The WIC Fruit and Vegetable Cash Voucher - Produce for Better ...

usually the most expensive per pound of the 10 most popular vegetables ineach of the 26 markets. Onions and broccoli were next, followed by carrotsand then by cucumbers, lettuce, green beans, and corn, while cabbage was byfar the cheapest vegetable in all 26 markets. Among the 10 fruits analyzed,strawberries were by far the most expensive. Grapes were next, followed bypineapples, peaches, apples, pears, grapefruit, watermelon, and oranges, inroughly that order. Bananas were the cheapest fruit in all 26 markets. 12 (Seeappendix table A.2 for comparison of mean prices of different forms of allvegetables and all fruits.)The lowest priced market was the Metro South 2 market group (Nashville,Birmingham, Memphis, and Louisville), followed by Metro Ohio (Cincinnati,Cleveland, and Columbus) and Salt Lake City. San Francisco had the highestprices, followed by Hartford-New Haven and Washington, DC. Prices inthe Metro South 2 were 9.2 percent lower than the national average, whileprices in the highest priced market, San Francisco, were 13.9 percent higherthan the national average, a spread of 23.1 percentage points between theleast and most expensive markets. (See table 3 for a full list of rankings.)Other markets that fall in the bottom quintile of prices include the MetroSouth 3 market group (Little Rock, Oklahoma City, and Tulsa) and the MetroMountain market group (Denver and Phoenix). Additional markets in the topquintile with San Francisco include Baltimore and the South Florida marketgroup (Miami and Tampa). This index ranking, which is based on whatconsumers actually purchased, indicates that although participants may beable to substitute among certain fruits and vegetables, substantial price variationremains across markets.12 In this study, we calculate pricesbased on total pounds purchased. Thatis, we do not address the number ofservings or the portion of the fruits andvegetables that can be consumed. Foran analysis of this issue, see Stewart etal. (2011).Price Variation and WICThe substantial price differences between markets imply that the same-valuevoucher allows WIC participants to purchase substantially different amountsof fruits and vegetables depending on where they live. Using data from 1999,the Committee to Review the WIC Food Packages (2006) estimated that withthe monthly $8 and $10 vouchers, participants would be able to purchase 10and 12 pounds of fresh fruits and vegetables per month, respectively, correspondingto roughly 1 or 2 servings a day. 13 When we examine the nationalaverage prices of the 20 most commonly purchased fruits and vegetablesbetween 2004-06, however, we find that participants would be unable tostretch their vouchers this far unless they purchased only the cheapest fruitsand vegetables. 14 Participants in markets with prices higher than the nationalaverage will have an even more difficult time purchasing 10-12 pounds offruits and vegetables per month, while those buying in markets with lowerthan average prices may be able to purchase more fruits and vegetables thanthe amount recommended (table 4, discussed in detail below).Green beans display one of the most dramatic differences between thehighest and lowest priced markets. They are 36 percent cheaper in the lowestpriced market (Metro South 3—Little Rock, Oklahoma City, and Tulsa) thanthe national average and 38 percent more expensive in the highest pricedmarket (San Francisco). This difference translates to 37 cents per pound lessin Little Rock, Oklahoma City, and Tulsa and 35 cents per pound more in SanFrancisco. While these differences may seem relatively small, the nationalaverage for 1 pound of green beans is 96 cents. With a fixed-value voucher13 As mentioned above, the committee’sreport also suggests that thevoucher be adjusted upward in Stateswhere local prices prevent participantsfrom purchasing this amount with the$8 and $10 vouchers the committeerecommends.14 Our results are based on theaverage prices for all forms of fruitsand vegetables (fresh, canned, andfrozen) since the national guidelines forthe voucher allow all forms. For mostof the items we examined, the cannedversion is the cheapest, followed byfresh random weight, then frozen, andfinally UPC fresh items (see appendix.table 2).Therefore, the mean market price ofonly fresh items is the same or higherfor all items (except onions) whencanned and frozen prices are excluded.9The WIC Fruit and Vegetable Cash Voucher: Does Regional Price Variation Affect Buying Power? / EIB-75Economic Research Service/USDA