Transcript Food and Nutrition Programs - UC Agricultural Issues Center

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
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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)
2)
Per capita monetary benefits
Marginal propensity to spend
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3)
Fruit and vegetable expenditures
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4)
5)
6)
Commodity spending
Farm level expenditures
Quantity effect for commodities
Demand shocks
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7)
Food expenditures at retail
Simulate effects on price, production, per capita consumption
Nutritional Impact - Healthy Eating Index
Commodities
• Fruits and Nuts
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Almonds
Apples
Grapes
Strawberries
Oranges
• Vegetables
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Potatoes
Tomatoes
Lettuce
Onions
Mushrooms
Incremental Economic Benefits
of Nutrition Programs
Program & Program Expenditures
Food Stamp ($28.5 B)
Fruit
Vegetables
NSL ($7.1 B)
Breakfast ($1.9 B)
WIC ($5.2 B)
F&V Snack ($2.4 B)
CSFP ($0.0)
-50
150
350
550
750
Farm Revenue ($ Million)
950
Nutritional Benefits of Programs
Annual
Budgetary
Cost
($ per capita)
HEI Impact
(Δ Index)
HEI-Cost
Index
($ / HEI)
$1,112
3.70
$301
NSL
238
2.50
95
Breakfast
205
3.20
64
WIC
450
23.45
19
F&V Snack
84
6.14
14
CSFP
206
0.90
229
Program
Food Stamp
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