Currently browsing posts about: Food-assistance

Brookings has a new report: Windfall profits and deadly risks: How the biggest retail companies are compensating essential workers during the COVID-19 pandemic.

We find that while top retail companies’ profits have soared during the pandemic, pay for their frontline workers—in most cases—has not. In total, the top retail companies in our analysis earned on average an extra $16.9 billion in profit this year compared to last—a stunning 39% increase—while stock prices are up an average of 33%. And with few exceptions, frontline retail workers have seen little of this windfall. The 13 companies we studied raised pay for their frontline workers by an average of just $1.11 per hour since the pandemic began—a 10% increase on top of wages that are often too low to meet a family’s basic needs. On average, it has been 133 days since the retail workers in our analysis last received any hazard pay.

In a blog about this report, Judd Legum and Tesnim Zekeria summarize its findings in these headlines:

• Bezos gets $73 billion; Amazon workers get 95 cents per hour
• CVS profits increase 27%; CVS workers get 2% raise
• Walton family adds $45 billion to its wealth; Walmart workers get 63 cents per hour
• Kroger cancels “hero pay,” authorizes $1 billion stock repurchases

How are these workers getting by?  Federal food assistanc.  A new government report has the data.

The report is titled “FEDERAL SOCIAL SAFETY NET PROGRAMS: Millions of Full-Time Workers Rely on Federal Health Care and Food Assistance Programs.”

It finds that roughly half of Medicaid and SNAP enrollees work at least 35 hours a week, but make so little money that they qualify for these programs.

The employers of low-wage workers who get federal benefits are companies like Walmart, McDonald’s, Waffle House, Kroger, Burger King, and Wendy’s.

What this means is that taxpayers are making up the shortfall in wages, and that use of Medicaid and SNAP are externalized costs of these businesses, as these reports make clear.

I cannot believe there is anything further to say about the Farmers to Families food boxes, the $4 billion USDA program that pays distributors to pick up dairy, meat, and produce, put it in boxes, and deliver the boxes to food banks, which then hand them out to people who need food.  My most recent post on the inclusion of a personal letter from President Trump in the boxes is here.

The USDA now says it has distributed 100 million of these boxes.

Politico’s Helena Bottemiller Evich reports  that the USDA now requires the private companies that collect, pack, and deliver the boxes “to also stuff the Trump letters into the package — an expansion of the controversial letter policy with just…days until the presidential election.”

The Counter’s Jessica Fu (to whom I owe an apology for spelling her name incorrectly the last time I quoted her) writes that “Religious groups distributing Covid hunger-relief boxes are praying with recipients, taping Bible verses onto flaps, and soliciting donations. Some of these practices may violate federal regulations.”

The Hunger Task Force says that the program is discriminatory: “Wisconsin has been underrepresented in all rounds of the program while Wisconsin’s hungry line up by the carload for assistance that has now been completely severed.”

New York legislators are also complaining.  They wrote a letter to USDA Secretary Sonny Perdue:

in the transition between the CFAP vendors selected for rounds two and three, miscommunication from USDA has left many food pantries in New York City suddenly without food, causing upheaval in the lives of those families who were relying on their local pantries for meals.  We understand that the new vendors selected for round three of this program were required to specify the counties or boroughs to which they would provide food. However, this has forced many nonprofits and food pantries who had relationships with vendors no longer serving their county or borough to scramble to find new partnerships, with no guidance from USDA, no overlap in service
provision, and nowhere to turn for help.

On the saga goes.  It would have made so much more sense—financially, logistically, and humanely—for the USDA to strengthen SNAP enrollments and benefits.  Some of this is happening anyway, but the long history of food banks tells us that they can never meet needs on an ongoing basis.  SNAP, imperfect as it is, still is a demonstrably better means of relieving food insecurity.

The Wall Street Journal reports “More Americans Go Hungry Amid Coronavirus Pandemic, Census Shows.”

As of late last month, about 12.1% of adults lived in households that didn’t have enough to eat at some point in the previous week, up from 9.8% in early May, Census figures show. And almost 20% of Americans with kids at home couldn’t afford to give their children enough food, up from almost 17% in early June.

The most shocking revelation?  Try this.

What’s going on here?

• Delays in getting unemployment benefits
• An end to the $600 unemployment supplement
• No increase in SNAP benefits
• Closed schools and child care centers no longer feeding kids.
• Food prices are up
• Food banks are overwhelmed

If ever there was a need for policy, this is it.

I learned about this latest development in the ongoing sage of USDA’s food boxes from Maine Representative Chellie Pingree on Twitter.

Trump’s letter is here.

The letter from members of Congress to USDA is here.

It has a list of ten questions, among them my two favorites:

5. Identify the total amount of funding expended or obligated to plan, coordinate, draft, review, provide stakeholder or public notification, and disseminate the President’s letter. Include the specific regulatory or statutory authorities associated with such funding.

7. Explain the rationale for why the letter is signed by the President on White House letterhead rather than by the Secretary of Agriculture and/or the Secretary of Health and Human Services.

Politico Morning Agriculture asks (“A new front in the food box fracas,” August 17):

So what’s the upshot? Besides heightened scrutiny of the ongoing effort, the new controversy could further motivate key lawmakers who are pushing to tighten restrictions on how the department spends any future farm relief funds — assuming Congress and the White House ever agree on a new stimulus package…

With millions of people out of work, food insecurity is becoming a bigger problem than it has been. Some recent items:

From Politico: “Stark racial disparities emerge as families struggle to get enough food”

The last time the government formally measured food insecurity nationally was in 2018. At that time, about 25 percent of Black households with children were food insecure. Today, the rate is about 39 percent, according to the latest analysis by the Northwestern economists, which is set to be published this week. For Hispanic households with kids, the rate was nearly 17 percent in 2018. Today, it is nearly 37 percent.

From Northwestern, a new report: “Food Insecurity During COVID-19 in Households with Children: Results by Racial and Ethnic Groups”

Disparities in food insecurity across racial and ethnic groups are large. Across the eight weeks for which CHHPS microdata are available covering April 23–June 23, 41.1% of Black respondents’ households have experienced food insecurity in the prior week, as have 36.9% of Hispanic respondents’ households and 23.2% of White respondents’ households.

From the Brookings Institution’s Hamilton Project: “About 14 million children in America are not getting enough to eat”

Accounting for the number of children in these households, I find that 13.9 million children lived in a household characterized by child food insecurity in the third week in June, 5.6 times as many as in all of 2018 (2.5 million) and 2.7 times as many than did at the peak of the Great Recession in 2008 (5.1 million). During the week of June 19-23, 17.9 percent of children in the United States live in a household where an adult reported that the children are not getting enough to eat due to a lack of resources.

From the Center on Budget and Policy Priorities: “Boosting SNAP: 5 Reasons Why Households Need More”

The Families First Coronavirus Response Act of March included much-needed measures to temporarily increase SNAP benefits for many households and let state SNAP agencies temporarily modify procedures…But these temporary benefits didn’t help everyone who needs them, and they aren’t enough to help families afford food, given the challenges that COVID-19 and the downturn have presented. Here are five reasons why the next relief package needs to include an additional boost in SNAP benefits:

From The Counter: “Covid-19 has increased online SNAP purchases twentyfold—and Amazon, Walmart have a lock on virtually all those sales”

The USDA has been pushing online food sales for SNAP recipients, and COVID-19 is accelerating the trend.  The Counter article explains that

more than 750,000 households had used food stamps benefits online as of late June. That’s up from just 35,000 in March….As of early July, 43 states are approved to accept SNAP benefits online, and 39 have the program up and running.

The Counter also notes:

One thing is certain: At this point, two big retailers stand to benefit from the explosion in online SNAP sales. In 34 of the 39 states, Amazon and Walmart are the only participating grocers. The reasons why are likely logistical.. Few independent grocers have the web infrastructure to display and update their inventory online, making Amazon and Walmart a kind of duopoly by default. Even fewer have enough staff to assemble complex orders and deliver them to people’s homes. By contrast, Amazon and Walmart have been investing heavily in grocery delivery for years.

Comment

No matter how useful they are, online deliveries cost more and SNAP does not pay delivery costs.  Online also requires a computer and broadband access.  Do SNAP participants have these things?

The 750,000 housaeholds using the online system constitute a small fraction of the 19 million households enrolled in SNAP.

We have a long way to go to solve problems of food insecurity in this country.

I’m still trying to figure out what’s happening with the USDA’s food box program.  Is it helping farmers?  Recipients?  It’s hard to get the big picture.

H. Clare Brown in The Counter writes that the Farmers to Families box program is failing to meet its targets.  It is “10 million boxes and 25 percent short of its forecasted delivery.”

Other aspects of the distributor selection process were even more perplexing. No distributors from Maine were selected, for instance. Some contractors failed to deliver their boxes directly to distribution points, forcing food banks to incur tens of thousands of dollars in last-mile delivery costs. And then there were questions about the cost of the food: Despite requests from lawmakers, the agency has not publicly released detailed information about the prices it has paid for the food boxes. Reporting from The Counter found that, in some cases, the agency was paying well above retail prices for gallons of milk distributed in the boxes….Advocates have argued that the food boxes…represent a regressive attempt to reinvent the wheel, forcing people to wait in long lines reminiscent of Depression-era food handouts, in full view of their neighbors and in potentially dangerous proximity to other people. It remains to be seen whether the food box program is more efficient for purchasing groceries than SNAP.

In the meantime readers have been sending me photos of what they are seeing.

RC Rybnikar sends this photo with the comment that the lettuce was iceberg, not romaine.

Andrew Coe, who wrote the op-ed I linked to last week, sent a photo of a New York City Board of Education food box that is part of the city’s free meals program.  

Well, the apples are fresh.

Larissa Zimberoff sent me a photo of pork patties distributed through a food bank in Marin County.  These do not appear to be part of the COVID-19 program.

Gayle Lautenschlager writes:

In a recent blog post regarding USDA food boxes you asked if there is a way to both more efficiently help people who need food while simultaneously helping farmers. The answer is yes and it is already being done in Washington state.

The program is called Farm to Food Bank. Harvest Against Hunger is the lead agency running this program as well as a sister program called King County Farmers Share.

The basic premise is that giving money directly to food banks allows them to wholesale purchase produce directly from local farmers. The result is that small local farmers are supported and food banks increase their distribution of culturally relevant and in demand produce. Often the local farmers will throw in extra produce or give a “non profit discount” which results in a below wholesale price per pound.

I am happy to know about such programs.

But my big question still remains: What is a sustainable way to address food insecurity in individuals and ensure a reasonable market that adequately compensates small- and medium-size farmers?

Can one policy do that?

Last week, I asked readers to tell me how the USDA’s Farmers to Families food box program looked on the ground.  I got a bunch of responses, but let me start with Andrew Coe’s op-ed in the New York Times, or, as he wrote me, his rant titled: “Free produce, with a side of shaming.”

The subheading: “Instead of beefing up the SNAP program during the pandemic, the government opts for a return to Depression-era food lines.”

The goal of the people on these lines?  “A food pantry that has cardboard containers stacked on the sidewalk in front.”

These are “U.S.D.A. Farmers to Families Food Boxes,” each holding 23 pounds of produce: apples, cantaloupes, potatoes, yams, oranges, iceberg lettuce, onions. When the men and women at last get to the front of the line, they are given one of these boxes to put in their shopping carts and take home. This food is supposed to help tide them over until they get a job, or until the next week, when they can line up again on the same sidewalk.

OK.  So my questions about this emergency—and highly unsustainable method for achieving the program’s concurrent goals, feeding the hungry and buying from farmers who don’t have any way to sell their products–are (1) is it providing decent food to those who need it, and (2) is it helping farmers who need help.

My correspondents provided some answers, although not enough to really know what is going on.

Two people sent me box labels:

One reader referred me to Instagram photos from #farmerstofamiliesfoodbox, and a Vermont public radio discussion of the boxes.

Another Vermont reader said that “The main contract was landed by a well-regarded local food service company – with the initial support of our agency of ag folks – and they’ve worked very closely with a number of other state, private and nonprofit groups to get a fair bit of regional and Vermont products – especially dairy – in the boxes.”  She referred me to an article about the program with this photo of a box with local dairy.

A California reader who works at a food bank said:

We had tons of food that volunteers bagged up individually. One big bag would get eggs, celery, potatoes, apples, nectarines, tangerines, and 1-2 bread products. When cars came to pick up their food, in addition to the bag above, which often had more than what’s noted there, they got a “regular” veggie farm box from Farm Fresh to You, a local CSA. It was all packed up and ready to go, delivered by a truck on a pallet.

I received a lengthy explanation from a food sourcing coordinator at a food bank in Colorado.  Here are some of her comments:

• We’ve seen our distribution increase by 40% since March.
• We secured a partnership with a large produce distributor in Missouri for produce boxes, and a regional milk distributor in Colorado. Deliveries from these vendors began on May 20.
• They’ve addressed issues with box size, transportation and pallet structural issues, and cancelling loads or adding additional deliveries as we requested.
• We are receiving 3.2 million pounds of CFAP product each month from these vendors, in the amounts and delivery schedule that we requested. This is a 50% increase over our pre-COVID monthly distribution numbers.

She talked about the problems they were having:

There was definitely a lot of confusion, miscommunication, and misinformation given to both food banks and the distributors by USDA. The program was touted to the food banks as being “truck to trunk”, with distributors delivering directly to distribution sites. However, after the vendors were awarded, the vast majority indicated that they…only had the capacity) to deliver to food bank warehouses with commercial dock doors and large amounts of storage.

When food banks attempted to push back and request funding from USDA or distributors in order to cover the substantial costs to them that this model would incur, the USDA told distributors that they could not subcontract with us. One vendor said that these requests amounted to “extortion” by food banks. [Our] Food Bank…ended up having to secure an additional warehouse, hire 5 staff, and rent 8 new vehicles in order to handle the amount of product we are receiving. The cost to us is about $100,000/month in order to take on the additional product. None of that cost is reimbursed by USDA, which is reimbursing the entire costs of procurement, packaging, and transportation for the distributors. Here’s a link to an article about those additional costs…. we’re fairly unique among food banks in being able and willing to incur those additional costs.

She sent a photo of what’s in the boxes, judging the quality as very high.

Does the program benefit small producers?

• The milk distributor is a local company.
• The onions and potatoes are also sourced from Colorado growers…[but] the Colorado growing season doesn’t kick into full gear until late June.
• Our meat is coming out of Wisconsin…subcontracted with another distributor…so I don’t know where that meat comes from.
• Many of our small farms who originally submitted bids for the program and were not awarded have not been included in produce sourcing by the distributors that were awarded.

Her conclusion: “While CFAP has definitely been a big lift for us to get up and running, and has had many stumbling blocks since its inception, the enormous amount of high-quality, very in-demand product that we’ve been able to distribute to our clients across Colorado and Wyoming has, in my mind, made the program a success for us.”

OK, so the program is working, as far as it goes, but at great cost.  I’m with Andy Coe on this one.  This is helping distributors more than farmers, and is demeaning to recipients.  There are much better ways to solve both problems.  If only we had the political will to take it on.

Addition

Jerry Hagstrom, of The Hagstrom Report, to which I faithfully subscribe, writes:

I don’t see any of your readers making the following points:

1. The object of the box program was to find a way to make use of the foods–particularly fruits and vegetables but also pork, chicken and dairy– that were intended for restaurant and institutional use, much of which would spoil if a quick way was not found to use it. Increasing SNAP benefits would not address the problem of figuring out how to distribute food that was intended for restaurants and institutions. As I understand it many of the farmers and distributors engaged in that business do not have any relationship with grocery store distributional channels.
2. The SNAP program requires applications and documentation before someone is approved for the program. That takes time. The box program has moved food fairly quickly.
3. As far as I know, food banks do not ask people if they are low income. So people who are suddenly low income can go there and get food, which they cannot do so quickly through the SNAP program.
4. It would seem to me the food box program was a short term solution, although I don’t know what the farmers and distributors that have been selling to the restaurants and institutions are supposed to do if that demand does not return quickly. Should they go out of business or should some system be found to keep them in business until demand picks up? Would that mean continuing the food box program?

These are worth considering.  But the real question, it seems to me, is how to develop a food assistance system that helps people who need food in a more efficient way, while helping farmers find outlets for what they produce that guarantee them a decent living.  We all need to be working on that.

The USDA says 20 million food boxes have been delivered to food banks through the Farmers-to-Families program, which aimed to buy food from farms that had no way of selling what they produced, package it in boxes, and deliver them to food banks.  The announcement comes with a very long list of testimonials, and a video that you can watch here.

The USDA’s website about this is here.  The program is described here.

Not everyone is quite so enthusiastic.  The National Sustainable Agriculture Coalition says that the food box program is not exactly doing much for small farms.

Most of the news coverage on the CFAP Food Box Program, and the Congressional attention that follows, has focused on large contracts awarded to companies without much experience in the distribution of specialty crops. This also caused the larger specialty crop industry to raise concerns about the early shortcomings of the program.

What has received much less attention has been how the program has or has not benefited local and regional food producers despite the fact that the program was clearly intended to support these farmers. Grant applicants were required to discuss how their proposed project supports the mission of facilitating agricultural markets and how they “intend to engage small farmers (e.g those farms servicing local and region interests and farmers markets).”

And Chuck Abbott, of FERN’s Ag Insider, says USDA offers few yardsticks for measuring its food-box program.

For USDA, the most important number in its food-box giveaway program is how many boxes are donated — 18.4 million as of Friday, according to a tally on the homepage of the agency that runs the program. Officials declined to provide other details, such as the average cost of the boxes or how long the $3-billion initiative will be in operation.

I would like to know:

• What’s in the boxes?
• What food?  How much food?
• What is its quality?
• How are food banks handling this?
• Are recipients happy with it?
• Is the program helping small farmers stay in business?

Does anyone know?  I haven’t seen answers to these questions yet.