Debit Food Stamp at Farmers Market Program
Cost Analysis and Accounting Systems
Farmers' Markets are
increasingly offering electronic services on their
market site. These electronic services have
expanded sales through the use of food stamps,
debit and credit card transactions.
Farmers Markets can offer either food stamps
only, food stamps
and debit services and/or debit,
credit and food stamps. Each offering
has different costs depending on if the system has
a Wired telephone land line terminal
system or transactions are done through a Wireless
hand-held electronic terminal. Costs can also vary
by markets as they solicit community partners.
How a market tracks the flow of money through
the system becomes more complex as they add debit
and credit card services to their food stamp
services. With this complexity, markets can also
generate revenue by collecting
a "surcharge" fee on debit
transactions and providing "cash
discounts" by adding a percentage to the
credit card sales transactions. These
additional revenues can offset operational costs.
Oregon has 30 farmers'
markets offering electronic services.
Lessons learned include:
1. The machines are just a tool to operate
the software
program. Most
importantly, market
managers/board
members need to
understand the
accounting software system they are
buying which is often unique to the
machine.
2. Well defined
accounting procedures and
adequate staffing is
crucial to the
program's
success.
Electronic Accounting Systems Understanding
the Flow of Money
Food stamp and debit services charges have a fixed fee structure and consequently
are easier to project future program costs. Credit card usage
fees are based on percentage of sales and require
more complex accounting.
The following documents
provide
support for the market's pursuit to add electronic
services. In the Debit Food Stamp Workshop, the program reviews
- Three
Optional Electronic Systems
- Educating
Boards Members & Vendors
- Market Day and Accounting Procedures
- Market
Outreach Strategies to Food
Stamp Shoppers.
Three Optional Systems
Breakeven analysis to determine which electronic
program fits your market.
Food
Stamp Only - Limited sales, lowest cost, no
revenue source
Wired
Debit Food Stamp Program - requires telephone
land lines and power, lease equipment a
consideration for trial program
Wireless
Debit Food Stamp Program - hand held unit
requires network connection, higher initial
start-up cost.
Wireless
Terminal Suppliers
Wooden Tokens
Wooden Tokens are wooden
coins that are imprinted with the markets
logo. Tokens are sold in the market
and can only be used in the market. They are
the best demonstration of a local economy
exchange. In addition, they also can used as
gifts.
There are two
different tokens offered:
$1 Food Stamp Token - RED*
Used by Food Stamp Shoppers. No
change can be given by the vendor with these
tokens
$5 Debit Token - Black or Green*
Vendors can give change with $5
tokens. May also be used for credit
transactions.
*Recommended Wooden Token Colors
Wooden Token
Storage Container
Supplier:
Wooden-Nickel.com
Educating Board Members and Vendors
Market
Board Resolution
Vendor
Debit Food Stamp Agreement
Market Day and
Accounting Procedures
Market
Day Debit Food Stamp Services
Market Account Reconciliation
Vendor
Token Reimbursement Form
Vendor
Token Return Report
Market
Day Transaction Form
Market
Day Transaction Report Summary
Master
Token Reserve Form
Market Outreach Strategies
Marketing
to Food Stamp Shoppers
Debit Food Stamp
in
Farmers Market Workshops
Suzanne Briggs, collaboration, offers a Debit Food Stamps in Farmers Markets
Workshops. The workshops
teach market managers
and board
members on how to:
- Determine if a farmers' market has the
capacity to implement an electronic service
program.
- Determine which level of
services (food stamps only, food stamps and debit
services or food stamps, debit and credit card
services) is appropriate for a community's farmers'
market.
- Market to food stamp
customers.
- Implement program
processes and policies.
- Track flow of dollars
through an EXCEL accounting
system.
To Learn More: Contact Suzanne Briggs
about workshop opportunities and how to acquire various documents
in WORD and EXCEL formats.
Market Research Techniques
Enhancing
The Success of Northwest Farmers' Markets: An
Executive Summary
Tools
for Rapid Market Assessment - Learn How to Do
Crowd Counts and Market Research in your Farmers
Markets
Oregon State
Government Agencies
USDA Food & Nutrition Services (FNS) of
Oregon - 503-326-5971
(Issue Food Stamp Permits)
For Application Information: http://www.fns.usda.gov/fsp/retailers/retailer_app/default.htm
Oregon Local Food Stamp Offices
http://www.oregon.gov/DHS/localoffices/locations.shtml
Oregon Department of Human Services
Bill Walker 503-945-6075
Maurice.Walker@state.or.us
Annual Reporting of Food Stamp Sales
Oregon Department of Agriculture
Laura Barton 503-872-6600
Other
Organizations of Interest
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