Support for local grocers proposed

The Agriculture Committee heard testimony Jan. 30 on a bill that seeks to provide financial assistance to small, locally owned grocery stores.

LB1116, introduced by Sumner Sen. Teresa Ibach, would create the Grocer Reinvestment Option Act to provide loans and grants to small, Nebraska owned grocery and convenience stores located in low to moderate income communities.

The proposal also would create the Grocer Reinvestment Revolving Fund with the intent to appropriate $2 million in fiscal year 2024-25 and FY2025-26. Funds could be used toward a number of business improvements, including implementing new business processes, finding alternative product sourcing and developing the workforce.

Ibach said 139 businesses would be eligible for assistance under the proposal, 131 of which are located in rural Nebraska.

“Unfortunately, food insecurity in rural areas has really grown in the last few years,” she said. “LB1116 [would] protect our locally owned grocery stores in Nebraska’s underserved areas and help prevent more underserved areas from developing.”

At a minimum, a qualifying business must be located in an underserved community and employ no more than 25 full-time employees. For purposes of the program, an underserved community is defined by the U.S. Department of Agriculture as a census tract where at least 500 people, or 33% of the population, live more than one mile from the nearest supermarket in an urban area or 10 miles in a rural area.

Priority would be given to applicants who can match a portion of the program funds and commit to accepting benefits under the Supplemental Nutrition Assistance Program and the Special Supplemental Nutrition Program for Women, Infants and Children. The state Department of Agriculture would be responsible for administering the program and could create additional eligibility requirements.

John Hansen, president of the Nebraska Farmers Union, testified in support of the proposal. He said one of the keys to a rural community’s sustainability, survivability and quality of life is the grocery store.

“When [a local] grocery store closes down, it really changes the mood … and the mix of people who are going to live there, move there, [and] bring their kids there.” Hansen said. “If there’s not a grocery store in town, trying to bring young people back to that community is a tough sell.”

Also speaking in support, Jessi Chandler Mason said the driving force in her decision to purchase a grocery store in Anselmo was regenerating small town culture in the community where she grew up. Such stores need assistance to survive, however, she said.

“[LB1116] not only secures the future of local enterprises but also contributes to the overall prosperity of our town, ” Chandler Mason said. “It’s a mutually beneficial relationship that recognizes the symbiotic connections between thriving businesses and vibrant communities.”

Robert Hallstrom testified in support of LB1116 on behalf of the Nebraska Bankers Association and the National Federation of Independent Business. While both organizations are supportive of measures that bolster the viability of rural grocers, he said, the direct loan aspect of the program would be better administered by private financial institutions.

“There are a number of very beneficial opportunities for banks to be involved in this type of program,” Hallstrom said.

No one testified in opposition to LB1116 and the committee took no immediate action.