A Government Guide on Building Local Food Economies

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Urban Agriculture

Urban farms within cities can be small in acreage, and the food can either be shared or sold. Some farms set up a formal sales operation to distribute wholesale to restaurants, while others sell through direct-to-consumer channels such as farmers markets (often on site) or through a Community-Supported Agriculture (CSA) system. Urban farms provide more than just working green space for city dwellers: they can also be employment and value-added entrepreneurial activities for residents and a municipal revenue source based on the sales tax levied on farm products sold there.¹² Will Allen’s Growing Power model (growingpower.org), combining urban farming with training and technical assistance to community members to learn sustainable practices for growing, processing, marketing, and distributing food, has been adopted in a number of urban centers and continues to spread.¹³

Urban farms offer many benefits such as access to local fresh food, jobs, and educational opportunities. A study conducted in 2008 highlighted the benefits of middle- to large-scale urban agriculture and provided urban planners with six existing models of urban farms across the country.¹⁴ Bio-intensive production methods, often used in land-scarce urban settings, offer a range of benefits, including a more than 50-percent reduction in water usage and purchased fertilizers, a 100 percent increase in soil fertility, and production of two to six times more food compared to conventional methods.¹⁵ Some farm products sold in their original state by producers may be exempt from sales tax, depending on the state and the size of the farm. In North Carolina, this exemption was repealed and amended in 2014, and farmers must meet particular requirements to be exempt from sales tax (N.C.G.S. 105-164.13).¹⁶

In the past few years, the issue of urban chickens has been brought up in many town meetings, with advocates noting the benefits of fresh eggs, free natural fertilizer, and natural pest control.¹⁷ As of 2016, at least 31 N.C. municipalities and counties allowed “backyard chickens.” In some cities, groups host events to promote backyard chickens as agritourism, such as Raleigh’s annual “Tour d’ Coop.”¹⁸ Local governments can examine whether chickens and other livestock are allowed under their zoning, animal control, or other applicable ordinances. A number of factors should be considered, including whether to allow roosters, the number of chickens, whether to allow commercial sales of eggs or meat, distance from dwellings, amount of land required, enclosure of the house and run area, and sanitation. State and federal regulations also apply to the processing and sale of meat and eggs.

One example of urban farm permissions is in the City of Winston-Salem, where the planning department allowed urban farm activities in all residential districts in the city after urban agriculture was approved as a primary strategy in the Legacy 2030 Comprehensive Plan for Winston-Salem and Forsyth County. The department developed a community guide to approving urban agriculture projects ( Urban Agriculture in Winston-Salem ) and later directed its staff to complete a Food Access Report for the City, outlining needs and barriers for access in all communities.

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Roadside Stands & Mobile Markets

In many rural agricultural areas and in the urban areas that they border, farmers may choose to sell directly to consumers by parking their trucks loaded with fresh produce alongside the road, usually with a sign advertising fresh produce for sale. This type of mobile market is usually allowed in county ordinances related to agriculture. Due to the increase in consumer demand for fresh, local food, many cities and towns in North Carolina also allow mobile markets in downtown areas, especially if a farmers market has not been established. Some municipalities allow outdoor fresh produce stands to be set up in empty parking lots within the town limits during the growing season.

Depending on whether or not the roadside stand is located within a county jurisdiction or municipality, there are a number of questions to consider relating to roadside stands and mobile markets. Is a vendor’s license or permit required for roadside stands? Do sign ordinances apply? Is the roadside stand located on the property where the products were produced? A stand may be allowed under county zoning if it is part of the farm operation and the items sold are produced on that farm. Counties and municipalities should consider amending their zoning ordinances to allow for the retail sale of produce and agricultural products either on the farm where they are produced or at off-site farm stands or mobile produce trucks. Ordinances developed to allow the sale of farm produce at off-site locations allow growers to benefit from higher population densities and traffic volumes that may exist some distance away from the farm.

Landowners who participate in EVAD programs can sell products, on land enrolled in an EVAD, that are not produced on site and receive up to 25 percent of gross sales, while still having those sales fall under the bona fide farm purpose exemption from county zoning. Additionally, the production of any non-farm product on land enrolled in an EVAD program recognized as a “Goodness Grows in North Carolina” product is considered a bona fide farm purpose that may also be exempt from county zoning (N.C.G.S. § 106-743.4(a)). An example of a non-farm product is peanut butter produced from peanuts originating off site from other farming operations.

Communities may allow some flexibility for growers who need to bring in and sell agricultural products from other growers in the same area. This opportunity allows growers to generate additional income and offer a more diverse range of local products. An allowance of collective sales from local farmers is not the same as resell practices that bring food in from outside the region.

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Farmers’ Markets

Farmers markets provide an opportunity for urban and rural residents to purchase fresh, local foods, can increase the incomes of local farmers and at businesses adjacent to the markets, and can bring tourism dollars to downtown areas. A farmers market has a multiplier effect on the local economy because more money stays in the community and is recirculated. In one studied community, for every $100 spent at the local farmers market, $62 was recirculated for a total local impact of $162. In comparison, for every $100 spent at an average grocery store, only $25 is re-spent locally.¹⁹

North Carolina now has well over 200 farmers markets.²⁰ In order to promote thriving farmers markets, counties and municipalities can revise their land-use policies to allow existing markets and promote new ones by defining and listing farmers markets as permitted uses within their zoning ordinances. Unless it is specified as allowed in the zoning regulations, permitting a farmers market to be established or remain in use could be considered a violation of the zoning ordinance.

Governments can also promote farmers markets by providing a site with shade and plumbing, renting space to the farmers market for a nominal fee (a $1 fee is often used), helping advertise the market, providing funding for a market manager, and making sure the markets are accessible via public transportation. Farmers market organizations often work with local governments to provide the administrative framework (rules, regulations, membership, financial record-keeping, etc.) and insurance.²¹ Grower-only markets (those that restrict sales to only items produced by the seller) do more to support developing local food economies than markets that allow non-local produce to be sold alongside local producers. These non-local markets can confuse and anger consumers, who visit markets to support local agriculture, and can anger farmers, who may perceive that these ”local” markets are being advertised inaccurately.

A number of N.C. farmers markets are working to allow the use of Electronic Benefit (EBT) cards (formerly Food Stamps) that are issued to North Carolina Food and Nutrition Services Program participants. This increases the availability of fresh, local food to people with low incomes and brings new customers to the markets and increases sales for farmers. Currently, at least 53 N.C. farmers markets or individual farmers market vendors accept EBT cards.

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D. Comprehensive and Strategic Plans

Elected officials in county and city governments rely on community input and comprehensive land-use plans to make decisions regulating development and use of public and private lands. The plans guide a community’s growth, as well as the enactment and amendment of zoning and other ordinances. Through comprehensive plans, residents work together to create a future that considers the prosperity and well-being of the region. Agriculture should be included because it is a key contributor to the local economy and community health and because farmland, forestland, and horticultural lands can provide a number of other benefits to a community, including open space and wildlife habitat.

Many communities across the country are including sustainable, local foods in their region’s long-term plans. The impetus for food system planning often begins with municipal, county, regional, or state food policy councils that engage with government officials, conduct food system assessments, and make recommendations based on the findings. Food policy councils and food system assessments are discussed in more detail later in this document.

In North Carolina, the NC Association of Regional Councils of Government has included small-scale agriculture and food system development in its NC Tomorrow Comprehensive Plan. Food systems meet the requirements of a number of guiding standards and principles for comprehensive planning, including EDA Investment Priorities and EPA/HUD Livability Principles for such principles as environmentally sustainable development, valuing communities and neighborhoods, enhancing economic competitiveness, fostering resilience and regional successes, and increasing multi-disciplinary collaboration.²²

Additionally, Piedmont Triad Regional Council (covering twelve counties) recently worked with CEFS’ Community Food Strategies team to conduct regional planning and visioning for a collaborative approach to the local food economy.²³ Piedmont Together, the regional initiative to explore development opportunities, focused its food system work on examining networks of aggregation and distribution hubs and farm incubator projects.²⁴

Citizen input and long-term strategic planning are important to the overall success of these efforts. The effectiveness of farmland protection planning is enhanced when farmers are encouraged and given concrete opportunities to participate in the planning process. An important consideration when creating comprehensive plans is to budget sufficient funds to employ staff to actually implement the plan. Farmland protection plans can also be included or referenced in regional, county and municipal comprehensive plans.

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E. Farmland Protection Planning & Tools

Farmland protection initiatives protect farmland, farmland-dependent businesses, and employment in these businesses. Agriculture and agribusiness are North Carolina’s leading industries, producing 20 percent of the state’s income, and employing 17 percent of the state’s workforce.²⁵ Protecting farmland means protecting the economic and social vitality of North Carolina communities.

Farmland preservation is vitally important for maintaining the appropriate land on which to grow food. North Carolina ranks as one of the states with the greatest loss of farms and farmland, with 2,695 farmers and 100,000 acres lost between 2007 and 2012.²⁶ The average age of a farmer in N.C. is 59, and the aging of farmers increases the likelihood that more acreage will transition from farming to development in the next decade. This loss of farmland represents a loss of cultural history, a loss of knowledge of farming techniques and practices, and a loss of economic opportunity in rural and urban areas. The businesses that support local farms and that provide employment are also threatened, including traditional agricultural supply companies, associated businesses such as fuel suppliers and fertilizer dealers, and food processing and distribution companies.

Another important economic factor for county and municipal governments to consider is the cost of services for housing developments versus farms. When a new housing development moves into what was once farmland, counties and cities must build infrastructure in the form of roads, schools, and water and sewer, and provide services such as fire, police, and emergency medical services. A number of studies in N.C. counties indicate that residential properties can cost counties more in needed services than they provide in revenue, while farms and forestlands pay more taxes than the services they require.²⁷

For example, for every dollar of revenue that Alamance County collected in 2010, the cost of providing services to various types of properties were as follows: residential ($1.46), commercial/industrial ($0.23) and farm/forestland ($0.59).²⁸ These results do not mean that local governments should not allow development, but they do indicate the importance of balancing residential development with farms and forestlands.

Counties and municipalities can contribute to protecting the future of working lands in agriculture and forestry by developing long-term plans that use tools to address community food issues and needs. A variety of existing tools are available to municipal and county governments to conserve working farms and forests. These include cost-share programs, right-to-farm laws, purchase of development rights, present-use value taxation, agritourism, funding from federal and state programs, and technical assistance through the North Carolina Cooperative Extension Service, North Carolina Soil and Water Conservation Districts, and universities and colleges across the state.²⁹ The following sections provide an overview of farmland protection tools and county and municipal ordinances that can be used to protect working farmlands.

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Farmland Protection Plans & Funding

Farmland protection plans preserve farmland by identifying the extent and type of agricultural activity in a county and making recommendations on how to protect working farmlands. They can be useful guides for local governments when considering future development, and elements of the plans may be referenced or incorporated directly into county and municipal comprehensive plans, as noted previously. As of 2016, 50 North Carolina counties had developed countywide farmland protection plans.

Voluntary Agricultural District advisory boards, which are formed from the enactment of Voluntary Agricultural District ordinances, can take the lead in developing farmland protection plans and inform government officials and citizens of the benefits of both farmland protection and local food systems. These boards can also be responsible for implementing action items in a plan.³⁰

For example, Durham County’s Farmland Protection Advisory Board has co-sponsored workshops on local and direct marketing opportunities for farmers, grant and cost-share opportunities, and ways to lower tax rates through the present-use taxation program (discussed later in this document), and works closely with the Durham Soil & Water Conservation District and the Piedmont Conservation Council to pursue other market opportunities. Chatham County’s plan addresses farmland preservation and agricultural economic development issues, and it includes recommendations for the county to promote farmer access to wholesale and retail markets and to create a program to retain and recruit farmers.

The Agricultural Development and Farmland Preservation Enabling Act was amended in 2005 to authorize the North Carolina Agricultural Development and Farmland Preservation Trust Fund (NCADFPTF).³¹ This fund focuses on conservation, growth, and development of farm and forest land by encouraging the development of farmland protection plans, conservation easements, and agricultural development projects.³² The act also authorizes the creation of voluntary and enhanced voluntary agricultural district programs (discussed below).

The NCADFPTF provides grants to county governments and nonprofit groups to create farmland protection plans and develop other types of programs affecting land use for agriculture (such as Voluntary Agricultural Districts), grants to fund conservation easements, and grants for programs that develop economically viable agriculture operations such as infrastructure development and market promotion.³³ When receiving trust fund monies, counties that already have a farmland protection plan are given preference with regard to the amount of county funds they are required to match, depending on their development tier. In July2015, farmland preservation programs were awarded $2.13 million in recurring funds in the state appropriation budget.³⁴

Both county governments and non-profits can apply for NCADFPTF funds. For example, the non-profit Appalachian Sustainable Agriculture Project received funds in the 2010–2011 grant cycle to develop marketing opportunities for farmers. Orange County used NCADFPTF funds to support a shared-use, value-added processing facility. Cabarrus County used funds to build meat slaughter capacity and infrastructure to expand markets for area livestock producers.

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Present-Use Value Programs

North Carolina’s present-use value program (N.C.G.S. §§ 105-277.3 through 105-277.7) serves as one of the most important working-land preservation tools in North Carolina. Recent updates from the 2015 legislative session have changed some of the parameters of the program, which allows reduced county tax assessments for individually owned property used for agriculture, horticulture, or forestry.

To qualify, applicants must meet requirements for ownership, size, income, and sound management. Generally, farmland must have at least one tract of 10 acres in active production; horticultural land must have at least five acres in active production; and both must generate at least $1,000 in income each year and be under a sound management program. Forestland must be at least 20 acres in size and does not need to generate income but must be managed or harvested according to an approved forest management plan.³⁵ There are many exceptions and custom approaches, however, so each landowner applying for the program should rely directly on the NC Department of Revenue’s guidance on this topic. (See resources below.)

Property accepted into this program is taxed at its “present-use value” for its farm, forestry, or horticultural use rather than the value of its “highest and best use,” which in many areas would be for residential, retail, or other commercial uses. The value as farmland is usually less than the market value of the property. The difference between the market value and the present-use value is deferred indefinitely until it no longer qualifies. When the land ceases to meet eligibility requirements, the difference between the market value and the present-use value for the prior three years and the current year must be repaid.

Farmers use of present value as a means to reduce tax rates can be compromised if municipalities enact zoning or other ordinances that reduce the farm’s ability to meet the income eligibility requirement. If land use is not in accordance with present-use value requirements, the owner must pay the difference between the market value and the present-use value for the current and prior three years. Therefore, local governments should consider how their zoning ordinances and other land-use regulations impact farming, forestry, and horticultural activities and whether the ability to meet present-use value income, production, or other requirements might be affected by these regulations. A conservation easement placed on land currently under present-use value that is annexed at a later time by a municipality may be able to continue to qualify for enrollment in a county’s present-use value even if it is not able to fulfill income or production requirements. SL 20160-76 ( H 533 ) exempts landowners from the 3-year tax rollback requirement if they sell PUV-eligible property to a land conservation organization or government agency.³⁶ This is a significant incentive and can be helpful to farmers in their long-term strategies for succession and estate planning.

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Voluntary Agricultural Districts (VAD)

Voluntary Agricultural District (VAD) programs are established at the county or municipal level to protect farmland from non-farm development and are authorized under the Agricultural Development and Farmland Preservation Enabling Act (N.C.G.S. §§ 106-735 through 106-749). As of 2016, agricultural districts (VADs and Enhanced VADs, discussed below) were present in all but 13 of North Carolina’s 100 counties.³⁷ Although these programs have been implemented primarily by county governments, municipalities also have the authority under the act to implement their own programs as well. The increased pressure of housing developments in rural areas often prompts the creation of these district programs.

One of the major goals of a VAD program is to increase public awareness of what it means to live near a farm and to prevent nuisance complaints arising from the proximity of non-farm uses to farming activities and their associated noises, smells, and other agriculture-related characteristics. Farmers identify their membership in the program through mapping of enrolled farms in Geographic Information Systems (GIS) and by using signage that indicates to potential neighbors that the land is used as a farm and participates in a VAD program. This mapping can inform those within some distance of a VAD farm, typically ½ mile, of the potential for noise, odor, dusts, and slow-moving farm vehicles. See Appendix A for an example map of a VAD and the properties that are included within the ½-mile distance for notification purposes. Local governments benefit from VAD programs as they provide a mechanism for planning for agricultural development while managing and reducing conflicts between farm and non-farm land uses.

VADs are created by ordinance at the municipal or county level, and these ordinances may be enacted differently from one jurisdiction to the next. In some programs, land must be enrolled, or qualify to be enrolled, in a county’s present-use value program for it to be enrolled in a VAD program. Other programs across North Carolina may have differing enrollment requirements. For example, programs following the requirements of the Agricultural Development and Farmland Preservation Enabling Act (N.C.G.S. §§ 106-735 et seq.) will require that the land be real property that is engaged in agriculture as that word is defined in N.C.G.S. § 106-581.1. Landowners must sign a revocable conservation agreement that limits the non-farm uses and development on the property for a period of 10 years, with the exception of the creation of not more than three lots that meet applicable county zoning and subdivision regulations. By written notice to the county, the landowner may revoke this conservation agreement with the revocation resulting in the loss of qualifying farm status. Restrictions on non-farm development and uses are outlined in the Agricultural Development and Farmland Preservation Enabling Act and the Conservation and Historic Preservation Agreements Act (N.C.G.S. §§ 121-34 through 121-42.). Additionally, highly erodible land must be managed in accordance with Soil Conservation Service defined erosion-control practices.

Landowners can benefit in a number of ways in exchange for voluntarily restricting non-farm development and uses on their property for 10 years. The incentives to join are determined locally and vary according to each local government’s ordinance. Many ordinances provide for signage, mapping of enrolled farms in the GIS for the purpose of notifying new neighbors, waiver of water and sewer assessments for enrolled land, and public hearings in the event that enrolled land becomes subject to condemnation by state or local units of government.

Farmers, county commissioners, city councils, and land-use planners can form partnerships to create a VAD program, and these programs should be included in county and municipal farmland protection planning. The Agricultural Advisory Board created as part of the establishment of a VAD also acts as an advisor to the governing board of the county or city on projects, programs, and issues affecting the agricultural economy, including promotion of a sustainable and local food system. For example, Johnston County’s Voluntary Agricultural District Advisory Board drafted an Agriculture Development Plan that identified growth in local food consumption and production for institutional sales as opportunities for county economic development and recommended improvements in access to local and regional markets at the wholesale and retail levels.³⁸

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Enhanced Voluntary Agricultural Districts (EVAD)

Both counties and municipalities may establish EVAD programs as authorized by the Agricultural Development and Farmland Preservation Enabling Act. Unlike the VAD program, EVAD conservation agreements are irrevocable for a period of 10 years and are automatically renewable for a three-year term unless notice of termination is given in a timely manner by either party as provided for in a county or municipality’s EVAD ordinance. Like the VAD program, to participate in the EVAD program the land must be real property that is engaged in agriculture as that word is defined in N.C.G.S. § 106-581.1 and be enrolled (or qualify to be enrolled) in a county present-use value program (if the ordinance has the latter requirement).

The same benefits allowed under state law for enrollment in a VAD program are also provided to farm operations on land enrolled in an EVAD program. However, participants in an EVAD conservation agreement may obtain additional benefits not provided to VAD participants. These individuals may receive a higher percentage of cost-share funds for the benefit of the enrolled land under the Agriculture Cost Share Program. Another economic benefit is that farmers who participate can receive up to 25 percent of gross sales from the sale of non-farm products on the enrolled land and still have those sales qualify as a bona fide farm purpose that may be exempt from county zoning regulations. Finally, state departments, institutions, or agencies that award grants to farmers are encouraged to give priority consideration to individuals farming land subject to an EVAD agreement.

Like the VAD program, municipalities can create and administer their own VAD or EVAD programs or work with a county through an inter-local agreement to participate in a county program. Alternatively, municipalities can have the county administer a municipal VAD or EVAD program. One of the key requirements for participation in some VAD and EVAD programs is enrollment (or qualification for enrollment) in a county’s present-use value program.

Local governments should consider whether their local regulations currently allow land to be used in a way that permits the land to qualify for enrollment in a present-use value program. Without enrollment in present-use value, landowners will not be able to participate in a VAD or EVAD program if this is a program requirement. Additionally, they will likely face higher property taxes, which may be one factor that forces farmers to sell their land for development.

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City/County Memorandum of Understanding for VADs and EVADs

In North Carolina, counties and municipalities can work together to administer farmland preservation programs. Under the Agricultural Development and Farmland Preservation Enabling Act, land cannot be included within a county VAD or EVAD program if it is contained within a municipal corporate boundary. Under this condition, cooperation is necessary between a county and a municipality for a farm to be able to participate in a county program, assuming that the municipality does not have its own VAD or EVAD program.

Often, the cooperation needed entails signing a formal Memorandum of Understanding (MOU) between the county and city governments so that farmland, forestland, and horticultural land contained within a municipality’s corporate boundaries can be enrolled in a county VAD or EVAD program. Additionally, under this type of agreement, when other land is later annexed into a municipality, the land can continue to participate under the county’s VAD or EVAD program. Working together, a county and municipality can both economically benefit by preserving working farmlands and by supporting growers and activities on those lands. Landowners benefit through continued participation in a VAD or EVAD program even when their land becomes part of a municipality’s corporate boundaries. To preemptively address nuisance complaints, municipalities can also use VAD and EVAD programs to notify new or prospective residents, property buyers, and developers about farming, forestry, and horticultural activities and the associated noise, smells, or other characteristics of those activities.

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Conservation Easements

County governments, municipalities, and non-profit agencies can work together to obtain conservation easements—restrictions on rights to use or develop land in order to protect natural resources such as farmland, water, or wildlife. Easements can affect a number of land-use rights and may affect other rights such as water and mineral rights, but they can be structured to still allow farming, timbering, hunting, and other income-producing activities. The land remains in private ownership, and the easement can be tailored to meet the landowner’s needs. The land encumbered by a conservation easement must be monitored by the easement holder, either a government agency or nonprofit such as a land trust, to ensure the terms of the easement are met. Land trusts are typically the holders of easements.

Conservation easements are usually perpetual, although others may be term easements covering a specific number of years. Term easements do not qualify for state or federal tax benefits, however. Landowners who donate a perpetual conservation easement may qualify for federal income tax deductions, and their heirs may benefit from reduced estate taxes on the land encumbered by the easement.

States may also offer conservation tax credits, although North Carolina’s was repealed in the General Assembly in 2013. Additionally, local property taxes may be reduced if the highest and best-use value of the land is based on development and this use is limited by an easement. Under North Carolina law (N.C.G.S. § 121-40), land and improvements subject to an easement are assessed on the basis of their true value less any reduction in their value caused by an easement.

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F. Land Use & Zoning Ordinances

Ordinances—city and county laws—can impact the location of agricultural activities directly or indirectly by restricting the activities that can take place on designated lands. Counties and municipalities have multiple methods regulating land use that can provide flexibility for agricultural activities. This section addresses zoning and land use regulation strategies that can be examined for ways to further agricultural development.

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Municipal and County Regulations of Land Uses

Land-use and land-development ordinances are one means by which a local government carries out the policies set forth in comprehensive and community development plans. Whether for small-scale farms, larger farming operations, or community backyard gardens, ordinances must be amended to allow for these uses if they do not do so already.

A town may apply various development-related ordinances and programs both inside its town limits and in an area outside the town’s primary corporate limit, referred to as its extraterritorial planning jurisdiction (ETJ). Such an area typically extends not more than one mile outside town limits, but in some cases it may extend up to three miles beyond a municipal boundary. Towns may also obtain authorization from the General Assembly to extend their ETJ even further than that allowed by statute.

A town may enforce its land subdivision ordinance, its zoning ordinance, its soil erosion and sedimentation control ordinance, its flood hazard protection ordinance, and the state building code in its ETJ. For example, if property was added to a city’s ETJ, the land may become subject to municipal land-use ordinances that set standards for the location of farming activities, for buffers between farm and non-farm uses, and for the height and material of farm fences. However, if a parcel or portion of a parcel is being used for a bona fide farm purpose, as defined and described in N.C.G.S. § 153A-340(b)(2), it may be exempt from exercise of the municipality’s ETJ and the enforcement of these ordinances on that property (see section below on Bona Fide Farms).

Municipalities still have the responsibility for regulating the construction of barns and other accessory agriculture structures in their ETJs and corporate boundaries. Municipalities are required under state law to enforce the State Building Code, but these structures may be exempt from county enforcement outside of an ETJ. Municipalities, however, can seek local legislation to allow a municipality to include in its zoning ordinance a provision allowing an accessory building used for a bona fide farm purpose in an ETJ to have the same exemption from the building code as it would have under county zoning. In 2011, for example, Session Law 2011-34 was enacted giving all municipalities in Wake County the authority to provide in their zoning ordinances that an accessory building of a bona fide farm as defined in N.C.G.S. § 153A-340(b) has the same exemption from the building code as it would have under county zoning.

Under North Carolina law, municipalities may be limited in annexing land if that property is being used for a bona fide farm purpose. The statutory restrictions provided for in Session Law 2011-363 on municipal annexation and the exercise of extraterritorial jurisdiction do not apply to properties already within a town’s corporate boundaries. Thus, properties in a town’s corporate boundaries on which farming, forestry, or horticultural uses are occurring would be subject to regulation of those uses by that town. Some municipalities in North Carolina have chosen to exempt bona fide farm or agricultural purposes that occur in their corporate boundaries from their zoning and unified development ordinances (UDO), and a 2013 legislative update eliminates the ability of municipalities to annex a property certified as a bona fide farm without owner permission (see section below on Bona Fide Farm Exemptions).

Additionally, municipalities are authorized under N.C.G.S. § 160A-383.2 to amend ordinances applicable in their planning jurisdiction (corporate boundaries and ETJ) to provide flexibility for farming operations that are located within a city or county VAD or EVAD. This section states that “amendments to applicable ordinances may include provisions regarding on-farm sales, pick-your-own operations, road signs, agritourism, and other activities incident to farming.” Farming for the purposes of this section is defined in N.C.G.S. § 106-581.1.

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Municipal and County Zoning Ordinances

Zoning, one of the most commonly used land-use planning tools, divides a community into districts and determines the uses and structures allowed in those districts. Under North Carolina law, bona fide farm purposes are exempt from county (and some municipal) zoning ordinances. Municipalities can utilize zoning ordinances to regulate farm operations within their city limits and their ETJs. Sometimes cities integrate their zoning, subdivision, flood hazard protection, and other regulations into a single Unified Development Ordinance (UDO).

When local governments are utilizing a UDO, there are multiple ways to integrate protections and flexibility for agricultural or food-related purposes.

Municipalities can consider agricultural operations by either a district or use category when designing zoning ordinances.⁴⁰ “Agriculture districts” (such as Residential Agricultural-40) in zoning ordinances are different from voluntary agricultural districts, which are not authorized under a local government’s planning and zoning authority. Agriculture districts are common in rural areas and along the edges of urban areas and allow for a wide range of agricultural activities, from raising crops and animals to food processing, distribution, and sales. For example, Orange County created a conditional zoning district for “Agricultural Support Enterprises,” which provides some exemptions for agriculture-affiliated enterprises not covered by the traditional bona fide farm exemption at the state level.⁴¹ (Note: Orange County is one of three counties with a county-funded agricultural economic developer on staff. Mike Ortosky is profiled in a case study associated with this report and his work, along with other ag EDOs, is explained in more detail in the Economic & Community Development section of this guide.)

Zoning for agricultural operations may also be characterized by use category. For example, zoning ordinances can address land use in terms of what types of activities are permitted “as of right” (a use category). Other uses may be deemed special or conditional uses and may be approved by a local government board if it concludes that the use will not detrimentally impact neighboring properties. For example, the Town of Matthews adopted Urban Farm definitions in its UDO that allow urban farms “as a use under prescribed conditions” in all zoning districts except I-2 Heavy Industrial and AU Adult Uses. Farms must meet its definitions and requirements for accessory uses, structures, and other standards.⁴²

Zoning ordinances typically include many requirements that affect agricultural operations. For example, requirements such as lot size, setbacks, parking, sidewalk access, lighting, and traffic could have a major impact on where within the city limits a community garden or other agricultural activity can be located. Ordinances contain provisions regulating signs and setbacks that may impact agriculture operations. Sign provisions determine how, where, and when a farmer may advertise a particular product or the types of signs that may be used to promote the name of the farm. Setback provisions determine what portions of land must be set aside to meet buffering requirements and may reduce the amount of land available for pasturing of livestock or growing of crops. Town councils need to carefully look at these various land-use issues and consider how to provide for flexibility within their ordinances, so that municipalities can allow and support urban agricultural elements such as community gardens, backyard chickens, or local roadside farm stands. (See Appendix B for a sample table of permitted uses for agriculture-related categories.)

Municipalities can add farming, forestry, and horticulture as allowable land uses within zoning ordinances and plans. However, for planning tools to be effective, all agricultural related terms, land uses, and specification of what uses are exempt need to be carefully defined in land-use plans and ordinances. Clear specifications in the original ordinance prevent confusion that may arise when it comes time to interpret whether or not a use is allowed under the ordinance. Counties should review their zoning ordinances and UDOs to ensure that their definitions and exemptions of bona fide farm purposes comply with statutory exemptions under county zoning while also allowing for activities supported and specified in their farmland protection and land-use plans.

County and municipal government agencies can review their current zoning ordinances for specific language that promotes local food systems. Questions to consider may include: Do zoned agricultural or rural residential districts permit farm and farm-related activities? When establishing a farmers market, is the proposed site within a neighborhood business district? Appendix B provides a sample of zoning classifications that can be used to support local food enterprises. Local government can also use zoning regulations to improve community access to fresh local foods for sale. For example, mixed-use zones can be designated to permit grocery stores to operate within residential neighborhoods, potentially giving residents easy access to a wider variety of fresh and healthy food.

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Bona Fide Farm Exemptions

North Carolina allows local governments to exempt bona fide farms from zoning ordinances through definitions and standards in NC G.S. 153A-340. Bona fide farm purposes are defined here as the production and activities relating to or incidental to the production of crops, grains, fruits, vegetables, ornamental and flowering plants, dairy, livestock, poultry, and all other forms of agriculture. Evidence of bona fide farm status can be presented in one or more of four ways: a farm sales tax exemption certificate issued by the N.C. Department of Revenue; a copy of the property tax listing demonstrating eligibility for the Present-Use Value Program (discussed earlier in this section); a copy of Schedule F from the most recent year’s federal tax return; or a forest management plan. These exclude farms subject to a conservation agreement (information for those farms is available in G.S. 106-743.2-4).⁴³

In September 2013, this legislation was updated to expand the exemption from county zoning, eliminate the ability of municipalities to enforce zoning on bona fide farms in their extraterritorial jurisdictions (ETJs), and prevent municipalities from annexing such farms without owner consent. The exempt activities expansion included provisions for activity associated with a farm and “any other farm owned or leased…by the bona fide farm operator, no matter where located.” This allows energy production and processing facilities that serve multiple farm tracts to be considered exempt from zoning.

The update also included rules to exempt grain warehouses and storage facilities from zoning by counties and municipalities in ETJ districts, and directed the NC Department of Transportation to adopt rules for vegetation pruning that emphasized agritourism activity viewing along federal and state highways.

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General Ordinances

Local governments also need to examine the impact on agriculture of animal control, nuisance, and landscaping ordinances. These ordinances contain provisions separate from those enacted under a local government’s planning and zoning authority and will not be contained within either a zoning or UDO, but instead are listed in separate sections of the local government’s code of ordinances.

All local ordinances should be enacted and enforced together in a consistent manner to allow for desired rural or urban agricultural activities. Where a zoning ordinance allows for livestock in one or more districts, the animal control ordinance for a county or municipality needs to be written so that the care and keeping of livestock is allowed within a local government’s boundaries and planning jurisdiction. Additionally, nuisance and noxious weed ordinances that regulate vegetation height should be written to allow for crops in gardens or on farms, which will grow beyond vegetation height restrictions that are enacted to control overgrown, weedy vegetation on unmaintained lots. Some home gardeners within city limits have received complaints from neighbors and run the risk of potential fines if the garden in their front yard does not meet the vegetation height restrictions.

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G. Emerging Strategies

There are unique approaches to planning for agricultural development and food entrepreneurship occurring all across North Carolina. Below are some emerging trends and strategies from the national level that are being explored in North Carolina. (For information about mobile markets and farmers markets, see the expanded section in the Economic Development portion of this guide.)

Additionally, the NC Growing Together Project has prepared case studies from every region of North Carolina that showcase some of these trends; visit https://cefs.ncsu.edu/food-system-initiatives/local-food-economies/ for more information.

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Conservation Development & Agrihoods

Conservation development strategies have been increasingly popular over the last four decades. The approach focuses on the protection of natural resources while also creating economic benefits, and includes a wide range of projects from rural ranches to suburban conservation subdivisions to large master-planned communities. As of 2016, conservation development accounted for nearly a quarter of private land conservation in the U.S.⁴⁴

Land conservation is a continuously challenging field, working within larger trends of land development, climate issues, and financing methods. Conservation development incorporates the need for residential housing and development with an emphasis on stewardship in the design, construction, and maintenance of residential facilities. Some conservation development projects protect a percentage of the property through conservation easements obtained by the developer-owner of the property; others offer a way for farmers to protect a majority of their farmland while allowing development in a concentrated area (like this example from the Hudson Valley, where both farmland and housing are at a premium: NY Times article).

Another increasingly popular strategy for conservation development is the design and construction of “agrihoods,” developments centered around a common resource – instead of golf courses or swimming pools, however, residents build on sites located around agricultural uses like farms and gardens. This addresses a common desire for potential buyers to have views and open space, without the large capital investments needed in golf courses or other amenities, and assists developers both in selling lots and in obtaining tax credits and protections based on their use of conservation easements. Some developments hire professionals to manage the farming activities, delivering produce boxes to residents each week, while others offer allotments of farm or garden space to owners.⁴⁵ One example that was recently approved in Durham County is Wetrock Farm. The project would place roughly half the 287-acre development property into conservation as a working farm, while including fresh produce as part of the homeowners’ association dues.⁴⁶ Fundraising continues at the time of this publication. Another example, from Detroit, outlines how the Michigan Urban Farming Initiative developed a North End agrihood in partnership with public and private agencies.

A 2016 report from the Urban Land Institute highlights trends and opportunities in development at the intersection of food and real estate – identifying recent changes in how develpment shapes the way that people “access, purchase, and experience food.” See the ULI report here. Additionally, ATTRA has published several resources on conservation development, including a summary of agrihood research and reports that can be accessed here.

Counties and municipalities have the regulatory authority to utilize specific guidelines and incentives to encourage conservation development in local land use regulations in many ways, such as density bonuses, conservation easement assistance in partnership with local land trusts, and assistance with ecological site mapping and protection plans.⁴⁷ However, the use of zoning as an incentive exclusively for farms is rare in the state, although flexible development options have been adopted by some counties in which developers can decrease lot sizes and get “bonus units” for additional preserved options. The option is rarely used due to a lack of incentives for developers to take advantage of those programs.⁴⁸ For examples, see Durham County’s Article 6: ( Download PDF ) District Intensity Standards; Franklin County’s Flexible Development standards; and Orange County’s Article 7: Subdivisions – Cluster Development – Payments in Lieu of Dedication standards.⁴⁹

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Support for Food Trucks & Niche Food Businesses

Food Trucks: One of the most common requests among planners is information about how to properly zone areas for food trucks and other niche food businesses, like mobile markets, CSA distribution sites, cooking or gardening classes, and other activities not easily categorized in existing use categories.

Many North Carolina counties and municipalities have addressed these issues through zoning or policy changes, particularly to allow mobile markets and food trucks to locate in commercial or industrial areas and to allow permits for multiple units in a given location (such as food truck “rodeos” or “rallies,” or defined “food truck lots” that target employees of a specific industry or commercial district).

• For more information, see the APA’s guidance on food trucks.

Beehives: Another common issue is the maintenance and use of beehives in urban districts. The 2016 Local Government Regulatory Reform Bill (G.S. 106-645) states that county ordinances cannot prohibit possession of five or fewer hives, although some municipal regulation of hives may be allowed (but up to five hives within the planning jurisdiction must be allowed). Ordinances may regulate setbacks, anchors, or location, but may not prohibit hives from being installed altogether.⁵⁰

Public Land for Community Gardens & Incubator Kitchens: Many states, counties, and towns are providing public land for food projects like community gardens and incubator commercial kitchens. Often, land and facilities are already in public use, and these are added uses to existing space or facilities (such as those at recreation centers, libraries, hospitals or health clinics, education boards, schools, government housing projects, and other locations).⁵¹ In the City of Greensboro, a food access report led the city to explore utilizing its network of recreation centers throughout the city to host incubator kitchens on-site, providing quick and easy access to food and food entrepreneurship activities in existing facilities.⁵²

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Military Food Systems Planning Initiatives

Military bases in all branches of the U.S. Department of Defense have begun to consider land protection and conservation efforts in base regions over the past ten years. Base leaders are often concerned about encroachment near the bases, which can inhibit training programs, affect housing needs for base families, and impact transportation, infrastructure, and land use in the area.

Many bases have begun to work with local and regional planners to identify strategies for protecting land around bases and beneath flight or training areas. This can often mean military support for state and local programs that protect farmland in permanent or semi-permanent conservation easements. As part of the Department of Defense’s Sentinel Landscapes initiative, bases in North Carolina have begun addressing these issues: Camp Lejeune (U.S. Marine Corps), Jacksonville; Ft. Bragg (U.S. Army), Fayetteville; and some regional U.S. Air Force facilities. Camp Lejeune has also supported farmers markets on the base for active personnel and other community initiatives such as an incubator farm to encourage more market channel availability for farmers in their encroachment region.⁵³

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Local food economies as a business recruitment tool

Although there is limited economic analysis on the impact of local agriculture on local economies (see Calculating Economic Impact Section), we do know that local food economies are becoming more and more important as a recruitment tool.²⁹ Companies consider multiple factors during site selection, including obvious data about infrastructure, land, tax rates, and workforce availability. But many firms – particularly those who will be relocating employees to an area, such as technology companies, smart manufacturing firms, and smaller modern companies with flexible work environments – also consider the community and business culture of the town or region into which they are moving. Employees who find satisfaction in the communities in which they live and work tend to be more productive and more loyal, and the millennial generation, one that values such characteristics, is projected to be 75% of the American workforce by 2025.³⁰

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Community & business culture

Local food economies can influence site selection decisions in two ways. First, for companies seeking validation from existing businesses in the region, strong local food economies are often an indicator of strong small business networks and an independent local culture that creates vibrant, energetic communities. Second, communities where agriculture is strong tend to have better access to healthy and affordable foods – bringing down the cost of healthcare, a key consideration for most companies who employ full-time workers. Recent research also finds that communities with strong local business economies have lower mortality rates and health costs than in those dominated by big firms.³¹

Most Americans, across age groups and income levels, support purchasing local foods.³² Similarly, the kinds of communities that are attractive for potential residents are those where residents feel connected to an authentic sense of place that is closely tied to existing natural and human capital.³³ Local food economies provide a way to help create a strong quality of place, which can be an important recruitment tool for communities seeking to attract businesses, and businesses seeking to attract and/or relocate employees.³⁴ Recent research suggests that “the next generation of talent is the first to identify more strongly with their communities than with their employers.” Place-making around local foods is an attractive strategy for communities engaged in asset-based development of “authentic places that tend to become regional destinations.”³⁵

Using a strong local food economy as a recruitment tool must occur through effective marketing of the sense of place in which you live. Farmers’ markets, CSAs, open farmland, and community gardens are all good indicators of a strong community food system. In addition, the interlocked businesses that tend to form with the expansion of small agriculture – such as farm-to-table restaurants, small niche food processors, or breweries and taprooms – can also be used in recruitment marketing, and are often key components of downtown revitalization projects and the development of new consumer market spaces.

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Local food economies as a business retention & expansion tool

Because of the complexity of the local food value chain, there are often dozens of local businesses associated with the retention and expansion of agricultural businesses. Farms are resource-intensive operations that require a number of inputs, from seeds to fertilizers, as well as equipment for plowing, harvesting, and irrigating. After harvest, other sets of companies also rely on those products in such industries as processing, storage, distribution, wholesaling, and retailing.

The relationships between small farm and food businesses and other small and mid-scale businesses within a region offer a significant opportunity for economic development programs to focus on the retention and expansion potential of their agricultural and food economies.³⁶

In addition, agriculture offers unique opportunities for regional collaboration across county and town borders. Regionalism, an economic development and planning approach that considers needs across a defined geographic area and which includes multiple units of local government, allows for long-term market-based partnerships as well as coordinated strategies for development.³⁷ By its nature, agriculture is a regional enterprise, and offers communities a way to work together on important development issues. Recent research demonstrates that purchasing and distribution networks at a smaller regional scale increase interdependency at a local level and increase regional food stability.³⁸

This section provides information about wholesale markets, institutional purchasing, repurposing of vacant land, and agritourism as ways to encourage economic expansion and retention programs with existing businesses.

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Wholesale Markets for Local Foods

Wholesale markets provide a valuable market channel for farmers and producers who are seeking ways to scale up their production and profit margins. The NC Growing Together Project (NCGT) at CEFS is completing a five-year, USDA-funded program to explore ways to move more local products into mainstream markets, including wholesale distribution, grocery store, restaurant, and military procurement chains.

NCGT’s research is supplemented by partnerships and collaborative work across the supply chain, involving wholesale distributors in the process. The research results can be useful to local governments and communities interested in learning more about the wholesale markets available in their region in a number of areas:

• Supply side: connecting small and medium-sized farmers and fishermen with retailers, food hubs, and food service buyers; providing training and capacity building to enable smaller producers to meet the requirements of larger buyers
• Demand side: addressing issues that have typically prevented larger buyers from purchasing from smaller producers, including adapting buying protocols to enable smaller purchasing
• Intermediary steps: understanding and removing barriers that prevent local foods from entering large-scale mainstream markets, particularly in aggregation, processing, and distribution.³⁹

There are other considerations within distribution channels that affect the movement of local product into wholesale and institutional markets. Farm to Institution New England recently released a research model and report for evaluating barriers and opportunities to distribution channels in a defined region (in this case, the six-state area of New England).⁴⁰

Wholesale markets offer a significant economic expansion opportunity for existing businesses interested in scaling up their production and sales. Wholesale buyers typically seek larger volumes of product at a set negotiated price, which can provide an economic foundation for small and medium-sized farm and food businesses, increasing their stability and long-term financial viability. However, wholesale markets require a number of policy and practice changes from farms and food businesses, and wholesale markets won’t fit the business needs of everyone. Local governments can assist in capacity-building by partnering with local and state-level Cooperative Extension agencies and other agricultural development groups.

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Local Foods in Groceries, Convenience Stores, and Corner Markets

Grocery stores can promote economic development in neighborhoods by providing jobs, anchoring established businesses, and raising surrounding property values. They can also increase access to fresh, healthy foods in low-income communities and serve as a market for local farmers.

Municipalities can play a vital role in increasing the availability of local foods through these channels. Several communities nationwide have developed programs that target small retail stores in underserved areas as a means to increase access to healthy foods, including local foods (see Resources at the end of this section for examples). Successful strategies for increasing access in these venues include: 1) providing grants, loans, or tax incentives for store improvements or healthy food purchasing, 2) providing assistance with marketing and promotional campaigns, and/or 3) assisting storeowners in creating buying co-ops.

City governments can work with community groups to assess which neighborhoods may not provide easy access to healthy, local foods (these areas are often termed “food deserts”). The USDA provides a Census Data-based map of food deserts across the country that can be used as a foundational component of any food system assessment, along with other datasets, as part of the Food Access Research Atlas.

Economic development agencies can help attract grocery stores to those districts, and zoning ordinances can be reviewed and amended to allow a site to be used for retail food purposes. Some federal and state tax credits may be available to help attract business to specific geographic regions.⁴¹ In the City of Greensboro, a USDA grant funded a study of the city’s food deserts and linked socioeconomic status with access to fresh food( Download PDF ); a later USDA implementation project aims to bring more fresh food to those neighborhoods.⁴²

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Local Foods in Institutions

Institutions such as schools and hospitals can play an important role in supporting the growth of local food systems by providing local, seasonally available foods within food service settings. A variety of farm-to-school initiatives have established connections to K-12 schools (see resource links below). Colleges and universities across North Carolina including UNC-Asheville, UNC-Wilmington, NC State University, Duke University, Warren Wilson College, NC A&T State University, and others have also become involved at various levels by establishing campus farmers markets and purchasing local food for their cafeterias. A number of hospitals in North Carolina also provide space for a farmers market for employees and community residents.

There are a number of factors that make providing local foods within institutional food service settings a challenge, particularly factors related to liability insurance, food safety certification requirements, and the logistics and additional cost involved of sourcing foods from multiple farms. Local governments can help address these factors and take the first step by establishing policies and goals to procure a certain percentage of foods from local sources.

Increasing the amount of local fresh produce served in public schools is an initiative that is receiving support at both the federal and state levels. Within North Carolina, the NC Department of Agriculture and Consumer Services actively supports farm-to-school programs, and non-profits and other organizations, including the Growing Minds program at the Appalachian Sustainable Agriculture Project and the FoodCorps program supported by the NC Cooperative Extension’s 4-H program and the Center for Environmental Farming Systems are working together to connect kids with locally grown foods. For public school districts specifically, the North Carolina General Assembly recently amended the school procurement bill to allow schools to implement policies and procedures that “maximize, to the extent practicable, purchases of food grown or raised in North Carolina.” This means that schools, which typically are restricted to lowest-bid purchases made with state and federal funds, now have the flexibility to set preferences in their contracting process to allow for local food procurement when possible.⁴⁵ (For more information and resources concerning local food procurement by local government units, see the “Local food for local governments” section above.)

In addition to purchasing local foods, many school districts in North Carolina are now implementing research and learning at school gardens (Chapel Hill-Carrboro City Schools have one garden at each of their 18 school campuses) and school farms (Durham County Schools HUB Farm provides a 30-acre research and production area for students).

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Vacant Land for Food Systems

Vacant, publicly owned land within counties or towns can be used as a valuable resource for promoting the health and vitality of citizens and the local economy. Government-owned land can be used temporarily or permanently for food production, processing, distribution, and sales. Local government officials can involve community groups and organizations to determine their specific interests and needs related to community gardening, farmers markets, urban farms, or other aspects of local foods infrastructure such as processing and distribution. Community Food Lab produced a guide to how farms and gardens build urban value that provides useful information on utilizing vacant land to increase economic value.

An inventory of existing vacant lots within various zoning districts can be assessed and policies developed for specific uses. Factors such as the availability of water, soil quality, parking, lighting, security, and the benefits to and impacts of adjacent land uses should all be considered. City and county governments can support the local food system infrastructure by simplifying the permitting process, providing resources (financial and technical assistance), and by promoting collaboration between community stakeholders and farmers. By allowing for flexibility within the Unified Development Ordinance (UDO), municipalities can ensure flexibility and accommodation for urban farming practices rather than discourage them with unnecessarily restrictive zoning codes. One example of a flexible UDO is that of the Town of Matthews, NC (see resources below).

Urban parks may also be considered as a potential site for a community garden and incorporated into the long-term plan. An urban community garden or mini-farm could also serve as a tourist attraction, much like a botanical garden, while providing open space and opportunities to learn about the importance of locally grown food. In some cases, even existing public facilities like recreation centers have been used as points for installation of community kitchens and other food system infrastructure.⁴⁶ Essential to developing and supporting a local food system is growing public awareness of its importance and its potential to serve both community and economic development purposes.

A number of North Carolina county and municipal governments support local food economies by donating land for farmers markets, incubator farms, or food-processing centers for value-added farm products. For example, the cities of Carrboro, Clayton, and Durham provided land and initial funding to establish farmers markets; Goldsboro provided vacant land to develop a farm in town; Cabarrus County provided land for the Elma C. Lomax Incubator Farm; Orange County provided a building for the Piedmont Food and Agricultural Processing Center; and McDowell County provided land for establishment of a small-scale poultry and rabbit processing facility.
In addition, local governments can assist in preventing vacant farmland situations by assisting in the promotion of “farmlink” programs that match new or expanding farmers with vacant farmland (often from retiring farmers without a succession plan in place). In North Carolina, a western region program (WNC Farmlink) and a central and eastern program (NC Farmlink) serve as basic infrastructure for farmland matching efforts.

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Agritourism

Agritourism has become an innovative industry in North Carolina, growing from traditional farm tours into a diverse array of offerings that incorporate a number of products across the state. From cheese trails to winery walks, agritourism now represents one of the most high-growth tourism sectors in North Carolina.

Perhaps the most basic component of agritourism is the farm tour, a means by which visitors are brought on-site to a farm or vineyard to see farming firsthand. Farm tours highlight the agricultural benefits of North Carolina’s diverse production regions. Depending on the season and the region, a farm tour could include a winery, corn maze, or a dairy selling fresh cheese – or follow more recent trends and incorporate a number of farms across a region as a way to collectively promote agritourism efforts. For example, the ASAP Farm Tour highlights member farms in its regional coverage area; the NC Cheese Trail highlights cheese producers across the state.

The statewide farm guide, Farm Fresh North Carolina: The Go-To Guide to Great Farmers Markets, Farm Stands, Farms, Apple Orchards, U-Picks, Kids’ Activities, Lodging, Dining, Choose-and-Cut Christmas Trees, Vineyards and Wineries, includes more than 425 farms across North Carolina. This type of publication increases the potential for agritourism, which provides farms an opportunity to not only educate residents about farming, forestry, and horticulture directly, but also gives farmers a chance to highlight and sell their locally grown products at the same time.

North Carolina’s Department of Agriculture & Consumer Services (NCDA&CS) implemented an Agritourism Director position in 2015. The new office showcases farms across the state; provides resources and assistance for farms and organizations interested in promoting agritourism; and works with other marketing organizations to promote NC products. The NC Agritourism Networking Association hosts the only statewide conference on agritourism and provides peer-to-peer learning opportunities for collaboration and best practices.

Agritourism requires local government support through appropriate ordinances and zoning. Agritourism is included in the definition of agriculture (N.C.G.S § 106-581.1), which is also referenced in the exemption for bona fide farm purposes from county zoning. Depending on how county and municipal government land-use ordinances are written and enforced, zoning permits or other requirements may be applied to agritourism activities. Whether a county zoning ordinance or other regulations should be applied to an agritourism activity may require determination on a case-by-case basis. Municipalities can support agritourism by permitting it as an allowed use within their zoning or unified development ordinances. (See the Planning & Land Use section of this guide for more information on agriculture-specific zoning regulations.)

Towns and counties can also support agritourism efforts by integrating agritourism promotion into existing Chamber of Commerce and Travel & Tourism Authority efforts and by sponsoring or promoting local and regional branding efforts that focus attention on regional products.

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Local food economies as a business creation tool

Small business & entrepreneurship development

Small farms – those under 179 acres and grossing less than $50,000 per year – make up nearly 75% of all farms in North Carolina.⁴⁷ Small farms are small businesses, and many of the associated businesses in the supply chain that support the production, processing, distribution, and consumption of food products are also small businesses and entrepreneurial firms. Supporting the creation of new entrepreneurial ventures and small businesses is a critical component of any business creation program at the local or regional level.

Small farm and food businesses are, like many other startup and entrepreneurial ventures, often associated with high startup costs, increased risk over the first 3-5 years of business, and subject to unique legal and regulatory influences from the local, state, and federal levels on everything from property tax assessment to food safety regulations. It is important that local developers work to ensure that their clients have access to the resources needed to navigate these complex processes.

Many successful collaborative programs, often referred to as “farm schools” or “ag entrepreneurship” courses, have been piloted by Small Business Centers (SBCs) and Extension offices across the state, to ensure that beginning farm and food businesses have access to both financial planning and food-specific guidance. North Carolina Cooperative Extension’s Farm School program is an award-winning curriculum for in-depth farm business training. The program includes eight business planning seminars taught by extension specialists, agents, and experienced farmers, which helps students to create viable farm business plans and offers on-farm instruction. More information is available at https://ncfarmschool.ces.ncsu.edu/.

Some of these programs are based on the REAL Ag Curriculum, a statewide entrepreneurship development training program in use in the state since the 1990s. The Sequoyah Fund has recently purchased this curriculum and plans to release an updated agricultural curriculum and training process in 2016. The use of farmer-teachers and peer-to-peer learning opportunities, combined with guest lecturers from regulatory agencies, insurance specialists, and financing representatives is encouraged, to make these courses as practical as possible. (CEFS has profiled a number of these cases, including the Appalachian Farm School and Vance-Granville Community College, at https://cefs.ncsu.edu/food-system-initiatives/local-food-economies/case-studies/.)

The North Carolina Department of Agriculture offers one-on-one technical assistance for farms and food businesses as well as online resources for business planning and regulatory contacts.⁴⁸ The Small Business Center Network, housed at community colleges across the state, has promoted many farm school and ag entrepreneurship programs in various regions.⁴⁹ The SBTDC (Small Business & Technology Development Center) network, housed in universities across the state, also provides one-on-one client services and has assisted farm and food businesses with development of business plans and access to financing.⁵⁰

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Microlending & access to capital

For many years, small farmers in the U.S. faced restrictions to capital from traditional lending institutions.⁵¹ While many of those barriers are still in place and have been discussed elsewhere in this guide, new programs are being launched each year to make it easier for farms and food businesses to access capital for starting or expanding their small businesses.

In North Carolina, The Support Center has developed a financing program specific to farm and food businesses, offering low- and no-interest loans to support healthier communities through agriculture and food system development.⁵² The NC Rural Center, which provides services to all 85 rural counties in the state, provides technical assistance and financing packages from a number of providers who work specifically with farm and food businesses.⁵³ In 2016, USDA Rural Development expanded its financing programs to support beginning farmers and ranchers with infrastructure expansions such as on-farm cold storage facilities. The NC Tobacco Trust Fund also provides small grants to agricultural businesses across the state. USDA provides a number of different lending programs, all of which are catalogued here.⁵⁴

The Small Business Center(SBC) network of affiliated centers at North Carolina community colleges, along with the Small Business & Technology Development Centers (SBTDC) based at North Carolina universities, have worked to integrate small business resources including loan packaging into their traditional offerings. More information on each center’s available programs for lending can be found at the SBC Network website and the SBTDC website.

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C. Create a Food Policy Council or Food Collaborative

Food policy councils at the regional, county or municipal level can bring diverse voices from government and community groups together to discuss and implement policies and programs in support of local food systems. Food policy councils have been organized at the town, county, and state level across the U.S. As of 2015, there were nearly 300 food policy councils in North Carolina; only 18% were housed in government agencies, but over 35% had direct involvement from local governments through membership participation.⁴

Food policy councils often serve as government advisory groups, making recommendations on ways to localize food systems. In some cases, governments supply research and administrative staff for the council to carry out its work. Dedicated staff can be critical in keeping initiatives moving forward and growing the network of interested parties, and can also apply for some of the numerous local foods grant opportunities available from the USDA, HUD, and private foundations.

In North Carolina, there are now more than 23 food policy councils (local or regional) that are beginning to network through Community Food Strategies, a statewide organization of groups that work to strengthen food council capacity and partnerships. An example of an N.C. county-based council with ongoing staff support is that of Cabarrus County (cabarrusfpc.org). The council supported the development of a county-based local foods assessment, development of a beef slaughter facility, and promotion of a local food marketing campaign designed to support local businesses that produce, distribute, process, prepare or otherwise use food grown or raised in the county.

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D. Network Producers and Buyers to Learn About Local Markets

A simple way to help strengthen market opportunities for farmers while making more local products available to consumers is to network producers and buyers in your region. This networking can take the form of grower-buyer “mixers,” in which producers have an opportunity to personally meet buyers such as wholesale distributors or chefs. It can also be accomplished by providing online platforms to introduce buyers and producers, or by ensuring both groups are actively part of planning and development efforts.

Before local governments get involved in these networking opportunities, it is recommended that they contact Extension offices, Soil & Water Conservation District offices, and retailers and wholesalers to understand the nature and scope of the existing market in their communities.

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E. Conduct a Local Food System Assessment

Figuring out how to build a local food system starts with determining the status of the present food system and the community’s goals and available assets. Local food assessments have emerged as a means by which communities can collect information on their food systems and devise a strategy for the future. Food assessments can be conducted at any geographic level – town, county, region, or state. FSAs can also be of varying complexity and focus on some or all of the parts of the food system: what is produced, how it is processed and distributed, where it is consumed, and how the refuse is disposed of. Food assessments can be very complex and include detailed studies conducted over many months, or can be as simple as convening a group of stakeholders to discuss local food system needs and brainstorm solutions. Successful food assessments include a broad range of community stakeholders: farmers, urban/rural planners, NC Cooperative Extension Service Agents, the NC Farm Bureau, health departments, rural economic development specialists, and community organizations.

Community Food Strategies has developed a comprehensive toolkit for communities interested in conducting FSAs. In North Carolina, the Cape Fear Council of Governments, in partnership with the Southeastern NC Health Partnership and Feast Down East, conducted a comprehensive food system assessment that tracked food system development in alignment with health and equity goals.⁵

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