Iowa seeking to make food assistance more accessible at markets

New federal funds could make it easier for shoppers to pull out a card to pay for strawberries, fresh greens, home-baked bread and other farmers market food, but Iowa is scrambling to come up with a plan to use the money.

An appropriatons measure approved last year provides $4 million in funding to increase farmers market participation in the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps.

Teresa White, who coordinates seasonal markets in Cedar Rapids, said machines that accept electronic benefit cards used by food assistance recipients also can be used for credit and debit cards.

Offering that option is a boost to market vendors whose customers appreciate the convenience, she said. “I keep trying to get more (vendors) to use them.”

With about 210 farmers markets, Iowa is set to receive $162,131 of the federal allocations, among the top 10 in the nation.

The funds are intended to expand the availability of wireless point-of-sale equipment in farmers markets not currently participating in SNAP, but using that money isn't a given.

Tracy Penick of the Iowa Department of Human Services said Iowa is trying to come up with a plan to meet federal criteria to obtain the funds.

The challenge, she said, is that Iowa farmers market vendors use individual, hand-held devices to run the cards, while the funding is designed to go to markets as a whole.

Those markets would need a system to issue paper coupons or tokens at a centrally located checkout terminal to give to SNAP recipients who want to use their cards.

“We wanted to get away from the stigma of paper coupons,” said Penick, who coordinates the farmers market benefit program for the DHS. “When farmers accept the cards, there's no stigma.”

Having market managers deal with coupons or tokens also would be time-consuming, she added.

SNAP serves as the nation's hunger safety net; last year 45 million low-income Americans used the benefits in any given month.

While some criticize the types of food - including junk food and soda pop - that can be purchased with SNAP benefits, the farmers market initiative is a way to promote access to nutritious fruits and vegetables.

Nearly any type of food sold at markets, except hot foods and hot drinks, can be purchased.

At the end of 2010, a total of 1,611, or 26 percent, of farmers markets were authorized to accept SNAP benefits nationwide. Penick is seeing how other states are using the funds and getting questions answered about the program, which requires funds to be obligated by Sept. 30.

States may spend funds to purchase or lease wireless equipment for farmers markets not currently participating in SNAP and pay for wireless access for the equipment.

The U.S. Department of Agriculture's Food and Nutrition Service “has not received any concerns from states about this being a problem,” said the agency's spokeswoman, Regan Hopper.

Iowa has seen an increase in sales and card transactions used at farmers markets since its wireless electronic benefit transfer pilot program began in 2005.

That first year, food assistance users spent $1,423 in 158 card transactions at farmers markets. Last year, the amount rose to $85,282 in 7,286 transactions.

Numbers for debit and credit card use are even more impressive: from $18,352 in 773 transactions in 2005 to $917,268 in 35,462 transactions in 2011. Last year, the two combined to surpass $1 million in sales.

“It's good for Iowa, it's good for farmers and it's good for the food assistance families,” Penick said.

Iowa will spend about $100,000 this year on its wireless benefits program, with half from state and half from federal funds. The state purchased or rents machines that farmers can use for free at roadside stands, farmers markets or pick-your-own berry operations.

While the state covers SNAP transactions, farmers must pay credit or debit card transaction fees.

That is a trade-off Mickey Miller is willing to make.

Miller and her husband, David, of Mount Vernon, sell vegetables and strawberries at the Mount Vernon Farmers Market and add chocolates to sell at the Iowa City market.

Although it's rare to see food assistance customers, especially at the Mount Vernon market, she encourages those who stop by her stand, taking time to explain how the fresh produce can be prepared.

“It's something I feel strongly about,” she said of the reason she filled out the paperwork to accept SNAP cards.

“It's great when it's used.”

At farmers markets, Supplemental Nutrition Assistance Program benefits can be used to buy vegetable- or fruit-producing plants and most foods, except for hot prepared foods and hot drinks.