The NGA Show 2020

Communicating SNAP Point of Sale Incentives (Room 28 ABC)

25 Feb 20
1:00 PM - 3:00 PM

Tracks: Strategies for Competing

The 2018 Farm Bill expanded funding for the USDA’s Supplemental Nutrition Assistance Program (SNAP) produce incentive grant program established in the 2014 Farm Bill, added funding for “produce prescription” programs for low-income shoppers, and renamed the expanded program the Gus Schumacher Nutrition Incentive Program (GusNIP). GusNIP grants support projects to increase the purchase of fruits and vegetables among low-income consumers participating in SNAP by providing incentives at the point of purchase and for low-income shoppers with diet-related health conditions through doctor-issued prescriptions for healthy produce. According to the Center on Budget and Policy Priorities (CBPP), SNAP accounts for more than 10% of food purchased by U.S. families and in 2017 participants redeemed more than $63B in benefits for food purchases.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Through the GusNIP program, both low-income customers and retailers win. Customers’ food dollars go further because they receive extra money to spend on healthy fruit and vegetables through incentives or produce prescriptions. This could mean a significant increase in sales for independent grocers if these shoppers add fruits and vegetables to their food baskets, but grocers face a challenge — they must explain the programs’ benefits to their customers and encourage them to take advantage of them. Many NGA members report SNAP participants are distrustful of these incentive programs, as the offer of free food dollars seems too good to be true. For the NGA Show 2020 Student Case Competition, participants are asked to develop a way (ways) for independent grocers to make it easy and comfortable for SNAP participants and shoppers with produce prescriptions to maximize their food benefits by increasing the portion of their basket composed of fruits and vegetables.