Biden Administration’s Historic 25% Boost to SNAP Benefits Could Bode Well for Dairy

Starting in October, average benefits for SNAP will rise by more than 25% after a USDA released report found the cost of a nutritious, cost-effective diet is 21% higher than the base calculation for SNAP benefits.

Despite interest rate hikes, food inflation remains stubbornly high.
Despite interest rate hikes, food inflation remains stubbornly high.
(Pixabay)

The Biden administration approved a historic increase in the level of SNAP assistance available to approved families.The 25% increase, which is the largest single increase in the program history, will be permanent.

Starting October 1, 2021, average benefits for food stamps, known as the SNAP program, will rise by more than 25% above pre-pandemic levels. USDA released a report that says a reevaluation found the cost of a nutritious, practical, cost-effective diet is 21% higher than its current Thrifty Food Plan (TFP). That’s the base calculation for SNAP benefits, and one that hasn’t seen an increase since 2006.

The review is part of the 2018 Farm Bill, and the increase adds up to more than $36 dollars a person per month, or about $1.19 higher a day. The increase will be available to all 42 million SNAP beneficiaries.

“Congress also directed a number of factors to be looked at in making the evaluation including food prices, consumption data, consumption patterns, nutrients of foods and taking into consideration any changes that may have been made as a result of the establishment of dietary guidelines,” said U.S. Agriculture Secretary Tom Vilsack.

“We had asked folks who participate in SNAP about their purchases, purchase habits, patterns and about fluid milk in particular. And of the 100 folks that we surveyed, a large percentage of them, or over 80% or so that were in SNAP, viewed fluid milk as a healthy, nutritious product,” says Matt Herrick, senior vice president, public affairs and communications with International Dairy Foods Association (IDFA).

Herrick says dairy is a direct beneficiary of SNAP benefits, as recent research shows shoppers and SNAP recipients view milk as a healthy and nutritious option.

“Of the top five purchases of SNAP participants, two of those five are dairy products, which are milk and then cheese. And so that’s hundreds of millions of dollars each month of purchases being generated by this program. So, certainly additional resources provided by the federal government will go to support additional purchases of dairy products,” says Herrick.

It’s estimated the program feeds one in eight Americans.

AgWeb-Logo crop
Related Stories
The change implements provisions in the One Big Beautiful Bill Act and updates long-standing Farm Service Agency rules that had capped many entity-based operations at a single payment limit.
USDA’s Great American Cotton Plan aims to boost demand for U.S. cotton through domestic manufacturing incentives, traceable supply chains and the Buying American Cotton Act.
Paul Neiffer details how the program deadline being extended to August 12, 2026, Stage 2 means farmers will continue to receive funds as USDA updates its database.
Read Next
U.S. farmers and ag economists remain concerned by mounting global competition and the reliability of recent trade agreements. However, some economists say emerging market shifts could create opportunities later this year.
Get News Daily
Get Market Alerts
Get News & Markets App