How much does a nutritious diet cost?

Jeremy Cherfas, host of Eat This Podcast, led this lively conversation about the cost of a nutritious diet:

Recently I’ve been involved in a couple of online discussions about the cost of a nutritious diet. The crucial issue is why poor people in rich countries seem to have such unhealthy diets. One argument is about the cost of food. Another is about everything other than cost: knowledge, equipment, time, conditions.

My own opinion is that given all those other things, the externalities, a nutritious diet is actually not that expensive. But that’s just an opinion, so I went looking for information, and found it in a paper entitled Using the Thrifty Food Plan to Assess the Cost of a Nutritious Diet, published in the Journal of Consumer Affairs in 2009. The very first sentence of that paper is:

How much does a nutritious diet cost?

Parke Wilde, author of that paper, is an agricultural economist at the Friedman School of Nutrition Science and Policy at Tufts University in Boston, and I really enjoyed talking to him for the podcast.

Food stamp challenge (with abundant talent)

In my presentation at Virginia Tech last month, I mentioned the food stamp challenge, a short-term exercise in living on the food budget available to a very low-income participant in the Supplemental Nutrition Assistance Program (SNAP).

One of the students there began the challenge and documented it on a blog, posting food photography and receipts.  Although some people attempt a food stamp challenge using average benefits as the spending benchmark, I think Clara was correct to use the maximum SNAP benefit as a benchmark (this is the benefit amount received by the lowest-income program participants).

Of course, few of us have the talent to make a food stamp challenge look so good.  Please do not use Clara's blog posts for the purpose of redesigning federal food stamp policy!  Instead, just consider Clara's experience as one example of the diversity of experiences that people have with the economics of food spending, preparation, and ... clearly ... enjoyment.

Partnership for a Healthier America Summit 2013

The Partnership for a Healthier America Summit is this week, March 6-8, in Washington DC. The theme is "Building a Healthier Future."  I look forward to participating in a breakout session Friday morning, March 8.

The True Cost of Healthier Choices (Room: Constitution A)
Obesity prevalence among shoppers visiting budget supermarkets was three times higher than the obesity prevalence among shoppers visiting higher-price supermarkets. Does a healthy diet cost more than an unhealthy diet? It depends on how you measure it. As food prices rise, how can we not compromise nutrition by insuring access to healthy food?

Moderator:

• Lisa Sutherland, President, LA Sutherland Group

Panelists:

• Andrea Carlson, Economist, USDA Economic Research Service
• Janet McLaughlin, Senior Director, Share Our Strength’s Cooking Matters®
• Parke Wilde,... Friedman School of Nutrition Science and Policy, Tufts University

An earlier post on the U.S. Food Policy blog offers some approaches to thinking about the cost of healthy food, along with links to other reading and resources.  Andrea Carlson and Elizabeth Frazao published a USDA report on food costs in May 2012, which this blog discussed at the time.  The Cooking Matters program from Share Our Strength has resources for healthy, affordable meals.

Following the breakout sessions Friday morning, First Lady Michelle Obama is giving the keynote Friday afternoon. There are many other great breakout sessions throughout the summit.

The cost of nutrients

Pablo Monsivais, Anju Aggarwal, and Adam Drewnowski have a fascinating new study out today in the journal Health Affairs.  Using data from surveys in Seattle, it found that diets were more expensive for people who consumed higher amounts of certain nutrients, such as potassium, and lower amounts of other food components, such as saturated fat.

Our findings highlight a stark economic dimension to observed imbalances in diet. Based on the diets reported by a representative sample of King County, Washington, residents, our analyses indicate that people attempting to bring their diet closer to recommended consumption levels for the nutrients we studied would probably have to pay higher food costs.

The nutrients themselves are not expensive.  In a 2009 study of diet models using the framework of USDA's Thrifty Food Plan, Joseph Llobrera and I explored different types of economic and nutritional constraints that one could try to meet. While choosing diets that are as similar as possible to current consumption patterns, it is fairly inexpensive to meet just nutrient constraints (like getting enough calcium and sufficiently low saturated fat).  It is a bit more expensive to meet Pyramid food group constraints (like getting enough fruit).  And it is more expensive still to meet idiosyncratic food-specific constraints (like getting enough of particular red meats).

The Health Affairs article is getting nationwide coverage today from the Associated Press, under the headline: "Healthy Eating is Privilege of the Rich, Study Finds." I am quoted for opposition to the main thesis.  Journalists do this in part because of the intrinsic value of multiple points of view, and also for narrative tension, quoting one scholar against another.  It is more fruitful to see this as an ongoing conversation in a community of researchers, trying to identify the economic and non-economic sources of unhealthy eating patterns, and reading each other's work with great interest and appreciation.

Addendum: Still mulling over this discussion, a good way to think quantitatively about these questions is to fiddle with our Thrifty Food Plan Calculator, on the Friedman School website.  For example, the tab titled "good sources of..." has a list of the food groups that provide the most potassium per dollar, the most fiber per dollar, and the least saturated fat per dollar.  These are the nutrients that featured most prominently in the Health Affairs article.  Enjoy exploring.

Does it cost too much to eat healthy?

Find your own best answer with the new Thrifty Food Plan calculator.

This calculator is a tool for learning about tradeoffs between the nutrition quality and costs of foods available in the United States. Your challenge is to create a nutritious, affordable, and tasty food plan that meets your own nutrition policy goals.

This challenge is similar to the task faced by USDA nutritionists and economists when they developed the Thrifty Food Plan (TFP). The maximum benefit level in the Food Stamp Program is based on the cost of the TFP. Every several years, USDA's Center for Nutrition Policy and Promotion (CNPP) revises the TFP to take account of new trends in food prices, food characteristics, and consumer spending behavior. USDA's most recent TFP revision is: The Thrifty Food Plan, 2006. This report is available on the CNPP website (http://www.cnpp.usda.gov/). To create this food plan, USDA used a mathematical algorithm that selected quantities for each food group. The quantities were chosen to be as similar as possible to the current average consumption of low-income Americans, while simultaneously meeting a cost target, nutrition standards, target levels for broad categories of foods (such as meats, dairy foods, fruits, and vegetables), and other constraints.

Our TFP Calculator is based on the same price, consumption and nutrition data that USDA used to create the official 2006 food plan. You can design your own new food plan by choosing monthly spending levels for 58 food groups. The TFP Calculator provides information on how your plan performs in terms of cost, dietary quality, and similarity to current consumption.

My coauthors are graduate students Joseph Llobrera and Flannery Campbell. We released the TFP Calculator this week as part of the Food Policy and Applied Nutrition (FPAN) working paper series at the Friedman School of Nutrition at Tufts Univeristy. We are grateful for financial support from a USDA/ERS RIDGE small grant, although we are responsible for all opinions and errors. The Microsoft Excel file TFPCalculator.xls contains the TFP Calculator worksheets and brief instructions. The Word file UserGuide.doc contains a longer User Guide (the graphics only show up in Word's "print layout" view).

Directions are provided at the end of the User Guide to send us feedback on the worksheet itself, and also on what you learned from this tool about the affordability of nutritious food in the United States. You can also post comments here and on your own websites. Please share this tool widely.

Federal food assistance programs adjust for food price inflation once per year

Recent food price increases have been dramatic, and many people are discussing the causes.

One source of particular concern has been food assistance programs, such as food stamps and school lunch. Fortunately, federal food assistance programs are indexed for inflation, with updates to program benefits once per year. Program benefits may lag behind recent rapid price increases by 3-5% for a period, and then they are corrected at the next annual update.

A CNN story this week made it sound, unless you read closely, as if food stamp participants have been absorbing the brunt of the food price increases:

But for those on food stamps, higher prices for milk, eggs, bread and other staples often mean tough choices and empty bellies. Many are forced to forgo fresh vegetables and meat, while loading up on pasta and potatoes. Others are turning to churches, food banks and other charities, which are already strained by the increased demand....

"It's been very tough for families," said Stacy Dean, director of food assistance policy for the Center for Budget and Policy Priorities, a liberal-leaning think tank. "They don't have the flexibility in their budgets so they just don't buy as much food or they buy cheap food or they skip meals altogether. Congress can and should act to help people survive the spike in prices."

The fifteenth paragraph explained the impact of price increases on food stamp benefits quantitatively.

The maximum food stamp benefit no longer covers the cost of the "thrifty food plan," the menu of food items the government uses to calculate its allotment. In March, it cost $567.20 to buy the items in the plan for a family of four, compared to $542.10 last June, when the inflation adjustment was set.

Food stamp participants are suffering from reduced real inflation-adjusted benefits at present. The real spending power of the food stamp benefit is currently just under 5% [percentage corrected from 3.5%] below what it was at the last annual update, which can be a substantial hardship for families on a tight budget. Barring Congressional action, this shortfall will continue to grow until the next annual update. Some people consider the benefits inadequate even at the time they are updated, but that is a different issue from food price inflation.

In a related story, Alexandra Lewin at Corporations and Health Watch has a nice article recently describing the hardship facing school meals programs, such as the National School Lunch Program.

Both the National School Lunch Program (NSLP) and competitive foods, those foods sold a la carte outside the NSLP, are affected by rising food and gas prices. As documented by the Economic Research Service, in 2007 milk prices increased by 17%, cheese by 15%, bread by 12% and rice and pasta by 13%.

Kids in poorer communities will suffer most - these already cash-strapped schools are looking for ways to cut costs, undermining many efforts districts have made to implement the mandated, but unfunded, school wellness policies.

The reimbursements for federal child nutrition programs are updated once each year using the federal government's price index for restaurant and cafeteria food. The real value of the reimbursement may currently be running 3-5% below what it was at the last annual update.

In the 2004 reauthorization for child nutrition programs, the federal government required local school districts to establish wellness policies. During the preceding several years, the nutrition environment in schools had been deteriorating, with the growing sales of sugary sodas and high-fat, high-sugar products in schools, but it was difficult to find any one person or committee that had actually chosen these changes. The important bad decisions had been made made piece-meal. The "mandated, but unfunded" school wellness policies mentioned by Lewin were written by the districts themselves in answer to the mandate in the reauthorization bill. Except in trivial ways, the government did not actually require particular policy changes.

USDA's Food and Nutrition Service recently completed a major report on the question of whether reimbursement rates cover the costs of producing school lunches and breakfasts.