Wednesday, March 2, 2011

It's the Small Things...

For advocates of local food, it's a success story when government agencies move toward purchasing local foods for their own programs. By sheer volume alone,  these large organizations have a significant impact on local agriculture (read: small to medium size local and regional farms and food processors). This is called preferential purchasing, when a buyer places a preference (in this case where the food comes from) on some aspect of a large purchase. Regular demand from a large institution can mean a lot to a farm or cooperative of growers: a guaranteed market that encourages agricultural production. It seems like an easy win-win: local government agencies like schools, prisons and offices support their own local economy by buying food from local farms. 

But it is not always that easy. Many states, and some federal programs, specifically do not allow preferentially purchasing specifically to ensure equity in the way the public dollar is spent. This is navigated by the elaborate bidding process required for purchase of big ticket items or high volume sales purchased with tax payer dollars. Here's how it works: a state or local government agency puts out a request for proposals (RFP) outlining what they want to buy: a fleet of hybrid cars, four thousand pounds of apples or a new suite of office computers. Individual companies respond to the RFP with a bid outlining the exact details of what they can offer and at what price. The government agency is then required, usually, to select the lowest price bid. This bidding process allows for large purchases to be transparent, unbiased and (hopefully) corruption free.

However, when a food items is to be purchased: the local option does not usually offer the lowest price. Sure, maybe the it's the freshest, the tastiest or the best variety...but not always the least expensive. This can put local products at a disadvantage, especially since in many states it is illegal (ie, not competitive enough) to specify you want a food item from your own state.

So what to do? How can local governments support the purchase of local foods and the local economy in a fair way? Many are turning to changing the laws to allow for more local procurement. This is the case with the New York City Council and the  proposed Local Law to Amend the administrative code of the city of New York, in relation to the purchase of New York state food. Sounds like a mouthful, but it would turn the tide and make it possible for New York City to include a preference for New York State food items when it releases an RFP. Farmers markets and CSA may be the sexy, visible face of increasing access to local food...but subtle policy changes like allowing for the preference of local foods will make dramatic changes in the marketplace for local and regional foods.

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