Rising costs devouring food stamps - Quad Cities Online

Rising costs devouring food stamps

Posted Online: April 13, 2008, 10:42 pm  
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By Reggie Jarrell, rjarrell@qconline.com
Food prices keep inching up and people who count on government issued food stamps are feeling the pinch.

Kathleen Vermillion lives alone. The Rock Island woman lost her full-time job of two years this winter and, for the first time in her life, had to go on food stamps. She receives an allotment worth $116 per month.

Rising food prices have affected her buying power "drastically." She goes to the grocery store once or twice a month, and only buys items on sale or in bulk. She's not been to a fast food restaurant in seven years.

"I'm one I'll take a nickel and stretch it to a dollar and a half," Ms. Vermillion said. She rarely buys major-brand name items and shops at discount grocery stores.

For several months before she started receiving food stamps, she stopped buying certain staples like eggs. But if food prices continue to rise, she "more than likely will have to do without meat and milk."

Record-high energy, corn and wheat prices in the past year have led to sticker shock in the grocery aisles. At $1.32, the average price of a loaf of bread has increased 32 percent since January 2005. In the last year alone, the average price of carton of eggs has increased almost 50 percent.

Ground beef, milk, chicken, apples, tomatoes, lettuce, coffee and orange juice are among the staples that cost more these days, according to the federal Bureau of Labor Statistics.

Overall, food prices rose nearly 5 percent in 2007, according to the U.S. Department of Agriculture. That means a 12-ounce can of frozen, concentrated orange juice now averages $2.53 -- a 67-cent increase in just two years.

According to www.fns.usda.gov, the U.S. Department of Agriculture supervises the Food Stamp Program (FSP) through the Food and Nutrition Service (FNS) which is administered by state agencies. The program provides low-income households that meet eligibility guidelines with coupons or electronic benefits that can be used like cash at stores.

Food stamps can be used to purchase breads, cereals, fruits, vegetables, meats and dairy products, but hot and any food eaten inside stores, beer, wine, liquor or nonfood items can not be purchased.

The current maximum allotment levels are, per month, one person, $162, two people, $298, three people, $426, four people $542, five people, $643, six people, $772, and up.

More than 26 million people receive monthly benefits and about half of program participants are children. The average length people are on the program is nine months.

With rising food prices, some people on food stamps are contacting local community social-service agencies for assistance.

Recently more people have contacted United Neighbors Inc. seeking help, said Ida Johnson, executive director. They are referred to food pantries, but because of a local restaurant's donations, free bread is distributed on Wednesdays.

"People are calling and food prices are high," said Ms. Johnson. "Within the last two weeks we've had more people want to know where they can go."

"I think by summer it's going to be unbearable for some people, those people on fixed incomes. It's going to be hard for people to make ends meet," Ms. Johnson said.

Project NOW officials said the agency will "help any way we can."

"If we can't help in one area, maybe we can help in another that will alleviate the stress," said Julie Seier, public relations specialist, Project NOW. The agency also provides food vouchers and makes referrals to food pantries.

--- The Associated Press contributed to this report.