(USNewsMag.com) – Most states in the US stopped providing emergency “Supplemental Nutrition Assistance Program” (SNAP) payments, sometimes called food stamps, in March 2023. By the end of February, emergency payments had concluded in seventeen states.
Most food stamp users will see a reduction of $90 in their monthly payments. Those receiving SNAP assistance saw a significant decrease in their food allocations, and the decision may have adverse effects on the economy as a whole. After March 2023, companies including farmers’ markets, grocery shops, dollar stores, and others that take SNAP may experience less business.
Although while supermarkets will be hit particularly hard, other businesses will also be harmed. One of every five citizens now shops at dollar stores like Dollar Tree and Dollar General for at least part of their weekly food needs.
There are additional suggested limits that may potentially damage grocery stores, farmers’ markets, and other shops with slim profit margins, such as SNAP food cutbacks.
SNAP recipients may have even fewer options in 2023 if the proposed Farm Bill is passed. Currently, participants may use their EBT cards to buy a broad variety of processed, frozen, and fresh goods, except for hot prepared meals, alcoholic beverages, and tobacco products. If legislation is enacted, only foods that meet the Dept. of Agriculture’s standards would be allowed. This would hurt the grocery store business and diminish customers’ options.
SNAP customers make up 12% of food and drink revenues, which increased by 19% during the increased benefits. Non-SNAP consumers were responsible for 1% of the dollar growth. At the conclusion of 2020, SNAP families had spent $74 billion on drinks and food (excluding bakery, deli, and vegetables).
They are advocating initiatives to help grocers create the technology to take EBT as a method of payment in shops and online, as well as incentives for grocers to develop in areas with poor food accessibility and rural regions. These initiatives may help supermarkets generate more income from SNAP customers, but they won’t replace the income lost when SNAP beneficiaries have less disposable income each month.
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