Households in states that were temporarily distributing extra Supplemental Nutrition Assistance Program (SNAP) benefits experienced lower levels of food insufficiency during most of 2022 and early 2023 than those in states distributing standard SNAP amounts, according to the Household Pulse Survey (HPS) from the US Census Bureau.
March 1 marked the end of those additional pandemic-related benefits, or Emergency Allotments (EA), in 32 states and the District of Columbia, resulting in smaller monthly SNAP payments for roughly 32 million people, said a Census Bureau release.
NEW POLICY BITES
The latest HPS data released last week marked the first full period of data collection after most households received lower SNAP amounts.
The data revealed that 1 in 4 households receiving SNAP benefits in states affected by the March 1 policy change now report “sometimes” or “often” not having enough to eat. This estimated level of food insufficiency is now nearly identical to the estimates in states that chose not to participate in the EA program until its end.
Since spring 2020, several changes to SNAP policy increased benefit amounts, provided additional program flexibilities and reduced hardship, the Census Bureau said. A household of four with a net monthly income of $2,000 (gross income minus deductions allowed in SNAP calculations) received nearly $900 more in SNAP benefits in early 2023 than they did before the pandemic began (not accounting for inflation). The end of the EA program means this household gets $600 less each month.
The exact benefit reduction varied by household size, composition and income, but households received at least $95 less per month, the release said.
EFFECT OF EXTRA BENEFITS
By the end of 2020, all states were distributing EA benefits, the Bureau said. However, by December 2021, 10 states had opted out of the EA program and seven more opted out in 2022.
Food insufficiency was significantly higher in states that opted out of EA for 12 out of the 15 periods of HPS data collection from early 2022 until early March 2023 — February and November 2022 and January 2023 being the exceptions.
Following the expiration of these benefits, food insufficiency in the two sets of states converged, and the difference was no longer statistically significant with about one-quarter of SNAP recipients reporting food insufficiency in both groups, the report said.
Though the long-term consequences of this policy change remain unclear, the data illustrate the role extra SNAP benefits played in providing recipients the resources necessary to meet their needs, the Census Bureau said.
A livestock market analyst said it will be interesting, going forward, to see how much this changes the buying habits of consumers.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $174.50 per cwt to $181.47, compared with last week’s range of $174.86 to $184.47 per cwt. FOB dressed steers, and heifers went for $276.18 per cwt to $284.12, compared with $269.25 to $292.35.
The USDA choice cutout Thursday was up $1.83 per cwt at $311.07 while select was up $1.15 at $289.09. The choice/select spread widened to $21.97 from $21.30 with 78 loads of fabricated product and 13 loads of trimmings and grinds sold into the spot market.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.55 to $1.65 a bushel over the Jul corn contract, which settled at $5.81 ½ a bushel, down $0.19 1/2.
No live cattle futures deliveries were tendered Thursday.
The CME Feeder Cattle Index for the seven days ended Tuesday was $201.31 per cwt, up $0.05. This compares with Thursday’s Apr contract settlement of $202.67 per cwt, unchanged, and May’s $211.52, up $1.25.