Impact Report Food Insecurity Nutrition Incentive (FINI) Grant & ’s Market Match A PROGRAM OF THE ECOLOGY CENTER • SUMMER, 2018 Making Fresh 2015–2017 FINI XAffordable Grant Report This report shows that a federal incentive grant can leverage state and local resources to increase the purchase of fresh fruits and vegetables by low-income shoppers. And that increase improves the economic vitality of small and medium size farms. A classic win-win for two significant communities—greater health, thereby reduced costs, for low-income consumers, and increased financial sustainability for small- and medium-scale farmers.

In April, 2015, the U.S. Department benefits SNAP( , known as CalFresh of Agriculture awarded California’s in California) at farmers’ markets in Ecology Center one of the first ever California, Market Match provides a Food Insecurity Nutrition Incentive financial match—an incentive to buy (FINI) grants. The goal: To see whether even more fruits and vegetables. For the $3.7 million federal grant, matched example, a shopper who wishes to with local resources, could motivate spend $10 of SNAP benefits at a farmers’ even more low-income shoppers to market gets an extra $10 to spend on seek fresh fruits and vegetables at fresh produce. more of the state’s farmers’ markets. That growth would achieve two goals: The Ecology Center in Berkeley now improve the health and vitality leads Market Match, which is currently of low-income Californians, and offered at nearly 300 locations where increase the financial sustainability farms sell directly to the community, of small and medium family farms like farmers’ markets, produce stands, and their employees. and Community Supported Agriculture programs (CSAs.) The program is California’s Market Match—a program available in 31 counties, meaning a begun in 2009 by Roots of Change— financial boon to farmers in those rural was the model the FINI grant sought communities working to boost the to expand. It’s a simple model: when farm-to-fork economy through low- people use their federal nutrition overhead market access. FINI grant fueled a 275 288 107% increase in Market Match sites 224

139 153

2013 2014 2015 2016 2017 Expanded access market match sites

213,573 FINI grant encouraged a 453% jump 181,104 in Market Match transactions 130,977

59,493 38,590

2013 2014 2015 2016 2017 Customers served market match transactions

“We knew that California receiving FINI grant one of USDA’s first everFINI grants would expand access to fresh fruits and vegetables. What has been so remarkable is how that one grant has leveraged such a positive return for the health of our citizens and for the economic vitality of our state’s farmers and communities that support farmers’ markets. This is a program where the dividends far exceed the initial investment.” Secretary Karen Ross, CA Department of Food & Agriculture Market Match promotes a USC Evaluation Findings Culture of health The Ecology Center worked with the University of Southern California to con- Shoppers duct an evaluation of the impact of the FINI Grant on its Market Match program. have increased Through 2,351 shopper and 96 farmer surveys, interviews, and direct observa- the amount of tion, the USC evaluators noted: fresh fruits & % // increases in fruit and vegetable vegetables they purchase and consumption; 73 // strong evidence of benefit to farmers buy each week and their communities; and // increased access to fresh fruits and vegetables, leading to improved health for consumers.

That increase in consumption may correlate to a significant reduction in % health care costs, based on a 2017 study in the American Journal of Preventive % 85 Medicine.* are buying The cost effectiveness analysis looked at the impact of subsidizing fruit and 67 different kinds vegetable purchases for low-income have increased of fruits & households enrolled in SNAP. the number of vegetables trips they make to Researchers found changes farmers’ markets in dietary intake likely to result from such incentives were sufficient to result in a “My husband and I had 1.7% reduced incidence in gained lots of weight, % type 2 , which in Cal- but now we are trying to ifornia translates into a health 71say their follow clean eating. We’ve family’s health care savings approaching noticed more activity and has improved $469 million a year.^ higher energy levels.”

“It’s been a major transformation. I used to eat out every day, and was overweight. Now I make time for good fruits and veggies because The 2015 FINI grant allowed Market Match makes them affordable.” Market Match to be piloted at new types of outlets—farm stands, Community Supported Agriculture “Being able to eat new foods has completely changed (CSA) programs, and Mobile the way my family and I live our lives. We understand the Farmers’ Markets, implemented importance of a healthy lifestyle.” in Sacramento, the USC Evaluation Findings Market Match promotes a Culture of growth

Market Match is a farm-forward Farmers program that supports healthy food choices and the future of farming in California. Driving additional customers and revenue for farmers at farmers’ sell more markets and other direct-to-consumer locations means supporting some of fruits & the most innovative and diverse farm % operations, including many who focus vegetables on sequestering carbon and flexing 84 their farming practices to adapt to climate change.

Direct-to-consumer sales means farmers and their communities get the full financial benefit of their sales, rather % than less than 20% of the dollar return in a traditional retail operation, according % 74 to the National Farmers Union Farmer’s Share Report. And Market Match at 65 make more farmers’ markets returns nearly twice as much money to California farmers see more money and farm communities as do sales at customers national chains, according to a 2016 study from sales from University of California Davis. Researchers there found that farmers “Farming is a struggle with slim margins. selling locally create 13 full time jobs for every $1 million earned versus 3 jobs for Market Match increases SNAP spending, those selling in other markets.† adding revenue that keeps us at the farmers’ market every week. It means we * ”Cost Effectiveness of Subsidizing Fruit and Vegetable Purchases Through the Supplemental Nutrition Assistance bring dollars back to some of the most Program,” Sung Eun Choi, SM, Hilary Seligman, MD, MAS, Sanjay Basu, MD, PhD. May 2017. high-need rural communities in the

^ Based on estimated annual cost of $27.6 billion to state, and make our customers happy.” California for treating diabetes, via government, private insurers, and patients, according to the American Diabetes Tim Mueller, owner, River Dog Farm, Capay Valley Association.

† “Economic Impact of Local Food Producers in the Sacra- mento Region”, Shermain Hardesty, Libby O. Christensen, Erin McGuire, Gail Feenstra, Chuck Ingels, Jim Muck, Julia Boorinakis-Harper, Cindy Fake, and Scott Oneto. Spring 2016. 37% have expanded their Bay Area, and Los Angeles. These operations with new hires, innovative farm-direct sites made equipment, acreage, purchasing local food more & crops convenient and accessible. Mobile markets traveled to multiple communities, enabling residents to shop in their own neighborhoods. The Power of Example: Partnership Los Angeles County

Market Match is built on social capital - people lead partners and relationships. Using a network model, the Encino Farmers’ Market Ecology Center acts as the central hub, providing Hunger Action Los Angeles grant administration, training, and promotions to 50 subcontracting lead partners. Model Neighborhood Program Social Justice Each lead partner has a network of its own, Learning Institute implementing and promoting the local or regional Market Match program. Since Market Match provides Sustainable Economic benefits to multiple stakeholders with the same dollar, Enterprises of Los Angeles the program has an incredibly diverse partnership base, as highlighted by the Los Angeles region community partners featured on the map. This network model is key to First 5 Los Angeles the success of the statewide Market Match program, Harbor Area Farmers Markets and allows the program its incredible reach. Inglewood Business Expansion Club For example, in Los Angeles, First 5 LA provided the largest single source of non-federal match for the Kaiser Permanente Ecology Center’s FINI grant, and the Department Southern California of Public Social Services (DPSS), which administers LA Community Action Network SNAP, promoted the Market Match program to its LA County Department 600,000 SNAP households. of Parks and Recreation LA County Department of At the heart of it all is the Ecology Center, Public Social Services th coming up on its 50 year of inspiring LA Department of Public Health sustainable and healthy solutions for LA Food Policy Council California. Its team trains, convenes, and Los Angeles City Council builds capacity for the Market Match Districts 8, 9, 13, & 15 Community of Practice through webinars, Pasadena Unified School District in-person trainings, one-on-one site visits, and an internal Market Match website, Public Health Foundation Enterprises WIC toolkit, and listserv. They have assured grant compliance, cultivated capacity in lead South Los Angeles Health Projects partners and farmers’ markets, and built the body of knowledge around the impact of SOVA Food Pantry healthy food incentives. Participating in the Thai Community FINI grant was a first experience with federal Development Corporation funding for many of the Ecology Center’s The City of Inglewood partners, helping build organizational Watts Healthcare capacity in California. Youth Policy Institute Current Market Match Network

Del Norte County Siskiyou County Thanks to the FINI grant, Crescent City Downtown Yreka Community Certifi ed Farmers and Artisan Market Farmers’ Market a healthy diet is more The Mt. Shasta Farmers’ Market Happy Camp Farmers Market easily within reach for our customers. Shopping the local farmers’ market becomes

Humboldt County a weekly routine, and their North Coast Growers’ fresh fruit and vegetable Association

Mendocino County Butte County Plumas County purchases support California Laytonville Saturday Morning Quincy Farmers’ Market Farmers’ Market Certifi ed Farmers’ Market farmers whose hard work Mendocino and Chico Wednesday brings us year-round access Lake Counties Oroville Saturday North Coast Paradise Tuesday to the freshest and best Opportuntities Inc. Paradise Thursday Sacramento and Yolo Counties food imaginable. Alchemist Community Development Corporation (CDC) Allen Moy, Executive Director, Pacific Coast Marin and Sonoma County Contra Costa County Farmers’ Market Petaluma Bounty El Dorado County Contra Costa Certifi ed Farmers’ Markets Association 10 The People’s Solano County Mountain Market Contra Costa and Santa Clara Counties Fairfi eld Certifi ed Farmers’ Market Fresh Approach Alameda, Contra Costa, Napa, San Francisco, Marin, Alameda, and San Francisco Counties San Mateo, Santa Clara, and Solano Counties Agricultural Institute of Marin (AIM) Pacifi c Coast Farmers’ Market Association (PCFMA) 15 11 19 Alameda and San Francisco Counties 11 Center for Urban Education about Stanislaus County Sustainable Agriculture (CUESA) 29 Modesto Certifi ed Farmers’ Market San Francisco County 9 7 Riverbank Chamber of Heart of the City Farmers Market Commerce Farmers’ Market Mission Community Market 16 Fresno and Madera Counties Fresno Economic Opportunities Commission San Mateo County Coastside Farmers’ Markets Collective Roots Monterey, Santa Cruz, and San Benito Counties Tulare County Agriculture and Kaweah Delta Healthcare District Alameda County Land-Based Training VFMA Saturday Sears Market Association (ALBA) VFMA Tuesday Porterville Market Ecology Center Farmers’ Markets Phat Beets Produce VFMA Thursday Downtown Visalia Alameda and Santa Clara Counties Urban Village San Luis Obispo County North County Farmers’ Market Association

Ventura County Ventura County Certifi ed Farmers’ Markets Santa Barbara County San Bernardino County Phelan Certifi ed Farmers’ Market Camino Real Marketplace Los Angeles County Downtown Santa Barbara Sustainable Economic Enterprises 33 Old Town Santa Barbara of Los Angeles (SEE-LA) Carpinteria Social Justice Learning Institute Orange County Montecito Hunger Action Los Angeles (HALA) Downtown Santa Ana Farmers’ Market Solvang Village Model Neighborhood Program Riverside County The Downtown Anaheim Palm Springs Cultural Center Certifi ed Farmers’ Market Certifi ed Farmers’ Markets Orange Home Grown Riverside CFM Farmers & Artisans Market Galleria @ Tyler, Riverside Thursday Night Certifi ed Farmers’ Market Farmers’ Market San Jacinto Valley CFM San Diego County International Rescue Committee (IRC) San Diego County Farm Bureau San Diego Weekly Markets Each dot represents a farmers’ market. Numbers in circles represent number of outlets in those regions.

ECONOMIC IMPACT LEVERAGED FROM MARKET MATCH DOLLARS $ $4.2 + $2.7 MILLION MILLION additional 50% of 2.5MILLION SNAP (CalFresh) SNAP Market Match redeemed benefits shoppers during FINI grant period redeemed planned A Social Return 360% On Investment

ECONOMIC IMPACT LEVERAGED FROM MARKET MATCH DOLLARS $ $2.7 + $2.8 =9.7 MILLION MILLION MILLION to spend 32% of SNAP shoppers planned total economic $18 additional to spend an additional impact from cash/benefits $31 at businesses outside the $2.5 million in the market the farmers’ markets in Market Match*

*California Market Match Program Food Insecurity Nutrition Incentive Grant: Evaluation Final Report, Howard P. Greenwald, PhD, Sol Price School of Public Policy, University of Southern California. Covers 6 /2015 – 6 /2017 FINI Grant period. Innovating the Future

CALIFORNIA STATE FUNDING MODEL technologies may be necessary. SNAP The success of Market Match, with its transaction technologies are expensive to federal grant incentive spurring farmers’ develop, difficult to maintain, and often market sales, inspired state legislators to have expensive data and transaction fees. develop a SNAP incentive program for California. In 2016, the Ecology Center and Pacific Coast Farmers’ Market Association (PCFMA) devel- In 2015, with the leadership of Assembly- oped a barcoded scrip system to improve member Phil Ting (San Francisco), the benefit redemption and tracking. PCFMA Ecology Center, Roots of Change, Latino successfully tested the system at dozens of Coalition for a Healthy California, Pub- its markets. They scanned 1.6 million pieces lic Health Institute, and American Heart of SNAP and Market Match scrip, making Association successfully advocated to pass it easy to track scrip movement between Assembly Bill 1321. This innovative legisla- markets and to measure customer redemp- tion created the California Nutrition Incen- tion timing. On a smaller scale, however, tive Program (CNIP), a state grant program traditional non-barcoded scrip remained the to match future Federal FINI funds, build most efficient incentive distribution process. the State Farm-to-Fork office, and stimulate California’s small farming communities. The Ecology Center is now pursuing an approach using tablet-based data-tracking In 2016, the State approved $5 million in through Case Western Reserve’s FM Tracks. funds for CNIP, dramatically increasing the potential of Market Match. Run by the California Department 2015– of Food & Agriculture 2017 (CDFA), CNIP makes California a leader in $ state funded nutrition = incentive programs. Demand Exceeds Funding 6.71worth of MILLION fruits & vegetables sold 17 The multiple benefits and tremendous social return on investment shown in this report clearly In 2017, the Ecology via SNAP & Market Match MILLION demonstrate that incentivizing the purchase of fruits and vegetables at farmers markets Center and Market Match SERVINGS is a wise investment, one that addresses health and food security while also delivering a joined CDFA’s application for substantive economic impact for farmers and farming communities. another FINI grant. The result? USDA awarded its largest FINI grant to = Despite growth in funding, however, the demand for incentives at farmers’ markets far exceeds California—$3.9 million over 2 1/2 years. the supply. Fewer than half of the 800 certified farmers’ markets in the state offer incentives. Word-of-mouth marketing and community-based promotion alone have driven the growth in TECHNOLOGICAL INNOVATIONS $ demand by SNAP shoppers to use Market Match. In 2015, the Ecology Center partnered in economic When Market Match results are added to those of other FINI-funded projects, it is clear that there with Code for America to review the stimulation is a need to scale up nutrition incentives—particularly in farmers’ markets, where the benefits are technological landscape for incentive * statewide multiplied by encouraging a culture of health and delivering direct payment to farmers. programs nationwide. The report found 12MILLION that no one technology met all farmers’ Public-private partnerships—plus expanded public funding in the farm bill and through state market incentive program needs for market *Every $1 of SNAP spent and local governments—can help deliver the full potential of incentives to make fresh, healthy, generates an additional manager, farmer, and customer experiences. economic activity of $1.79, farm-direct food affordable for all, reducing health care costs and improving the sustainability Due to the variety of contexts, different according to the USDA’s Food of farmers and the economy of farming communities. Assistance National Input-Output Multiplier (FANIOM) Model. Kenneth Hanson, 2010. Food security continues to be a challenge in communities of color and for lower income families. The Ecology Center’s work, supported by the USDA/FINI grant for Market Match, showed that providing matching dollars to low income families encourages greater consumption of fresh fruits and vegetables. This leads to improved health for participants, and also supports small- to-midsize farmers whose products were being purchased by families with lower incomes. This is truly a win-win program. Xavier Morales, Executive Director, The Praxis Project

Demand Exceeds Funding The multiple benefits and tremendous social return on investment shown in this report clearly demonstrate that incentivizing the purchase of fruits and vegetables at farmers markets is a wise investment, one that addresses health and food security while also delivering a substantive economic impact for farmers and farming communities.

Despite growth in funding, however, the demand for incentives at farmers’ markets far exceeds the supply. Fewer than half of the 800 certified farmers’ markets in the state offer incentives. Word-of-mouth marketing and community-based promotion alone have driven the growth in demand by SNAP shoppers to use Market Match.

When Market Match results are added to those of other FINI-funded projects, it is clear that there is a need to scale up nutrition incentives—particularly in farmers’ markets, where the benefits are multiplied by encouraging a culture of health and delivering direct payment to farmers.

Public-private partnerships—plus expanded public funding in the farm bill and through state and local governments—can help deliver the full potential of incentives to make fresh, healthy, farm-direct food affordable for all, reducing health care costs and improving the sustainability of farmers and the economy of farming communities. FUNDERS Lead Partners & Funders Provided National Institute of Food and Agriculture, USDA $3.7 Million in Matching Funds California Department of Food & Agriculture LEAD PARTNERS First 5 LA Kaiser Permanente, Northern California

Aetna Foundation Archstone Foundation Atwater Village Neighborhood Council Bi-Rite Market California Endowment City of Arcata City of Elk Grove City of San Francisco, Board of Supervisors Clear Lake Chamber of Commerce County of Marin Department of Health and Human Services Flora Family Foundation Humboldt County Department of Health and Human Services Inland Valley Hope Partners Institute for Maximum Human Potential Los Angeles City Council District 14 Los Angeles City Council District 9 Los Angeles County Department of Parks & Recreation Mack Road Partnership Martinelli Family Petaluma Health Care District Petaluma Poultry Sacramento City Councilmember Steve Hansen Sacramento Natural Foods Co-Op Santa Rosa Sunrise Rotary Sierra Health Foundation Soil Born Farms & Education Project Sonoma County Department of Health Services

Contact: Barry Deutsch 415.487.8520 ©2007 Sonoma County Human Services Department St. Joseph Health Sweetgreen Thai Community Development Center The Martin Family Volunteers of East Los Angeles (VELA) West Sacramento Chamber of Commerce Whole Foods Markets 2530 San Pablo Avenue, Suite H Wholesome Wave Berkeley, CA 94702 ecologycenter.org | 510.548.2220 Funding for this project was provided facebook.com/ecologycenter.org by the United States Department of Agriculture (USDA). USDA is an equal twitter.com/EcologyCenter opportunity provider and employer. instagram.com/ecology.center