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A Special Report for Homegrown Alabama Prepared by the Auburn University Department of Agricultural Economics & Rural Sociology
A Special Report for Homegrown Alabama Prepared by the Auburn University Department of Agricultural Economics & Rural Sociology
Table of Contents
Background
Tuscaloosa, Alabama Supplemental Nutrition Assistance Program (SNAP) SNAP at Farmers Markets Canterbury Chapel Deacons Deli April 2011 Tornado Outbreak
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3 4 5 5 6
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7 8 11 14
Conclusions
References
Acknowledgements
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Background
Tuscaloosa, Alabama
Alabama is one of the most socioeconomically challenged states in the United States of America. According to the USDA Economic Research Service, 18.9% of Alabamians live in poverty, including 25% of Alabamas children. This poverty is only made worse by food insecurity; 17.3% of Alabamas households are considered to be Food Insecure, with 7% of those experiencing Very High Food Insecurity. In addition to these factors, approximately 32.3% of Alabamians are considered to be obese. This highlights the need to increase availability of high-quality, nutritious foods to those living in poverty and experiencing low food security. Tuscaloosa, Alabama is located in West Central Alabama. With a population of approximately 91,000, it is the fifth largest city in Alabama. As of 2011, 19.9% of Tuscaloosa Countys residents lived in poverty, and four of the cities 28 census tracts were considered to be Food Deserts by the US Department of Agriculture.
The USDA defines a food desert as, a low-income census tract where a substantial number or share of residents has low access to a supermarket or large grocery store. In order to qualify as a low-income community, a census tract must have a poverty rate higher than 20%, or a median family income below 80% of the areas median income. In order to qualify as a low-access community, at least 500 people (or 33% of the census tracts population) must live more than one mile or more away from a supermarket or grocery store. The Tuscaloosa census tracts that qualify as food deserts, shown in the previous map, include the entirety of The University of Alabama campus. While the current literature provides many varying definitions of what a food desert is or is not, it is evident that there are food access issues, particularly among children, students, and minority families, particularly in Tuscaloosa.
These three programs created $6,449 in sales for Homegrowns vendors, with vendors receiving an average of $276.12 in additional sales thanks to Homegrowns Economic Outreach Programs. Additionally, through looking at the spending patterns of Homegrowns customers, we can see that these three programs were
effective in improving access to healthy, local food in the Tuscaloosa community, as the majority of funds (58%) was spent on produce, and that participants in the Economic Outreach Programs became repeat customers through a metric we created called the Redemption Rate. SNAP and Match
Upon deciding to accept SNAP Benefits at the weekly Market, Homegrown collaborated to develop a Match Incentive program with Canterbury Chapel. Canterbury gave Homegrown a $1,500 grant, and so that for every $10 of SNAP/EBT redeemed by beneficiaries, they received an additional $5 through the SNAP and Match Program. According to the USDA, most Farmers Markets that accept SNAP benefits through EBT utilize some kind of incentive program for SNAP beneficiaries. This process, as well as the process for farmer payment, was streamlined through a centralization of payment. EBT users decide and pay the amount of SNAP benefits they would use to the Homegrown volunteers. Then, Homegrown would give tokens for that amount plus the amount of match, which could be used as currency at each farms booth. At the end of the market, farmers traded these wooden tokens for cash and volunteers recorded the value of tokens received by each vendor weekly. Thus, we know precisely how SNAP beneficiaries used their funds from week to week, and have a good idea of what goods they bought.
The SNAP and Match program created a total of $4,834 of additional sales for Homegrowns vendors.
$450.00
$300.00
$150.00
$0 5 May 11
9 Jun 11
14 Jul 11
18 Aug 11
22 Sep 11
As is shown by the above chart showing weekly expenditures in the SNAP and Match program, the beginning of the market saw larger dollar outlays at Homegrowns vendors, perhaps due to Homegrowns aggressive marketing campaigns leading up to the market, as well as the large influx of emergency SNAP benefits into Tuscaloosa in light of the 27 April tornado outbreak. Later in the market, a sharp drop in funds paid out to farmers can be observed, and this can be explained since the Match program ran out of funds in early September, meaning SNAP and Match users were unable to increase their funds though the Match program. When looking at the SNAP and Match program expenditures by product category graph on the next page, it shows that SNAP and Match customers are mostly interested in buying produce and grass-fed beef.
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Grass-Fed Beef (26%) Eggs (1.2%) Baked Goods (3.2%) Herbs (0.18%)
To get more insight into the SNAP and Match program shoppers, we created a metric called the Redemption Rate," calculated simply as the amount of funds paid out each week to farmers divided by the sum of the amount of SNAP benefits processed through EBT and the match program. The chart on the next page shows the Redemption Rate patterns for the 2011 Homegrown market season. The redemption rate can tell us several things about Homegrown shoppers that utilize the SNAP and Match program, but most importantly it can show that the SNAP and Match participants are repeat customers. Weeks with Redemption Rates above 100% are evidence that SNAP and Match program participants will save benefits from previous weeks and return to use them later.
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233%
117%
0% 5 May 11
9 Jun 11
14 Jul 11
18 Aug 11
22 Sep 11
The redemption rate can also tell us that redemption is higher during weeks where there are marketing events (particularly 2 Junes Squash The Heat Festival, 2 Augusts Herb Festival, and 20 Octobers Fall Festival), and the insight that redemption is lower during markets where there in inclement weather (such as 26 May, 7 July, and 14 July).
Deacons Deli The Deacons Deli voucher system works in a similar way to the SNAP and Match program. Paper vouchers are given out at Tuesday Deacons Deli sessions, and the vouchers were used at individual farm stands by participants, with farmers converting the vouchers into cash at the end of each market. The Deacons Deli voucher program created a total of $1,247 of additional sales for Homegrowns vendors.
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$112.50
$75.00
$37.50
$0 5 May 11
9 Jun 11
14 Jul 11
18 Aug 11
22 Sep 11
As can be seen from the chart above, the Deacons Deli program is much smaller in scale than the SNAP and Match program, as participants receive (and subsequently spend) smaller amounts. There is an influx of use in the late summer, perhaps due to emergency aid and tornado assistance from other sources slowing down compared to earlier in the summer. Early in September, the Deacons Deli program ran out of new vouchers to give out, reducing the amount available to participants.
150%
100%
50%
0% 5 May 11
9 Jun 11
14 Jul 11
18 Aug 11
22 Sep 11
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The redemption rate for Deacons Deli program participants is generally lower than that of the SNAP and Match Program, which may imply that they are less likely to be repeat customers, although there are several weeks with redemption rates over 100%, including the first week, indicating that Deacons Deli customers may have carried over benefits from previous years of the program.
One of the major upsides, however, of the program is that Deacons Deli customers spent an overwhelming majority of their funds on fresh produce (88%, compared to 58% for SNAP and Match participants and 60.1% overall for all three Economic Outreach Programs).
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Bama Cash
The Bama Cash program is a preloaded debit account that University of Alabama students, faculty, and staff can access using their identification cards (called Action Cards) at vendors both on and off of The University of Alabamas campus. It is predominantly used by students, so Homegrown became a Bama Cash redemption site upon the return of students to campus in September.
The Bama Cash program created a total of $408 of additional sales for Homegrowns vendors, despite only being available for a mere six weeks of the market. Bama Cash Paid to Farmers (Weekly)
$150.00 $112.50 $75.00 $37.50 $0 15 Sep 11
22 Sep 11
29 Sep 11
6 Oct 11
13 Oct 11
20 Oct 11
The redemption rate of Bama Cash users is also similar to the SNAP and Match programs redemption rate, where a spike at the end of the market season can be observed.
29 Sep 11
6 Oct 11
13 Oct 11
20 Oct 11
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Because of the stricter restrictions faced by SNAP and Match Program and Deacons Deli Voucher program participants on how funds can be used, it can be observed that Bama Cash users were able to purchase a wider variety of items at the market.
Grass-Fed Beef (26%) Eggs (1.2%) Baked Goods (3.2%) Herbs (0.18%)
While less was spent on produce, more was spent on other expenditure categories, particularly barked goods. This could be attributed to the lack of traditional kitchens in student on-campus housing, as well as to student tastes more generally.
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Conclusions
Through measuring cash sales, expenditures by category, and the Redemption Rates of Homegrown Alabamas Economic Outreach programs, we can see that they are achieving their goals of increasing access to fresh, local produce to the Tuscaloosa, Alabama community. More importantly, though, we can conclude that there is demand for highquality, local produce in underserved communities, particularly families that utilize programs such as the Supplemental Nutrition Assistance Program (SNAP) and those that use food banks to supplement their food needs (such as the Deacons Deli program). In turn, members of these underserved communities became loyal, repeat customers, contributing to the local economy by patronizing local farmers, increasing the diversity of farmers market clienteles, and improve their own health along with the health of their community.
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References
The New York Times (2009) Food Stamp Usage Around The Country. Trust for Americas Health (2012) Key Health Data About Alabama. USDA Agricultural Marketing Service (2010) Supplemental Nutrition Assistance Program (SNAP) at Farmers Markets: A How-to Handbook. USDA Economic Research Service (2011) Food Desert Locator. USDA Economic Research Service (2012) State Fact Sheet: Alabama. USDA Food And Nutrition Service (2012) Nutrition Assistance in Farmers Markets: Understanding Current OperationsFormative Research Findings. USDA Food And Nutrition Service (2011) Helping Low-Income Families and Local Communities in Alabama. US Social Security Administration (2008) Electronic Fact Sheet: Food Stamp Facts.
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Acknowledgements
We would like to thank the customers, vendors, and community of Homegrown Alabama, Canterbury Episcopal Chapel and Student Center, The University of Alabamas New College, the City of Tuscaloosa, Auburn University, Auburn Office of International Agriculture, Auburn Economic & Community Development Institute, Dr. Norbert Wilson, and Mr. Joshua Segall.