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Overview of Food Assistance Programs That Can Pay Farmers
Contents of This Web Page:
FMNP – Farmers’ Market Nutrition ProgramSFMNP – Senior Farmers’ Market Nutrition Program
WIC Fruit & Vegetable Vouchers (FVV)
SNAP – Supplemental Nutrition Assistance Program (formerly Food Stamps)
FMNP – Farmers’ Market Nutrition Program
The FMNP is administered by the Minnesota Department of Agriculture (MDA), through local agencies that administer the Women, Infants, and Children (WIC) supplemental nutrition program. The FMNP program is supported by Federal funds, but MDA has to pay some administrative costs.
WIC eligibility = 185% of poverty line. Eligibility guidelines
FMNP checks can be used to purchase fresh fruits and vegetables, only. Organic is allowed for FMNP. (Organic is not allowed for the general WIC program. Read more here.)
Statistics for Minnesota FMNP program in 2011: 37,796 families received four $5 checks. This would be a total of $755,920. However, actual checks redeemed were $414,555. (Carol Milligan, MDA; personal communication on 1/20/12)
This means that 45% of FMNP vouchers are going un-redeemed; representing loss to farmers of $341,365.
Both farmers’ markets and vendors within markets have to be authorized to accept FMNP. Vendor training takes place in April, and is good for three years so long as there are no compliance problems. The MDA focuses its efforts on areas with a critical mass of both WIC participants and farmers’ markets that supply a sufficient quantity and variety of fresh vegetables. As of 2012 there are no FMNP farmers’ markets north of the Twin Cities.
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SFMNP – Senior Farmers’ Market Nutrition Program
The SFMNP is administered by the Minnesota Department of Agriculture (MDA), through local agencies that offer the Nutrition Assistance Program for Seniors (NAPS). The NAPS program is part of the USDA Commodity Supplemental Foods Program (CSFP). Seniors getting a commodity food box also get the SFMNP checks.
NAPS income guidelines are stricter than for WIC.
SFMNP checks can be used to purchase fresh fruits and vegetables only. Organic is allowed.
Statistics on SFMNP use in Minnesota in 2011: 6,687 people each received four $5 checks. This would be a total of $133,740. Actual checks redeemed were $104,460.
(Carol Milligan, MDA; personal communication on 1/20/2012)
The SFMNP has a higher percentage of redemption than the WIC-FMNP, but still 22% of checks are going un-redeemed. This represents a loss to farmers of $22,280.
Some northern Minnesota farmers’ markets are authorized for SFMNP, including Grand Rapids and Duluth. Also, most of the markets that are authorized for the WIC-FMNP also accept the SFMNP.
As with FMNP, vendor training takes place in April and is good for three years so long as there are no compliance problems. The MDA has undercover buyers visiting markets to check on compliance.
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WIC Fruit & Vegetable Vouchers (FVV)
The Fruit and Vegetable Vouchers (FVVs) are distributed to all participants in the Women, Infants, and Children (WIC) supplemental nutrition program: $10 per month to WIC mothers, $8 per month to WIC children. These are intended to increase the percentage of fresh fruits and vegetables in the diets of WIC participants.
The WIC FVVs can be used at grocery stores. They can also be used at any farmers’ markets that are authorized for either FMNP or SFMNP, between June 1st and October 31st. At farmers’ markets, they can only be used to purchase from farmers who are also authorized to accept FMNP or SFMNP.
WIC FVVs can be used for fresh fruits and vegetables only, but there are slightly different restrictions from FMNP on what can be bought. White potatoes, for instance, can be bought with FMNP but not with WIC Fruit & Vegetable Vouchers (FVVs).
FVVs can be used to purchase organic foods. (Ordinary WIC vouchers cannot be used for organic foods. Read more here.)
Minnesota county-level data for 2009 for mothers & children receiving WIC:
datacenter.kidscount.org
The FVVs represent a potentially large market for farmers’ market vendors. In a 7-county region of northeastern Minnesota, for instance, a total of more than $625,000 in FVVs would be distributed to WIC participants during the 5-month, June-October farmers’ market season.
Calculation based on 2009 numbers of WIC participants, and using the smaller $8 monthly FVV amount:
Aitkin: 708 x $8 x 5 months = $28,320
Carlton: 1971 x $8 x 5 months = $78,840
Cook: 260 x $8 x 5 months = $10,400
Itasca: 2324 x $8 x 5 months = $92,960
Koochiching: 654 x $8 x 5 months = $26,160
Pine: 1454 x $8 x 5 months = $58,160
St. Louis: 8,278 x $8 x 5 months = $331,120
TOTAL = $625,960
Most of this money is being spent in grocery stores. Few WIC participants are aware that they can use FVVs at participating farmers’ markets, and only a few farmers’ markets are authorized to accept the FVVs.
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SNAP – Supplemental Nutrition Assistance Program (formerly Food Stamps)
Eligibility for SNAP is approximately set at 130% of poverty level, although there is a more complex formula. Eligibility guidelines
There are 302,000 Minnesotans who use SNAP benefits, but 670,000 are eligible (55% non-participation rate).
Source: SNAP Access Study
The average SNAP monthly benefit per person in Minnesota in 2007 was $89.36. It hit a high of $121 in 2010, and was at $115 in 2011.
Source: www.fns.usda.gov/pd/18SNAPavg$PP.htm
Average food expenditure per person, according to USDA figures, is about $44 per week. That is $176 per month, so on average the SNAP program is providing 65% of what people would normally spend per month on food.
Source: Household Food Security in the United States
The amount of SNAP money used in Minnesota in 2011 was approximately 302,000 participants x $115 average per month = $34,730,000 per month. That’s $416,760,000 per year.
Farmers’ market EBT sales in Minnesota in 2011 in the seven markets tracked by Minnesota Farmers’ Market Association (MFMA) were $7,127.30. There were also other farm-associated SNAP redemptions in 2011. These include on-farm stores, farm stands, and CSAs. There were a total of 44 farms and farmers’ markets accepting SNAP in MN in 2011, and total SNAP sales at all these venues were $66,652. That’s a 234% increase from $20,007 in 2010, but still represents only 0.016% of total EBT use in Minnesota in 2011.
Source: personal communication from Deonna Bouska, director of MFMA.
SNAP benefits can be used to purchase any kind of food except for food that will be eaten in-store, or hot food. That means SNAP shoppers can buy meats, dairy, breads, baked goods, fruits, vegetables, jams & jellies – and candies and cookies. SNAP benefits can be used to purchase plants that will be used to grow food, and SNAP benefits can be used to purchase organic food. There is continual debate over restricting foods that can be purchased with SNAP benefits. The FNS has an explanatory document
SNAP benefits, unlike WIC, FMNP and SFMNP, are entitlement programs. They are available to anyone, anywhere in the U.S. and territories who meets income & other guidelines.
Any farmer or farmers’ market that meets guidelines can apply to become a SNAP “store.” If greater than 50% of your total sales are of basic foods: meats, breads, dairy, fruits and vegetables; you qualify. Convenience stores and other types of stores for which basic foods are less than 50% of total sales, qualify by offering at least three types of items in each of four food categories.
Read more about SNAP/EBT + Market Bucks at Minnesota Farmers' Markets
The USDA has really good online resources about SNAP at farmers’ markets and farms.
Farms or farmers’ markets that want to become SNAP “stores” and accept SNAP benefits from customers can find all of the information about how to do that at the USDA-FNS Farmers' Market website.
“Market Bucks” in Minnesota and similar incentive programs in other states provide extra purchasing power to SNAP customers who shop at farmers’ markets. These types of bonus incentives for SNAP customers may be offered, but have to be reported to the FNS. There’s some dicey legal ground around “equal treatment” regulations.
Bonus_Incentives.
Community Supported Agriculture farms (CSAs) can accept SNAP benefits, but SNAP customers cannot pre-pay for a whole season of SNAP. CSAs have to take weekly payments as produce is delivered. A CSA run by a non-profit organization can take up to two weeks’ advance payment.
SNAP for CSAs
A number of farms have found ways to work within this restriction to offer CSA shares to low-income customers. Read more here.
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