USDA Household Program Update

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USDA Household Program Update

• Laura Castro, Policy Branch Chief and
• Rogelio Carrasco, Policy Branch Program Analyst
• USDA Food and Nutrition Service
• Food Distribution Division
• April 7, 2008

prepared for the American Commodity Distribution
Association National Conference
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Overview of Todays Session

• Budget Update
• Farm Bill Proposals
• Regulations and Policy Update
• Your Questions

3
Budget Update - TEFAP

• The Emergency Food Assistance Program (TEFAP)
  FY08 Funding
• 140 million for commodity purchases
• 49.65 million for administrative funding
• National funding level approximately same as FY07

4
Budget Update - TEFAP

• TEFAP allocations based on legislatively mandated
  formula
• Allocation formula 60 poverty, 40 unemployment
• This year, we modified the data sources used to
  calculate the formula. Now using
• 10-month unemployment average
• American Community Survey

5
Budget Update - TEFAP

• Allocations always vary annually. For example,
  from FY06 to FY07
• 8 States saw decreases of 5 or more
• 11 States saw increases of 5 or more
• Using new data sources, we had similar variations
  from FY07 to FY08
• 7 States saw decreases of 5 or more
• 12 States saw increases of 5 or more

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Budget Update - TEFAP

• Authority for States to convert their share of
  10 million in commodity funds to administrative
  funds continues
• In FY08, 41 of 55 TEFAP State agencies converted
  some or all of these funds
• Total conversion of 7.3 million
• States may also convert all or part of their
  administrative funds into commodity funds
• Deadline is June 2, 2008

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Budget Update - TEFAP

• Strong Agricultural Market
• Domestic and international demand
• More effective production and harvesting methods
• Resulting in
• Dramatic increases in food prices
• Reduction in bonus commodities

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Budget Update - TEFAP Bonus
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Budget Update - TEFAP

• FY08 bonus commodities to date
• Canned Carrots, Green Beans, Peas, Tomatoes, and
  Spinach
• Canned Beef, Chicken, Pork, and Stew
• Diced Tomatoes
• Dried Cherries
• Grapefruit Juice
• Peanut Butter

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Budget Update Barter

• Began July 2007
• Unprocessed CCC commodities exchanged for
  processed commodities.
• These are distributed through domestic and
  international nutrition assistance programs
• Domestic programs have received 80 percent of the
  value of these commodities
• Unclear whether future barters will take place

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Budget Update Barter

• During first barter, FNS received approximately
  43 million in commodities
• During second barter, FNS expects to receive
  approximately 50 million in commodities

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Budget Update - CSFP

• Commodity Supplemental Food Program (CSFP) FY08
  funding
• 139.2 million (vs. 107.2 million in FY07)
• Buying power of additional funds eroded by
• Increased food costs and significant decrease in
  bonus foods
• Mandatory increase in the administrative grant
  per caseload slot (now 62.47/slot)

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Budget Update - CSFP

• Consequently, caseload reduced 2.5
• CY08 caseload 473,473 (vs. 485,614 in CY07)
• Nevertheless, resources were sufficient to
  support base caseload for all currently
  participating States
• Between FY07 and FY8, 24 States had caseload
  decreases
• Of those, 11 had decreases of 5 or more.
• Caseload for 11 States remained the same

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Budget Update - Presidents FY09 Budget Proposal

• Would maintain TEFAP funding at FY08 level
• 140 million for commodities
• 50 million for administrative costs
• Would eliminate CSFP
• Provides 20 million for transitional benefits
• Maximum of 20/month (for 6 months) for elderly
  persons not in FSP.

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Farm Bill - General

• Both Houses of Congress have passed versions of a
  Farm Bill
• Currently in conference to work out the
  differences between the two bills
• Once completed, they will forward a bill for the
  Presidents signature

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Farm Bill - TEFAP

• Both versions would increase FY08 commodity funds
  from 140 to 250 million
• House version would adjust that amount for
  inflation for FY09 to FY12 by same percentage as
  the Thrifty Food Plan
• Senate version would make 140 million in TEFAP
  commodity funding permanent, but would make the
  additional 110 million available only for FY08
  to FY12
• Both versions would increase authorization for
  FY08 administrative funds from 60 to 100
  million
• Senate version would make this authorization
  permanent
• House version would not

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Farm Bill - TEFAP

• Senate version would
• Require submission of State plans every 3 years
  (vs. the current 4 years)
• Would allow use of TEFAP administrative funds to
  store and handle donations of wild game.
• Both versions would increase Section 32 purchases
  of specialty crops for use in domestic nutrition
  assistance programs
• Increase from 200 million per year to an average
  of 400 million over each of the next five years.

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Farm Bill - CSFP

• Both versions would reauthorize CSFP
• Senate version makes CSFP permanent
• House version does not
• Both versions would eliminate w-i-c priority over
  elderly

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Farm Bill - CSFP

• Income eligibility
• House version requires USDA to set maximum income
  eligibility standards
• Must not exceed 185 of poverty
• Standards must be same for w-i-c and elderly
• Senate version allows USDA to permit States to
  set maximum income eligibility standards for
  elderly, but only if funds are sufficient to
  support all States seeking to participate
• Must not to exceed 185 of poverty

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Regulations Update Part 250 Rewrite

• Proposed rule - Management of Donated Foods in
  CN Programs, NSIP and Charitable Institutions -
  published June 2006
• Received over 600 comments
• Mostly from schools, regarding flexibility in use
  of commodities by food service management
  companies
• Expect to publish final rule in near future

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Regulations Update Part 250 Rewrite

• Proposed rule - Revisions and Clarifications in
  Requirements for the Processing of Donated Foods
  - published in August 2006
• Received 39 comments
• Expect to publish final rule in near future

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Regulations Update Part 250 Rewrite

• Proposed rule on distribution and control of
  commodities currently being drafted
• Will be published after first 2 rewrites
  finalized
• Proposal will revise and clarify requirements to
  ensure donated foods are managed safely,
  efficiently and cost-effectively

23
HH Policy Memos Issued Since Last ACDA National
Conference

• FD-065 Nutrition Services Incentive Program
  (NSIP) Operations in FY08 and Subsequent Years
• Response to Older Americans Reauthorization
  Technical Corrections Act (the Act)
• Permits State and Area Agencies on Aging to
  receive USDA commodities as all or part of their
  NSIP grant
• DHHS will transfer NSIP funds when appropriated
  (vs. reimbursement at end of FY).
• Allows carry over of unused funds

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HH Policy Memos Issued Since Last ACDA National
Conference

• FD-066 Continuation of Commodity Assistance
  during a Human Pandemic
• Household feeding may be encouraged as
  alternative to congregate feeding, to minimize
  spread of disease
• Federal administrative requirements may be waived
  to ensure the continued operation of Federal
  programs
• State and local agencies encouraged to identify
  alternate distribution networks, in case of
  disruption to normal networks

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HH Policy Memos Issued Since Last ACDA National
Conference

• FD-069 Eligibility of Indian Tribal
  Organizations (ITOs) to Participate in TEFAP
• Per regulation, ITOs are precluded from serving
  as TEFAP State agencies
• However, ITOs are eligible to serve as TEFAP
  eligible recipient agencies
• FD-070 Implementation of Modifications to the
  TEFAP Allocation Formula (already discussed)

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HH Policy Memos Issued Since Last ACDA National
Conference

• FD-071 Setting Aside the Commodity Acceptability
  Reporting Requirement
• Waives requirement for FY08, in anticipation of
  permanently removing the requirement
• Recognizes that, although we must collect
  information regarding he acceptability of
  commodities, we already do so through
• ECOS
• Commodity complaint hotline
• Electronic communication between FNS and State
  and local agencies
• Meetings with States and local agencies
• Periodic reviews of commodity offerings

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HH Policy Memos Issued Since Last ACDA National
Conference

• FD-073 Rebates from the Economic Stimulus Act of
  2008 (the Act)
• Rebate checks cannot be treated as
• Income to determine eligibility, allotments, or
  any other purpose in TEFAP or CSFP
• A resource to determine eligibility or the amount
  of benefits to be received in CSFP (because use
  of resource limits is prohibited in CSFP)
• A resource to determine eligibility or the amount
  of benefits to be received in TEFAP (in any
  States that use resource limits to determine
  eligibility) in the month the check is received
  or for two months thereafter

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Income Eligibility Guidelines

• Should be published tomorrow (Tuesday)
• Our office will disseminate them as soon as they
  are published
• Delay due to different clearance process
• Will look for ways to streamline the process for
  next year
• One other major issue

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TEFAPs 25th!!!
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Some HistoryIn The Making

• TEFAP turned 25 on March 24, 2008
• We have the Proclamation to prove it!
• Federal government was incurring great costs
  while storing large amounts of surplus
  commodities
• To reduce costs and provide food assistance to
  the needy, President Reagan initiated the food
  distribution pilot that became TEFAP
• Model of a successful public-private partnership 
• Food for hundreds of thousands of the neediest

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USDA Update Household Programs

• For updates throughout the year, check the web at
  www.commodityfoods.usda.gov
• Your questions?