Making the Case for Local Food Systems as Community and Economic Development: Lessons from Central Illinois Local Food Projects

The Context of the Project

·         Between 1997 and 2002, the number of farms in Illinois decreased by 8 percent, from approximately 79,000 in 1997 to approximately 73,000 in 2002.  The average farm size in 2002 had increased by 7% from 1997, from 350 acres to 374 acres (U.S. Census of Agriculture, 2002).  A major consequence of declining farm numbers is the loss of economic vitality in the small cities and towns that historically serviced the agricultural economy. Along with these trends, consumers in rural communities are increasingly disconnected from farming and food production. 

·         As issues such as food safety, health and nutrition, and environmental concerns continue to confront our agriculture and food systems, local food systems are emerging as an opportunity for rural communities across the nation to deal with these problems.

·         What is a local food system?  A local food system is the production, processing, consumption and disposal of food within a defined geographic region.  Many locally based food systems are defined by the distance producers are willing to travel to sell their products directly to consumers or retail food buyers.  Examples of local food system venues include farmers’ markets, roadside farm stands, community supported agriculture, and institutions buying directly from farmers, among others. 

What Makes Local Food System Projects Work?  The University Connection

·         While there is growing interest in building local food systems as a way to assure food safety and improve health and nutrition, the focus has been on producing locally grown products for large urban markets.  Our project will explore and measure the community and economic impacts of local food systems in rural communities in Central Illinois.  The long-term objective of our project is to create economically viable local food systems in rural Illinois.  Our working hypothesis is that developing local food systems is an effective strategy for community and economic development.

·         Research Methods:

ü      Producers

·         Mail surveys to direct market farmers in 13 county region (Fall 2004)

ü      Institutional/Commercial Food Buyers

·         Mail surveys to hospitals, nursing homes, schools, independently owned restaurants and grocery stores in 13 county region (Fall 2004)

ü      Household Consumers

·         Random sample mail survey of households in 22 county region, over sampled in 6 farmers’ market communities and Fairbury (February 2006)

ü      Local Food Venues

·         Central Illinois Farmers’ Markets

Ø      Intercept surveys of consumers (late summer 2005 and 2006)

Ø      Interviews with market managers (summer 2005)

Ø      Focus group with farmers’ market vendors and managers (February 2006)

·         Fairbury, Illinois

Ø      Intercept surveys of consumers in Dave’s Supermarket (late summer 2005)

Ø      Interviews with key stakeholders in the Fairbury project, including business owners and producers (summer 2005, and ongoing) and participant observation at producer meetings, special events at grocery store and farms

·         Information from this research will be used to develop workshops and educational materials for communities interested in building local food system projects, including a guide for community leaders describing their role in strengthening local food systems.

Lessons from Local Food Systems in Central Illinois

Key research questions:

ü      What are the economic impacts of relationships between farmers and food buyers within the communities? Who benefits from these relationships, and how?

ü      Why do consumers buy local products from farmers’ markets, stores, and other local markets, and if they don’t, what might convince them to begin buying locally?

ü      How can community leaders support these local food projects? 

ü      What are important lessons that other producers, food buyers and communities could learn from these Central Illinois case studies?

Summary of Results

Direct-market producers

• 68% have an on-farm stand, 41% sell at farmers’ markets, and 48% have other direct sales to customers.  Only 14% sell to restaurants, 22% to grocery stores, and none to institutions. Those three markets are where farmers said they would most like to expand product sales.
• 36% of direct market producers surveyed also raised products for conventional commodity markets (corn, soybeans, etc.).  Two-thirds of those farmers used less than half their acreage for direct-market products, yet made more than 50% of their total farm sales from those products.

Institutional/commercial food buyers

• Only 39% of buyers surveyed had purchased locally grown food products in between 2003-2004, with most purchasing fresh vegetables in season.
• Concerns about USDA certification and insurance were the most commonly mentioned barriers to buying local. Convenience and consistent quality and quantity were also important issues for food buyers concerned about buying locally grown food. 

Central Illinois Consumers

• 35% of consumers are unaware that there are opportunities to purchase locally grown food in their communities.
• Households that purchase locally grown foods were more likely to have a vegetable garden (43% of local food purchases, versus 32% of non-buyers, significant at .05 level).
• 43% of consumers said food produced “within 50-80 miles from home” was the best description of local food.  25% said “within 5 miles from home,” and 24% said “grown in Illinois.”
• For consumers who purchase local food, “quality of product” and “flavor and taste” were the most influential reasons, followed by “to support local farmers.”  Price, weekend hours, and variety of products were the top three factors that would influence shopping at local food venues.

Central Illinois Farmers’ Markets

• Results from surveys of consumers at six farmers’ markets found that 65% of respondents agreed developing relationships with farmers was an important reason for shopping at a market.  There is recognition of the importance of the social aspects of farmers’ markets; even respondents who did not purchase locally grown food agreed that farmers’ markets provide a place for community members to socialize.  Shoppers at farmers’ markets are unsure if their community leaders are supportive of the farmers’ market, even at markets that are sponsored by city agencies. 
• Rural consumers are more likely to purchase locally grown food from a variety of different venues including directly from farmers, roadside farm stand, or other farmers’ markets, compared to urban consumers (see chart below).  This poses a challenge for rural farmers’ markets, since shopping at more local food venues means that rural consumers spend less of their money on produce at one specific farmers’ market.  Rural communities will need to consider which local food venues will be most successful in their communities.

Fairbury, Illinois

• In 2004, a group of direct-market farmers collaborated with their local independently-owned grocery store to create an “indoor farmers’ market” inside the store.  The farmers are responsible for stocking products, while the store provides shelf space, advertising and barcodes for the products.  The store receives 20% of the local food sales, while the farmers receive the remaining 80% of sales. 

Key Elements for Building Successful Local Food Systems

Entrepreneurial Farmers: It is important for emerging local food markets in rural communities to recruit farmers who are energetic, enthusiastic, and willing to contribute their creativity and expertise to the development of local food markets.

Independent Retail Outlet: Local decision-making by business owners who are community members allows owners to experiment with new opportunities for buying and selling locally grown food and allows for better communication between business owners and producers.

Communication: Developing formalized, open communication channels between all stakeholders in a local food project – from producers, business owners, and consumers to local officials – can create stronger stakeholder relationships while clearly articulating the goals for the project.

Long Time Horizon to Achieve Success: Promoting a long-term vision for the project and celebrating small successes allow projects to adjust to challenges and grow over time. 

Leadership: Energetic, creative leaders who are willing to collaborate and share responsibility for decision-making provide projects with a strong sense of direction, stability, and shared commitment. 

Community Cohesiveness and Pride: Communities that promote the positive aspects of their community and appreciate their community’s uniqueness may be more willing to support local businesses, particularly local food businesses. 

Supportive Local Officials: Local leaders who see the potential of local food systems as a strategy for community and economic development can provide support through policy, business incentives, and infrastructure needs.

Invested Consumers: Consumers who are supportive of their local business districts are vital to the success of local food markets. Understanding their shopping behaviors can help producers promote products that address consumers’ specific food preferences.

Location: An attractive and competitive location for local food projects – from farmers’ markets to retail businesses – is key to attracting consumers.  Central business districts may not always be the best location for local food markets.

For more information, contact:

University of Illinois at Urbana-Champaign, Laboratory for Community & Economic Development

Leslie Cooperband, Ph.D                                                                   Sarah Hultine

Extension Specialist, Principal Investigator                                        Research Assistant

222 Bevier Hall, 905 S. Goodwin Ave                                     905 S. Goodwin Ave.

Urbana, IL 61801                                                                                 Urbana, IL 61801        

(217)244-2743                                                                                    (217)333-8232

lcooperb@uiuc.edu                                                                             hultine@uiuc.edu