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Food and nutrition assistance programs affect the budgets, expenditures, and work decisions of both recipient and tax-paying households, which affect production and income throughout the economy; in turn, macroeconomic activity affects poverty levels and the need for food assistance programs. Recent analyses of such interactions have examined the impact of welfare reform and economic growth on food stamp caseloads, the effect of changes in the Food Stamp Program on agricultural activity, and the economywide consequences of transforming food stamp benefits to cash benefits.
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Welfare reform dramatically changed the food assistance landscape. The Changing Food Assistance Landscape: The Food Stamp Program in a Post-Welfare Reform Environment focuses on the economywide effects of reduced food stamp benefits and eligibility restrictions on food production, consumption, nutrition, and farm income. The report concludes that program changes will have important implications for the demand for food and will increase the prominence of the Food Stamp Program as a cyclical social safety net.
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updated: November 19, 2000
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