A USDA paper has concluded that proposed changes to the Supplemental Nutrition Assistance Program (formerly the Food Stamp Program) may push up prices for healthy foods in the US, and discourage participation in the program, according to a report by Food Navigator USA.

Under the new proposals, food stamps should only be allowed to purchase healthy foods (such as fruits, vegetables, wholegrains, pulses, low-fat dairy, lean meat, fish and poultry) in order to combat obesity amongst the poor.

According to the authors of the paper, by increasing demand for healthier products, prices would necessarily rise to reflect tighter supply, while lower demand for unhealthy foods would depress prices, therefore increasing their affordability.

However, people could feasibly continue to buy unhealthy option given that at least 70 per cent of the program’s beneficiaries are estimated to supplement the stamps with cash-bought food. Moreover, the authors suggest that if people are not allowed to buy the foods they prefer under the scheme, they may choose not to participate at all.

“While reforming the FSP may indeed lead to better diets among participants, it is likely to be an ineffective and inefficient instrument for bringing about desired nutritional outcomes unless accompanied by additional policy instruments,” the paper concluded.

Although the authors said there could be a gradual decrease in obesity for program participants, they add that increased costs for healthy foods could cause an increase in obesity for the 25m poor US citizens who do not participate.

The program is available to households with incomes at or below 130 per cent of the poverty line. It is used by 28m US citizens each month allowing an average of US$200 worth of assistance and, according to the paper’s authors, the program is now the largest part of the USDA’s budget.

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