Larry Madigan Jr. expects November to be an unpredictable month for Cass Lake’s grocery store.
Like at 3,600 other food retailers in Minnesota, customers can use Supplemental Nutrition Assistance Program (SNAP) benefits at the city’s Leech Lake Market, located on the Leech Lake Band of Ojibwe’s reservation.
Amid the federal government shutdown, it’s unclear when or if customers will receive SNAP funds this month, cutting the northern Minnesota store off from a key source of revenue, said Madigan Jr., Leech Lake Market’s general manager.
“It’s pretty scary, because if it goes on further, into December, we have to adjust on our end,” he said.
Leading up to November, Madigan Jr. said cutting payroll in the form of staff hours to make up for the expected revenue hit wasn’t on the table. Grocery stores may need to consider such adjustments, however, if the federal funding well keeps running dry.
Related: Many Minnesotans already live miles from the nearest grocery store. What happens if it closes?
The National Grocers Association estimates about 12% of grocery and food retailer revenue comes from SNAP. In a statement, NGA President and CEO Greg Ferrara said Congress’ allowance of SNAP funds to run out would have “far-reaching consequences” for local stores, employees and the communities they feed.
SNAP’s downstream effect on grocery stores came up during a Stearns County Board of Commissioners meeting Oct. 21. A week earlier, the county received notification that SNAP approvals would be suspended.
Melissa Huberty, the county’s human services administrator, told county commissioners that rural grocery stores in particular benefit from SNAP and would feel any changes. “People may not know it, but the grocery store owners will know it real quick because it does impact their bottom line,” she said.
SNAP, which provides food assistance to about 440,000 Minnesotans, could be partially funded during the shutdown. Federal judges have ordered the U.S. Department of Agriculture to tap into funding for the program, though it wasn’t clear how soon benefits would become available to recipients. The Trump administration, responding to the judicial rulings, said Monday that it would tap enough funds to cover half of November’s benefits.
In Leech Lake Market’s county, Cass, about 14% of the population, or around 4,400 residents, were SNAP recipients in 2022, according to U.S. Census data. Minnesota’s statewide rate was about 8% at the time.
“SNAP is a big part of our community,” Madigan Jr. said. “After our summer season we depend on SNAP.” Summer is the busy season in his community, a time when out-of-towners visit one of the state’s largest lakes for recreation.
Losing SNAP during a slower time for local economies means locals go without food assistance, grocery stores lose out on sales and food shelves get stretched trying to fill the gaps. Gov. Tim Walz last week announced the state would use $4 million in funding to support 300 food shelves around the state.
In rural areas, where grocery stores are often tens of miles from the next closest option, losing revenue makes them particularly vulnerable in an industry known for tight profit margins.
“My biggest fear is if we didn’t have the grocery store in our community, it would just be a food desert,” Madigan Jr. said.
Corey Christianson, owner of KC’s Country Market in Greenbush and Badger in northwestern Minnesota, has been glued to the news lately for updates on SNAP. It’s hard to predict how hard losing the revenue will be on stores, he said, but it won’t be pretty.
“It’s too early to tell,” he said. “One customer did say it’s the last time he’s using his (SNAP benefit).”
Another customer asked for store credit to cover groceries. This customer vowed to pay the store back.
Small-town grocers may be able to exercise some flexibility with locals. A customer asking the store to delay cashing a check for a few days isn’t unheard of, Christianson said.
Related: Not only the elderly and disabled: A look at the Minnesotans who receive SNAP benefits
A grocer can only do so much, though, before putting the business at risk. As a humanitarian worker before his grocery days, Christianson said it’s hard not to help out when people are struggling.
“I sure wish we could help everybody, but you know this is where I can’t understand their logic, as in the policymakers,” he said. “Why would they want people to be driven to this point?”
Leech Lake Market is working with the tribal government on plans to donate food to customers dealing with SNAP benefit uncertainty, Madigan Jr. said. A meal package covering a certain number of days could be an option in the short term. In the long-term, grocery stores need SNAP funding to be restored.
“We’re probably going to take a big hit if the funding isn’t there, but a lot of food we’ll donate to make sure family members have food,” Madigan Jr. said. “I know a lot of independent grocery stores just can’t do that.”
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