From Farm to FIM: The Economic Impact of Local Food is Medicine

Food is Medicine (FIM) programs offer states a powerful opportunity to improve health while strengthening local economies. As states expand coverage for medically tailored meals, groceries, and produce prescriptions for people with diet-related conditions, a new market for healthy food is emerging. When states intentionally prioritize locally based providers and food sourced from in-state and regional producers — it can support small and mid-sized farms, create jobs, and keep dollars circulating within communities. At a time when diet-related disease is widespread and family farms face persistent financial strain, Food is Medicine presents a rare chance to address both challenges together.

This report examines how Food is Medicine programs can generate economic benefits for states while building stronger, more resilient food systems. Beyond measurable gains in farm revenue, job creation, and economic activity, locally designed FIM programs can stabilize farmland, strengthen regional supply chains, and give producers the reliable demand they need to invest in long-term growth and regenerative practices. Because this market is still taking shape, states have a critical window to design programs thoughtfully — embedding local sourcing, supporting community-based providers, and aligning health care spending with broader rural and economic development goals. The report shows how Food is Medicine can improve health and help rebuild local food economies at the same time.