Center for Rural Affairs completes legislative interim study of local grocery stores, rural food access

Small Towns
Policy
Contact(s)

Carlie Jonas, policy associate, 402.687.2100 ext. 1032 or [email protected]; and Rhea Landholm, communications manager, [email protected] or 402.687.2100 ext. 1025

NEBRASKA - Independent, locally owned stores stand as cornerstones of health, economic, and social wellbeing in rural communities across Nebraska. However, rural grocery stores have been closing at an alarming rate over the past three decades.

The Center for Rural Affairs recently contributed to a formal state legislative effort to explore ways Nebraska can support independent grocers and improve food access in its rural communities.

At the end of the 2024 regular session, Sen. Teresa Ibach introduced Legislative Resolution 374, which called for a study to examine the role independent grocery stores play in food access, particularly in rural areas of the state. The Center led research efforts for the study, conducting community surveys and grocer interviews as well as compiling and analyzing data. The completed findings were published in “Legislative Resolution 374: Interim Study to Examine the Availability of Healthy and Affordable Food Choices in Nebraska Communities.”

Low profit margins, aging buildings, wholesale order requirements, and shrinking populations all contribute to the challenges grocery stores face in remaining open and serving their communities. Between 2016 and 2021, the number of independent rural grocery stores in Nebraska fell by 30%, and closures have since continued.

“The loss of small independent stores is concerning, especially for people who don’t have access to reliable transportation or with fixed incomes,” said Carlie Jonas, policy associate with the Center and author of the report. “When these grocery stores close, people lose access to healthy, fresh food, which can limit their options to more shelf-stable and heavily processed foods.”

Food insecurity, which occurs when there is limited access to affordable, nutritious food, is growing across the state. In 2023, 12.9% of Nebraskan families faced some degree of food insecurity. Improving food access is a complex task, but the Center’s research found that independent grocery stores are a lifeline for rural communities, making support for these businesses essential.

“States like Alabama, Minnesota, North Dakota, and Oklahoma have invested in programs to help small grocery stores compete with big box stores,” Jonas said. “If the Nebraska Legislature dedicates funding for innovative business and operating models that can help sustain independent grocery stores in an increasingly difficult retail market, it would be a positive investment not only for food accessibility, but also for rural vitality.”

The hearing for LR 374 is scheduled before the Agriculture Committee on Nov. 1. To read more about the interim study findings, view and download “Legislative Resolution 374: Interim Study to Examine the Availability of Healthy and Affordable Food Choices in Nebraska Communities” at cfra.org/publications.