How Buying Local Can Pull States (and the Country) Out of Debt

If you could boost your state's economy just by purchasing local apples instead of those grown across the county, would you pony up the extra cash?

While it seems unlikely that small changes in food purchasing decisions can result in a full-scale reversal of a state's economic condition, a new study shows just how important local food dollars are (or can be) to a state's economy.

The University of Georgia's Center for Agribusiness and Economic Development recently published a study finding that state residents could significantly increase Georgia's tax revenue by spending just a little more on local food each year. Specifically, if each of the state's 1.7 million households spent just $10 more annually on locally produced farm products, Georgia would collect an additional $1.9 billion in funds, enough to cover the entire $1.7 billion budget shortfall predicted for the state in 2012.

Currently, many of the nation's leading food-producing states are dead broke. For example, both Illinois and New York are facing multi-billion dollar budget deficits in 2012, yet they rank as two of the top-producing farm states in the country. If residents of these states decided to purchase just a small amount of their food locally, they might be able to avoid difficult budget decisions like having to slash funding for programs that protect farmland in order to keep state parks open (as happened in New York this spring).

The University of Georgia study also highlights an under-acknowledged fact that many sustainable food advocates have always known: Buying local food keeps more money within local communities.

For example, instead of purchasing food at chain grocery stores (which often send food dollars to companies located outside where consumers live), buying directly from local farmers leads to more state tax funds that get reinvested into local communities. These funds take the form of road improvements, new schools and community centers, and essential services like police and fire stations. A couple bucks spent on some local apples, then, can have far-reaching effects that benefit an entire community.

And buying local doesn't just mean shopping at farmers' markets, either. Look for products marketed by regional farm cooperatives, like Cabot in New England. These cooperatives pay farmers a fair price for their products and keep the money circulating within the region.

We can wait for our elected leaders to craft a master plan to finally mend the country's economy, or we can take action to improve it on our own. Make the choice to buy local to support farmers and, even more importantly, stop your food dollars from leaving the communities where you live.

Photo credit: Gary Soup via Flickr