FNS Documents & Resources

In accordance with 7 CFR 250.30(1), a processor may. in most cases, substitute Department of Agriculture (USDA) donated foods with commercially purchased foods of U.S. origin, and of equal or better quality in all USDA purchase specifications than the donated food. The substitution option permits processors to conduct their business efficiently and provide finished end products to school food authorities (SFAs) and other recipient agencies in a timely manner.

In this policy memorandum, we clarify that the SFA may, in some cases, include bids for procurement of end products in its solicitation for procurement of commercial food products from commercial distributors, rather than conduct two separate solicitations. 

The purpose of this policy memorandum is to clarify requirements in the sale of processed end products through a commercial distributor under an "indirect discount" or "hybrid" sales system and in a modified form of such sales system previously approved by FNS.

On July 1, 2006, FNS implemented Policy Memorandum FD-061: Inbound Cheese to Further Processors, in order to alleviate the administrative burden on processors and state distributing agencies (SDAs) in continually reallocating pounds to individual recipient agencies (RAs) based on the variation between the published target truck weight and the actual pounds delivered by the USDA vendor. This policy memorandum revises the original FD-061.

The purpose of this policy memorandum is to provide guidance in ensuring compliance with requirements in Subpart D of 7 CFR Part 250 with respect to crediting for, and use of donated foods in contracts with food service management companies (FSMCs).

The attached memorandum is Food Distribution Policy Memo FD-110, which clarifies requirements in crediting for, and use of, USDA donated foods in contracts with food service management companies, and provides guidance to ensure compliance with such requirements in the first and final years of such contracts.

This final rule incorporates into the Senior Farmers’ Market Nutrition Program regulations, statutory provisions set forth in the Farm Bill of 2008. The three provisions include adding honey as an eligible food for purchase with SFMNP  benefits, prohibiting the value of SFMNP benefits from consideration as income or resources when determining eligibility for other programs under any federal, state or local law, and prohibiting the collection of state or local tax on a purchase of food with a benefit distributed under the SFMNP.

This document announces the approval date of the provisions contained in the final rule published Dec. 12, 2006 and amends the final rule to include the OMB Control Number assigned to the information collection burden.

This final rule implements the provision of the Farm Security and Rural Investment Act of 2002 that gives the Secretary of Agriculture the authority to promulgate regulations for the operation and administration of the Senior Farmers' Market Nutrition Program, thereby making it a permanent program rather than a competitive grant.

This rule proposes to revise and clarify requirements for the processing of donated foods, in order to incorporate processing options tested in demonstration projects, to more effectively ensure accountability for donated foods provided for processing, and to streamline current reporting and review requirements.