Dive Brief:
- Colorado has started providing SNAP participants with financial incentives to encourage them to use their EBT benefits to purchase fresh produce, the USDA’s Food and Nutrition Service announced Wednesday.
- Participants in the state’s new SNAP Produce Bonus program, which launched Aug. 1, will receive a dollar-for-dollar match on their spending for qualifying fruits and vegetables, with a cap of $20 per transaction and $60 per month.
- The program reflects a drive by the federal government to pave the way for SNAP participants to access healthy food incentives via their EBT cards.
Dive Insight:
Colorado’s initiative to reward SNAP recipients for loading up on produce stems from a nearly $8 million USDA grant the state received last year to develop an electronic healthy incentives pilot.
Colorado is the second state to roll out such a project, following Washington state. The USDA said in June 2023 that it had allocated $25 million to help the two states and Louisiana fund the pilots, which are intended to cut administrative expenses and boost the flow of incentive money to beneficiaries.
The program in Colorado is aimed at independent grocers and other retailers, farmers markets and local producers, and will expand to include more locations, the USDA said. Shoppers do not need to sign up to receive the produce incentives and can redeem the extra money to buy any foods that are SNAP-eligible, according to the agency.
“This will be a benefit for not only the families, but also for local retailers and farmers, as customers will be able to purchase more products, and more food dollars will stay in the local economy,” Michelle Barnes, executive director of the Colorado Department of Human Services, said in a statement.
The USDA said research has shown incentive programs to be effective at encouraging people to buy healthy foods and help improve nutrition security. The department cited a study that found that SNAP beneficiaries who receive produce incentives eat more than a quarter more fruits and vegetables than nonparticipants.
The USDA also provides matching funds to SNAP participants who buy fresh produce through the Double-Up Food Bucks program, which relies on tokens and paper coupons to deliver incentives to beneficiaries. Last year, The Hub on The Hill, a nonprofit grocer in New York focused on helping consumers overcome food insecurity, became the first U.S. grocer to offer online access to Double Up Food Bucks.