Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

The secret life of food stamps might get less secret
MarketPlace.org ^ | 05 Aug 2014 | Krissy Clark

Posted on 08/11/2014 1:48:14 PM PDT by Theoria

Should the public know how much money Wal-Mart, or that convenience store down the street, takes in through the federal food stamp program? Or does that amount to a retail trade secret? Those are the questions at the heart of a request for public comment announced Monday by the U.S. Department of Agriculture, which runs the food stamp program.

Here’s the background: Last year we spent $76 billion tax payer dollars on the food stamp program (officially known as the Supplemental Nutrition Assistance Program or SNAP). That money goes to about 47 million low-income Americans, who use it to buy food at more than 250,000 retail stores across the country.

But, as I have reported here before, exactly which stores and which companies benefit most from those food stamp dollars is something the federal government has never disclosed. Officials have long argued they are required by law to keep the information secret, in order to protect retailers.

A few years ago the Argus Leader, a newspaper in South Dakota, sued the USDA, arguing the public has a right to see this data. The issue is still tied up in court. Last spring, when I interviewed Agriculture Under Secretary Kevin Concannon about the issue in March, he told me that in his opinion, greater transparency would be a good thing.

“I think personally it’s in the interest of the American public,” he said. “These are public benefits that are moving through the economy.”

Yet when I asked him if he would push his agency to disclose the information he said he needed to “talk to the lawyers.”

Judging from the USDA’s announcement Monday, the lawyers have been consulted.

In the press release announcing the agency’s request for public input, Concannon said: “Our goal is to provide more transparency so that people can have access to basic information about the amount of SNAP benefits that individual grocery stores and retailers are redeeming. We hope that this public comment period will be informative as to how we can do that in the most thoughtful and appropriate way possible."

The USDA will take public comment until Sept. 8. As for what kind of comments might come in over the next month, we have some clues already.

When I asked Wal-Mart spokesman David Tovar last spring about how much revenue his company took in from food stamps, he told me it was proprietary information.

“We don’t provide our market-share data on any categories like that,” he said, pointing out that knowing how much a particular Wal-Mart in a particular location makes in food stamps could be helpful to competitors. “I think any information that a retailer shares about how they’re serving customers and how they’re going to market would be interesting to lots of other retailers.”

It’s worth pointing out that aside from being the nation’s largest retailer, Wal-Mart likely takes in the most food stamp dollars, an estimated 18 percent last year, according to leaked comments from a company vice president at a private dinner last fall, which Walmart later confirmed. That sum would amount to $13 billion, or about 4 percent of Wal-Mart’s total U.S. sales.

Wal-Mart is also one of several retailers that have a significant number of employees who make little enough that they rely on food stamps to get by. In Ohio, up to 15 percent of Wal-Mart’s workforce uses SNAP, based on our analysis of state food stamp enrollment data.

Outside the retail community, there are voices advocating for making the data public, arguing that it could help citizens and policy makers better understand which stores profit the most from food stamps, what kinds of foods they promote and sell, and what their business practices are.

“It could be used to improve SNAP and make it more accessible to poor families,” writes Stacy Cloyd, the Senior Domestic Policy Analyst at Bread for the World Institute, an anti-hunger organization. Knowing which stores attract the most SNAP customers would “allow hunger advocates to learn from successful businesses and share best practices. It would also help them identify the highest-volume vendors so that they can offer the stores information and recommendations on how they can supply a variety of nutritious foods,” she writes.

As Jonathan Ellis, the South Dakota journalist who sued the USDA to make food stamp data public, points out: “Typically, if a business participates in a government program, you can get a copy of their contract and find out how much they’re being paid.” 

That’s how it works when the government pays a construction company to build a bridge, or a defense contractor to build a fighter plane.

But that’s not how it works when the government reimburses retail companies that participate in the federal food stamp program, at least for now.


TOPICS: Business/Economy; Food; Society
KEYWORDS: ebt; foodstamps; snap; usda; welfare
Navigation: use the links below to view more comments.
first previous 1-2021-4041-48 last
To: nascarnation

Check out this older article on how much is paid just for the processing. Carefully read how more is scammed, uh, ripped off, uh, stolen from the taxpayers, um collected for different transactions.

http://www.thedailybeast.com/articles/2012/10/01/jp-morgan-s-food-stamp-empire.html#


41 posted on 08/11/2014 3:45:48 PM PDT by bgill
[ Post Reply | Private Reply | To 2 | View Replies]

To: AZLiberty

I like your plan.


42 posted on 08/11/2014 4:15:39 PM PDT by Bigg Red (31 May 2014: Obamugabe officially declares the USA a vanquished subject of the Global Caliphate.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: bgill

Wow! I did not know that. Thanks for the link.


43 posted on 08/11/2014 4:24:31 PM PDT by Bigg Red (31 May 2014: Obamugabe officially declares the USA a vanquished subject of the Global Caliphate.)
[ Post Reply | Private Reply | To 41 | View Replies]

To: nascarnation

Ha, you beat me by this much with that link.


44 posted on 08/11/2014 5:12:20 PM PDT by bgill
[ Post Reply | Private Reply | To 40 | View Replies]

To: Theoria
So which businesses receive most of the recirculating debt from the following government income recipients?

Heavy Hitters: Top All-Time Donors, 1989-2014
http://www.opensecrets.org/orgs/list.php
American Fedn of State, County & Municipal Employees $60,949,129 [Democrat] 81% [Republican] 1%”
National Cmte to Preserve Social Security & Medicare $10,414,606 [Democrat] 82% [Republican] 17%

Leviathan (Uncle Sam employs more people than you think)
National Review ^ | 02/03/2011 | Iain Murray
"...nearly 40 million Americans employed in some way by government."

About "70 million" people are receiving good incomes but are also steeped in debt, and most of them can't borrow more for big ticket items.


45 posted on 08/11/2014 7:41:38 PM PDT by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GraceG

I have always thought that it would be a good idea to also have Badge #, Name, Address, Phone # of every LE in town as well ... like that is going to happen.

Can you imagine being pulled over and Officer Friendly asks for your Lic and Reg and while you provide that ... look at his badge # and then ask him ... are you Joe Police, 1500 Policemans House, anytown? Ph #555-1212
Is this address current? Is the Ph # current?

They ask me (for their data base)

Think they would maybe treat you any differently from that point on? I believe they would.

TT


46 posted on 08/12/2014 3:28:34 PM PDT by TexasTransplant (Idiocracy used to just be a Movie... Live every day as your last...one day you will be right)
[ Post Reply | Private Reply | To 3 | View Replies]

To: TexasTransplant

[ I have always thought that it would be a good idea to also have Badge #, Name, Address, Phone # of every LE in town as well ... like that is going to happen.

Can you imagine being pulled over and Officer Friendly asks for your Lic and Reg and while you provide that ... look at his badge # and then ask him ... are you Joe Police, 1500 Policemans House, anytown? Ph #555-1212
Is this address current? Is the Ph # current?

They ask me (for their data base)

Think they would maybe treat you any differently from that point on? I believe they would.

TT ]

They would treat you differently, they would crack your head in...


47 posted on 08/12/2014 4:10:56 PM PDT by GraceG (No, My Initials are not A.B.)
[ Post Reply | Private Reply | To 46 | View Replies]

To: GraceG

They better finish the job if they do

TT


48 posted on 08/12/2014 4:18:55 PM PDT by TexasTransplant (Idiocracy used to just be a Movie... Live every day as your last...one day you will be right)
[ Post Reply | Private Reply | To 47 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-48 last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson