Seven retailers to test online purchase of groceries with food stamps

Agriculture Secretary Tom Vilsack says purchase of groceries over the internet is “a potential lifeline” for food-stamp recipients who live in areas with poor access to healthy foods. The USDA will begin a two-year test of the idea this summer with the help of seven retailers, ranging from e-commerce giant Amazon to Hart’s Local Grocers in Rochester, NY.

“Eventually, our goal is for this to be a national option,” said USDA, once the pilot project is completed and any needed adjustments are made to the food-stamp system, which served 43.5 million people at latest count. “This pilot will test both online ordering and payment. Online payment presents technical and security challenges that will need to be examined and fully addressed before it is offered nationwide”

The pilot project, authorized by the 2014 farm law, will operate in rural and urban areas in seven states using retailers of varying size to gauge the performance of the concept in different settings, said the USDA. Food-stamp recipients will have to use their own money to pay for delivery or service fees; the government will pay only for the food.

For the two-year test, the USDA selected Amazon  for sales in Maryland, New Jersey and New York State; FreshDirect for sales in New York State; Safeway for sales in Maryland, Oregon and Washington State; ShopRite for sales in Maryland, New Jersey and Pennsylvania; Hy-Vee, for sales in Iowa; Hart’s in Rochester, NY, and Dash’s Market, in Buffalo, NY. The USDA said retailers “may opt to phase-in pilot operations state by state over time” if they operate in more than one state.

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