retailers worry over food stamp cut

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When you choose a horrible person to represent your country you get what you voted for.
 
SaiWa said:
cannot read unless I subscribe.. can you repost the entire article in here for our viewing pleasure por favor??
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The beleaguered grocery sector faces a new threat: the possible loss of tens of billions of dollars of spending by low-income shoppers.

The Trump administration is pushing to rein in spending for the food-stamp program by nearly $130 billion over a decade, representing a 20% reduction of its current annual budget of $63 billion. The move could constitute one of the biggest yearly reductions in program-sponsored purchases for retailers since the recession.

This and other proposals from Republicans intend to overhaul the nation’s food-stamp program as lawmakers begin renegotiating the Farm Bill, a sprawling $900 billion piece of legislation that allots about 80% of its funding to nutrition assistance and is set to expire at the end of September.

Some participants may no longer receive food stamps if lawmakers approve stricter work requirements included in proposals by Republicans on the House Agriculture Committee.

House Republicans say their plan is aimed at creating opportunities for low-income Americans to acquire the skills needed to take part more fully in the growing U.S. economy. They foresee people leaving the program as incomes rise, with its lower costs reflecting beneficiaries’ improved economic status.

House Democrats say it could result in the loss of benefit eligibility for one million people and an estimated $20 billion reduction in government spending over a decade, according to aides. House Republicans dispute the figures, saying they don’t reflect the most recent proposals.

For grocers, convenience stores and other food retailers, potential changes to the food-stamp program, called the Supplemental Nutrition Assistance Program, or SNAP, come at a time when they can’t afford to lose sales. Amazon.com Inc.’sWhole Foods acquisition has forced many grocers to sink profits into e-commerce options to compete. Deep discounters have fueled price wars, further eroding thin margins.

“It’s well known that the food industry operates on a 1% profit margin,” said Alex Baloga, chief executive of the Pennsylvania Food Merchants Association, which represents about 3,500 grocery and convenience stores. “There’s no way to absorb any kind of decrease in sales. It’s just that simple. It would be devastating.”

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More than 52% of SNAP dollars, or $33 billion, were redeemed at big-box stores such as Walmart Inc. andTarget Corp. last year, up from 47% in 2015, U.S. Department of Agriculture data show.

Big retailers routinely notice a bump in sales around the time states disperse SNAP money to recipients each month. Kroger Co.’sKR +0.13% finance chief, Mike Schlotman, said, “We know that we’ll have more people in the store, and they’re likely to be in the store longer.” A spokeswoman for the grocery chain declined to say how much it collects in food-stamp spending, but said it would push lawmakers to maintain a “robust food-assistance program.”

Walmart generates roughly $13 billion in annual sales from SNAP transactions, accounting for around 18% of the money spent through the program nationwide.


At Family Dollar, the budget chain owned byDollar Tree Inc.,DLTR +0.81% SNAP spending accounts for nearly 5% of total sales. A Dollar Tree spokesman said the program accounts for a small portion of the company’s overall revenue.

Amazon, seeking to court more low-income shoppers, is among the retailers participating in a federal pilot to accept SNAP dollars online, set to begin later this year. Representatives for Amazon, Walmart and Target declined to comment on the potential benefit reductions.

Some retailers serve regions where more than one-third of shoppers buy groceries with food stamps, said Mr. Baloga of the Pennsylvania Food Merchants Association. “We’re not selling luxury sedans. We can’t just raise prices to cover those losses,” he said.

Reductions in SNAP enrollment, thanks to an improving economy and state-imposed time limits for benefits in 2016, have weighed on corporate earnings and stock prices in recent years, particularly among dollar stores, which have been expanding their food offerings.

Some food retailers were alarmed by a separate proposal by the Trump administration, which in February suggested shaving about $129 billion in SNAP spending over a decade by shifting food-stamp dollars from benefit cards to a food-box-delivery program that would be state-run.

More than 16 million households would no longer receive all of their benefits on cards but instead get half in the form of cereal, beans, canned fruits and other food purchased by the government through wholesale channels instead of at supermarkets.

Some food companies saw an opportunity in the program, meeting with federal officials to help guide its development, according to those involved in the discussions. Large food retailers, however, characterized it as a return to Depression-era government-food programs that didn’t support private enterprise.

Under such a program, the 40% reduction in food-stamp dollars would cut spending by $2.7 billion at IGA Inc. stores, an international network of independent grocers with 1,100 U.S. members, according to IGA chief John Ross.

Trade groups representing food retailers publicly criticized any diversion of SNAP dollars to the food box-program. They have been meeting with administration officials and say they have made some progress in conveying their concerns. The groups have been more neutral about stepped-up work requirements for food stamps.

Mr. Baloga said his organization has been actively lobbying Pennsylvania’s congressional delegation in opposition to the food-box proposal and will be monitoring Farm Bill details. In the past, it has lobbied against SNAP restrictions, including proposals to limit the types of products beneficiaries can purchase with federal benefits.

Food banks and anti-hunger groups have also expressed grave concern over the proposal. A spokesman for the U.S. Department of Agriculture said it stands by it despite opposition.

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Brandon Lipps, the department’s acting deputy undersecretary for Food, Nutrition and Consumer Services, said the administration wants to see more adults buy food through a paycheck instead of food stamps.

“Some folks are opposed to anything that suggests that there is a savings to be had in feeding programs. I don’t think that’s the right place to be,” Mr. Lipps said in an interview.

A draft of the Farm Bill hasn’t been released yet.

A GOP aide said House Republicans expect many people will drop off SNAP’s rolls under their plan because their incomes have improved, and that grocers stand to benefit from more Americans entering the workforce.

“Not one person gets kicked off the program,” Congressman Mike Conaway (R., Texas), who chairs the House Agriculture Committee, said in a speech. “Anybody who wants help can get it. States are going to have the funding to make that happen.”
 
"Some food retailers were alarmed by a separate proposal by the Trump administration, which in February suggested shaving about $129 billion in SNAP spending over a decade by shifting food-stamp dollars from benefit cards to a food-box-delivery program that would be state-run."

I don't see how this would be a cheaper option.
 
PolishHeadlock said:
"Some food retailers were alarmed by a separate proposal by the Trump administration, which in February suggested shaving about $129 billion in SNAP spending over a decade by shifting food-stamp dollars from benefit cards to a food-box-delivery program that would be state-run."

I don't see how this would be a cheaper option.
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I thought more Govt. control was a no no for Conservatives?
 
PolishHeadlock said:
"Some food retailers were alarmed by a separate proposal by the Trump administration, which in February suggested shaving about $129 billion in SNAP spending over a decade by shifting food-stamp dollars from benefit cards to a food-box-delivery program that would be state-run."

I don't see how this would be a cheaper option.
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If we don't send them freeze dried milk and eggs they'll just buy lobster.

We can't let poor people eat lobster. What's the point of life then?
 
For a while I did support the idea of cutting back on food stamps as I know the corners people can cut using them

But the idea of people starving in the best nation on earth is pathetic when you think about all the money spent on bombs and guns and death
 
sniper said:
For a while I did support the idea of cutting back on food stamps as I know the corners people can cut using them

But the idea of people starving in the best nation on earth is pathetic when you think about all the money spent on bombs and guns and death
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It's also pathetic when you consider the level of food waste.

Not just the food we don't finish eating that we prepare, but mandatory discarding of good food that reach their sell by dates. Bakeries and buffets that overproduce and discard their leftovers, etc.
 
Definitely more than what I would give. If you are not mentally deficient (Down’s, severe autism, etc.) you should not get food stamps.

Had a kid? Too bad, shouldn’t be poor and having kids. Lost your job? Too bad, have a savings account for six months of costs. Why do people have to take care of lazy fucks all the time because they are successful?
 
Rational Poster said:
It's also pathetic when you consider the level of food waste.

Not just the food we don't finish eating that we prepare, but mandatory discarding of good food that reach their sell by dates. Bakeries and buffets that overproduce and discard their leftovers, etc.
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The amount of food Americans throw away or waste is fucking appalling
 
UFC Truck said:
Definitely more than what I would give. If you are not mentally deficient (Down’s, severe autism, etc.) you should not get food stamps.

Had a kid? Too bad, shouldn’t be poor and having kids. Lost your job? Too bad, have a savings account for six months of costs. Why do people have to take care of lazy fucks all the time because they are successful?
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Sometimes shit does happen though and all it might take to lift someone up is a helping hand. But we would rather watch each other suffer than offer help. That is a recipe for disaster... imo
 
UFC Truck said:
Definitely more than what I would give. If you are not mentally deficient (Down’s, severe autism, etc.) you should not get food stamps.

Had a kid? Too bad, shouldn’t be poor and having kids. Lost your job? Too bad, have a savings account for six months of costs. Why do people have to take care of lazy fucks all the time because they are successful?
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GFY
Another “being poor is your fault” scumbag rears its ugly head. Well, take comfort; you’re not alone in your profound ignorance.
 
HAHA poor people AND grocery stores BTFO #2xMAGA
 
UFC Truck said:
Definitely more than what I would give. If you are not mentally deficient (Down’s, severe autism, etc.) you should not get food stamps.

Had a kid? Too bad, shouldn’t be poor and having kids. Lost your job? Too bad, have a savings account for six months of costs. Why do people have to take care of lazy fucks all the time because they are successful?
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"Hey kid you're hungry?

Maybe you shouldn't have pieces of shit for parents.

It sucks to suck."
 
As more and more automation takes jobs, this is going to be an amazing idea. MAGA.

Instead of preparing for the future we are going the opposite direction. There will be fewer jobs, and other job markets will get flooded and the result will be less pay for everyone. The income gape between the rich and everyone else will keep increasing. The poor won't be able to do shit. The richest country on earth and we give zero fucks about the poor.
 
I would like to see a jobs program where instead of just getting money and support people work for state or federal projects as a way of earning the money and support .

Even if it doesn't really save any money at least we are getting something and people are learning work habits.

Even some disabled can do some work.

Or if they are going to some trade school I can see that.

As to the stores they will have to adjust to changes.
 
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