This depends on the animal. My recollection was that one must process cattle through a USDA approved facility, but there were no such restrictions on pork or poultry.

(The lack of a poultry restriction is obvious to anyone who's bought an organic bird from a local farm.)

Further, as the local eating movement grows, there's an increase in the number of "boutique" (if you will) slaughterhouses. http://www.npr.org/blogs/thesalt/2012/06/04/153511889/small-...