House Ag Committee Member Dan Newhouse (R., Wash.) indicated in his most recent newsletter that, “Out of 535 people in both the House and the Senate, there are only about 15 farmers and ranchers. As a farmer and the co-chair of the Congressional Fertilizer Caucus, I’ve been working in Congress to increase understanding of the agricultural industry and the importance of fertilizer. During the August district work period, I had the opportunity to take a tour of Agrium fertilizer plant in the Tri-Cities to discuss issues important to Central Washington farmers.”
Recall that over the weekend, Senate Ag Committee Chairman Pat Roberts (R., Kans.) and House Ag Committee Chairman Mike Conaway (R., Tex.) discussed a variety of current issues impacting the U.S. agricultural economy and farm policy at the Kansas State Fair in Hutchinson.
In particular, before embarking on changes to federal agricultural policies, Chairman Conaway said that he wanted “to know what it does to the cost of food.” He added that “we have 45 million Americans on food stamps [SNAP],” when he analyses farm policies he thinks in terms of what we are getting in return for government investment- and current policies are working, “there is no denying that,” he said.
Noting that on average, Americans spend 9.8% of disposable income on food, Chairman Conaway indicated that,“what I care about is the folks at the bottom 20% of the economic food chain, it’s not 9.8% of their disposable income, they are paying 30-35% of their disposable income for food.”
With this background on the importance of food costs to policy makers in mind, the USDA’s Economic Research Service (ERS) indicated last week (“Percent of Income Spent on Food Falls as Income Rises“) that, “[P]oorer households spend less money on food than higher income households, but this accounts for a greater share of their income.”
The ERS update indicated that, “Over the past two and a half decades, U.S. households in the lowest income quintile (the poorest 20 percent of households) spent between 28.8 and 42.6 percent of their annual before-tax income on food, compared with 6.5 to 9.2 percent spent by households in the highest income quintile. Before-tax income includes earnings and other money income, public assistance, Supplemental Security Income payments, and Supplemental Nutrition Assistance Program (SNAP) benefits.
“The share of income spent on food is more volatile for poorer households than for higher income households. The lowest income households saw their share of income spent on food drop from 41.1 to 28.8 percent over the years 2001 to 2007 but then rise to 35.5 percent in 2009. Meanwhile, over the same period, the highest income households saw relatively minor yearly swings of 0.5 to 1.0 percentage points.”
The ERS report explained that, “This volatility in the share of income spent on food by the lowest income quintile is due in part to (1) changes in grocery store (food-at-home) prices and (2) changes in earned income and Federal assistance benefits. The 2001 jump in the share of income spent on food by the lowest income quintile illustrates the impact of rising food prices. Although incomes were steadily increasing for low-income households at this time, at-home food prices increased by 3.3 percent from 2000 to 2001. Higher food prices disproportionately affect the spending behavior of low-income households and often require them to allocate a larger share of their incomes to food.”
House Agriculture Committee Ranking Member Collin Peterson (D., Minn.) indicated in his most recent newsletter (9.9.16) that, “On Thursday, I met with representatives from Rural Community Insurance Services (RCIS), an Anoka-based crop insurance company. Kevin Berg, Mike Day and I discussed the challenging financial situation many farmers currently face and how risk management tools can be strengthened to address their needs. We also talked about what changes could be made in the next farm bill in light of lower commodity prices facing producers today.”
FOR IMMEDIATE RELEASE
September 12, 2016
Senator Booker, Representatives Ryan and Lee Urge Department of Agriculture to Modernize SNAP Program by Bringing Benefits Online
“Modernizing SNAP benefits will help increase the opportunity for low-income families to access healthy and affordable food that could ultimately lead to healthier lives.”
WASHINGTON, DC – Today, U.S. Sen. Cory Booker (D-NJ), along with U.S. Reps. Tim Ryan (D-OH) and Barbara Lee (D-CA) sent a letter to U.S. Department of Agriculture Secretary Tom Vilsack urging him to expedite United States Department of Agriculture’s (USDA) acceptance of the Supplemental Nutrition Assistance Program (SNAP) for online transactions, which would expand access to healthier foods for low-income individuals and families.
“It is imperative for the economic future and the health of all Americans to ensure that each person has access to nutritious and affordable food, especially the 46 million people who rely on SNAP to ensure that they and their families have enough food to eat. As you know, individuals and their families who rely on SNAP are more likely to reside in food deserts, have lower nutrition education, and live in poverty. That is why it is vital that our nation commits to reducing hunger and bolstering nutrition through improvements in SNAP, such as online transactions,” Sen. Booker and Reps. Ryan and Lee wrote in the letter.
“We know that technological advancements over the last 10 years, like the proliferation of smartphones, have dramatically increased access to the internet throughout our country. Unfortunately, many of our governmental policies and programs have not kept pace with the dramatic improvement in healthy food access that technology offers.
“We deeply appreciate all of your efforts to increase access to healthy foods for all Americans, including your commitment to launch a demonstration project to allow use of SNAP online. However, given the urgent need to catch up with the rapid pace at which the private sector is utilizing technology to expand access to healthy foods, we urge you to consider moving up the timing for beginning the project, allowing all eligible retailers to participate, and facilitating their participation by shortening the projects timeframe,” they concluded.
The full letter can be viewed here.