Farm Bill Food and Nutrition Programs: Economic and Nutritional Impact Timothy J. Richards Paul M. Patterson Cal-Med Consortium Workshop II Washington, DC December 7, 2006

Nutrition Title of Farm Bill Largest component of annual USDA budget –Food Stamp Program –National School Lunch Program –School Breakfast Program –Supplementary Food Program for Women, Infants, and Children (WIC) –Commodity Supplemental Food Program FY 2005: $47.9 billion; 58.5% of budget

“...improving the nation’s health and nutrition...” 3.5% of all Americans are hungry 65% of adult Americans are either overweight or obese Support for nutrition programs –Consumers, needy recipients –Growers, farmers –Business

Objective Examination of farm bill nutrition programs and policy proposals to determine: (1) Economic benefits Farm revenue, farm prices (2) Nutritional benefits Healthy Eating Index

Analysis Policies (1)Food Stamp Program (2) National School Lunch Program (3)School Breakfasts (4)WIC Policy Options (1)Expand Fruit and Vegetable Snack Program (2)Elimination of CSFP

Method of Analysis 1)Per capita monetary benefits 2)Marginal propensity to spend Food expenditures at retail 3)Fruit and vegetable expenditures Commodity spending 4)Farm level expenditures 5)Quantity effect for commodities 6)Demand shocks Simulate effects on price, production, per capita consumption 7)Nutritional Impact - Healthy Eating Index

Commodities Fruits and Nuts –Almonds –Apples –Grapes –Strawberries –Oranges Vegetables –Potatoes –Tomatoes –Lettuce –Onions –Mushrooms

Incremental Economic Benefits of Nutrition Programs Program & Program Expenditures

Nutritional Benefits of Programs Program Annual Budgetary Cost ($ per capita) HEI Impact (Δ Index) HEI-Cost Index ($ / HEI) Food Stamp$1, $301 NSL Breakfast WIC F&V Snack CSFP

Policy Recommendations Expand fruit and vegetable snack program Expand WIC packages to include more fruits and vegetables Food stamp program should include greater focus on fresh fruits and vegetables and targeted benefits should be considered CSFP should be eliminated Programs should be evaluated regularly using a standard metric