I buy all of my seeds from a local farm supply. They buy the seed in bulk and repackage them for themselves and other farm stores in the area. As far as them being raised local, I have no idea, but have always had good luck with them.
They also mill all of their grass seeds and are a local buyer. I have been in the plant when they were doing a run of fescue, a fairly interesting thing to watch.
Most "professional gardeners" I know buy their seed from Gurneys, Park Seed, or Burpee. I am really sure they are grown in a place far, far away. Maybee even overseas. But they seem to have good luck.
I save alot of seed when I can. Pretty easy to do with beans, peas, okra, squash, cucumbers, and flowers. Impossible to do with hybrids like corn and tomatoes.