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New Farm Bill Puts Added Financial Pressure On Arizona Supermarkets

Arizona supermarkets are now required to pick up the costs for equipment that processes payments from food stamp users. Congress approved the change under the new Farm Bill to reduce federal spending.

The deadline for the nation’s supermarkets to comply with the new mandate fell over the weekend. 

Tim McCabe is president of the Arizona Food Marketing Alliance that represents more than 1,300 stores statewide. He said the new rule could be a financial hardship for some Arizona retailers that accept Electronic Benefit Transfer cards.

"Anytime there’s a change and it forces a retailer into spending more money ultimately it impacts the price of groceries. In other words, every time there’s a government regulation that creates a change or an increase cost to a retailer, that’s going to be passed on to a consumer,” McCabe said. 

He estimated that 15 percent to 20 percent of all transactions at Arizona grocery stores involve food stamps.  McCabe said stores are willing to pay for the electronic EBT swipe card equipment because they want to get as many people through their doors as possible. 

Steve Shadley was a reporter at KJZZ from 1990 to 1996 and from 2012 to 2015.