The Oxford Eagle reports that when the USDA gave the city money for a farmers market plans were made for the Oxford Park Commission to operate it.
Legislative approval was needed but a bill failed in the 2012 session.
After that city officials starting looking for other ways to operate the market.
City attorney Pope Mallette told aldermen this week that an old market statute allows cities to run a farmers' market or to contribute to an existing market.
Aldermen voted to ask the USDA to transfer the grant to the city.