Becoming Certified to Accept Food Stamps
Submitted by WenJay on Mon, 05/03/2010 - 12:43pm
Part of Just Food’s mission is to make CSA membership affordable to all New Yorkers. One way to do this is by accepting food stamps/EBT (Electronic Benefit Transfer) to pay for CSA shares. This chapter has been developed through extensive conversations with the US Department of Agriculture (USDA) Food and Nutrition Services (FNS). There is no standard policy stating that all CSA projects are eligible to become certified to accept food stamps. The FNS requires that all certification applications for CSA projects be reviewed on an individual basis. Just Food is working to standardize this process and make it as assured and easy as possible. Certification is not guaranteed. However, if you adhere to the steps outlined in the following pages, certification is probable. The following steps are specific to New York State and may or may not apply to CSAs located elsewhere.
If your CSA plans on becoming certified to accept food stamps, you should plan on attending Just Food’s CSA and Food Stamp workshop to improve your chances of being accepted.
There are two ways your CSA can accept food stamps/EBT:
1. Through your CSA Farmer - Talk with your farmer and Just Food to find out if your farmer is authorized or would be interested in becoming authorized to accept food stamps. Many farmers who currently are authorized to accept food stamps are authorized as farm stands rather than CSA projects. This difference is crucial. Farm stands are permitted to accept food stamps only at the time of sale. Your farmer cannot use his/her “farm stand” food stamp certification for CSA payments unless CSA members pay every week as they pick up their vegetables. Because this becomes a pay-as-you-go system, it does not ensure that members will return the following week. (See Final Notes below on how to set up food stamp payments to provide a cushion for losses)
If your CSA group and farmer would like to be authorized as a CSA, the farm must contact Maria at FNS to request an additional certification. (see below)
2. Partnering with a CBO - A neighborhood CBO such as a church, food pantry, or other social service agency that is familiar with food stamp procedures can apply to accept food stamps on behalf of your CSA. The benefits of working with a CBO are that the Food Stamps office is familiar with the CSA program (their policy specifically states that 501(c)3 certification is required); CBOs already have bank accounts in place (some banks require that the account be a business account for electronic transfer, since food stamp reimbursement is done electronically); and that it can be a good way to build community partnerships between your CSA and neighborhood groups (Your CSA can consider donating leftovers to the CBO, while the CBO can provide an additional outlet for CSA membership outreach).
For CSA projects partnering with CBOs
1. Call the FNS toll-free number at 1-877-823-4369 or visit their website to request an application.
2. Complete the “Food Stamp Program Application” according to the example provided and include the following items:
A. Photo I.D. for staff listed in number 8a of application (Driver’s License, Resident Alien Card or Passport).
B. A copy of your organization’s lease (if building is owned, include a letter, on organization letterhead, stating ownership)
C. A copy of your organization’s 501(c) 3 certification.
D. Your organization’s by-laws.
E. Just Food’s explanation of CSA tailored to your organization (see sample).
F. The contract that you have created between individual members and the farmers. (Membership Agreement Form)
G. Any outreach materials you have used (i.e. flyer).
3. Send the completed application plus all of the above to:
Maria Schamberger
USDA Food and Nutrition Service
O’Brien Federal Building, Room 752
Clinton & North Pearl
Albany, NY 12207
The FNS is required to let you know if you are approved within 45 days. If the application is not approved they will send it back to you and say why.
Additional Information
1. If your CSA has already been approved in the past, contact Maria Schamberger at (518)431-4274 to verify that your FCS Authorization number is still active.
2. The owners of the Community Based Organization (CBO) are the officers (i.e. the people who sign the checks: Executive Director, Financial Director, etc.). When a CBO agrees to handle the food stamp application for a CSA, they are taking legal responsibility of that part of the program. The state will hold the CBO responsible for all food stamp transactions related to the CSA, regardless of who actually performed the transaction (fills out the voucher and does the verification process). IT IS IMPORTANT THAT THE CBO AGREEING TO BECOME CERTIFIED TO ACCEPT FOOD STAMPS ON BEHALF OF THE CSA IS FULLY AWARE OF THEIR RESPONSIBILITY FOR THIS PIECE OF THE PROJECT.
3. The individual identified in #8a of the application should be whomever the CBO assigns. This person will be responsible, on behalf of the CBO, to ensure that all necessary procedures are followed with all Food Stamp transactions. #8a does not need to be the one signing the Food Stamp voucher and performing the verification process during distribution days. However, it is up to #8a to ensure that whoever is doing the above has been properly trained on the process, rules and regulations of the Food Stamp program. Also, it is possible that after submitting your application, a representative of the NYFNP Field Office will let you know whether you are required to attend a training. #8a would be the one responsible for attending the training. Otherwise, they will send a video in lieu of the training.
4. The CBO must also provide their bank account information to the FNS so they can directly deposit food stamp payments into the CBO’s bank account. The CBO must then write a separate check to reimburse the CSA or Farmer.
Once approved:
a. You should get a Food Stamps Certification Number (FSC #) and instructions in the mail on how to receive manual vouchers.
b. Call JP Morgan phone number (will be included with FSC #) to request application for receipt of manual vouchers.
c. Fill out the voucher application as noted in Toolkit– call us if you need help.
d. In 14 days, you should receive verification and supply of manual vouchers (can call if need more).
Final Notes
• A CSA is able to accept a pre-payment in food stamps for the share up to 14 days in advance. It is advised that you start collecting the first payment two weeks in advance of the first distribution day so that you have some security for the possibility of losses. Also, it is recommended to create the policy that if a member paying in food stamps doesn’t show up for 2 weeks in a row, he or she forfeits the membership and you can then enlist one of the people on your waiting list. It is still the obligation of the city group to be sure the farmer is paid in full for the total amount of shares delivered. These policies will help to keep the responsibility on the member.
• The administrative fee included in the cost of a CSA share (if applicable) should not be included in the estimated gross sales. Food stamp benefits cannot be used to pay for the administrative fee; CSA members who wish to purchase their shares with food stamps must make a cash or check payment for the administrative fee.
• Food stamps can also be used to pay for additional food products that your CSA may offer, such as fruit, honey, dairy, and meat, but cannot be used to pay for non-edible products, such as flowers.