Expanded Retailer Requirements Could Push C-Stores Out of SNAP

Meiners Markets explains how USDA proposed standards would be ‘next to impossible’ for c-stores to meet.

August 17, 2016

WASHINGTON, D.C. – Expanded retailer stocking requirements proposed by the U.S. Department of Agriculture (USDA) would likely remove many convenience stores from participation in the Supplemental Nutritional Assistance Program (SNAP), the Charlotte Observer reports. That’s because the agency’s proposed federal rule aimed to increase the number of healthy items in stock goes too far for small format retailers.

While the 2014 Farm Bill – which was supported by the convenience store industry - increased retailer requirements to seven varieties of food items in each of the four staple food categories, the proposal changes the underlying definition of staple food to exclude foods with multiple ingredients. It also would require six facings of each of the varieties on shelves at all times. This means retailers would have to continually have on display 168 single ingredient items.

Those changes would not be possible for many convenience stores given space constraints and other factors, and the result would be devastating for many food stamps users who would have fewer places to purchase groceries. That is likely the scenario for the Meiners Markets chain, which operates close to Kansas City, Mo. Already, Meiners Markets offers beer and bulk candy alongside fresh produce, but the stores lack the shelf space to add the required items, and stocking the additional items would cost more as well, said Mary Braddock, whose family owns and operates the chain.

Besides, her customers aren’t interested in purchasing lamb, duck or even kale. “We don’t understand why USDA has drafted this proposed rule in a way that will make it so difficult for small stores to participate in SNAP and will make it harder for SNAP beneficiaries to get food,” she said.

The impact of convenience stores like Meiners Markets exiting the food stamp program will mean those living in food deserts in urban or rural areas will be without access to a store that sells any kind of groceries. “We can’t push small stores out of the program because they play a critical role by providing access to nutrition,” said Anna Ready, director of government relations for NACS.

Ready pointed out that compliance with stocking mandates will be extremely hard and costly for convenience stores. “Our stores just don’t have the space,” she said. “That means we’d have to have more in storage to continually replace anything that sells. We’d have to make major changes to supply and delivery chains and also possibly to store layout and store space.”

The high cost of compliance has been recognized within the Obama Administration. The Small Business Administration (SBA) predicts the cost of compliance for small retailers will be at minimum five times higher than USDA’s estimate, according to a letter SBA submitted in USDA in May.

Cathy Cochran, a USDA spokeswoman, stated,  “(W)e are confident the final rule, when issued, will succeed in increasing food choices without harming small retailers.”

While the USDA has defended the proposal as one that would ensure SNAP recipients have access to healthy foods, democrats and republicans in Congress have raised objections with the proposed rule and the negative impact it will have on SNAP beneficiaries.

Kansas Senator Pat Roberts, chairman of the Senate Agriculture Committee pointed out that nearly half the Senate signed onto a letter to USDA that critiqued the proposal, including Democrats Claire McCaskill of Missouri, Bill Nelson of Florida, Patty Murray of Washington state, and Independent Bernie Sanders of Vermont.

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