Proposed Reforms in the Food Stamp Program: Economic Impacts on Agriculture andthe Economy

摘要

A variety of proposals have been put forth to replace the Food Stamp Program(FSP) with a block grant, cash out the benefits, and reduce program funding from baseline levels. This paper examines the economic consequences that such reforms will have on food spending, gross farm income, farm program costs, and the general economy. A comprehensive set of scenarios is used to examine the potential economic consequences. The analysis shows that the effects of cashing out FSP can be as much as four times larger than the effects of program reductions alone.