Local Food Systems

The local food movement has been gaining momentum in the United States, with farmers’ markets and new direct-to-consumer arrangements such as Community Supported Agriculture (CSAs) gaining in popularity. Yet while proponents of local food point to its environmental, economic, and social benefits, little research has investigated the impact of local food on community wellbeing. Vermont leads the country in farm stands, direct-to-consumer sales, and farmers’ markets per capita and the town of Hardwick has received attention for its growing economy based on new food and agriculture businesses. This project applied a multi-disciplinary methodology to assess the impact of a local food economy on the environmental, economic, and social wellbeing of the community. 

With the recent and continued growth in the demand for locally grown food, questions emerge about market characteristics, the capacity of local food systems to support regional economic development, and the economic aspects of the production and consumption of local foods. What do we know about the economics of local and regional food systems? What is the status of research in this arena? The authors and contributors to this report found no comprehensive literature review concentrating solely on the economics of local or regional food system development. We seek to address this literature gap by providing a review and annotation of key publications on the economics of local food system development. Within this subject, we specifically focus on the characteristics of local food markets, local food consumers and motivations for purchases, local food producers and food hubs, and the role of food systems in community and economic development. Potential beneficiaries of this literature review include educators and other academic staff, students, local food advocates, and a range of professionals who participate in local food system development. Structured to highlight key findings from many sources up front, and followed by an annotated bibliography of selected publications, the review is designed to serve as a helpful introduction to recent research on the economics of local foods in the United States. Food system research in the state of Minnesota receives a special focus in this review. 

Food hubs—businesses that actively manage the aggregation and distribution of source-identified food products—are receiving continued, growing attention from diverse stakeholders who see food hubs as vectors for economic growth and social and environmental change. As consumer desire for local and regional foods continues to grow and evolve, food hubs are increasing in number and adapting to shifting demand from intermediated local and regional food markets. The 2015 National Food Hub Survey and its predecessor, the 2013 National Food Hub Survey, represent a broad effort to aggregate national-level data on the characteristics and impact of food hubs. Together, these surveys represent the beginning of a longitudinal database from a large, broad national sample of food hubs.