There's a farmers market near me (about an hour and a half east of San Francisco) that used to take EBT but compliance was too difficult, so now they don't. It's not one of those preppy organic-only farmers market, but actually sells whatever produce is currently in season and in surplus, so it's half the price of even discount grocery stores.
EBT could go a lot further there, but the regulations weren't really written to work with dozens of short-term vendors, instead of a corporate contact.