Food assistance changes

Farm Bill — In 2014, a new Farm Bill was passed in Washington, D.C. It is a five year farm bill that reforms agricultural policy. One item of note that was changed in the bill this year relates to food assistance and how recipients can access their benefits. More than 400,000 Iowans receive Food Assistance.

Under the previous farm bill, retailers that accept electronic benefit transfer, or EBT cards, did not have to pay transaction fees or for equipment and supplies. In the new bill, retailers will no longer get free equipment. They will also have to pay for supplies and transaction fees.

This change could impact about 1,100 retailers in Iowa. These retailers currently use free machines to process EBT transactions. Previously, the state used federal funds to provide retailers with free equipment and to pay transaction costs for retailers who averaged over $100 per month in EBT transactions. Under the new bill, this will no longer be allowed. It is possible that smaller operations may not be able to absorb this new cost.

The retailers that are currently using free machines will be allowed to continue using them until Oct. 25. If they want to keep accepting EBT cards, they will have to lease equipment from Xerox.

Replacement Cards — In addition to the Farm Bill changes, the Department of Human Services announced a new procedure for replacing EBT cards. The goal of this new policy is to limit the potential for fraud. If a Food Assistance recipient orders four or more EBT cards within a one year time period, they will get a notice about their card replacement. If they need more than four cards replaced in one year, they will have to call DHS and explain the reason for replacing their card so many times. They could be subject to an investigation.

This change meets new federal regulations. However, the elderly and disabled population will be exempt from this change.