Create Good Jobs and Strong Economies

Nevada state legislators on an agriculture tour hosted by State Innovation Exchange and local farmers.

State policymakers can support rural Main Streets in a variety of ways. Enacting a state version of the federal Startup Opportunity Accelerator Act would support rural entrepreneurs and build entrepreneurial ecosystems through investment in startup accelerators and incubators in rural, low-income, and other underserved communities. There are also opportunities for business development paired with strategies to address other community needs, such as lack of affordable healthy food.

Regional Food Economies

Both consumer demand for local food and the interest of new and established farmers in producing it have skyrocketed in the last decade, but the supply is still often limited by the lack of physical processing infrastructure. Many local and regional canneries, slaughterhouses, butchers, dairies, and similar food processors closed in the 1980s and 1990s, eliminating a critical part of a local food system. Investment in building or rebuilding this infrastructure has significant economic benefits, supporting local farmers and creating jobs.

Meat Processing

While meat processing is regulated at the federal level, there is a great deal that states can do. In 27 states, the state departments of agriculture have the authority to inspect meat processing facilities, rather than requiring inspection by USDA, as in the remaining states. Meat processed at state-inspected facilities may be sold within the state. States with these programs can ensure that they are robust and well-funded; they may also apply for the Cooperative Interstate Shipment (CIS) program, which allows meat from state-inspected plants to be sold in other states. Labor can be a major sticking point for developing processing capacity. Some community colleges, high schools, and other institutions are investing in vocational programs to train workers in the skills that a small meat processing plant requires.

Cottage Food and Food Hubs

To support the interest and economic potential of local food economies, many states updated their cottage food laws in recent years to allow home cooks and bakers to sell homemade products. Another route is public investment in community commercial kitchens that are available for local food producers to make their food products. These are often developed by a nonprofit, with collaboration from local and regional governments and businesses. USDA grants can be a key to getting the facilities built. State funding can play a role too.

Food hubs can be another key element of developing and strengthening local food systems. As with commercial kitchens, development of a food hub is not generally driven by a state initiative, but it can be supported and funded by state action. For example, a Georgia state senator was able to direct state funds to a new food hub in a predominantly Black rural Georgia county by working closely with local community members. There is also an opportunity for states to earmark federal dollars, such as from the COVID-19 relief or infrastructure packages, for local food infrastructure.

Food policy councils or advisory boards can help to coordinate efforts across agencies and between states and the federal government, which can bolster sustainable agriculture and food networks across the country. States can significantly increase demand for local food through procurement policies, whether directly through procurement requirements by state-run agencies or incentives for institutions run by other entities.

SNAP and EBT

Another way that states are expanding access to local food is through increasing use of Supplemental Nutrition Assistance Program (SNAP) funds through Electronic Benefit Transfer (EBT) cards used at farmers markets. SNAP benefits are paid for entirely by federal funds, though administrative costs are shared equally between the federal and state governments. States must appropriate funds to establish and administer programs to accept EBT at farmers markets. These authorizations and appropriations often must be extended in order to maintain the program; some states have failed to do so and have lost the ability to accept EBT at markets. At least 29 states have a version of Double Up Food Bucks, a 2-for-1 farmers market matching program for produce started by the Michigan-based Fair Food Network and now adopted and adapted around the country.

Agriculture and Worker Cooperatives

Cooperatives play an important role in U.S. history, in agriculture and beyond. Historically, they served to address general economic problems of under- or overproduction, business uncertainty, and excessive costs, while giving more control of resources to those who produce them. Cooperatives continue to be a tool to support fair economic development and growth in rural communities.

There are several types of cooperatives, and nearly any business or other relationship can be established as a cooperative. Financial and farmer cooperatives that support agricultural producers are well-established, and some states are exploring ways to expand worker cooperatives to support economic recovery, build community wealth, strengthen retirement security, improve job satisfaction, and ensure that rural businesses continue following an ownership transition.