Enhancing the Resilience of Grocery Food Supply in Low-Income Regions through SNAP (Supplemental Nutrition Assistance Program)
In a significant turn of events, independent grocery retailers in low-income rural and urban areas are bracing for potential harm from proposed reductions in the Supplemental Nutrition Assistance Program (SNAP). These stores, which often rely heavily on SNAP revenue for their viability, could face lost income, potential store closures, and disruptions to local food supply chains.
The National Grocers Association (NGA) is currently meeting with congressional leaders to defend SNAP, emphasising its importance to the industry and the communities it serves. The NGA Foundation has also formed an advisory committee for SNAP EBT Modernization, featuring leaders from 10 states and Washington, D.C.
The implications of these reductions are far-reaching. Any reduction in SNAP redemptions could lead to decreased store sales, forcing some grocery stores to close. This loss reverberates beyond retailers, affecting wholesalers, food processors, farmers, and the broader food supply chain, contributing to job losses and economic decline in underserved communities.
Independent grocers operate on thin profit margins, around 1-3%, and the instability caused by SNAP reductions compounds existing challenges such as inflation, the aftermath of the pandemic, supply chain issues, and tariff uncertainties. This confluence of factors makes it difficult for small, family-run stores to remain profitable or even open in low-income areas.
The United States Department of Agriculture (USDA) estimates that SNAP generates up to $1.79 in economic activity for every $1 spent. The Center for American Progress (CAP) estimates that more than 27,000 retailers, particularly in rural counties, face higher risks from SNAP cuts.
Changes to SNAP eligibility and reductions in the program's scale are projected to cause as much as a 6.7% decline in grocery sales initially, with longer-term negative impacts as fewer consumers qualify for assistance. The cost to retailers is not limited to lost sales—they also face expenses for reprogramming point-of-sale systems and employee training due to policy changes.
The cuts may force SNAP recipients to purchase cheaper, less nutritious food, undermining both public health goals and the sales of stores that offer fresh produce and healthier options. Some retailers are responding by promoting programs like Double Up Food Bucks, which incentivize SNAP users to buy more fruits and vegetables, but these efforts may be insufficient to offset the losses caused by benefit reductions.
The Food Systems for the Future Institute (FSFI) recognises the crucial role that SNAP plays beyond household nutrition, being vital for the sustainability of independent grocers and the economic resilience of the communities they serve. The FSFI's "Grocery Retail for All" report finds that independent grocers are important community assets, often accounting for more than 50% of these retailers' revenue in low-income neighborhoods.
The Digital Compassion initiative aims to bridge America's benefit gap by adopting principles that help retailers grow business while making a meaningful difference. The NGA notes that SNAP is one of the most effective public-private partnerships in American history, supporting jobs in retail, distribution, and agriculture.
Maurice "Moe" Wince, owner of Sherman Park Grocery, observes a drop in sales of 48% or more due to changes in SNAP and WIC benefits, affecting consumer access to fresh fruits and vegetables. R.F. Buche, president of G.F. Buche Co., affirms that a cut in SNAP would be devastating to his customers in the poorest county in the United States, potentially leading to lost income, labor cuts, and potential store closures.
Ertharin Cousin, founder and CEO of Chicago-based FSFI, states that SNAP plays a crucial role in the sustainability of independent grocers and the economic resilience of the communities they serve. On June 30, FSFI will host a virtual panel discussion to highlight the operational realities in regard to food access in underserved communities.
[1] National Grocers Association, "SNAP Reductions Could Harm Independent Grocers and Underserved Communities," Press Release, [date], URL [2] Center for American Progress, "SNAP Cuts Would Harm Rural Communities," Report, [date], URL [3] Food Systems for the Future Institute, "Grocery Retail for All," Report, [date], URL [4] The Digital Compassion initiative, "Bridging America's Benefit Gap," Initiative Overview, [date], URL [5] United States Department of Agriculture, "SNAP Generates Economic Activity," Fact Sheet, [date], URL
- The National Grocers Association (NGA) has formed an advisory committee for SNAP EBT Modernization, involving leaders from 10 states and Washington, D.C., to emphasize the importance of the Supplemental Nutrition Assistance Program (SNAP) to the industry and the communities it serves.
- Independent grocers, which often rely heavily on SNAP revenue for their viability, might face lost income, potential store closures, and disruptions to local food supply chains due to proposed reductions in the SNAP program.
- Amidst challenges such as inflation, the aftermath of the pandemic, supply chain issues, and tariff uncertainties, independent grocers face instability caused by proposed SNAP reductions, making it difficult for small, family-run stores to remain profitable or open in low-income areas.
- The Food Systems for the Future Institute (FSFI) emphasizes that SNAP plays a crucial role beyond household nutrition, as it is vital for the sustainability of independent grocers and the economic resilience of the communities they serve.
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