Last month the U.S. Department of Agriculture (USDA) announced that the agency was providing $100 million in grants to help states implement SUN Bucks – a new, permanent program that helps families buy groceries for their children during the summer. SUN Bucks, also known as Summer EBT, is part of USDA’s “Summer Nutrition Programs for Kids” that lower costs for families and improves food and nutrition security during summer when kids lose access to school meal programs. I previously wrote about this new grant program at the beginning of 2024 but now wish to update my readers.
SUN Bucks provides families with a $120 grocery benefit for each eligible school-aged child to buy food at grocery stores, farmers markets, and other authorized retailers. USDA now estimates that when SUN Bucks is fully implemented, it will reach more than thirty million children nationwide.
SUN Bucks advances the goals of the Biden-Harris administration’s White House Conference on Hunger Nutrition and Health, which I have also previously written about in my commentary, to enhance food and nutrition security and improve food access and affordability for low-income families. For more information, visit USDA’s SUN Programs website via www. usda.gov. Food retailers that facilitate programs to inform and educate their low-income shoppers may want to ensure that the SUN Bucks program is part of your curriculum! Personally, I would be surprised if low-income shoppers were fully aware of Sun Bucks. Spread the word!
Farm Bill Update
Enactment of a new five-year 2024 Farm Bill continues to go the way of a roller coaster ride with many ups and downs. At press time, we at Policy Solutions think another extension offers a quick fix remedy as a turbulent election season gets underway which only clouds the path to a new five-year farm bill. Remember, the current bill expires on September 30 so lawmakers must decide on extension plans. Anything could happen as a lot of elected officials want to move forward with a new bipartisan bill, but no next steps appear on the drawing board to make that happen.
Not satisfied with the “do nothing” Congress, more than 500 of the nation’s major agricultural organizations and companies have signed a joint letter aimed at Congressional leaders to urge them to pass a new farm bill. A related news article appeared in Meatingplace News stating that farm bill stakeholders were concerned that not passing the latest proposal before the end of the year could possibly create logistical or political problems as the next 119th Congress installs new committees and leadership. They are correct in their assessment (see my conclusion below).
Finally, considering the upcoming elections, another “wrench” may be thrown into the mix. For example, there is an effort to strike climate-friendly provisions from the farm bill drafts that we have seen, and such efforts will surely get the attention of Trump’s running mate Senator J.D. Vance. He has publicly said that he will bring a new energy approach to the Republican party to put more emphasis upon electrification and fuel efficiency standards for agricultural equipment. Vance is not alone in his thoughts as some optimistic House and Senate Republicans are already boasting that they will control both houses of Congress after the November elections so why not start anew on drafting a farm bill? Not so fast as with Biden now out and Harris now in, anything could happen. Now you know why it takes so long to enact legislation.
U.S. To Phase Out Single-Use Plastics
The Biden administration announced last month plans to phase out the use of single-use plastic from all federal operations by 2035, as part of the administration’s overall strategy to address pollution caused by plastics. “The U.S. government is the world’s largest purchaser of goods and services, and its purchasing decisions can have a global impact,” said a representative of Oceana, an international advocacy non-government organization. Given the purchasing power of the federal government, some environmental groups agreed with Oceana in that the decision to phase-out single-use plastics in favor of reusable or compostable products was indeed significant. The phase-out will begin with a goal to end federal procurement of single-use plastics from the fed’s vast food service operations by 2027. We at Policy Solutions think this federal government effort is worth monitoring as states and the private sector contemplate how they can also do more to address plastic pollution and recycling.
Increasing Access To Healthy Foods In Underserved Communities
At the annual conference of the National Rural Grocer’s Summit held in June, USDA Secretary Tom Vilsack announced that USDA and the Reinvestment Fund Program were launching a new program under the Healthy Food Financing Initiative (HFFI) to increase access to health foods within communities underserved by grocery stores. Funding for the new Food Access and Retail Expansion Fund (FARE Fund) is made possible by President Biden’s American Rescue Plan Act.
Through the HFFI FARE Fund, USDA and the Reinvestment Fund are making available $60 million in loans grants and technical assistance for food retail and food supply chain projects that increase access to healthy food in communities underserved by grocery stores. Funding will be available for the next five years. For more information, go to www.investinginfood.com/fare-fund.
Cutting Interest Rates
Reuters reported last month that top Federal Reserve officials said that the U.S. central bank is closer to cutting interest rates given inflation’s improved trajectory. This fact, coupled with a labor market that is continuing to show positive signs, may set the stage for a first reduction in borrowing costs in September. At press time, while the Fed’s July 30 – 31 policy meeting was looming on the horizon, comments made by financial market experts pointed to a slim probability that a rate cut would occur at the July meeting. So, September may just be the lucky month for the Fed’s rate reduction announcement to cut interest rates.
The U.S. benchmark Consumer Price Index (CPI), at the latest reporting period, showed a seasonally adjusted decline in June of 0.1 percent, while the sub-index for food rose 0.2 percent from the previous month, according to an e-mail I received from the federal Bureau of Labor Statistics. Also, J.P. Morgan analyst Bruce Kasman’s “Global Data Watch” reported last month that the falling CPI was promising enough to “open the door” for the Fed’s to cut interest rates during the third quarter. Stay tuned.
Climate Smart Food Digital Summit
If you believe that sustainable nutrition sits at the heart of a transition towards a healthier future, then you will want to participate in FoodNavigator’s Climate Smart Food Digital Summit next month. At the summit meeting, pros will dive into three critical issues: Decarbonizing Supply Chains at the Source, Eco-Friendly Product from Farm to Fork, and new Tech and Novel Ingredients for a Sustainable Future. The free event will include three broadcast sessions over three consecutive days (September 24-26) with each session consisting of a mix of interactive panel discussions, and audience Q&As. Email newsletter@foodnavigator.com for more information.
A Thing Of The Past
I fondly recall being a cashier for Giant in one of their Richmond stores in the 1960s. At that time, it was axiomatic, after bagging a customer’s order, to always ask: “Will that be cash or a check”? Fast forward to today when only 1 percent of consumers prefer to use checks when making in-store purchases at retail food stores. Mega retailer Target has just announced that the company is joining others like Aldi and Whole Foods in no longer accepting checks. Will checks soon become outdated and a thing of the past? Probably so as more consumers use contactless virtual payments such as digital wallets and payment apps such as Zelle, Venmo and PayPal. Right now, though, most shoppers still use their charge cards.
In Which Aisle Can I Find Bullets?
Now, unbelievably, and according to Supermarket News, vending machines that sell ammunition are appearing at grocery stores in parts of the U.S. A firm called American Rounds says its vending machines that dispense boxes of bullets use artificial intelligence and card scanning technology to verify that its customers are 21 years or older. The company reported last month that they have over 200 store requests for their AARM (Automated Ammo Retail Machines) vending machines covering approximately nine states to date and interest is growing. Will we soon hear in-store announcements such as: “Attention hunters – in Aisle 3 there is a special today on bullets!” Hey, I cannot make this stuff up!