Jan Walters EBT Director Division of Financial, Health & Work Supports Iowa Department of Human Services 1

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1 Are Farmers Markets a SNAP? Jan Walters EBT Director Division of Financial, Health & Work Supports Iowa Department of Human Services 1

2 Iowa Model for EBT: DHS utilizes mostly rented wireless terminals or free terminals Farmers are individually certified as a SNAP retailer, not the market IA DHS provides terminals to the farmers Farmers can use POS anywhere, anytime 24/7 Farmers are able to accept any EBT card, as well as commercial debit/credit cards Farmers sign contract with merchant provider/processor DHS reimburses farmers for EBTrelated fees DHS has access to farmers statements DHS gives customer survey cards to farmers Farmers complete annual survey form Former Iowa DHS Director, Kevin Concannon, now USDA Undersecretary Concannon. 2

3 Financial History Iowa EBT Wireless Project Total Sales by Calendar Year Cumulative Total EBT Sales $1,423 $18,524 $39,733 $41,845 $62,078 $163,603 Debit/Credit $18,352 $192,089 $476,557 $682,857 $772,220 $2,142,075 Total Sales $19,775 $210,613 $516,290 $724,703 $834,298 $2,305,678 Total Transactions by Calendar Year Cumulative Total EBT ,024 Debit/Credit ,001 23,444 26,499 75,488 Total 931 9,914 21,458 27,701 32,508 92,512 3

4 EBT sales and transactions increased at a greater rate than in previous years EBT sales were 48% higher than EBT transactions were 41% higher than

5 Ideas To Increase SNAP Purchases at Farmers Markets Annual brochure made available to all SNAP households DHS website listing location/dates/time of markets where they can use EBT card Statead advertising (radio, newspapers, localshoppers, etc) Special shopping bags Market/farmer advertising Posters for DHS offices 5

6 SNAP Outreach Via the Farmers: Provide signs to farmers to show that they can accept EBT Have direct contact with farmers (Know Your Farmers!) Inform farmers how they are helping hli low income families by becoming a FNS retailer Require farmers to view training video Identify the farmers who will be cheerleaders for EBT Send monthly newsletters to farmers Provide color books to farmers EBT aprons 6

7 SNAP Outreach by Markets Markets arecreative. Get involvement fromlocal businesses & city government/non profits Publicize events using local media Davenport tfreight hthouse Market events: Easter Bonnet Parade Classes for canning/freezing (free jars/supplies for EBT families) Offer free tote bags Children events 7

8 Common Myths for SNAP at Farmers Markets 1. We have to buy a wireless terminal. Not true. There are good companies who will allow the market/farmer/state to rent a device for as many months as you want. 2. If I want to buy a wireless terminal, it will cost $1,000. Not true. There are companies who can sell you a new terminal lf for $699 $900 $900 range, or less depending di on the quantity you want. (Note: determine how much it will cost you when the purchased terminal needs to be replaced in 2 3 years.) 3. We were told that EBT will not operate on the VeriFone 8020terminals terminals. Not true. Iowa uses VeriFone VX 610, 8000S and 8020 for EBT. All terminals work great for EBT. There are some companies who sell proprietary devices. Caution: you want the flexibility to take your business elsewhere if customer service is not up to your standards. 8

9 4. Farmers do not want to use wireless terminals. This may be true for some. Wireless technology is not a good fit for every farmer. Look for those farmers who sell at multiple markets each week, or sell at large urban markets, or sell year round, or sell higher priced items (meat, honey/jelly, dairy, baked goods), or have on the farm sales. 5. Merchant providers require a 3 year contract for wireless terminals. Some may. The two companies that Iowa does business with only have a 1 year contract commitment. 6. Could WIC & Senior FMNP and CVB benefits be issued with ihsnap EBT or on a separate card? The technology exists to do this. Oklahoma issues Senior FMNP via a gift card. The key is to make sure farmers and/or markets have the technology to accept a WIC or Senior FMNP EBT card. 9

10 6. Farmers won t pay the commercial transactions fees. Many farmers will pay these fees as the potential to increase their gross sales outweigh the fees. Annual wireless sales for participating Iowa farmers range from $100 to $92,000. Monthly wireless fees are a cost of doing business, just like fertilizer or seeds. 7. You need to use tokens/scrip to have EBT at farmers markets. Not true. Farmers can obtain their own wireless terminals or obtain them from a non profit entity, market, ktstate tt agency, etc. But you do need to determine dt who is the responsible party and who is paying the fees. 8. Wireless terminals are hard to use. Not true. It is common to see young children run the terminals for their parents. Once farmers receive their terminal, they should run test transactions until they feel comfortable using the device. 10

11 Summary Match SNAP admin dollars when possible Create a Plan Decide whether to certify the market or individual farmers What type of equipment is to be used? Decide whether to purchase, rent or get a free POS Determine how you will get data on your project (Where will it come from?) Determine what paperwork is required (USDA Retailer App, banking application to accept credit/debit, etc) Recruit farmers in fall/winter. Complete training prior to market season. (They re too busy after April 15th to do paperwork) Develop outreach/promotion approach Develop monitoring schedule 11

12 How will fees be paid? Who is paying for the standard monthly fees? Are you reimbursing the farmer/market? What about supplies? (paper, cord replacements, battery, etc) Who is paying? Communication issues How will you communicate with farmers? EBT households? Market managers? Last but not least, go have fun and make it work! 12

13 Other References: e/farmersmarket.html The above link will display copies of the recent EBT Wireless Newsletters and provide access to dvd for EBT Wireless Project Contact Jan Walters at (515) or state s through April 30 th. Effective May 1, 2010, contact Tracy Penick (515) or tpenick@dhs.state.ia.us for more information 13