In 2011, 46 Million On Food Stamps, $72 Billion Industry

In 2011, a record 46 million people – or 1 in 7 Americans — participated in the Supplemental Nutrition Assistance Program (SNAP), better known as Food Stamps.

The increased use of Food Stamps is a huge social and political issue for America, and it’s also big business. In 2011, the U.S. government spent $72 billion on Food Stamps.

Among the beneficiaries, food producers such as Cargill, PepsiCo. (PEP), Coca-Cola (KO) and Kraft (KFT), as well as retailers like Wal-Mart. Of course, Wall Street gets a cut too, led by JPMorgan Chase (JPM), which administers the SNAP benefits in 24 states.

In the accompanying video, I discuss the (big) business of Food Stamps with Marion Nestle, professor of Nutrition, Food Studies, and Public Health at New York University and author of several books, most recently Why Calories Count.

Generally speaking, Nestle is a supporter of the program, calling it “the only safety net we have left for the poor.”

However, with obesity rates rising among the poor — and obesity a huge factor in rising health-care costs — Nestle and other health experts wonder whether there should be restrictions on what kind of foods can be purchased with Food Stamps.

Currently, there are few restrictions on what can be purchased with Food Stamps, other than alcohol and prepared foods.

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