Am I going to lose money because the Tier II reimbursement rate is not going to pay for the cost of my food?

No. You are never losing money when you are on the Food Program. It's true that your reimbursement check may not pay for the food you buy for your business. But, it's always better to get some money for the food you are buying then to receive nothing at all.

Is it worth participating if I am a Tier II and only receiving 13 cents for snacks?

Yes. A typical provider can earn $6 per hour by claiming this snack.
For example: If you claim 13 cent snacks for an entire year, the total reimbursement for one child is $33.80 . (.13 a day x 5 days a week x 52 weeks).
If you care for four children and it takes 5 minutes a day to record these snacks, you will earn 6.23 per hour (33.80 x 4 = $135.20 divided by 21.7 hours). If you spend less than 5 minutes you will earn more for your time than you earn caring for children.

Would I be better off to charge the parents for food instead of participating in the Food Program?

No. In order to replace the money you would lose from being on the Food program at the Tier II rate, you would have to charge parents $6.75 extra per child per week. You'd have to report this income and pay taxes on it(just the same as if you'd received this money as a reimbursement). If you don't raise your rates by at least this much, you will be financially worse off than you were on the Food Program. If you raise your rates by $7.75 per week you will be better off by only $1 per week. If you stay on the Food Program and raise your rates, you will keep every dollar of the increase for yourself.

Would I be better off to have the parents bring the food?

No. Most providers cannot rely on parents to regularly bring all the food. If they don't and you spend as little as $7.70 a week per child for food (or $400 per year), then you are in the same condition as if you stayed on the Food Program at the Tier II rate. If you spend more than this amount for food, you will be worse off then staying on the food program. How is this so? By having parents bring food, you are saving $750 a year in food costs per child. This assumes that you spend the same amount on food as you received from the Food Program at the Tier I rate #2.90 a day rate. But you are also giving up $350 a year in food reimbursements at the Tier II level. The difference is $400 per year per child. This represents your actual savings. But if you have to spend more than $400 a year on food that the parents don't bring then you are worse off. Some parents may think that it is cheaper for them to pay you $6.75 per week in higher fees so that you can remain on the Food Program, rather than bringing all the food themselves. Many parents may also be concerned about the nutritional quality of the food you serve their children. If you decide to not participate with the Food Program parents may object. You could lose some parents who prefer to enroll their child with a provider who can guarantee that their child will receive nutritious meals.

Are reimbursements from the food program offset by my food expenses? Am I losing anything by leaving the program?

No and Yes. You spend money on food, regardless of whether or not you are on the food program. Most providers spend more on food than the reimbursement they receive. All food served to day care children is deductible whether or not you are on the Food Program or not. Any reimbursements you receive are like getting a raise, or like parents paying you and extra $6.75 more per week, per child (Tier II rate). Leaving the Food Program is like turning down a raise or refusing to accept extra money from parents. Reimbursements from the Food Program always increase your bottom line profit. Taking this money means the children in your care will get more nutritious food.