FRAC: Press Release - Low-Income Families Disproportionately Affected by Rising Food Costs, According to New USDA Data 09/04/08

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FOR IMMEDIATE RELEASE
Contact: Jennifer Adach, 202.986.2200 x3018, jadach@frac.org

Low-Income Families Disproportionately Affected by Rising Food Costs, According to New USDA Data
FRAC Calls for Urgent Increase in Food Stamp Benefits to Help with 10 Percent Leap in Food Inflation

Washington, D.C. – September 4, 2008 – The Food Research and Action Center pointed to new inflation data in calling for a temporary increase in food stamp benefits to help struggling families cope with rising food costs. The U.S. Department of Agriculture (USDA) figures show that the cost of foods that determine the amount of food stamp benefits jumped 10 percent in just a year.

“While the cost of food is going through the roof, the food stamp benefit is remaining static,” said FRAC President James Weill. “Congress is expected to pass an economic stimulus bill in the next month, and it must include a temporary food stamp benefit bump – that’s the best way to quickly and efficiently stimulate the economy and help America’s families.”

The mix of foods that determine the maximum food stamp allotment is known as the Thrifty Food Plan. The USDA created the Thrifty Food Plan as an example of the types and quantities of foods that people could purchase to obtain a nutritious diet at a minimal cost.

However, the costs of the foods in the Thrifty Food Plan are rising even faster than the average cost of food: From July 2007-July 2008, the Thrifty Food Plan rose 10 percent versus 7.1 percent for the Consumer Price Index of food.

“Families on food stamps are in a much more difficult situation than a year ago. As of July 2008, it costs $54.80 more a month for a family of four to purchase the foods in the Thrifty Food Plan than a year ago,” said Weill. “It would take an extra day and a half of work at the minimum wage each month just to be at the same place a low-income worker was last year. Families are losing more and more ground every month.”

The Thrifty Food Plan has an additional deficiency when it comes to determining food stamp benefits, according to FRAC. The cost of the Thrifty Food Plan each June determines the food stamp benefit starting the following October for an entire year. As a result, there is a lag between the real cost of food and the food stamp benefits low-income people receive. This lag grows larger with each passing month, and is especially large in the current economy where food prices are rising faster than they have in 20 years. With such rapid food price inflation, it is already clear that even the October adjustment will leave families considerably short of what they need to purchase the Thrifty Food Plan.

“Despite working hard, low-income families are falling victim to a troubled economy and growing food inflation that they have no control over,” added Weill. “It’s up to Congress and the administration to take the steps needed to help these families make it through these times – a temporary boost in food stamp benefits is the best solution.”

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The Food Research and Action Center (FRAC) is the leading national nonprofit organization working to improve public policies and public-private partnerships to eradicate hunger and undernutrition in the United States.