Food Systems
Policy Update

For community development financial institutions like Locus, the work of building equitable food systems has always extended beyond capital deployment. Credit and technical assistance are necessary tools but they operate within a policy environment that either accelerates or undermines their impact. Procurement rules, state investment frameworks, and regional coordination mechanisms determine whether mission-driven capital can achieve scale, attract co-investors, and build lasting market infrastructure. Without an enabling policy environment, even the most sophisticated financing strategy hits 
a ceiling.

This is why Locus has positioned itself not just as a lender, but as an active participant in shaping the policy conditions that make regional food systems financeable. CDFIs occupy a distinctive position in these conversations: we understand both the capital needs of small and mid-scale food businesses and the market failures that prevent conventional finance from serving them. That dual vantage point of being on the ground with borrowers and at the table with policymakers gives Locus something valuable to contribute to the policy conversations now underway across Virginia and the Mid-Atlantic.

Capital and coordination are necessary but not sufficient without an enabling policy environment. Virginia is at a genuine inflection point—one that Locus is positioned to help shape. Three parallel efforts are now converging: the Virginia Food Access Coalition (VFAC) is advising the Spanberger administration on a comprehensive food system development plan; Mid Atlantic Coordinated Capital Coalition (MACCC) is working to activate market demand through mandated institutional procurement; and the Metropolitan Washington Council of Governments (COG) FARM committee has launched a regional procurement challenge and a corresponding community of practice.

Locus sits at the center of these efforts as a VFAC Steering Committee member, MACCC Lead Partner, and participant in the COG Procurement Community of Practice. In the next two years, Locus intends to support a sequenced policy agenda that aligns legislation, governance, and capital deployment to strengthen regional food systems:

• Regional Food System Needs Assessment: Locus will contribute MACCC data and lead a coordinated effort among stakeholders to aggregate insights from existing research—building toward a full assessment of capital requirements and value-chain gaps across production, aggregation, processing, distribution, and access. This evidence base is the prerequisite for a defensible financing strategy that can compete for public, private, and philanthropic co-investment.
• Institutional Procurement Mandate and Financing Model An increased local procurement requirement is central to MACCC’s demand-driven strategy: procurement mandates create the revenue signals that make regional food businesses investable. Locus will support advocacy peers in establishing new or strengthening existing mandates across Mid-Atlantic states and will contribute MACCC research on the value chain investment required to fulfill them. Critically, Locus will provide technical input on the financing models needed to bridge mandate and fulfillment—the gap that most policy efforts leave unaddressed..
• Virginia Food System Capital Deployment Strategy: Coordinating the use of federal and state resources, private financing, and philanthropic funds through a market-informed investment approach strengthens the value chain and improves the flow of Virginia-grown products to communities with the greatest need. Public-private investment models are essential for accelerating food and farm business growth while stewarding public dollars responsibly. Expanding existing programs like the Virginia Food Access Investment Fund can attract private co-investment and support enterprises across the value chain, especially in underserved areas. Effective implementation depends on strong coordination—and this is where Locus can leverage its leadership of MACCC. Investing in a trusted, orchestrating entity to align market development, capital flows, technical assistance, and business readiness will sustain public-private investment and build long-term resilience in Virginia’s food system.