Farmers to Families Food Box Program Update – Jan…
The USDA recently announced a fifth round of purchases for the Farmers to Families Food Box Program, authorizing an additional $1.5 billion in purchases. The additional funding to the Farmers to Families Food Box Program was included within the COVID-19 relief bill passed in late December. The USDA is expected to award contracts by mid-January for deliveries of food boxes through the end of April.
The Farmers to Families Food Box Program was created in Apr ’20, originally authorizing purchases of up to $3 billion in fresh produce, dairy and meat products. Additional funding authorization was included within subsequent rounds of the program. Total purchases through the first four rounds of the Farmers to Families Food Box Program have totaled an estimated $4.03 billion through the end of 2020. Purchases made through the first four rounds of the Farmers to Families Food Box Program were the equivalent of an estimated $537 million per month, compared to an estimated $443 million per month in new funding contained within round five of the program.
More than 132 million food boxes have been delivered thus far under the Farmers to Families Food Box Program. Equal amounts of fresh produce, dairy and meat products are expected under the program. Dairy purchases through the first four rounds of the program have included fluid milk, butter, cheese and yogurt. An amendment to the Basic Ordering Agreements was issued within the latest round of the program to include seafood products and a large variety of cheeses including Blue, Brick, Colby, Edam, Gorgonzola, Gouda, Gruyere, Monterey, Munster, Parmesan, Provolone and Romano, in addition to cheddar and other cheese already specified in the solicitation. There is speculation that a number of additional dairy products including cottage cheese, cream cheese and sour cream will be added as purchase options within the fifth round of the program.
The fifth round of purchases will add to the approximately $1.34 billion in dairy products already purchased since mid-May. Assuming an equal split in funds allocated to fluid milk, butter, cheese and yogurt, total estimated purchases through the first four rounds of the program amounted to an estimated 134 million gallons of fluid milk (assuming a price of $2.50/gallon), 112 million pounds of butter (assuming a retail price of $3.00/lb), 84 million pounds of cheese (assuming a retail price of $4.00/lb) and 244 million pounds of yogurt (assuming a retail price of $1.50/lb).
More than 132 million food boxes have been delivered thus far under the Farmers to Families Food Box Program. Equal amounts of fresh produce, dairy and meat products are expected under the program. Dairy purchases through the first four rounds of the program have included fluid milk, butter, cheese and yogurt. An amendment to the Basic Ordering Agreements was issued within the latest round of the program to include seafood products and a large variety of cheeses including Blue, Brick, Colby, Edam, Gorgonzola, Gouda, Gruyere, Monterey, Munster, Parmesan, Provolone and Romano, in addition to cheddar and other cheese already specified in the solicitation. There is speculation that a number of additional dairy products including cottage cheese, cream cheese and sour cream will be added as purchase options within the fifth round of the program.
The fifth round of purchases will add to the approximately $1.34 billion in dairy products already purchased since mid-May. Assuming an equal split in funds allocated to fluid milk, butter, cheese and yogurt, total estimated purchases through the first four rounds of the program amounted to an estimated 134 million gallons of fluid milk (assuming a price of $2.50/gallon), 112 million pounds of butter (assuming a retail price of $3.00/lb), 84 million pounds of cheese (assuming a retail price of $4.00/lb) and 244 million pounds of yogurt (assuming a retail price of $1.50/lb).