IU Dining's Indiana Farm and Food Business Impact

Sourcing from local farms and food businesses is a known priority for IU Dining’s leadership and, over the years, they have made this commitment clear by investing time and dollars to build direct relationships with farmers and food producers and identifying and prioritizing local suppliers within their distribution networks.

A new report from FARMWISE Indiana and the IU Environmental Resilience Institute finds that Indiana University Dining spent more than $4 million with 51 Indiana farms and food businesses during Fiscal Year 2025 (July 2024- June 2025), representing 23% of its total food budget.

Using the National Farm to Institution Collaborative Metrics framework, researchers analyzed nearly 4,700 food items purchased by IU Dining and identified direct investments in Hoosier farmers, food manufacturers, and value-added producers. The report found that $1.4 million went directly to Indiana farmers, while an additional $2.6 million supported Indiana-based food businesses.

Based on established economic multipliers, IU Dining's local purchasing may generate between $5.6 million and $10.4 million in broader economic activity across Indiana.

"This audit shows that when institutions intentionally source local food, their purchasing dollars become investments in Indiana communities,” Jodee Smith, FARMWISE Indiana Executive Director.

With food service directors at Indiana schools, hospitals, and other institutions controlling hundreds of millions of dollars in food purchases each year, the report demonstrates how institutional purchasing can strengthen local economies, support farm growth, and create lasting community impact. 

Indiana University is not alone among higher education institutions in its commitment to local and regional food systems. The University of Kentucky has been conducting purchasing audits using the direct farm impact method for 13 years, targeting in-state procurement minimums of 20%. Last academic year, they surpassed those targets, reporting  purchases from Kentucky farms and food businesses equaling $7 million, or 43% of their food expenditures, with $1.5 million paid directly to Kentucky farmers.

Special thanks to the creative and research partners at the IU Environmental Resilience Institute for their collaboration on this project.

Read the full IU Dining Direct Farm Impact Report here and learn how local food purchasing is helping build a stronger Indiana food system.

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