Waimanalo Food Systems Hui EBT at Farmers Markets

1. Kristina Matsuda Taneica... will you be discussing farmers eligibility to participate in SNAP, and how farmers market apply to become an FNS SNAP retailer? Let me know, because I can cover it if you are not planning to, but didn't want to infringe on your part. Thanks!! Kristina Matsuda hey group!! as I am working on my part (EBT in farmer's market), I think that it could be part of the intervention section of our two-fold intervention suggestions.... If so, we can just move my slides down into the intervention section. Let me know your thoughts! ~Kristina Waimanalo Food Systems HuiEBT at Farmers Markets • Tanieca Downing • Masami Kikuchi • Kristina Krug • Lee Rosner • FSHN 451 • Fall 2012

2. Waimanalo • Demographic Info: Waimanalo, HI (US Census Bureau, 2010) • 5, 451 residents • AGE: Median 33.8 years. 26% ≤ 15 years old; 11.5 % ≥ 65 years old • RACE: Claiming 1: Hawaiian (17.4%), Filipino (14.8%), White (12.3%) • One or more:: Hawaiian/ PI (57.2%), Asian (53.7%), White 39.2%) • PUBLIC AID: 34.3% of children in households that received aid/SNAP. • INCOME: Median ann. household $67,886, but 18.1% earned less than $25,000 • Education for 25 years and older: no HS diploma 14.3%; bachelor’s degree 7.2%; graduate or professional degree 3.1% • Median annual earnings for 25-year-old individuals :overall $32,466 • < high school diploma: < $21,000; BA/BS $37,000; Grad/Prof. $59,000

3. Waimanalo • Waimanalo/Kailua Health and Nutrition Status • (BRFSS, 2010) • DISEASE INCIDENCE: • Diabetes 12.3%; CHD 4.6%; HTN 31.8% (2009)* • Overweight or obese: 61.6%; Obesity: 28.6%** • DIET: • Average daily servings of F and V: 3.9 • Consuming fewer than 1 fruit per day: 49.2% • Consuming fewer than 1 vegetable per day: 35.6%

4. Bobby's Market • A small family- owned store • Old and unappealing appearance • Limited amounts and selections of fresh fruits and vegetables (5% shelf space) available • Customers are 100% Waimanalo locals

5. Mel's Market • A small family- owned store • Closed in 2011.

6. 7-11 • 2 store locations • Limited amounts of fresh fruits (just bananas & apples)(Less than 1% shelf space available) • No fresh vegetables available • Customers are visitors / locals

7. Shima's Market • Only one supermarket in town • Large amounts & lots of selections of fresh fruits & vegetables available (15% of shelf) • Most produce from mainland (2/3) • Most customers are Waimanalo residents

8. Foods price comparison

9. Supplemental Nutrition Assistance Program (SNAP) • The First Food Stamp Program (FSP) • May 16, 1939 - Spring 1943 • Purpose: A relief program to disburse food during a time with excess unmarketable surplus food and widespread unemployment • four years with approximately 20 million people served • nearly half of all counties in the US • total cost of $262 million

10. SNAP • People on relief eligible to purchase orange stamps equal to normal food expenditures • for every $1 in orange stamps purchased, 50 cents of blue stamps were received • orange stamps - used to buy any food • blue stamps - used to buy food determined by the Department of Agriculture to be surplus

11. SNAP • Pilot Food Stamp Program • May 1961 - 1964 • retain requirement to purchase food stamps • elimination of concept of special stamps for surplus foods • emphasis on increasing the consumption of perishables • 40 counties in 22 states • 380,000 participants

12. SNAP • Food Stamp Act of 1964 • August 31, 1964 • Purposes: • to strengthen the agricultural economy • to provide improved levels of nutrition among low-income households • to provide congressional control over the pilot FSP

13. SNAP • Provisions: • eligibility • requirements • prohibitions • state and federal responsibilities • appropriations • The USDA estimated 4 million participants annually at a cost of $360 million • rapid program expansion 1960s and 1970s from ~500,000 to 15 million participants

14. SNAP • Food Stamp Act of 1974 • Republican Bill • targeting benefits to the neediest • simplifying administration • tightening controls on program • Democratic Bill • increasing access to those most in need • simplifying and streamlining the process of benefit delivery • reducing errors • curbing abuse

15. SNAP • FSP Reform - EPR • "elimination of purchase requirement" - to eliminate the purchase requirement because of the barrier to participation that the purchase requirement represented • January 1971 - Laws and Provisions established • Participation increased 1.5 million over preceding month

16. SNAP • Current Food Stamp Program • Farm Bill of 2002 • focus on program access and simplification of program rules • Farm Bill of 2008 • "Food, Conservation, and Energy Act of 208" • By August 2008, participation to federal food assistance programs reached an all time (non-disaster) high - 29 million persons per month

17. SNAP • Farm Bill of 2008 • increased the commitment to federal food assistance programs by more than $10 billion over 10 years • strengthened integrity of FSP • simplified administration • maintaining state flexibility • improving health through nutrition education • improving access • October 2001 - FSP became SNAP

18. Electronic Benefit Transfer (EBT) • Development of EBT (1988 - 2004) • What is EBT? • an electronic system that allows a recipient to authorize transfer of their government benefits from a Federal account to a retailer account to pay for products received • An EBT card is used like a bank card with a PIN number for use of food stamp benefits • Elimination of paper coupons that can be lost or stolen • Reduction of fraudulent coupon use

19. EBT • Used for SNAP issuance - some states also utilize for WIC, TANF, and DHHS Federal block-grant program • Used in all 50 states, District of Columbia, Puerto Rico, Virgin Islands, and Guam

20. People's Open Market (POM) • Department of Parks and Recreation • Founded in 1973 • First Location - Banyan Court Mall, Kalihi • over 1 million shoppers annually • each market operates once/week for approximately

21. People's Open Market (POM) • Goals • To provide the opportunity to produce fresh agriculture and aquaculture products and other food items at low cost. • To support the economic viability of diversified agriculture and aquaculture in Hawaii by providing market sites for local farmers, fisherman, or their representatives to sell their surplus and off-grade produce. • To provide focal points for residents to socialize.

22. People's Open Market (POM) • "Food Stamp Acceptance" or "Food Stamps Accepted Here" sign required with price list • Only 3 markets with EBT machines • POM staff conducts weekly price surveys at various stores to determine recommended price for vendors • Vendors required to sell products at or below recommendation of POM director • Prices approximately 35% below retail prices

23. People's Open Market (POM) • Approved Agriculture and Aquaculture • fruits and vegetables • eggs • seafood • plants and flowers • honey • other approved products

24. Benefits of EBT at Markets • Access to a low-cost source of fresh fruits and vegetables • low-income neighborhoods have less access to sources of fresh fruits and vegetables • fruit and vegetable consumption associated with rates of adiposity and chronic disease in adults • Farmer's markets are an effective way to increase access in low income areas

25. The Dilemma? • The number of farmer's markets has tripled in the last decade • However the portion of SNAP participants' budgets being spent at farmer's markets has declined 3 fold since EBT introduction • Shopping patterns of SNAP participants has changed • low awareness of farmers' markets • perception of expensive • time and transportation issues that limit access • Burden of markets and vendors

26. Waimanalo Food Systems Hui • WFSH Background • Grassroots project initiated in 2010 by the Healthy Hawaii Initiative (HHI) in cooperation with the CDC • Goal of developing a strong, respectful, and positive relationship with the community • Council created to improve health and nutrition by supporting local ag and food production while conforming to native Hawaiian land-use ethic • Bucket gardening, aquaponics workshops, website, community meetings • (Ramirez et al., 2010)

27. Costs of adopting EBT technology: Time and Resources • Initial Set-up costs: Infrastructure Development • Equipment • Staff Time • Accounting Procedures • On-going Costs: Operating and Labor • Administration • monthly wireless network • transaction fees • physical labor • Marketing and Promotion

28. Funding Opportunities • GRANTS • USDA's FMPP (Farmers Market Promotion Program) • $2500-100,00 • NIFA (National Institute of Food and Agriculture) • $10,000-300,000 • State farmers market association • Fold start-up & operating costs into vendor fees • State/Federal run funding opportunities: • free or subsidized wireless POS terminals • share administrative costs (wireless terminals) • SNAP transaction processing costs

29. Key Contacts for EBT Installation • 1. FNS • administer and approves all retailers who participate in SNAP programs. • 2. FNS Field Offices • handle completing and submitting SNAP retailer applications • 3. State SNAP Offices • Inform participating vendors about changes and directives from FNS • Inform FNS about changes reported by the farmers market.

30. Establishing EBT technology • 1st Farmer's Market meet eligibility standards to participate in SNAP. • 2nd Farmer's Market Apply to become a FNS SNAP retailer. • Complete FNS SNAP application • Determine which scrip system will be used (paper, tokens or receipts) • Agree to comply with FNS guidelines by signing and submitting application

31. Script System Comparison • Receipts: • SNAP customer shops at vendor's stand and receives a receipt from vendor, and leaves purchased goods with vendors. • SNAP customer goes to central POS terminal to swipe EBT card for amount on vendor's receipt and enters the PIN. • Approval granted, the manager gives customer another transaction receipt to confirm payment with customer to present to ventor to retrieve their purchased goods. • Script or Tokens: • A SNAP customer swipes the EBT card at the central POS terminal and enters the PIN. • The staff person enters amount of script or tokens requested into terminal • Transaction is approved, SNAP customer is give a transaction receipt and scrip/tokens. • SNAP customer can use scrip/tokens at any participating vendor’s stand to purchase eligible items.

32. Establishing EBT technology • 3rd Training manual and video sent to Farmers Market from FNS. • 4th State EBT contractor who is responsible for SNAP EBT services is notified. • 5th Farmer's market POS equipment needs established. • EBT-only Machines • Commercial POS Equipment

33. Equipment Needs Comparision • Commercial POS Equipment • Market representative enters contract with TPP to purchase or lease POS terminal • Purchase and delivery of wireless POS machine <30days. • Farmer's market is responsible for all associated costs. • EBT-Only Machines • Retailer agreement established. • EBT-only terminal delivered to market within 2 weeks. • EBT contractor process transactions free of charge and distribute funds directly to farmers bank account.

34. Marketing & Promotion: Building Awareness • 1. "Word of Mouth" • 2. Banners and signage with EBT and SNAP logos. • 3. Vendors and other certified SNAP retailers display own signage. • 4. Printed materials & Brochures developed by farmers and agencies. • clearly states that SNAP EBT cards are accepted. • location of EBT machines • Market's location and time of operation • Products available for SNAP purchases • SNAP logo

35. Marketing & Promotion • 5. Community Partnerships • City • State • Federal • groups focussed on "buy local" initiatives • food pantries • hospitals • clinics • faith based organizations • 6. Community Partnership Projects: • handout fliers • host cooking demos • nutrition education events • promote SNAP benefits at: • health fairs • school events • community festivals

36. Marketing & Promotion • 7. Posting signage and flyers at: • WIC offices • Senior Centers • Hospitals • Clinics • Food pantries • Schools • Churches • Community Centers • 8. Press Releases & Special events • draws media and other community attention

37. Other Resources to Build Awareness • AMS: • USDA agency that supports public markets through funding opportunities • 2. FNS: • USDA agency that administers SNAP • 3. Know Your Farmer, Know Your Food Initiatives: • USDA-wide effort to better connect consumers with local producers. • 4. Farmers Market Coalition • Non-profit that provides resources for farmers markets.

38. Other Resources to Build Awareness • 5. Project for Public Spaces: • non-profit that operates public markets program dedicated to reconnect community and local economics through markets • 6. Wholesome Wave Foundation: "Nourishing Neighborhoods" • non-profit that operates a program to double the value of SNAP, FMNP, SFMNP benefits when used at farmers markets. • provides technical support as well.

39. Local example of community partnerships and EBT implementation • Community Partnerships between: • Kokua Kalihi Valley (KKV): Community Clinic • Wholesome Wave: Conduit • Double SNAP money when using EBT • People's Open Market • Working together to promote: • Buying Local • Eating Healthy (fresh fruits and vegetables) • Building Community

40. EBT at Farmers’ Markets: A National Perspective • SNAP usage at farmers’ markets rose from $1.6 to $7.5 million from 2007 to 2010 (Butterheim et al., 2012). • In 2010 the % of food expenditures that occurred at farmers’ markets was 25X greater for non-SNAP than SNAP (Briggs et al., 2010). • In 2009, only 17% farmers’ markets in the US accepted SNAP. • The switch from the food stamps to EBT (begun in 1994) led to a 71% drop in SNAP benefit utilization 1994 and 2008 (Briggs et al., 2010). • One study showed total SNAP EBT sales increased by 38% when a single market-operated POS terminal was replaced by multiple vendor-operated terminals (Butterheim et al., 2012).

41. EBT: National Strategies to Increase Usage • Some of the costs must be subsidized by federal, state or local gov or private sources • Publicly funded education and outreach to raise awareness among SNAP recipients. • Incentive programs work. • SNAP usage has increased by 300-900% at some markets during the programs and by up to 50% even after the program has ended (Briggs et al., 2010).

42. Works Cited • Briggs S, Fisher A, Lott M, Miller S, Tessman N. 2010. Real food, real choice: Connecting SNAP recipients with farmers markets. Accessed December 2, 2012.Community Food Security Coalition Web site. Available at: http://www.foodsecurity.org/pub/RealFoodRealChoice_SNAP_FarmersMarkets.pdf. • Buttenheim AM, Havassy J, Fang M, Glyn J, Karpyn AE. Increasing Supplemental Nutrition Assistance Program/electronic benefits transfer sales at farmers’ markets with vendor-operated wireless point-of-sale terminals. J Acad Nutr Diet 2012;112:636-641. • Ramirez V, McMillen H, Sinclair B, Matsuura G, Kumar P, Aki N. Waimanalo Food Systems report submitted to the Centers for Disease Control and Prevention 2011. Accessed December 1, 2012. Available at: http://eaiponokakou.files.wordpress.com/2011/12/cdc-waimanalo-report-8-23-11v2-final.pdf. • Salvail FR, Nguyen D-H, Liang S. 2010 State of Hawaii by communities or subareas; Behavioral Risk Factor Surveillance System. Accessed December 1, 2012. Available at: http://hawaii.gov/health/statistics/brfss/brfss2010/subareas10.html. • US Census Bureau. 2010. Waimanalo CDP, Hawaii QuickLinks. Accessed December 2, 2012. Available at: http://quickfacts.census.gov/qfd/states/15/1578050lk.html