Economic Impact

There is a widespread perception that serving healthier meals in schools and doing away with serving typical vending foods such as chips, sodas, and sweets will decrease the financial viability of the school lunch program (CDC). A growing body of evidence indicates that this concern may not be warranted. Though there may be an initial decrease in revenue, most schools have reported an increase or no change in revenue after implementing strong nutrition standards and restricting the sale of unhealthy a la carte foods in pilot studies (CDC). This seems to be due to an increase in school lunch program participation. Additionally, vending contracts are not a significant source of funding for most schools and can in most cases be eliminated without significant financial loss. A la carte foods from vending machines may simply compete with the school lunch program. Stronger restrictions or even eliminating these competing options are most likely to increase participation in the school lunch programs which generally include the healthiest food options.

Advocates of farm to school argue that it will have a beneficial effect on the regional economy but there are few comprehensive analyses that have evaluated this. At least one analysis evaluated the potential economic impact of farm to school programs for an entire region (Central Minnesota) in a comprehensive manner. The investigators empirically developed a realistic set of potential foods to include in farm-to-school lunch programs in the region. Their analysis took into account the impact on output as well as employment and labor income in the regions. Depending on the price paid for the farm foods and how often the farm foods are utilized in school lunches, the regional economic impact ranged from $20,000 to almost $500,000 in their analysis.

Though initial pilot studies and economic analyses provide hope that farm-to-school programs are financially viable options for schools and can also be beneficial to local economies, this research is in early stages and no longer term controlled studies have been completed.