USDA Purchasing $50 Million of Milk

The Department of Agriculture this week announced it will purchase $50 million worth of fluid milk to distribute to U.S. food banks. USDA said it will authorize the expenditure of $50 million in Section 32 funds to purchase a range of consumer-friendly milk varieties, including whole, 2 percent, 1 percent and skim. The agency will purchase the milk from approved vendors, and distribute the product, an estimated 12-15 million gallons, depending on the prices agreed to by USDA and its suppliers, to food assistance organizations such as Feeding America. The action, which is similar to product purchases as part of aid packages to farmers, is not part of the trade aid package announced by USDA last month. USDA has yet to release any details about that effort, but the $12 billion budget for that assistance, coming from Section 5 of USDA’s spending authority, is distinct from the Section 32 funds being used for this new milk purchase program. The National Milk Producers Federation applauded the announcement, noting that milk is in high demand at food banks.