Farmers Market Policy An Inventory of Federal, State, and Local Examples Prof. Neil D. Hamilton Drake University Agricultural Law Center Des Moines, Iowa October 26, 2005 Prepared for Project for Public Spaces, with funding from the W. K. Kellogg Foundation NEIL HAMILTON • Farmers Market Policy Inventory Drake-PPS, 2006 I. Introduction Farmers Market Policy – What is It? The future is bright for America’s farmers markets. Strong demand for high quality fresh food, growing interest by farmers and market gardeners for higher value markets, desires by communities to create social connections and vibrant shopping experiences, and widespread concern over health and nutrition are just some of the forces fueling the growth and awareness of farmers markets. Increasing consumer awareness of local foods, renewed appreciation for taste and seasonality in produce, coupled with a growing willingness by farmers to produce, process and market higher value food products are key ingredients to this trend. All across the nation locally driven initiatives are underway designed to promote local foods, connect consumers with farmers, and improve the opportunities in our food system. Farmers markets are an essential component of these efforts. While the future is bright, there is still significant room to improve the role of farmers markets in our nation’s food and farming system. A critical element in this future concerns the impact of policy and law on markets. This study is designed to provide an assessment of current farmers market policies found in the U.S. and to use this inventory to evaluate the effect of policies and identify how they can be improved. This report was prepared as part of a more comprehensive farmers market initiative being administered by Project for Public Spaces in cooperation with other organizations, including the North American Farmers’ Direct Marketing Association/Farmers Market Coalition (NAFDMA/FMC) with financial support from the W. K. Kellogg Foundation. The initiative includes the recently announced $1 million grant program “Diversifying Public Markets and Farmers Markets” funded by the W.K. Kellogg Foundation and the Ford Foundation. Grants will be provided in three categories – for public market and farmers market networks, for individual farmers markets, and for state and regional farmers market associations. This historic initiative, perhaps the most important example of private support for farmers markets, illustrates how private funding from foundations and the leadership of non-profit organizations can create opportunities to support the development and promotion of farmers markets in the U.S. II. What We Mean by Policy To understand the information in this report it is first important to understand what we mean by policy. In simplest terms a policy is a decision or action by someone in authority effecting the opportunities and responsibilities of others and applying to those in similar circumstances. For example, the rules established to run a market and the actions of the market manager are a form of internal policy applying to all vendors. The decision by a city council to allow markets to operate on city streets or in public parks is a form of external - 2 - NEIL HAMILTON • Farmers Market Policy Inventory Drake-PPS, 2006 policy that creates opportunities and responsibilities for marketers. The decision by Congress to provide funding for farmers market nutrition programs establishes a national policy, just as a state program to provide grants for market improvements exemplifies a state policy. In addition, private entities such as churches and businesses can adopt policies affecting farmers markets, such as by sponsoring a market or authorizing a market to use their property. For purposes of this study we are primarily interested in the policies made by those actors other than markets themselves. In particular the actions and decisions of government bodies or officials operating in some formal capacity are of greatest interest because they establish the legal “policy” environment in which markets operate and reflect public goals. These actions and policies may take the form of legislation, administrative rules, city ordinances, or other official determinations. Policy may affect a market directly, such as a local health rule on what food products can be sold, or the effect may be more indirect such as the decision of USDA to make available a form of crop insurance attractive to direct market farmers. Policy can be seen in a positive light, such as actions to create opportunities such as federal funding for the farmers market promotion program, but policy can also create obstacles to the operation of markets, such as enforcement of state food manufacturing rules which may limit direct marketing. Other policies may be neutral in their effect, or designed to apply across the board, such as a local zoning law requiring a “special permit” for street festivals. Regardless of the purpose of the policy, the value in examining various examples is to identify what action was taken, by whom, the reasons for it, the impact it has, and how the policy can be used or modified depending on its effect and the desired objective. The range of farmers market policies identified are numerous, ranging from city ordinances on the operation and location of markets, state health regulations concerning what foods can be sold at markets, and state programs to fund promotion of farmers markets. At the federal level policy, examples include the actions by Congress to fund the farmers market nutrition programs and the decisions by the USDA and other federal agencies to integrate farmers markets in programs to promote nutrition, education, and health objectives. III. Considering the Context of Farmers Market Policy Alternatives To appreciate this report and understand the policy dimension of farmers markets it is important to understand the premises of this study. It is based on the belief that farmers markets are a critical part of America’s food system and one that should be promoted. It is important that farmers markets be recognized and appreciated for the role they play both in agriculture and in the broader food system. From a farming perspective, the role of farmers - 3 - NEIL HAMILTON • Farmers Market Policy Inventory Drake-PPS, 2006 markets reflects a range of opportunities. For some farmers they are a minor source of income, but an important form of social connection to the local community. For a significant number of producers, the markets may reflect an important source of income to supplement other farm income or provide a farm-based addition to a primary non-farm occupation. For a smaller but significant number of families, farmers markets represent both a major source of income and the primary or sole source of farm income. In the answers provided to Rep. Kaptur in May 2005, the AMS estimated that 116,000 farmers direct market their produce to consumers. The point is, regardless of the amount of sales for an individual producer, farmers markets represent a valuable and growing source of potential markets and income. Key Observation – For the nation to develop the range of policies and programs most beneficial to promoting farmers markets, and to obtain the political support for those policies, it is critical more up-to-date information on the number of markets, the amount of sales and the income being received by farmers be collected and made available. Without better information, it is too easy for policy makers and government officials to dismiss farmers markets as a quaint but economically or socially unimportant part of our agriculture system. An important source of information on farmers markets is the research and survey work conducted by Gus Schumacher and his team at the Farmers Market Project (www.farmersmarketsusa.org), with funding from Environmental Defense and the W.K. Kellogg Foundation. In the context of America’s food system it is important to consider the role played by farmers markets. The wide availability of markets, the low barriers or costs of marketing, the strong interest by local consumers, and the opportunity to use markets to promote other farming and marketing ventures all combine to make markets a significant component of our food system at the local, state, and national level. Farmers markets have been the venues where many important food companies have been launched. The markets can serve as incubators for new food businesses and the development of new value-added food products. Markets also serve as the place where producers learn and develop marketing skills they may later utilize in other ways. This may include joining with other producers to sell products into wholesale markets, engaging in institutional marketing, such as to local schools, or diversifying the range of products grown and marketed. Key Observation – It is important to recognize farmers markets as one of the most accessible and visible expressions of our food system and as a significant test kitchen for new arrangements and opportunities in food production and marketing. IV. How the Study Is Organized In conducting this study, Project for Public Spaces and the W.K. Kellogg Foundation were interested in examining three primary questions: - 4 - NEIL HAMILTON • Farmers Market Policy Inventory Drake-PPS, 2006 1. What regulatory or policy obstacles do farmers markets face, both to start-up and to ongoing operations? 2. How have local markets overcome policy obstacles and impediments? 3. What are federal, state, and local officials doing to facilitate farmers markets? To address these questions, the discussion is organized around the different levels of government policies that exist. This organization provides a way to identify the type of issues most commonly encountered and at which level of government. The third issue, what public officials are doing to facilitate markets, is the most significant question, and it was addressed by reviewing an inventory of policy examples uncovered in the research.