Do Local Food Programs Bear Fruit?

The city of Lincoln in recent years has launched a plethora of programs to support purchases of locally produced foods. Adopted in 2023, it’s Local Food System Plan, “seeks to strengthen the security of food produced, processed, and consumed in Lincoln.” Mayoral proclamations call for a “Growing and Sharing Season Day” and a “Local Food Challenge” in support of the plan. Lincoln is not alone. Communities large and small celebrate locally produced food and implement programs to encourage residents to grow their own food or purchase from local producers. Local food program goals are many: providing for a more resilient and self-reliant food supply; supporting local farmers; expanding markets; creating jobs; improving health outcomes; reducing greenhouse gas emissions; and instilling a sense of pride in the community are all objectives.
Do local food programs achieve the objectives set out for them? A review of research by North Carolina State extension concluded that “it depends” (as only a true economist could love). Take the goal of contributing to the local economy. When purchasing from local farmers and businesses, money spent will contribute to the local economy through multiplier or spillover effects resulting in increased jobs and income. However, purchasing local food might mean shifting spending from other local businesses. If so, it doesn’t change the total amount of money spent locally and comes at the expense of jobs and income in other local businesses, i.e. grocery stores. And, if purchasing local foods costs more, the extra dollars spent on food could be to the detriment of businesses selling non-food items. Thus, any economic benefit is dependent on whether extra money is spent locally, or the local food purchases simply replace other spending.
As to the environmental goals, purchasing local food is assumed to be more environmentally friendly and sustainable. The benefits are thought to come through reduced transportation distances or “food miles.” Again, research suggests environmental benefits are not necessarily a given. Transportation only accounts for a small portion of greenhouse gas emissions in food distribution and transportation efficiency is often more important than distance. Regional, national, and global food systems, because of economies of scale and efficiency, often result in fewer emissions than local food systems which require several short trips by producers. And there’s no guarantee local production is more sustainable without knowing their production practices.
Local food programs support local farmers and provide a sense of community. Farmers markets and local food coops bring communities together. Research, though, shows that the economic or environmental benefits touted for such programs may not bear fruit. Trade-offs occur and benefits are dependent on the right conditions and factors.

