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Washington Update - May 2002

May 2002

In This Issue:
• TEFAP reauthorized in Farm Bill
• Authorization levels for distribution increased
• A glut of food, but no money to move it

TEFAP reauthorized in Farm Bill

On May 8, 2002, the U.S. Senate gave final approval to the Food Security and Rural Investment Act of 2002, commonly known as the Farm Bill. The legislation will be sent to President Bush, who has said he will sign it.
Section 4216 of the bill reauthorizes The Emergency Food Assistance Program (TEFAP) for six years, through fiscal year 2007. This provision increases the amount of Food Stamp Program appropriations that must be spent to purchase commodities for TEFAP from $100 million per year to $140 million per year, effective in fiscal year 2002. As a result of this language, the U.S. Department of Agriculture (USDA) will be increasing TEFAP entitlements to states by $40 million this year.

Authorization levels for distribution increased
The Farm Bill, in Section 4204, also reauthorizes funding for state and local costs incurred in the operation of TEFAP, from fiscal year 2003 through fiscal year 2007. This provision increases the amount that can be appropriated from $50 million to $60 million per year and re-names this category of funding from “administrative” to “storage” and “processing.” The wording of this section confirms, through the addition of a specific reference, that these funds can be used for allowable costs incurred in connection with foods collected through gleaning.

A glut of food, but no money to move it
Although the Farm Bill has successfully raised funding levels for TEFAP purchases and, depending on appropriations, for distribution, the outcome is a mixed blessing for the program. Although additional food will be offered to states this year, there is no certainty that it will be accepted, as funds to distribute TEFAP food are already in short supply. California is expected to run out of administrative funds in the very near future and may not receive additional money until October, at the beginning of fiscal year 2003.
In addition to the increased entitlement for the regular program, this has been a monumental year for bonus commodities, products that USDA purchases for “emergency surplus removal” because there are excess supplies or to provide assistance to producers who face difficult economic times due to low prices. For example, USDA announced last month that it would be buy $10 million of egg products and $6 million of catfish for distribution through federal feeding and nutrition programs.
Furthermore, the Farm Bill requires USDA to spend $200 million on specialty crops – primarily fruits and vegetables – for domestic feeding programs. One quarter of that amount, or $50 million, is designated for school food programs, but the remainder could be made available to TEFAP.
The Food Distribution Division within USDA’s Food and Nutrition Service is very concerned about states’ ability to absorb this glut of food and is exploring every possibility for finding funds that can be used for storage and distribution purposes.

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WASHINGTON UPDATE is published for the TEFAP Alliance by Weinberg & Vauthier Consulting, 419 West Broad Street, Suite 204, Falls Church, VA 22046; telephone: (703) 532-5700; fax: (703) 532-5780; email: zyweinberg@earthlink.net.

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