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Ohio


Ohio retailers expect a ripple effect from food stamp cuts
SNAP cuts begin today and the impact will be felt beyond food
Story by TOM BORGERDING


 
In The Region:

Beginning today, grocers, discount, and convenience stores face a tougher sell to some low-income customers who get food stamp benefits. For Ohio Public Radio, WOSU’s Tom Borgerding reports.

LISTEN: Food stamp cuts and their impact

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Food stamp benefits are being cut for nearly 2 million Ohioans. Ohio economist Jim Newton says he expects grocers to respond with some price cuts.

"They are certainly going to be highly selective in where they cut their prices,” says Newton, “try to find those things where volume is going to kind of offset price cuts.”

The 2009 economic stimulus bill temporarily boosted the food-stamp program. The expiration of the stimulus means a family of four will see $36 dollars less per month in food stamps.

Newton predicts consumer spending reductions will likely spread beyond the grocery store. 

"If people are going to have to switch some of their disposable income into buying food now that’s not being supported by food stamps, then other types of retailers are going to be impacted, too. And, it comes at a particularly bad time of year with Christmas just around the corner.,”

Newton says the only good thing is that food inflation remains relatively modest.

 

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