Legislating Agriculture

Before learning about the Farm Bill this week in my college course, I had never heard of the act. I would also think that most American’s in this country would have the same reply if they were asked about it. This does not mean that the majority of American’s are not familiar with an aspect of it because the term “food stamps” has been used in everything from politics, song lyrics, jokes in late night television, to a stigma of people receiving welfare. My knowledge about food stamps originally consisted of a government funded program that gave financial assistance to low income families but I have learned researching it that it is so much more than that.

                                                   

(image: http://www.thefiscaltimes.com/2015/02/26/74-Billion-Food-Stamp-Program-Budget-Crosshairs)

Food stamps have been a part of the United States Department of Agriculture since 1939 when it was known as the FSP and then the Pilot Food Stamp Program from May 29, 2961-4. On January 31, 1964, under President Johnson, Congress passed legislation to make the Food Stamp Act permanent. Many changes have happened to the program since then, including it being renamed the Supplemental Nutrition Assistance Program (SNAP) by the 2008 Farm Bill. (USDA, 2014) 

 In 2013, 46.5 million of "vulnerable citizens", meaning households with children, elderly, and disabled, participated in this program--half of all SNAP participants are children. (Feeding America) It is vital that children receive proper nutrition in their developing years and it is through this program that low income families have assistance and food stamps have been shown to create a "marked health improvement both in childhood and later years." (Mother Jones, 2013)

                  

                      (image: http://www.motherjones.com/politics/2013/10/food-stamps-statistics-SNAP-economic-benefits)

                     

           (image: http://www.motherjones.com/politics/2013/10/food-stamps-statistics-SNAP-economic-benefits)

To qualify for the program, applicants must have a gross income up to 130% of the federal poverty line, with a net income of less than or equal to 100% of the poverty line and subject to an asset test. SNAP fosters a strong work incentive because it requires adults to work a minimum of 20 hours per week or to be involved in a training program to receive benefits beyond 3 months of a year. Recipients must also re-qualify every 6 months which hinders people from abusing the system along with phasing receivers out because increases in their income also decreases the amount they receive. (Feeding America; Snap to Health, 2015)

As I mentioned before, food stamps fall under the Farm Bill and it is such an immense program that it was termed “the cornerstone if the Nation’s food assistance safety net.” (USDA, 2014) The pie chart below gives a visual to just how much a part of it, it is.

(image: http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/28/the-950-billion-farm-bill-in-one-chart/)

The program’s size also has a major economic benefit for America, according to SNAP to Health, (2015)

• According to the USDA’s Economic Research Service, each $1 billion of retail generated by SNAP creates $340 million in farm production, $110 million in farm value-added, and 3,300 farm jobs

           

       (image: http://www.motherjones.com/politics/2013/10/food-stamps-statistics-SNAP-economic-benefits)

•  Every $1 billion of SNAP benefits also creates 8,900-17,900 full-time jobs
•    An additional $5 of SNAP benefits generates $9 in total economic activity
•  83% of SNAP benefits, equal to $53.4 billion, were spent at 36,500 supermarkets around the U.S.; the remaining 17% was spent at 180,000 small retail stores (including grocery stores, farmers’ markets, wholesalers, and meal services), for a total of $11 billion
•   SNAP beneficiaries spend more dollars on food in local stores than eligible non-participants
•   An increase in SNAP participation by 5% would result in 2.1 million low-income Americans receiving $973 million in SNAP benefits, generating $1.8 billion in new economic activity 

(image: http://www.seela.org/hollywood-farmers-market/)

For local Utah farmer's an economic benefit is also felt now that food stamp recipients can use their EBT cards at a farmers' market booths where SNAP funds are exchanged for tokens to purchase the following from vendors: 

• Fruits, vegetables or herbs
• Meats, fish or poultry
• Breads and other baked goods
• Dairy, honey or maple products
• Pickled goods, jam, honey and dressings
• Cider and other non-alcoholic beverages
• Other non-hot foods for the household to eat
• Seeds and plants to grow food (UAH, 2011)

The effects that food stamps have on farming can definitely be seen with the benefits but that also means that changes made to the program can also have a negative impact. The Agricultural Act of 2014, aka Farm Bill reform of 2014, made changes to the Nutrition sector where they now provide $200 million for job training and $100 million to increase fruit and vegetable purchases while there was an $8.6 billion cut to the food stamp program.  (USDA, 2014) Another result was a loop hole was corrected for the "heat and eat" states—a third of the country. (Washington Post, 2014) 

                        

(image: http://www.ncsl.org/research/human-services/-heat-and-eat-and-snap-changes-in-the-2014-farm-bill.aspx)

The result?  Millions lost their food stamp benefit entirely while hundreds of thousands of others had their benefits reduced. This also means the economic benefits listed above from the nutrition gained by children, jobs in both stores and on farms, economic spending, and the amount of SNAP funds spent at farmers' markets will also likely to be reduced. The changes from the reform are too current for me to find  figures for but one thing is for sure, I learned a significant amount of information this week about the relationship between the Farm Bills, food stamps, and the economy. I would also recommend that the other people that will look stumped if they were asked about the Farm Bill should look into the Farm Bill more because they will also learn a lot more about farming and how the government spends tax dollars, which all tax payers should know!

                                                              Works Cited

2014 Farm Bill Highlights. (2014, March 1). Retrieved March 1, 2015, from http://www.usda.gov/documents/usda-2014-farm-bill-highlights.pdf 

Chokshi, N. (2014, February 5). Why the food stamp cuts in the farm bill affect only a third of states. Retrieved March 1, 2015, from http://www.washingtonpost.com/blogs/govbeat/wp/2014/02/05/why-the-food-stamp-cuts-in-the-farm-bill-affect-only-a-third-of-states/ 

Cook, C. (2013, October 25). CHARTS: The hidden benefits of food stamps. Retrieved March 1, 2015, from http://www.motherjones.com/politics/2013/10/food-stamps-statistics-SNAP-economic-benefits 

Food Stamps at Farmers Markets. (2011, January 1). Retrieved March 1, 2015, from http://www.uah.org/projects-initiatives/fms/ 

Plumer, B. (2014, January 28). The $956 billion farm bill, in one graph. Retrieved March 1, 2015, from http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/28/the-950-billion-farm-bill-in-one-chart/

SNAP: Frequently Asked Questions. (2015, January 1). Retrieved March 1, 2015, from http://www.snaptohealth.org/snap/snap-frequently-asked-questions/#howmany 

Supplemental Nutrition Assistance Program (SNAP). (n.d.). Retrieved March 1, 2015, from http://www.feedingamerica.org/take-action/advocate/federal-hunger-relief-programs/supplemental-nutrition-assistance-program.html 

Supplemental Nutrition Assistance Program (SNAP). (2014, November 20). Retrieved March 1, 2015, from http://www.fns.usda.gov/snap/short-history-snap 

The Real Benefits of SNAP. (n.d.). Retrieved March 1, 2015, from http://www.snaptohealth.org/snap/the-real-benefits-of-the-snap-program/