Across rural Nebraska, small-town grocery stores are disappearing at an alarming rate. According to research from the Center for Rural Affairs, the state lost 30% of its independent rural grocery stores between 2016 and 2021. Now, lawmakers are considering a bill that could help struggling stores stay open and ensure communities have access to fresh food.

In Cody, Nebraska, Circle C Market is no ordinary grocery store. The nonprofit, student-run business was created through a partnership between the village and the local school. It serves as a lifeline for residents, especially older adults who rely on it for their groceries.

“We do have quite a few elderly right here in town that depend on the grocery store for their groceries,” said Liz Ravenscroft, a business teacher at Cody-Kilgore High School who also manages the store. “They don’t leave town.”

The nearest supermarket is 45 miles away, making Circle C Market an essential part of the community. This week Ravenscroft traveled to Lincoln to testify in support of a bill that could help stores like the one in Cody.

“The store struggles with low-profit margins and limited grocery access. Because of our short buying power, we can’t place orders sizable enough to earn discounts in the way supermarkets in larger communities can,” said Ravenscroft.

LB 375 aims to help small-town grocery stores by providing funding for technology upgrades, assistance with applying for federal grants, and cooperative buying programs. These programs would allow grocery stores to combine wholesale orders with other stores, schools, restaurants, and nursing homes to meet minimum purchasing requirements.

“I just know that these small towns out in the sticks sure could use a grocery store,” said David Barnes.

Barnes is the volunteer general manager of Valley Foods Cooperative in Lynch.

“It’s north of O’Neill, 70 miles from the nearest Walmart, 45 miles from the nearest stoplight,” said Barnes.

The store, located in a village of fewer than 200 people, operates with only one and a half paid employees.

“The store is under volunteer day-to-day management and ordering. Each week eight to ten volunteers help to unload the truck,” said Barnes.

Senator Teresa Ibach, who introduced the bill, says keeping small-town grocery stores open is critical.

“As more grocery stores close, other businesses are negatively impacted, which then leads to residents leaving those areas,” said Ibach.

Despite the need, lawmakers questioned the cost of the bill, which has a $2 million per year price tag.

“I don’t think the fiscal note is very friendly,”  said Senator Ben Hansen. “They’re saying there’s 66 counties that contain one or more food deserts. This implies that there will be as many as 110 applicants for the program. That doesn’t seem like a lot. Based on this estimate, this will require an economic development manager, an economic development consultant and an IT database analyst to create the application and the grant management system.”

Following the discussion, Ibach agreed to review the funding request in hopes of lowering the cost.

For now, some small-town grocery stores across Nebraska continue to fight to keep their doors open—hoping this legislation could be key to their survival.