Strengthening Food Resilience in Low-Income Regions Through SNAP

Strengthening Food Resilience in Low-Income Regions Through SNAP

Independent grocery retailers, particularly those in low-income rural and urban areas, are bracing for potential cuts to the Supplemental Nutrition Assistance Program (SNAP). The National Grocers Association (NGA) is currently meeting with congressional leaders to defend SNAP from proposed cuts, as they understand the program's significance for their businesses and the communities they serve.

On June 30, the Food Systems for the Future Institute (FSFI) will host a virtual panel discussion, featuring insights from independents and industry experts. The aim is to increase public understanding of SNAP's role in bolstering food retail in underserved communities.

The Center for American Progress (CAP) estimates that more than 27,000 retailers, particularly in rural counties, face higher risks from SNAP cuts. The loss of SNAP sales could result in higher shelf prices, lower inventory, and cuts to labor hours for independent grocers, adversely affecting local distributors and consumer access to quality food.

The president of G.F. Buche Co., R.F. Buche, has stated that a cut in SNAP would be devastating for his customers living in the poorest county in the United States, and could lead to potential job losses for his team. The Grocery Retail for All Summit, led by FSFI, has sparked conversations aimed at boosting food access and security.

SNAP is crucial for independent grocery retailers, with many small, independent stores relying on SNAP customers for a substantial percentage of their sales. The FSFI's "Grocery Retail for All" report found that independent grocers are important community assets, providing essential infrastructure for nutrition, employment, economic vitality, and neighborhood resilience.

Potential reductions in SNAP benefits or eligibility would likely lead to fewer customers and lower sales for independent grocers. The impact varies by location but tends to hit small, independent stores more severely than large chains, because these smaller retailers are often located in food deserts or remote areas where SNAP customers have limited alternative shopping options.

The reduction in SNAP sales would have several cascading effects: revenue losses for small grocers, potentially threatening their financial viability and increasing the risk of store closures in vulnerable communities; reduced access to fresh and healthy food for low-income populations, as many independent grocers serve communities with limited food retail options; and increased pressure on states to manage costs of SNAP administration, potentially triggering more stringent eligibility checks that further reduce the customer base.

Overall, SNAP supports both the economic health of independent grocery retailers in low-income and underserved areas and the food security of the communities they serve. Cutting SNAP benefits or eligibility could cause widespread harm, shrinking customer spending power, destabilizing essential local businesses, and worsening food access inequities.

The Digital Compassion initiative aims to bridge America's benefit gap by adopting principles that allow retailers to grow their business while making a meaningful difference. The National Grocers Association Foundation has formed an advisory committee for SNAP EBT Modernization, consisting of leaders from 10 states and Washington, D.C. The FSFI surveyed retailers about the importance of the Supplemental Nutrition Assistance Program (SNAP) in supporting independent grocery retailers and community nutrition.

Recent changes in states like Arkansas and Indiana, aiming to ban soda and candy from SNAP, have sparked industry reactions. In low-income neighborhoods, SNAP redemptions often account for more than 50% of the revenue for these retailers, allowing them to provide fresh, affordable groceries in underserved areas. Maurice "Moe" Wince, owner of Sherman Park Grocery, has observed a drop in sales of 48% or more due to changes in SNAP and WIC benefits, affecting the access to fresh fruits and vegetables for his customers, many of whom face health challenges.

Stephanie Johnson, group VP of government relations at the National Grocers Association, noted that SNAP is one of the most effective public-private partnerships in American history, with a high return on investment for taxpayers and being a powerful economic engine for communities of all sizes, fueling the creation of over 389,000 local jobs. Ertharin Cousin, founder and CEO of FSFI, stated that SNAP plays a crucial role beyond household nutrition, being vital for the sustainability of independent grocers and the economic resilience of the communities they serve.

In conclusion, the Supplemental Nutrition Assistance Program (SNAP) plays a vital role in supporting independent grocery retailers and ensuring food security in low-income and underserved communities. Any reductions in SNAP benefits or eligibility could have significant negative impacts on these businesses and the communities they serve.

1. The Food Systems for the Future Institute (FSFI) is organizing a panel discussion on June 30, focusing on SNAP's role in strengthening food retail in underserved communities.
2. The National Grocers Association (NGA) is working to protect SNAP from potential cuts, understanding its significance for their businesses and the communities they serve.
3. Independent grocers, particularly in rural areas, could face higher risks from SNAP cuts, potentially leading to higher shelf prices, lower inventory, and reduced labor hours.
4. The Center for American Progress (CAP) estimates that over 27,000 retailers, especially those in rural counties, may be impacted by SNAP cuts, with potential consequences for local distributors, consumer access to quality food, and job security.

Read also: