Balancing the Food Equation with Public Dollars
For most, the food system is a set of economic transactions: Consumers pay money and get food. There’s an assumption that the transactions are balanced, that the amount we pay covers the cost of production, distribution, processing, marketing and other inputs that go into the food that we eat.
The reality, though, is much more complex. Tremendous imbalances exist between what it costs to produce food and what consumers are able and willing to pay. Significant government interventions cover gaps in costs on both sides of the equation, masking some of the inequities. Those public policies exist at every level of government, from local zoning laws and taxation, to State programs and investments, to federal subsidies and regulatory oversight.
On the production side, as farmers nationally have struggled with climate change and other natural resource issues, volatile markets, the COVID pandemic and other challenges, federal resources have helped stabilize prices with direct subsidies to many growers. In 2019 direct federal aid accounted for 39% of farm income in the United States.
Very little of that support makes its way to Massachusetts, though, with most of those resources being spent on commodity crops like corn, wheat and soy that are grown elsewhere. But in providing those subsidies, and thus keeping prices of some foods low, the effect is that Massachusetts farmers are forced to compete with artificially depressed prices from their competitors. As a result, on average, Massachusetts farmers’ costs to produce food exceed the prices they are able to command for their crops.
In response, the State makes investments in support of Massachusetts farmers. A range of grant programs offered by the Massachusetts Department of Agricultural Resources (MDAR) are available to farmers, including funds targeted to supporting urban agriculture, on-farm energy efficiency, climate-smart management practices and protecting farmland from development. These programs are typically over-subscribed, with many applications being denied each year due to limited funding.
A program launched during COVID called the Food Security Infrastructure Grant Program (FSIG), designed to provide funding for capital infrastructure needs for food supply chain enterprises from farmers and fishers to distributors and processors, has invested $61 million over the last two years. Requests totaled more than $300 million, demonstrating significant demand, but no funds are being offered through the program this year.
Some new investments included in the recently passed State budget for the next fiscal year will provide structural supports to the local food system. A new $250,000 grant program will support Food Policy Councils, networks of local stakeholders that work together to help ensure that community food needs are met. And a new investment of $620,000 will allow UMass Extension to hire educators to work with farmers in areas such as soil health, pollinator protection and limiting pesticide use. These small investments can have a big impact, as they support local and statewide stakeholders that seek solutions to underlying systemic issues.
There are imbalances on the consumption side as well, with many residents unable to afford adequate food for themselves and their families. In June 2022 16.6% of Massachusetts residents were food insecure, double what it was before the pandemic began more than two years ago. More than a million Massachusetts residents rely on monthly federal SNAP benefits (what used to be called food stamps), receiving a total of $2.35 billion in fiscal year 2021.
To help meet the needs of Massachusetts residents who remain food insecure despite the availability of SNAP, the State provides $30 million each year through the Massachusetts Emergency Food Assistance Program (MEFAP) to food banks and food pantries. A new budget item of $110 million in the current fiscal year will support free school meals for every public school student for the coming academic year.
And some innovative programs demonstrate that wise investments can support both production and access. The Healthy Incentives Program (HIP), now in its fifth year, has provided more than 121,000 households with $37 million in fresh, healthy, local food, with every dollar going to local farms. This year’s budget will provide about $20 million to continue that program.
Despite all of these and many other programs and investments, as well as myriad policies aimed at leveling the playing field for producers and consumers alike, Massachusetts’ food system is still not equitable or economically sustainable. But policymakers are showing greater interest in food system issues, engaging with growers and eaters, learning from advocates and researchers and crafting approaches that offer systemic solutions.
As we approach this year’s election, the Massachusetts Food System Collaborative has been engaging with candidates for State offices and posting online their views on critical food system issues. See mafoodsystem.org/projects/2022-elections for more information, and reach out to candidates for office in your area to find out how they will support an equitable and sustainable food system if elected.
This story appeared in the Fall 2022 issue.
