SNAP Benefit Redemptions Through Farmers And Farmers Markets Show Sharp Increase

Jun 26, 2015

Supplemental Nutrition Assistance Program (SNAP) participants are spending more of their benefits to make purchases at roadside farm stands, farmers markets and directly from local farmers than ever before. SNAP redemptions at those outlets in FY14 totaled $18.8 million, a nearly six-fold increase since 2008. Agriculture Under Secretary Kevin Concannon will laud the increase during a visit today to Philadelphia's Clark Park Farmers Market.

"All Americans, including those participating in our nutrition assistance programs, need to include more fresh fruits and vegetables in their diet. America's farmers have an important role to play in addressing that need in communities across the country," Concannon said. "Accepting SNAP benefits also increases the customer base for local producers, adding an extra economic boost to the community."

Since 2008, the number of SNAP-authorized farmers, roadside farm stands, and farmers markets grew dramatically, from 753 to in excess of 6,400, more than eight times the number these types of vendors accepting SNAP when the Obama Administration took office.

"These increases did not just happen," Concannon said, emphasizing that expanding access for SNAP recipients to the fresh produce available at these outlets has been a top priority for the U.S. Department of Agriculture (USDA).

Through a partnership with the National Association of Farmers Market Nutrition Programs, USDA provides free wireless equipment to qualifying farmers and farmers markets, enabling them to accept SNAP via electronic benefit transfers (EBT). Additionally, in May, USDA announced the availability of $3.3 million in competitive funding to help farmers markets serve SNAP participants. These Farmers Market SNAP Support Grants are the latest example of USDA's ongoing commitment to improving the diet and health of all Americans, but with particular concern for low-income families. Those awards will be announced in September.

USDA also recently awarded $31.5 million in funding to local, state, and national organizations to support programs that encourage SNAP participants to buy more fruits and vegetables, including the fresh produce found at America's farmers markets and direct marketing farm outlets. Funded through the Food Insecurity Nutrition Incentive (FINI) program authorized by the 2014 Farm Bill, the projects will help policymakers determine how best to provide incentives to SNAP participants to increase healthy purchases.

Farmers are a vital lifeline to healthy nutrition in low-income areas, because many bring their products to "food deserts" with few, if any, supermarkets or grocery stores. "Redemptions through farmers and producers nourish local economies, while helping those in underserved neighborhoods," Concannon said. "Without farmers markets, roadside farm stands and farmers who sell directly to the public, residents of these communities may have to travel to grocery stores outside their area to obtain fresh produce or make-do with processed foods."

Yael Lehman, executive director of The Food Trust in Philadelphia, said that over the last three years, SNAP sales rose by more than 300 percent at its farmers markets in the city's lowest-income areas. "By promoting and accepting SNAP and other food assistance benefits like Philly Food BucksThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website., we can make fresh food affordable for children and families across the region," Lehman said.

The Food Trust in Philadelphia began 23 years ago with one farm stand in Grays Ferry, a South Philadelphia neighborhood where it was hard to find fresh produce. In 2014, The Food Trust's 27 farmers markets, including the Clark Park Farmers Market, served more than 400,000 customers throughout the Philadelphia area. The Food Trust was one of the recipients of the FINI grants awarded earlier this year. In Philadelphia, the FINI grant supports the Philly Food BucksThis is an external link or third-party site outside of the United States Department of Agriculture (USDA) website. program, which provides SNAP participants with a $2 coupon for fresh fruits and vegetables for every $5 in SNAP benefits used at a participating market.

Expanding access to local food is a cornerstone of the USDA's Know Your Farmer, Know Your Food Initiative which coordinates the department's work on strengthening local and regional food systems. Agriculture Secretary Tom Vilsack has identified local and regional food systems as one of the four pillars of rural economic development, along with production agriculture, the bio-based economy, and natural resources and conservation.

Source:usda.gov

Video: The Investment Opportunities of Industrial Hemp

The fledgling U.S. hemp industry is decades behind countries like Canada, France and China, but according to impact investor and this week’s podcast guest, Pierre Berard, it could flourish into a $2.2 billion industry by 2030 and create thousands of jobs.

To reach its potential, what the hemp industry needs most right now, Berard said, is capital investment.

Last month, Berard published a report titled “Seeing the U.S. Industrial Hemp Opportunity — A Pioneering Venture for Investors and Corporations Driven by Environmental, Social and Financial Concerns” in which he lays out the case for investment.

It’s as if Berard, with this report, is waving a giant flag, trying to attract the eyes of investors, saying, “Look over here. Look at all this opportunity.”

Berard likens the burgeoning American hemp industry to a developing country.

“There is no capital. People don’t want to finance. This is too risky. And I was like, OK, this sounds like something for me,” he said.

As an impact investor who manages funds specializing in agro-processing companies, Berard now has his sights set on the U.S. hemp industry, which he believes has great economic value as well as social and environmental benefits.

He spent many years developing investment in the agriculture infrastructure of developing countries in Latin America and Africa, and said the hemp industry feels similar.

“It is very nascent and it is a very fragmented sector. You have pioneers and trailblazers inventing or reinventing the field after 80 years of prohibition,” he said. “So I feel very familiar with this context.”

On this week’s hemp podcast, Berard talks about the report and the opportunities available to investors in the feed, fiber and food sectors of the hemp industry.

Building an industry around an agricultural commodity takes time, he said. According to the report, “The soybean industry took about 50 years to become firmly established, from the first USDA imports in 1898 to the U.S. being the top worldwide producer in the 1950s.”

Berard has a plan to accelerate the growth of the hemp industry and sees a four-pillar approach to attract investment.

First, he said, the foundation of the industry is the relationship between farmers and processors at the local level.

Second, he said the industry needs what he calls a “federating body” that will represent it, foster markets and innovations, and reduce risk for its members and investors.

The third pillar is “collaboration with corporations that aim to secure or diversify their supply chains with sustainable products and enhance their ESG credentials. This will be key to funding the industry and creating markets,” he said.

The fourth pillar is investment. Lots of it. Over $1.6 billion over seven years. This money will come from government, corporations, individual investors, and philanthropic donors.

The 75-page report goes into detail about the hemp industry, its environmental and social impact, and the opportunities available to investors.

Read the report here: Seeing the U.S. Industrial Hemp Opportunity

Also on this episode, we check in with hemp and bison farmer Herb Grove from Brush Mountain Bison in Centre County, PA, where he grew 50 acres of hemp grain. We’ll hear about harvest and dry down and crushing the seed for oil and cake.