For the size of Lexington, I think that the Farmer's Market is pretty impressive. One of the benefits of Central KY is that there are still a lot of active farming communities nearby, and a growing interest to make local foods available to the public. During most of the year, we buy almost all local produce from the farmer's market, as well as organic milk, eggs, cheeses, and organic beef, lamb and chicken in bulk from local farms. Our Christmas turkey was an organic, pasture-fed, free-range turkey from a farm just south of Lexington:
Pike Valley Farm Other KY pasture-fed farms are listed here:
Kentucky - Eat Wild
In addition to all of the things that others mentioned above, there are also several local farmers that do a CSA ("Community Supported Agriculture"), where you buy a share of that farm's crop across the entire growing season. Each week, you receive a basket filled with a variety of just-harvested local crops that changes each week as new items come into season. There are several in the Central KY area - one of our favorites is the organic-based Elmwood Stock Farm ( largest certified organic farm in the state):
Elmwood Stock Farm . They deliver weekly to a couple of different locations in Lexington/Central KY and they always have a nice variety of offerings. Plus you can add a share of farm-fresh organic eggs, or place an order of fresh chicken, beef, etc. They also have big stand at the Farmer's Market.
There is also the Good Foods Co-op on Southland Dr in Lexington:
http://www.goodfoods.coop/ which is a food cooperative that is open to the public. They offer a variety of organic produce options (many locally grown), as well as organic dairy, eggs, and meat (again, with some local options), and a decent selection of dry goods (including bulk herbs, nuts, grains, etc). There is also a health and beauty section, a small gift area, and a nice cafe that offers coffee, tea, sushi, and a great buffet with hot and cold items that change daily (lots of organic options, local meats, etc). It's not a huge place, but it is currently expanding, and they also offer classes, seminars, and meetings/activism for local farmers and organic foodies.
For dining options, be sure to consider Alfalfa's in downtown Lexington:
Alfalfa Restaurant is the best meat and vegetarian place to eat in downtown Lexington, Ky. where they feature lots of local foods including several vegetarian options. There are several other locally-owned restaurants that are members of the KY Proud local foods program - you'll see that symbol on their menus or storefront, as well as on the shelves of local grocery stores.
http://www.kyagr.com/kyproud/images/KYPlogo.gif (broken link)
Also check out the nearby town of Midway in Woodford County. It is a small historic town with quite a few neat restaurants that have local foods. It is also home to the new Honest Farm, which is a farm and non-profit advocacy/support organization created by national cookbook author Susie Quick, who is often on the Food Network.
http://honestfarm.org/
For a pretty comprehensive list of resources, go to
Local Harvest / Farmers Markets / Family Farms / CSA / Organic Food and put in a Lexington zip (like 40507) to bring up a huge list of local markets, farms, restaurants, etc. Hope that helps!