do so. One area where this issue arises is the sale of raw milk. The FDA strongly recommends that raw milk not be sold, but it is left to the authority of the states to regulate this product.

False Advertising & Fraud– Because terms like “local” and “organic” have become common advertising buzzwords, there is a question as to whether the use of such terms could constitute causes of action like false advertisement or fraud if printed on a food label. While false advertising and fraud have particularly high standards and burdens of proof, states may have statutes prohibiting false or misleading advertising. For more information regarding food labeling, visit the Food Labeling Reading Room.


Federal Laws and Regulations


National Organic Program- 
Some food that is grown and sold within a local food system is produced in accordance with the National Organic Program (NOP). The purpose of the NOP is to provide national consistency in the certification process of organic foods. For more information regarding the National Organic Program, visit the National Organic Program Reading Room.


Sale of Meat and Poultry-
 Meat and poultry are sometimes sold through CSAs or through other direct marketing venues. If these products are sold or transported through interstate commerce, they must be inspected by the USDA, under the Federal Meat Inspection Act (FMIA) and the Poultry Products Inspection Act (PPIA). If meat and poultry items do not enter interstate commerce and are raised, transported, and sold within a particular state, they are subject to the inspection laws of that state. For more information regarding the FMIA and the PPIA, visit the Food Safety Reading Room.


Agricultural Labor-
 There are a number of federal laws that apply to agricultural labor. These laws may be relevant to farmers whether they hire farm employees or if they bring on interns or apprentices (also referred to as “trainees”). For more information regarding labor, visit the Labor Reading Room.

Food Policy Councils

A Food Policy Council (FPC) is a tool that brings together stakeholders within a local food system and often advocates for food policies at the state or local level. The Kerr Center for Sustainable Agriculture defines “food policy” as “[d]ecisions made by a government or institution, which shape the type and cost of foods used or available, influence the opportunities for farmers and employees, or affect the food choices available to consumers.”

FPCs can take various forms and depend largely upon the needs of the community they intend to serve as well as the mission of that FPC. Many FPCs address concerns about hunger, accessibility of food to urban residents, availability of local food, marketing of local food, farmland preservation, food security, and nutrition.

Food policy councils are comprised of individuals who represent a cross-section of interests relating to the food system. This can include farmers, consumer groups, retailers, restaurants, faith groups, anti-hunger organizations, academia, food processors, and state governmental entities. FPCs are generally formed by government sanction, such as through an executive order, or are established through an existing state or local agency. They can also be formed privately, such as through a non-profit organization.

Other Issue Areas

Additional information on topics related to local food systems can be found in the following Reading Rooms: AgritourismFood Safety, and Sustainable Agriculture.