Marion Nestle on The (Big) Business of Food Stamps: “Here’s Where the Profits Come in

["W"]

In 2011, a record 46 million people - or 1 in 7 Americans -- participated in the Supplemental Nutrition Assistance Program (SNAP), better known as Food Stamps.
The increased use of Food Stamps is a huge social and political issue for America, and it's also big business. In 2011, the U.S. government spent $72 billion on Food Stamps.
Among the beneficiaries, food producers such as Cargill, PepsiCo. (PEP), Coca-Cola (KO) and Kraft (KFT), as well as retailers like Wal-Mart. Of course, Wall Street gets a cut too, led by JPMorgan Chase (JPM), which administers the SNAP benefits in 24 states.
In the accompanying video, I discuss the (big) business of Food Stamps with Marion Nestle, professor of Nutrition, Food Studies, and Public Health at New York University and author of several books, most recently

Amazon.com: Why Calories Count: From Science to Politics (California Studies in Food and Culture) (9780520262881): Marion Nestle, Malden Nesheim: Books

Amazon.com: Why Calories Count: From Science to Politics (California Studies in Food and Culture) (9780520262881): Marion Nestle, Malden Nesheim: Books
Amazon.com: Why Calories Count: From Science to Politics (California Studies in Food and Culture) (9780520262881): Marion Nestle, Malden Nesheim: Books

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Generally speaking, Nestle is a supporter of the program, calling it "the only safety net we have left for the poor."
However, with obesity rates rising among the poor -- and obesity a huge factor in rising health-care costs -- Nestle and other health experts wonder whether there should be restrictions on what kind of foods can be purchased with Food Stamps.
Currently, there are few restrictions on what can be purchased with Food Stamps, other than alcohol and prepared foods.
Here's Where the Profits Come In
"Here's where the profits come in," Nestle says. "A vast percentage of Food Stamps' money goes into the pockets of soda companies and snack food companies...and also the stores that sell these foods."
Wal-Mart "gets a large fraction of Food Stamp dollars," which contributes 25% to 40% of revenue at select stores, according to Nestle. "These companies, therefore, have a vested interest in making sure Food Stamps are allowed for any purchase at all."
Funding for Food Stamps comes from the Farm Bill, which is currently being debated in Congress. "You can bet the food companies like it just the way it is and they are lobbying" to prevent restrictions on how Food Stamp dollars are spent, Nestle says.
Citing a recent report by public health lawyer Michele Simon at EatDrinkPolitics.com, Nestle recently made the following observations on her blog about "some of the politics behind efforts to maintain the status quo":

• Food industry groups such as the American Beverage Association and the Snack Food Association teamed up with anti-hunger groups to oppose health-oriented improvements to SNAP.
• Companies such as Cargill, PepsiCo, and Kroger lobbied Congress on SNAP, while also donating money to America's top anti-hunger organizations (who fear any changes to the Food Stamps program will result in benefit cuts).
• At least 9 states have proposed bills to make health-oriented improvements to SNAP, but none have passed, in part due to opposition from the food industry.
• Coca-Cola, the Corn Refiners of America, and Kraft Foods all lobbied against a Florida bill that aimed to disallow SNAP purchases for soda and junk food.
• Banks and other private contractors are reaping significant windfalls from the economic downturn and increasing SNAP participation.

"The point here is that banks that administer SNAP have a vested interest in keeping SNAP enrollments high and makers of junk foods have a vested interest in making sure that there are no restrictions on use of benefits," she writes.
As you'll see in the accompanying video, one other thing stands out when discussing these issues: There is no public data available on how Food Stamp funds are being spent.
"If there are data on what Food Stamps are spent on, they are proprietary data the companies have and either the government doesn't know, doesn't have access or isn't saying," Nestle observes.
Whatever you think of the program or whether there should restrictions on Food Stamps, we have a right to know how (and where) these taxpayer funds are being spent.

[bmac]

So what I take from this is that food stamps will always be around in their current form. Republicans will side with the food industry, democrats will fight against any potential reduction in benefits. Finally a topic both sides can agree on!

[Bdv2642]

I own a grocery store and not five minutes ago some young girl came in wanting center cut beef tenderloin (filet mignon) I sell it for $26/lb. got to the register and asked if we take food stamps. ha! even if i did i wouldn't sell you that!

["W"]

Originally Posted by Bdv2642

I own a grocery store and not five minutes ago some young girl came in wanting center cut beef tenderloin (filet mignon) I sell it for $26/lb. got to the register and asked if we take food stamps. ha! even if i did i wouldn't sell you that!

GOOD FOR YOU>......That is what we need more to put there foot down on free loaders

[PUREBAY2200]

the number 1 cause of obesity......poverty.

[kcinnick]

I had to go to a seminar put on by the state when they changed the WIC program a few years ago. The lady got up there and was making a speech about how these women who have gotten WIC 2, 3, and 4 or more times and were tired of the same food and they should have some variety. I was pissed, we were sending texts back and forth about the BS and then the lady giving the socialist speech asked for questions or comments. My boss and bosses boss both sent text to not make a comment, because they knew I was about to rip her in front of around 400 managers from my company about that stupid comment about being tired of the same old free food for years and years over and over.

[gckid]

Had a guy selling shrimp north of moss bluff this weekend that had his accept food stamp signs out.

[Big Kahunaz]

Food stamps should be for canned goods only
Wife came in yesterday telling me about a case conference they had concerning Medicare cost cuts going into the next 4 years. Doesn't look good at all for the medical fields future. Jobs will be cut and more hospitals will struggle. Some of this money could be freed up if lazy asses would go get a J.O.B. and quit looking for handouts. Better enjoy the low interest rates and job security while u can cuz that **** aint gonna last much longer.