Rising Food Prices Take a Bite Out of Food Stamp Benefits

摘要

The Food Stamp Program is designed to provide low-income families with increased food purchasing power to obtain a nutritionally adequate diet. As in most other Federal Government assistance programs, benefi ts are adjusted in response to rising prices in this case, rising food prices. The current method of adjustment results in a shortfall between the maximum food stamp benefi t and the cost of a nutritionally adequate diet as specifi ed by USDAs Thrifty Food Plan. During fi scal year (FY) 2007, the food purchasing shortfall in the caseload-weighted maximum benefi t for the program grew from $7 in October 2006 to $19 in September 2007. In FY 2008, the amount grew from almost $8 in October 2007 to $34 in July 2008 and to $38 in September 2008. In an average month, food stamp households faced shortfalls of over $2 in FY 2003, $12 in FY 2007, and $22 in FY 2008. These losses in food purchasing power account for 1 percent, 4 percent, and 7 percent of the maximum benefi t in each respective year. Alternative adjustment methods can reduce the shortfall but will raise program costs. Keywords: Rising food prices, food price inflation, food stamp benefits, Supplemental Nutrition Assistance Program, Food Stamp Program, food purchasing pow er, cost of the Thrifty Food Plan.