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The Agriculture Improvement Act of 2018 directed the US Secretary of Agriculture to report on the profitability and viability of beginning farmers and ranchers. Many beginning operations use local food markets as they provide more control, or a premium over commodity prices, and beginning operations cannot yet take advantage of economies of scale and subsequently have higher costs of production. Little research assesses the relationship between beginning farmer profitability and sales through local food markets. In this paper, the profitability implications of sales through local food markets for beginning farmers and ranchers are explored.

The authors utilize 2013–2016 USDA agricultural resource management survey data to assess the financial performance of US beginning farmers and ranchers who generate sales through local food markets.

The results point to four important takeaways to support beginning operations. (1) Local food channels can be viable marketing opportunities for beginning operations. (2) There are differences when using short- and long-term financial performance indicators, which may indicate that there is benefit to promoting lean management strategies to support beginning operations. (3) Beginning operations with intermediated local food sales, on average, perform better than those operations with direct-to-consumer sales. (4) Diversification across local food market channel types does not appear to be an indicator of improved financial performance.

This article is the first to focus on the relationship beginning local food sales and beginning farmer financial performance. It incorporates short-term and long-term measures of financial performance and differentiates sales by four local food market type classifications: direct-to-consumer sales at farmers markets, other direct-to-consumer sales, direct-to-retail sales and direct-to-regional distributor or institution sales.

The Agriculture Improvement Act of 2018 directed the United States Department of Agriculture (USDA) Risk Management Association to investigate a policy targeted to farms and ranches that sell through local food markets. However, there is no available research that quantitatively documents the extent to which local food producers utilize Federal crop insurance.

The authors utilize 2013–2016 USDA Agricultural Resource Management Survey data to compare farms and ranches with sales through local food markets to those with and without Federal crop insurance expenditure, as well as the distribution of Federal crop expenditure, across market channels and scales.

There is a little variation in Federal crop insurance expenditure across market channels, defined as direct-to-consumer only sales, intermediated sales, and a combination of direct-to-consumer and intermediated sales. Rather, the results show that scale is the primary predictor of Federal crop insurance expenditure; larger operations are more likely to have nonzero Federal crop insurance expenses.

This article provides the first national research to document descriptive statistics of the utilization of Federal crop insurance by US farms and ranches that utilize local food market channels.

Beginning Farmer and Rancher programs are available for operators with ten years of experience or less on any farm. These programs support farmers who are starting operations, often without an initial asset allocation. However, some beginning farmers acquire operations that are already established, with substantial assets in place. The authors investigate whether a profitability gap exists between beginning farmers entering the industry ex novo and those operating a preexisting operation and if so, what factors contribute to the gap.

The authors utilize the Blinder-Oaxaca decomposition to determine what drives financial differences between first-generation beginning farmers, second-generation beginning farmers and established farmers using a unique farm-level panel dataset from 1997 to 2021.

Results indicate that first- and second-generation beginning farmers have similar operating profit margins, but first-generation beginning farmers have a statistically higher rate of return on assets than second-generation beginning farmers. Established farmers outperform second-generation beginning farmers on both the operating profit margin and rate of return on assets. These results suggest that economic viability for beginning farmers differs depending upon the initial status of their operation, suggesting that heterogenous policies may be more impactful in supporting various pathways to enter agriculture.

This analysis is the first to identify beginning farmers that enter the industry without an asset base and those that take over a principal operator role on an established farm through an assumed farm transition. The authors quantify differences in financial performance using detailed accrual-based financial data that tracks farms over time in one dataset.

Beginning farmers have unique challenges securing credit because they are less likely to have established sales and collateral for secured loans. This article explores US beginning farmers’ financing strategies relative to those of established operations, with a focus on the source of financing and debt structure (short- vs long-term usage). Agricultural operations commonly use nontraditional financing tools and strategies to start, build and/or sustain their businesses. This article provides a comparative overview of financing strategies comparing established operators to operations with only beginning operators, as well as those multigenerational operations with at least one beginning operator.

The study uses 2013–2016 USDA Agricultural Resource Management Survey data to explore how various financing patterns vary across US beginning farmers and ranchers with a particular focus on understanding differences where (1) all operators are beginning, (2) there is a mix of beginning and established operators and (3) all operators are established.

This article explores how the nature of beginning farmer status, human capital resources and alternative marketing strategies may influence financial management strategies and lead to differential use of nontraditional financing sources for beginning farmers and ranchers.

Though exploratory, the authors hope that attention to patterns among US beginning farmers and ranchers of reliance on human capital resources including off-farm income and type of beginning farm operation, nontraditional government support programs and alternative marketing strategies can provide important information as to the role of nontraditional credit in the US farm economy.

A body of literature and case studies has developed as part of the reporting, outreach and evaluation of the local and regional food system projects supported by grants and other funders. Yet, there is concern that food value chains are promoted without adequately evaluating the viability of these businesses, or how these markets affect the performance and welfare of key stakeholders: farm vendors and local communities/economies.

This paper reviews and summarizes a comprehensive set of U.S.-based case studies focused on food value chains. We conduct a meta-analysis to systematically capture what available case study evidence tells us about: 1) trends in the viability of food value chain businesses; 2) the impact of these businesses on participating farm vendors; and, 3) the associated community economic development outcomes (framed in terms of ‘wealth creation’).

In addition to sharing findings from the meta-analysis, we demonstrate how the lack of standardized protocols for case study development is a barrier to learning about metric comparisons, best practices, and what impacts these food value chain businesses may have. We conclude with some recommendations of how the field can move forward to evaluate and share lessons learned using more uniform, project-driven case study development.

This is the first study to conduct a systematic meta-analysis of U.S. food value chain businesses.

In recent years, one of the most important and active research areas has been local food. This study aims to examine the evolution and trends of local food research in several disciplines or fields in the 50 years, highlighting emerging research themes, collaborations such as authors, institutions, journals and co-citations such as documents, authors and journals.

A total of 869 local food-related articles from the Web of Science (WoS) database from 1970 to 2020 were analyzed by several bibliometric analyses using CiteSpace II software.

The findings indicate that the number of studies in the local food field has increased rapidly and it is an interdisciplinary subject. Moreover, the results indicate that there is partly collaboration among authors, institutions or countries that conduct research on local food. For example, the most productive authors in this field are in USA, India, Brazil and European countries. Another remarkable result of this study is that tourism and hospitality discipline has focused on local food subject, especially in the last five years.

This is one of the first attempts by using network analysis to directly understand and visualize the interrelated structures of the local food research. Furthermore, the results of this study may provide researchers a reference guide to better evaluate and monitor local food research.