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Most regulations that directly affect local food systems take place at the State or local level, such as those related to public safety and health, or applica- tion of sales taxes. At the State level, a range of policies help create the environment in which farmers’ markets operate. These include programs to expand the number of farmers’ markets and use the markets to accomplish other economic development goals, such as the marketing of State identifi ed food. For States participating in the Farmers’ Market Nutrition Programs, signifi cant questions relate to who will administer the program and where the required matching funds for administration will come from.

State and local policies can have important impacts in areas such as farm to institution procurement policies and the use of electronic benefi t transfer (EBT) cards at farmers’ markets. Paper food stamp coupons were replaced with EBT cards in June 2009. EBT allows recipients to authorize transfer of their government benefi ts from a Federal account to a retailer account to pay for food products received (USDA, FNS, 2010b). Although SNAP is federally funded, it is administered at the State and local levels, so policies on acceptance of EBT at farmers’ markets vary. A USDA survey of farmers’ market managers found that the use of EBT terminals to accept food stamps ranged from 0 percent of farmers’ markets in the Southwest to 15.9 percent in the Far West (Ragland and Tropp, 2009). Some States have enacted laws

22_{The U.S. Census Bureau pro-} vides information on animal slaughter- ing and processing plants with paid labor, and 19 or fewer employees. In 2007, States with the highest number of these plants included Texas (130), California (113), and Missouri (101) (U.S. Census Bureau, 2009).

to fund pilot programs that provide EBT access to farmers’ markets, while other States have partnered with local businesses, farm groups, and banks to create pilot programs. USDA also provides free wired point-of-sale machines in some States for EBT transactions.23

Some States and localities offer incentives to low-income people to shop at farmers’ markets. New York City’s Health Bucks Incentive Program distrib- utes free coupons to low-income consumers for purchasing fresh produce at farmers’ markets. States and municipalities can also support farmers’ markets by supporting land use policies that favor small farms and zoning policies that make space for markets.

Legislatures in a few States have funded efforts to promote farmers’ markets and expand their availability. Several States have implemented programs to regulate the development and operation of farmers’ markets, and specify the types of products that can be sold in order to develop consistent statewide standards. In recent years, a number of States have created State Food Policy Councils to stimulate statewide discussion of opportunities and potential impact of government policies.24 _{At the local and regional levels, policies}

relating to farmers’ markets are among the most common activities under- taken by the councils (Hamilton, 2005).

There is also some policy movement at the State level on broader systemwide legislation. For example, the Illinois Food, Farms, and Jobs Act was signed into law in 2007 to create a task force to encourage and promote local food production.

The National Conference of State Legislatures has compiled a comprehen- sive, searchable database that lists all State policies and policy proposals related to local foods since 2004 (fi g. 11).25 Most of these bills address devel- opment and promotion of farmers’ markets and farm to school programs. Other local food topics include establishing commissions to provide advice on creating and sustaining local food markets; amending laws to permit farm

23_{Congress recently authorized} AMS to set aside 10 percent of Farm- ers’ Market Promotion funds to help farmers’ markets acquire wireless EBT terminals (Ragland and Tropp, 2009).

24_{Food Policy Councils are com-} prised of a broad range of individuals from farm and consumer groups, food processors and distributors, anti-hunger groups, academia, and State govern- ment.

25_{The status of the bills is catego-} rized as active, inactive, adopted as law, vetoed, or carried over.

Figure 11

State legislative bills focusing on local foods, 2004-09

Source: National Conference of State Legislatures, Healthy Community Design and Access to Healthy Food Database 2010.

Number of bills

Farm to school programs

Farmers’ markets Other

0 20 40 60 80 100 120 140 160 180 2004 2005 2006 2007 2008 2009

Farmers' markets and farm to school programs

operations to advertise with roadside signage; and strengthening distribution networks for local foods.

Most policy issues facing farmers’ markets develop at the local level because farmers’ markets are a local activity (Hamilton, 2005). The most commonly encountered local policy issues relating to farmers’ markets are operational questions, such as where the market can operate, parking, security, and confl icts with adjacent businesses. These policies can be signifi cant factors in determining the success and existence of a market. Cities also address issues related to regulation of farmers’ markets, such as the need for permits, zoning exceptions, or approval of a market ordinance. Cities may be involved in promoting and developing markets as part of a local food policy initia- tive or may assume responsibility for operating and funding markets. For example, Berkshire Grown, originally the Berkshire Regional Food and Land Council, promotes food, fl owers, and plants produced in the Berkshire region of Massachusetts and builds partnerships between farmers, chefs, and consumers (http://www.berkshiregrown.org).

Benefi ts of Local Food Markets: A Look at