What is EBT and why is it so important for farmers markets?

Paper SNAP coupons (formerly called food stamps) were a critical source of income for small farmers and an equally critical key to good nutrition for low income people. As part of the Welfare Reform Act of 1996, Congress mandated that all states change to an electronic system of SNAP benefits (Electronic Benefits Transfer, or EBT) by October 2002. Because most farmers markets are held outdoors and in temporary spaces, accessing an electronic system has proven much more difficult than accepting easily redeemable paper coupons.

As paper coupons were phased out, a universal way for farmers markets to handle the electronic system was not simultaneously phased in. Across the US, rates of the use of SNAP benefits at farmers markets have therefore declined sharply with the introduction of the electronic system. Following the June 1998 EBT rollout in Hawaii, for instance, the average monthly SNAP redemptions at the Hilo, Hawaii, farmers market fell 98% from $13000 to $233.

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