Capitalism has been somewhat discredited lately. The unregulated hand of the market, it seems, leads not to a richer society but one with vast income disparities and a growing class of workers without much hope for the future.
But as Connecticut-based nonprofit Wholesome Wave proves, basic capitalist incentives can still be a force for good. In a survey released today, Wholesome Wave showed that offering incentives to buy fruits and vegetables helps low-income families eat better and farmers in need.
Wholesome Wave, an organization I have long watched with interest, offers double-your-money coupons to those eligible for food stamps, now called SNAP, when they buy fresh fruits and vegetables at farmers market. The idea is to encourage more healthful eating through incentives, rather than cracking down on those with limited incomes through controversial taxes on junk food or regulations on what they are permitted to buy with their government dollars.
The results are outstanding. Eighty-seven percent of consumers that received Wholesome Wave’s Double Voucher coupons said it increased or greatly increased their consumption of fruits and vegetables and more than 90 percent agreed that the fresh produce they bought made a big difference in their family’s diet. Additionally, 73 percent said they would not have gone to a farmers market had the incentive not been in place.
This is good for families and good for the farmers. It leverages government funds to build new markets for small and mid-sized farms that have been pushed out of business over the last 50 years. On average, SNAP redemption doubled at markets after double voucher coupons were introduced. And in some markets, the rates were much higher. At the 61st Street market in Chicago, SNAP redemption went from $1,100 per season to more than $10,000 two years after the program was introduced. In Armory, Rhode Island, SNAP receipts jumped from $632 to $5,652 per season.
The growing demand allowed farmers to expand their businesses. About 15 percent of the 1,700 farmers surveyed said that they had increased acreage or production as a result of increased sales and 12 percent said they had diversified the number of crops they grew.
Wholesome Wave’s impressive results have drawn broad support. This week, hospital group Kaiser Permanente announced a $1.2 million grant that will allow Wholesome Wave to introduce or expand its incentive programs at as many as 30 more farmers markets across the country. As Michel Nischan, Wholesome Wave’s founder and CEO says, it’s simple math: “This is a two-for-one sale. The emotional marketing triggers are there,” he said. “It works because it’s capitalism.”
I am a Brooklyn-based food writer who covers food politics, trends and sustainability issues. My work appears in the Washington Post, (where I was a staff writer), the New York Times, Slate, New York magazine and other publications. On this site, you will find my blog and links to my written work and my Washington Post column, Smarter Food.
4 Comments
Great post, Jane, but surely the argument’s backward? This works not because it’s capitalism, but because it isn’t. Capitalism doesn’t particularly care if poor people can’t afford good food. The market will decide, after all. What this scheme seems to do is recognise that captialism doesn’t recognise value properly. Sure, there are incentives and ‘emotional marketing triggers” here, but people have been responding to those since the dawn of time.
Of course, as usual, Raj is right. What I should have said was that WW shows that government and non profits have a role to play in taming market forces. But I stand by the fact that it’s basic ECONOMICS — people wanting to take advantage of a deal — that will move more people towards healthy eating than a lecture about how it’s the “right thing to do.”
Bravo to you both. Thanks Raj for the technical correction for language of today. I’m a little older so I refer to capitalism in the form of true demand for true price, v. manufactured demand by way of manufactured price, which seems to be the most recent aberration of what capitalism was originally purported to be. We’re just happy our outcomes are proving there is considerable demand in forgotten communities for locally grown foods — and for wonderful reasons — and that there is a considerable lack of market fairness that precludes those who demand better food from being able to choose it. I personally feel these data show, importantly, the true face of those in America who live at a disadvantage — real, determined-but-down-trodden, struggling to feed their families better, concerned for community. The face that had been previously painted for them is far from accurate, and perhaps a not un-deliberate factor of what contributes to today’s revised meaning of the word capitalism.
As a farmer on the front lines, this year I had the privilege of participating in a market where Wholesome Wave’s program is firmly in place. Let me tell you what it’s meant for me. First, it was a real eye-opening experience to go into a predominantly immigrant low income neighborhood after participating in several farmers markets over the years in middle-to-upper income communities. I’ve watched week after week as families with children and elderly carefully count their vouchers, tokens and Fresh Checks trying to figure out where they’re going to get the most bang for their buck. They ask the same questions and have similar concerns about where the food comes from and how it was raised as customers in the most affluent markets. Regardless of socioeconomic conditions, everyone eats and deserves access to clean, nutritious food. Approximately 75% of my sales are paid for in Fresh Checks meaning that if it weren’t for this program, it wouldn’t be feasible for me to attend.
Raj, I’ve adored you & your writings since you keynoted at the PASA conference a few years ago and Jane, I miss seeing you on Sundays at Bloomingdale. Keep up the great writing.