When Congress passed the farm bill earlier this year, they enhanced an incentive program for buying healthier foods by those using food stamps, also known as the Supplemental Assistance Nutrition Program.

Oran Hesterman, president and chief executive officer of Fair Food Network, told a United Fresh 2014 audience how pilot programs have been initiated to link incentive programs with the purchase of locally grown fresh fruits and vegetables to boost sales and boost nutrition for SNAP users. He specifically talked about a pilot program in three Detroit stores last year, and another one that will be conducted this summer with at least three stores serviced by SpartanNash in the state of Michigan.

Fair Food Network, which is a national non-profit based in Michigan, has established what it calls the “Double Up Food Bucks” program as a national model for healthy food incentive programs. The organization solicits funds from foundations to provide one-to-one matching monies to fund the purchase of Michigan-grown fruits and vegetables. It started the program in 2009 in a farmers markets and it has now grown to 100 sites and the newest programs are moving into conventional grocery stores.

Hesterman said that is a natural evolution because that is where the vast majority of SNAP participants buy their groceries. Last year’s pilot program utilized three grocery stores in Detroit that had high utilization of SNAP funds. The way the program worked last year is that when a consumer with a SNAP card purchased $10 worth of fruits and vegetables from any point of origin, she or he received an additional $10 on a gift card to be used specifically to purchase Michigan-grown fruits and vegetables.

The program had the dual goal of increasing fruit and vegetable consumption by SNAP users and giving Michigan produce a shot in the arm. Hesterman said it was a huge success.

During last summer’s pilot program in the three stores, 3,600 $10 “Double Up” cards were issued; 78 percent of those cards were redeemed utilizing a total of about 50 percent of the dollars on those cards. Eighty percent of those SNAP customers reported buying more fruits and vegetables in general and 25 percent said they bought more Michigan produce.

Overall, since the Double Up program was launched in 2009, Fair Food Network said SNAP customers have bought 3 million pounds of healthy food with their Double Up Food Bucks.

Because of that success, SpartanNash is working with Fair Food Network this summer to test the program on three different stores: one each in Detroit, Battle Creek and Grand Rapids. Brian Haaraoja, vice president of fresh merchandising for the chain, explained that the operation is currently reconfiguring its loyalty card program to incorporate the SNAP Double Up program within it. Basically anytime a SNAP customer comes into a participating store and spends up to $10 on fresh fruits and vegetables, a matching amount will be loaded to their loyalty card to be spent on Michigan produce. Each day these SNAP customers can earn as much as $10 in additional funds.

Food Fair Network has raised $200,000 to provide the matching funds during the four-month program.

Haaraoja said SpartanNash is looking at the effort as a great opportunity to help its SNAP customers while also boosting sales for the more than 100 Michigan growers that it buys from on an ongoing basis.

The company is using in-store banners, mailers and bag stuffers to introduce the program to its SNAP customers. It will also highlight the program in its weekly food page ads. “Selfishly we hope to grow sales,” said Haaraoja, “but we also want to lead our SNAP customers to more nutritious eating habits.”

Hesterman said interest in this program nationwide is very high. He has handled queries from potential partners in many different states that want to launch their own pilot programs to take advantage of the incentive money for SNAP customers in the farm bill. There are $35 million dollars of incentive funds available for the 2014-15 fiscal year with the USDA expected to issues RFP (requests for proposal) guidelines by late summer.

“We believe this is a great program,” said Hesterman. “It supports regional agriculture and helps feed poor families with more produce.”

He said Fair Food Network is planning to apply for funds and expand its efforts beyond Michigan.