The Supplemental Nutrition Assistance Program (SNAP) is the nation’s largest domestic hunger safety net helping millions of low-income Americans meet their nutritional needs through financial assistance. The United States Department of Agriculture (USDA) Food and Nutrition Service (FNS) administers SNAP and partners with state-level agencies to connect the public to nutrition assistance opportunities. In the state of Nevada, FNS works with the Nevada Department of Health and Human Services Division of Welfare and Supportive Services (DWSS). To receive SNAP benefits, Nevadans must apply through DWSS. Individuals and families who receive SNAP benefits receive an Electronic Benefit Transfer (EBT) card that functions much like a debit card that they can use to buy food from SNAP-authorized retailers. FNS is the authorizing agency for retailers wanting to accept EBT payment and make their products available to SNAP-recipients

This video from FNS covers what SNAP is, why, as a retailer, you may want to accept it, and how to apply to become an authorized retailer

Becoming a SNAP-authorized retailer means that your products are accessible to a wider customer base. While this can connect you with more customers, for farmers and farmers markets especially, the benefit goes both ways as you’ll be helping lower-income members of your community access local, healthy, high-quality foods and produce. However, while becoming a SNAP-authorized retailer can be very worthwhile for the above reasons, you should be aware of the responsibilities it entails and consider if your market is ready to begin accepting SNAP. Before getting started, it is important to consider if your market is ready and well-equipped to accept SNAP.

Running SNAP transactions at your market does take time and sometimes financial input to manage. It's important to think about staffing and who will be responsible for tasks around SNAP. The Farmers Market Coalition shares, “Because SNAP often requires one-on-one customer service at markets to operate the SNAP booth, you’ll need at least one person dedicated to this work during market hours. If you are unable to staff the booth from your team, an alternative may be working with your farmers or other SNAP eligible vendors to offer SNAP at their own market stands, or recruiting reliable, trained volunteers to support market staff with SNAP transactions onsite”. More on the possible costs associated with accepting EBT will be explored in “Accepting EBT Payment”

The Farmers Market Coalition also provides the following advice: “Markets should consider formalizing their operating structures if they can — this could include steps such as obtaining 501(c)3 status, recruiting a board, creating by-laws, or signing up for a P.O. Box for official market mail rather than using a home address. Why formalize? It can support longevity of a market’s mission beyond the core founding staff and volunteers, as well as opening your market up to funding opportunities. Obtaining non-profit 501(c)3 status is not always the right decision for markets, but can be a crucial step if you are considering offering SNAP. Nonprofits are eligible for additional funding such as grants and solicited donations that can help support SNAP operational costs.”

There is a checklist to assess your capacity to manage a SNAP/EBT Program available at Checklist to Assess your Capacity to Manage a SNAP/EBT program

There are a number of ways that a farmers market can structure its SNAP program. The first thing to consider is whether the market will become authorized as a whole and accept SNAP payments on behalf of vendors, or whether the market will rely on vendors to become individually SNAP authorized. The following table shows some things to consider for each of these models:

If the market chooses to become authorized for SNAP, all EBT transactions will occur on a centralized EBT terminal. There are several approaches a market can take for coordinating sales and charges with their vendors:

Market Currency System

As of 2022, essentially all SNAP-authorized farmers markets in Northern Nevada are using this system, so this is what the SNAP customers understand and anticipate. A customer purchases market tokens from the central EBT location (often at the market’s information table) using their EBT card, and then uses the tokens to purchase products at vendor stands. The vendors exchange the tokens back to the market according to an agreed-upon reimbursement schedule. The market keeps track of token sales versus token redemption to ensure that the system is functioning properly. A market can also use paper scrip instead of tokens, which tends to be less bulky, but also more easily counterfeited (Adapted from content from the Farmers Market Coalition). Some markets in other states use tokens for all card sales within the market: credit and debit transactions also occur at one centralized location and customers are given tokens to use at vendor booths that do not have their own card readers.

Market Curency (i.e. token) Accounting

According to the Farmers Market Coalition, “Managing tokens requires some additional bookkeeping and documentation. A best practice used by many markets around the country is to set up a separate bank account for the token program. This greatly simplifies tracking activity, reconciling balances and reporting. You should know where all tokens are at all times. Your tracking system should accurately track:

• How many tokens you have on hand at any given time
• How many you distribute per market day;
• How many tokens are returned per market day; and
• How many tokens are outstanding or unredeemed at any given time.

“Because SNAP is a taxpayer-funded federal nutrition assistance program, FNS requires a detailed audit trail so as to avoid any potential or perceived fraud. As a “new currency” in your market, tokens should be treated just like cash. This means losing tokens is the same as losing cash. Be sure tokens are stored in a secure location and provided only to SNAP customers when their transaction has been approved.

“For Sample Token Tracking and Accounting Templates, Please Visit:
The Farmers Market Coalition’s Token and Incentive Accounting Templates
North Carolina’s Carrboro Farmers Market Electronic Transaction Workbook

Receipt System

As of 2022, essentially all SNAP-authorized farmers markets in Southern Nevada are using this system, so this is what the SNAP customers understand and anticipate. According to the Farmers Market Coalition, “the cardholder brings the produce she wishes to purchase to the vendor’s checkout. The vendor totals the sale and writes a receipt which includes the vendor name, amount purchased, and items purchased. The vendor holds the shoppers purchase while the customer then brings this slip to the central POS market site. Here her card is swiped and she receives a sales receipt from a market staff-person, who signs the vendor receipt to show proof of purchase. The customer returns the vendor receipt to the vendor in exchange for her food purchase. At the end of the market, the vendor tuns in all shopper receipts and the market reimburses the vendor according to an agreed-upon payment schedule”.

Additional Resources on Market Currency and Receipt Systems

• In-depth guides from Farmers Market Legal Toolkit
  • Market Currency Systems
  • Receipt Systems

Am I eligible?

Both farmers markets and direct marketing farmers (farmers selling their products at a vendor booth, farm stand, etc.) are eligible to apply to Food and Nutrition Service (FNS) for authorization to accept SNAP benefits if they meet certain criterion regarding what products they sell. Please click here to learn about the kinds of products you must offer in order to be a SNAP-eligible retailer.

How do I apply?

To become a SNAP-authorized retailer, you must apply online through the Food and Nutrition Service (FNS). FNS outlines the process.

We provide a checklist that gives a detailed walk through of the process for accepting SNAP.

If you are a Direct Marketing Farmer an additional guide is available here, or for Farmers Markets.

For help with the application process contact DFI (dfi@unr.edu) or MarketLink. MarketLink can complete the application with you and even submit it on your behalf.   

Please note that as of 2024, the FNS is short staffed and the process may be slower than listed time windows.

***Note: If your market operates in more than one location, you may be required to apply for, and obtain, separate SNAP licenses for each location. For more on this rule, click here.

If your market’s location changes you need to update the FNS by calling 1-877-823-4369 or 312-353-6609. Your authorized FNS # will be associated not only with your organization, but also with a particular person (usually the head of the organization). If you have a change of personnel, you’ll need to report it to the FNS. The process depends on your organization’s type. Please see below what each organization type requires:

• FNS Permit # listed as a sole proprietor/LLC/Partnership/Privately Held Corporation
  • New owner will have to apply for their own FNS permit # via application website. The FNS# account will not be transferred and/or updated.
  • New owner will need to provide on application : Signature Page, Driver’s License (color copy), SS card (information can be uploaded directly into online SNAP application account)
• FNS Permit # listed as an IRS 501c3 Organization
  • Signature Page from Market Manager & Executive Director (from 501c3 organization)
  • Driver’s License (color copy)
  • IRS 501c3 Tax Exempt Letter
  • Letter authorizing Market Manager to apply for SNAP EBT Permit on behalf of the 501c3 organization. Letter needs to be on organization’s letterhead
• FNS Permit # listed as a Town/City/Government Agency
  • Signature Page from Market Manager & Government Official
  • Driver’s License (color copy)
  • W-9 signed by Government Official
  • Letter authorizing Market Manager to apply for SNAP EBT Permit on behalf of the town/city/government agency. Letter needs to be on town/city/government agency’s letterhead.

You can call 1-877-823-4369 or 312-353-6609 to report change. Someone from USDA will return your call and advise on which documents above you will have to submit.

As mentioned earlier, SNAP recipients receive their benefits on an Electronic Benefits Transfer (EBT) card. As a SNAP-authorized Farmers Market or Direct Marketing Farmer, you will need a point-of-sale (POS) device that is capable of reading these cards. The card reader you may already be using for debit and credit sales may have an option to be encrypted to process EBT as well or you may need to purchase a new device. You can shop around for the right device for you, keeping in mind cost and service fees, or there are some free or discounted options available (see below).

Options for POS device purchase

The following options are just a selection of POS devices on the market, but they are options that we are familiar with and have heard about local markets using with success.

TotilPay

TotilPay is a card processing software. With the TotilPay Go app and the fully mobile EBT card reader provided by TotilPay you can accept EBT and the go or at your market. TotilPay has special pricing if you are classified as a farmers market or direct marketing farmer by the Food and Nutrition Service. If you already use Square to accept credit and debit cards, Square can integrate with the TotilPay Go app to you can use one software for all types of payment.

Clover

Clover’s EBT app enables EBT transactions on Clover Mini, Clover Flex, and Clover Mobile (but note that you cannot process EBT using Clover Go or Clover Station)

Free POS options for Farmers Markets and Direct Marketing Farmers

FIS Banking Solutions

The State of Nevada contracts with FIS to provide free EBT-only (no credit or debit) equipment to farmers markets and direct marketing farmers who have been authorized by FNS to accept SNAP.

FIS receives daily notifications of all newly approved FNS numbers. Newly-authorized Direct Marketing Farmers or Farmers Markets will be contacted by FIS and offered a cost-free:

• Landline based EBT terminal setup that must be attached to a telephone line or an internet line. The equipment must be returned if/when the market or farmer stop accepting SNAP.
• Wireless EBT terminal setup (V400m wireless) that utilizes an internal AT&T cellular system that only works where AT&T cellular/wireless service towers are available

Both options are entirely cost-free. There is no initial charge or fees, and no fees down the line.

Market Link

MarketLink is a grant program that can provide free EBT equipment to farmers markets and direct marketing farmers in addition to technical support for applying for SNAP authorization and on-going participation in SNAP. You should note that there are fees after the first year (learn more below). Please also note that if you are already utilizing a free POS device from FIS you are not eligible for the MarketLink-funded equipment.

If you submit an eligible application to MarketLink you will be provided:

• Free Bluetooth SNAP/EBT card reader (yours to keep)
• One year free use of the TotilPay Go point-of-sale App for processing EBT transactions (you must use your own mobile device)
  • SNAP/EBT transactions have no processing fees
  • You have the option to add credit and debit transactions at the rate of:
    • Square: $0.10 per transaction +2.6% of the sale
    • WorldPay: $0.15 per transaction + 1.79% of the sale

After the first year the cost is $19.95/month or $191.40/year in addition to any option credit/debit service fees. The SNAP card reader is yours to keep for free.

POS Device FAQ’s

Follow the hyperlinks to see The Farmers Market Legal Toolkit answers to the following questions:

Obtaining a POS Device

• What is a point-of-sale (POS) device?
• What are the costs and fees associated with using a POS device?
• Can I charge an EBT card usage fee to cover the costs of POS device fees?
• Can I buy or sell a used POS device?
• Can I lease or rent a POS device?
• My farmers market operates at multiple locations. Does this mean I need more than one POS device?

Using Your POS Device

1. Does a POS device accept credit, debit, and SNAP EBT cards? Should I get an EBT-only device?
2. Do I need to provide a paper transaction receipt to SNAP customers?
3. Who is liable (legally responsible) for the market’s operation of a SNAP POS device?
4. If my market changes owners, responsible officials, or locations, do I need to report this information to FNS?
5. Can I use manual vouchers if my POS equipment won't work?

According to the Farmers Market Legal Toolkit, “SNAP incentive programs are publicly or privately funded initiatives that encourage SNAP customers to spend their benefits at farmers markets by providing a financial incentive for doing so. For example, some “matching” programs provide SNAP customers with one dollar (toward a SNAP-eligible purchase) for every dollar of SNAP benefits spent at the market, up to a certain dollar amount, effectively doubling the SNAP customer’s buying power. Other versions of cash incentives for SNAP purchases are used as well.” Learn more here. The main incentive program in Nevada at this time is called the Double Up Food Bucks program and it functions like the “matching” model described above. Learn more about Double Up Food Bucks below.

Double Up Food Bucks

Double Up Food Bucks (DUFB) is a nutrition incentive program from the USDA. At participating stores and farmers markets when a customer uses their EBT card to buy produce, Double Up matches their spending up to $20 a day. The customer can then use the matching funds to purchase more fruits and vegetables. This means more produce for customers, and more sales at the market.

Again, while SNAP benefits can be used to purchase fruits and vegetables; meat, poultry, and fish; dairy products; breads and cereals; other foods such as snack foods and non-alcoholic beverages; and seeds and plants which produce food, Double Up Food Bucks matching funds can only be used to buy fruits and vegetables that are fresh, canned, or frozen and only match SNAP money spent on the same items.

For Nevada farmers markets interested in participating in the Double Up Food Bucks program, contact Roz Brooks at Vegas Roots (roz@vegasroots.org). You will need to fill out an application and provide a SNAP-authorized FNS number. You will then be sent instructions and materials including coupons and banners and you can start implementing the program! Learn more on the Vegas Roots website.

Other Incentive Programs

There are other incentive programs you may be able to find and apply for online that are not yet being used in Nevada. Another option is to create your own incentives for SNAP customers: you or a donor could provide an incentive (matching funds, free recipes, a kitchen utensil, etc.) for customers who use a SNAP card at your market.

The Food and Nutrition Service offers this webinar on “what markets and their partners need to know about incentives, different types of incentives they could offer, and what they would need to do to introduce an Incentive program at their market”.

To successfully implement SNAP at a farmers market, it is important that all vendors understand the program and how it works at your market. Vendors need to know:

• What SNAP is
• Your market accepts SNAP
• What items are and are not SNAP-eligible
• How SNAP will be managed at your market (receipt or token systems, etc.)
• When reimbursement for SNAP sales will occur
• Anything particular to your site
• How an incentive program (ex: Double Up Food Bucks) works, if participating

Many markets have found that written agreements are useful and may help avoid misunderstandings and miscommunication. Please contact us for vendor agreement templates. Check out these guides to implementation and for more support contact us at dfi@unr.edu

You may want to know what you as a direct marketing farmer or farmers market can do to attract more SNAP customers.

Advertising and Marketing

Actively advertising and marketing your acceptance of SNAP/EBT is an important step to attract more SNAP customers. Consider which of the following marketing avenues might work best for you and your community:

• Media (television, radio, newspapers)
• Direct mail
• Email
• Social media
• Website
• Billboard
• Pamphlets

You can also consider increasing signage about SNAP/EBT both within the market and outside of the market where it is visible to passers-by.

You can have your market added to the Agricultural Marketing Service National Farmers Market Directory.

For more information and ideas, the Food and Nutrition Service provides this webinar on Advertising and Marketing.

Improving SNAP Shopper Friendliness

Ensuring that your market addresses SNAP shoppers’ needs helps to attract and retain SNAP customers.

Virginia Cooperative Extension shares these “Ten Tips for Making Your Farmers Market SNAP Shopper Friendly”:

• SNAP-Ed Technical assistance
  • Jordan Hosmer-Henner, jordanh@unr.edu, 775-682-9782
• Market Link
  • Can guide you through application, submit it on your behalf, talk about and advise on all things SNAP
  • They can be reached at info@marketlink.org, or you can schedule a phone appointment using their online phone appointment booking website. They also have a live chat available on their website
• Food and Nutrition Service (please be aware that the FNS is experiencing staffing issues and all lines of communication can be slow. We recommend the first phone number as the best chance of a quick response.)
  • Call
    • 1-877-823-4369
      • If you have not gotten a response in a few days call the next phone number listed
    • 312-353-6609
      • This is a message line. Messages are checked at the end of the day and you should hear back within a few days.
  • Email
    • SM.FN.ROB-WC1RETReply@usda.gov
      • This email is specifically for farmers or farmers markets with questions about the status of an application and ways to update an existing permit.
    • farmersmarket@fns.usda.gov
      • for general questions about SNAP at farmers markets

Each of the following resources provide a wealth of valuable information regarding every aspect of SNAP for Farmers Markets and Direct Marketing Farmers.

• Farmers Market Legal Toolkit: Implement SNAP/EBT
• Farmers Market Coalition: SNAP Guide 
• USDA FNS SNAP at Farmers Markets: A How-To Handbook