SNAP CASELOADS CONTINUE TO FALL

The number of SNAP participants fell by 1.8 million people over the first seven months of FY 2017, nearly matching the decline over all 12 months of fiscal year 2016 (1.875 million). SNAP’s 41.6 million participants in April 2017, the most recent month for which data are available, are the fewest since mid-2010 and 13%, or 6.2 million, below the December 2012 peak. For the fourth straight year SNAP spending also continues to fall.  For the first nine months of this fiscal year, it was 4.3% below the same months last year, and almost 15% lower than the same months in 2013, when spending peaked. These declines are in nominal — not inflation-adjusted — dollars. The stronger economy likely explains most of the decline, though the return of the three-month time limit on certain unemployed childless adults also is a contributing factor. The Congressional Budget Office projects SNAP participation will continue falling 1 to 2% annually over the next decade, from 42 million people in 2017 to 32 million in 2027.

Source: Center for Budget & Policy Priorities, 7/19/17, SNAP Caseloads

SNAP SPENDING WILL CONTINUE TO FALL

Spending on SNAP will continue to fall as the economy recovers and the number of SNAP participants falls, the Congressional Budget Office (CBO) recently reported in updated spending projections. CBO’s estimate of SNAP spending over the next 10 years, based on the SNAP rules now in place, is about 7% lower than its forecast from a year ago, mainly due to lower food prices. And, as the overall economy grows,  SNAP’s share of the gross domestic product will drop under 0.3%, down from a high of 0.5% in 2015.

Source: Center for Budget & Policy Priorities, 1/27/17, SNAP Spending to Drop

SNAP PARTICIPATION CONTINUES DROPPING

SNAP participation averaged 43,369,684 people in July 2016, a decrease of 2,137,387 compared with July 2015. This is the lowest SNAP national participation level since October 2010. The downward SNAP participation trend likely reflects a mix of factors: on the one hand, improved economic conditions have lessened financial need among some households; on the other hand, harsh time limits have pushed certain jobless adults off the rolls. SNAP participation declined  in 40 states and the District of Columbia between July 2015 and July 2016. Six of the ten states (Louisiana, New Mexico, North Dakota, Oklahoma, Texas, and Pennsylvania) with year-over-the-year SNAP increases ranked among the eight states with the biggest job loss in oil and gas rigs as a share of total employment.

Source: Food Research & Action Council, 10/13/16, SNAP Participation

Smith Farm Chicken - a local success story

SLU student and summer intern Amanda Korb will be spending part of her time visiting farmers and profiling them here on the GardenShare blog.  Here's her first entry:

“Fajita spiced Smith Farm Chicken Breast on a crisp house made blue and yellow corn tortilla with queso fresco, shaved lettuce, toasted cumin sour cream and fresh cilantro.” Sounds delicious right? So describes a dish prepared by the 1844 House, an American bistro in Potsdam, made with chicken raised and processed by Massena locals Ron and Cathy Smith.

On Farmers Market days, Ron and Cathy get up at 6am
to prepare their trailer with fresh poultry for customers

Smith raises approximately 800 chickens, a handful of turkeys, beef, and occasionally pigs. Their primary focus is chicken; a USDA inspected and certified processing unit stands within yards of their chicken barns. The chickens have 24/7 access to an outside yard from their clean and spacious coops. Each chicken receives an abundant of food, water, sunlight and socialization.

The Ron and Cathy’s bottom line is the humane treatment of animals. Ron said he knows many farmers who dislike their livestock, or find their daily farm life a chore. He believes if one doesn’t like an animal, then one shouldn’t raise it. Cathy asserted. “It’s not about how long the animals lives, but the quality of life we give them”. Evidence of Ron and Cathy’s words was abundant as I took a tour of their facility. The impeccable cleanliness of the slaughterhouse would impress even my Grandma. What is more, Cathy nurtures any sick animal on the farm personally. They currently have two pet turkeys and four pet laying hens.

This is Ron’s retirement job. Cathy works full time as a dog groomer in a shop right next to the slaughterhouse. When I asked Ron if he could have the same quality of life if poultry farming was his lifetime occupation, his answer was clear a “no.” Sustainability, Ron believes, is the capability to break even on expenditures while still making some sort of income.

Ron sits next to his daughter and granddaughter
at the Canton Farmers Market

That income can be found in the freezers clustered around the farm. Ron said he had intentions of installing a walk-in freezer, but the cost did not outweigh the benefits. Instead, a horse trailer filled with freezers of chicken processed the night before is one of the first to make an appearance at the Canton and Potsdam farmers markets. Aside from the markets, the Ron and Cathy also profit from the aforementioned 1844 House as well as Jake’s on the Water. The couple both survives and relies on local business alone. When I asked which subsidized them more- markets or restaurants- Ron replied it is a balance of both. One challenge they face is competing against the cheap chicken prices Wal-Mart and Aldi’s offer, which is a quick 15-minute drive down the road from their farm. For families receiving SNAP, a $1.65/lb chicken breast is the more affordable option than Smith Farm $3.00/lb. Ron even admitted he would shop at WalMart if the roles were reversed.

The question of cheap food v. the added cost local food then comes into play. At GardenShare, we focus on raising the region’s economy by encouraging families to buy local food. For every $10 spent at Wal-Mart or Aldis, a farmer only receives $1.58 in return. Contrasting, a farmer collects $8-9 for every $10 spent at a local farmers market. GardenShare recognizes buying local as a point of paramount significance; therefore, we try to promote programs such as CSA Bonus Bucks and SNAP Double Up, which make choosing local the more promising option. EBT machines are available both the Potsdam and Canton Farmers Market, where Ron and Cathy can be found selling their fresh poultry. Taking the same $10 spent at the farmers market, about $7.80 is re-spent into the region. Paying a few more cents for local food supports the farmers who raise the product, the community surrounding the farmers and in turn the next generation.

PREPARING FOR THE NEXT RECESSION BY STRENGTHENING SNAP

The current economic recovery is already longer than the postwar average, so it may be prudent to ask--is a recession lurking around the corner? While there’s no way to know, Congress could start preparing for one by strengthening the “automatic stabilizers” in the federal budget—programs like SNAP, Medicaid, and unemployment insurance—that, without the need for action by Congress, expand when the economy is weak and contract when the economy begins to recover.

When the last recession hit, Congressional action was needed to increase SNAP’s maximum monthly food benefit by about $63 a month for a family of three, and that boost was only temporary.  In addition to raising consumer demand, this benefit expansion reduced hunger, and it kept nearly a million people out of poverty in 2010. If Congress doesn’t act before the next recession, it will again be pressured to enact a temporary benefit increase, which may not take effect in time. Instead, Congress could enhance SNAP now to ensure that an expansion kicks in automatically when certain economic indicators are breached. Its size should be tied to the severity of the downturn, and the increase would phase out once things improved.

Source: New York Times, 4/29/16, The Next Recession

SNAP CASELOADS DROP

The number of SNAP participants has fallen by more than 3 million in the last three years, new USDA data for show — reflecting the broad pattern for SNAP that the Congressional Budget Office and others had forecast. SNAP grew significantly between 2007 and 2011 to meet rising need, as millions more people became eligible due to the Great Recession and lagging recovery; participation among those eligible also rose.  That’s consistent with SNAP’s design and purpose.  Caseload growth slowed substantially beginning in 2012 as the economy improved.  Participation peaked in December 2012 at 47.8 million and fell by roughly 3.2 million between February 2013 and February 2016, to 44.4 million. The declines have been widespread:  43 states had fewer SNAP participants in February 2016 than in February 2013. 

Source: Center for Budget & Policy Priorities, 5/10/16, SNAP Caseload

SNAP participation drops by more than a million people

Nationwide, SNAP caseloads dropped by 1.3 million people in January 2016, as compared to January 2015.  SNAP participation is at its lowest level since April of 2011.

Lower SNAP caseloads is likely due to an improving economy, and yet despite economic improvement, food hardship remains high, with a Gallup poll showing that 17% or respondents did not have enough money to feed themselves in the first half of 2015.

Source:  Food Research and Action Center, much more detail here

HIGH SNAP NUMBERS REVEAL ECONOMY’S WEAKNESS

Despite the recent decline in SNAP participation, a recent research report from Credit Suisse analysts said that food stamps issued as a percent of total food purchased in the US skyrocketed to over 12% from less than 6% after the financial crisis. And while that number has dipped slightly to around 10% in 2015, it is still above pre-crisis levels. Record SNAP participation shows just how stressed the core consumer really is, the analysts noted. On the retail side, the fact that lower income consumers have not kept pace with the economic recovery has hurt processed food brands and businesses. "Business can't be good for brands like Chef Boyardee when its core consumers is under-employed and dramatically changing their shopping behavior," write the analysts. Their core consumers are shopping less often and reducing the amount they buy each trip.

Source: Business Insider, 1/6/16, SNAP & the Economy

SNAP PARTICIPATION DROPS

SNAP participation averaged 45,368,348 people in October 2015, a decrease of 29.097 compared with September 2015, and a decrease of 1,114,275 people compared with October 2014. October 2015 marked the fifth straight monthly decline in national SNAP participation. In Connecticut, over 1,500 people left SNAP between September and October 2015, while nearly 5,000 people who received SNAP in October 2014 no longer participate, a 1.2% drop. Despite growth in SNAP caseloads since the Great Recession, about one in five people eligible for SNAP still are not served.

Source: Food Research Action Center, 1/13/16, SNAP Participation

This is evidence that SNAP is doing what it was designed to do - growing when the economy is bad and need goes up, and then shrinking again as the economy improves.  - Gloria

MOST AMERICANS ARE ONE PAYCHECK AWAY FROM THE STREET

A recent survey of 1,000 adults by Bankrate.com found that 63% of Americans have no emergency savings to pay for a $1,000 emergency room visit or $500 car repair. In 2014, the U.S. Federal Reserve released survey results from more than 4,000 adults and found, “Savings are depleted for many households after the recession.” Another survey of 1,000 adults last year by GOBankingRates.com found that 62% of Americans have less than $1,000 in a savings account (not including retirement or other investment accounts). More than four in 10 Americans either experienced a major unexpected expense over the past 12 months or had an immediate family member who had an unexpected expense, Bankrate found. Why aren’t people saving? Millions of Americans continue to struggle with student loans, medical bills, and other debts.

Source: MarketWatch, 1/6/16, Emergency

Food insecurity update following the recession

This latest Policy Action Brief from Children's HealthWatch details new research on the impact the Supplemental Nutrition Assistance Program (SNAP) benefit rollback in November 2013 had on food insecurity among families with young children. These findings confirm that the amount of the monthly SNAP benefit matters, and the SNAP rollback had a measurable, negative effect on household and child food insecurity.

Read the policy action brief and watch the video:

Income and poverty data

The U.S. median income and poverty rate were both unchanged from 2013 to 2014, according to today’s Census Bureau annual release of income, poverty and health insurance data. The nation continues to be plagued by an uneven recovery, stagnant wages, inadequate public safety net programs, and rampant inequality. While the recession technically may be long over, most families are still reeling from its effects and the plodding recovery.

New Poverty and Income Data Underscore Ongoing Struggle for Many Americans - FRAC, September 16, 2015

SNAP PARTICIPATION TRACKS RECESSION & RECOVERY

About 46.5 million Americans received monthly SNAP benefits in the 2014 fiscal year, dramatically up from 28 million in 2008. In 2013, some states began to see SNAP numbers decline and by 2014, all but eight states posted declines in enrollment from the year before. National SNAP enrollment in 2014 was down by 2.3% from 2013. The average monthly SNAP benefit per person in 2014 was $125, down from $133 in 2009-13.  When adjusted for inflation, the average monthly benefit was about $110 in 2014, an increase of about $40 since 1994.

Source: Council of State Governments, 5/4/15, SNAP Participation

SNAP in St. Lawrence County

According the New York State's Office of Temporary and Disability Assistance (ODTA), in January of 2015, 8,683 households in St. Lawrence County were receiving benefits from the Supplemental Nutrition Assistance Program (SNAP, formerly called food stamps).  17,129 people lived in these households and benefited from this program.

In that single month, January 2015, more than $2 million in SNAP benefits was provided to County residents!  For the most part, these funds were spent at grocery stores in the County and maybe a few stores nearby in neighboring counties.  So, these funds not only help provide food for people who need assistance, they are very important to our local grocery stores and the local economy!

Moody's estimates that every dollar of SNAP benefits that goes into a community returns $1.78 in economic activity to that community!

Imagine if that $2 million a month was taken away from St. Lawrence County...stores would close, jobs would be lost, and of course, people would go hungry.  Protecting and improving the SNAP program is a key priority for fighting hunger, but look at how it also benefits a community!

RECESSSION HIT FOOD SECURITY HARD, BUT SNAP HELPED

Roughly 2 million more children live in poverty today than at the start of the recession, according to a new study that analyzes four areas affecting children’s well-being: health, hunger, housing, and abuse and neglect.  Food security, the study finds was the hardest hit. As of 2013, 15.7 million children lived in households where at least one family member didn’t get enough to eat on a regular basis. That’s 3.3 million more than at the onset of the recession. But SNAP helped ease the situation. The number of SNAP beneficiaries rose by 21 million between 2007 and 2013 to 46.5 million, resulting in about 1 in 3 kids receiving some form of nutrition assistance.

Source: Pew Charitable Trust, 3/17/15, Food Security in the Recession