[Federal Register Volume 60, Number 129 (Thursday, July 6, 1995)]
[Notices]
[Pages 35172-35173]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16566]



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DEPARTMENT OF AGRICULTURE
Food and Consumer Service


Food Distribution Program; Value of Donated Foods from July 1, 
1995 to June 30, 1996

AGENCY: Food and Consumer Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the value of donated foods or, where 
applicable, cash in lieu thereof to be provided in the 1996 school year 
for each lunch served by schools participating in the National School 
Lunch Program (NSLP) or by commodity schools and for each lunch and 
supper served by institutions participating in the Child and Adult Care 
Food Program.

EFFECTIVE DATE: July 1, 1995.

FOR FURTHER INFORMATION CONTACT: David R. Seger, Section Head, 
Institutional Programs Section, Policy and Program Development Branch, 
Food Distribution Division, Food and Consumer Service, U.S. Department 
of Agriculture, 3101 Park Center Drive, Alexandria, Virginia 22302-1594 
or telephone (703) 305-2660.

SUPPLEMENTARY INFORMATION:

Classification

    These programs are listed in the Catalog of Federal Domestic 
Assistance under Nos. 10.550, 10.555, and 10.558 and are subject to the 
provisions of Executive Order 12372, which requires intergovernmental 
consultation with State and local officials. (See 7 CFR part 3015, 
subpart V, and final rule related notice published at 48 FR 29114, June 
24, 1983.)
    This notice imposes no new reporting or recordkeeping provisions 
that are subject to Office of Management and Budget review in 
accordance with the Paperwork Reduction Act of 1980 (44 U.S.C. 3507). 
This action is not a rule as defined by the Regulatory Flexibility Act 
(5 U.S.C. 601-612) and thus is exempt from the provisions of that Act. 
This notice has been determined to be exempt under Executive Order 
12866.

National Average Minimum Value of Donated Foods for the Period July 1, 
1995 Through June 30, 1996

    This notice implements mandatory provisions of sections 6(e), 14(f) 
and 17(h)(1) of the National School Lunch Act (the Act) (42 U.S.C. 
1755(e), 1762a(f), and 1766(h)(1)). Section 6(e)(1)(A) of the Act 
establishes the national average value of donated food assistance to be 
given to States for each lunch served in NSLP at 11.00 cents per meal. 
Pursuant to section 6(e)(1)(B), this amount is subject to annual 
adjustments as of July 1 of each year to reflect changes in the Price 
Index for Food Used in Schools and Institutions. Section 17(h)(1) of 
the Act provides that the same value of assistance in donated foods for 
school lunches shall also be established for lunches and suppers served 
in the Child and Adult Care Food Program. Notice is hereby given that 
the national average minimum value of donated foods, or cash in lieu 
thereof, per lunch under NSLP (7 CFR part 210) and per lunch and supper 
under the Child and Adult Care Food Program (7 CFR part 226) shall be 
14.25 cents for the period July 1, 1995 through June 30, 1996.
    The Price Index for Food Used in Schools and Institutions is 
computed on the basis of five major food components in the Bureau of 
Labor Statistics' Producer Price Index (cereal and bakery products; 
meats, poultry and fish; dairy products; processed fruits and 
vegetables; and fats and oils). Each component is assigned a 
proportional value using the appropriate relative weight as determined 
by the Bureau of Labor Statistics. The value of food assistance is 
adjusted each July 1 by the annual percentage change in a three-month 
simple average value of this Price Index for March, April and May. The 
three-month average of the Price Index decreased by 2.00 percent from 
126.83 for March, April and May of 1994 to 124.29 for the same three 
months in 1995. When computed on the basis of unrounded data and 
rounded to the nearest one-quarter cent, the resulting national average 
for the period July 1, 1995 through June 30, 1996 will be 14.25 cents 
per meal. This is a decrease of 0.25 cents from the school year 1995 
rate.
    Section 14(f) of the Act provides that commodity schools shall be 
eligible to receive donated foods equal in value to the sum of the 
national average value of donated foods established under section 6(e) 
of the Act and the national average payment established under section 4 
of the Act (42 U.S.C. 1753). Such schools are eligible to receive up to 
5 cents of this value in cash for processing and handling expenses 
related to the use of such foods.
    Commodity schools are defined in section 12(d)(7) of the Act (42 
U.S.C. 1760(d)(7)) as ``schools that do not participate in the school 
lunch program under this Act, but which receive commodities made 
available by the Secretary for use by such schools in nonprofit lunch 
programs.''
    For the 1996 school year, commodity schools shall be eligible to 
receive donated food assistance valued at 31.50 cents for each lunch 
served. This amount is based on the sum of the section 6(e) level of 
assistance announced in this notice and the adjusted section 4 minimum 
national average payment factor for school year 1996. The section 4 
factor for commodity schools does not include the two cents per lunch 
increase for schools where 60 percent of the lunches were served in the 
second preceding year free or at reduced prices, since that increase is 
applicable only to schools participating in the National School Lunch 
Program. While the level of section 6(e) assistance has decreased, an 
equal increase has occurred in the section 4 payment factor, thus 
leaving the per meal assistance level for commodity schools unchanged 
from the previous year.
    Prior to school year 1995, the 6(e) level of assistance and the 
assistance level for commodity schools, which includes 6(e) support, 
were final rates not subject to adjustment. However, Section 103 of the 
Healthy Meals for Healthy Americans Act of 1994, (Public Law 103-448), 
which became effective October 1, 1994, amended section 6 of the 
National School Lunch Act by adding a new paragraph (g), which mandates 
that not less than 12 percent of the assistance provided under sections 
4, 6, and 11 of the Act be in the form of commodity assistance, 
including cash in lieu of commodities and administrative costs for 
commodity procurement of commodities under section 6. In school year 
1995, the announced rate generated commodity assistance at a level that 
exceeded the 12-percent mandate. In the event that the rate of $.1425 
announced in this Notice fails to meet the 12-percent requirement, the 
rate will be retroactively adjusted upward, and the additional 
commodities will be delivered to States during the first quarter of the 
next school year. 

[[Page 35173]]


Cash in Lieu Payments--Value of Donated Commodities for School Year 
1995

    Prior to October 1, 1994, section 6(b) of the Act (42 U.S.C. 
1755(b)) required the Secretary of Agriculture by June 1 of each school 
year to estimate the value of agricultural commodities and other foods 
that will be delivered to States during that school year. If the 
estimated value was less than the total level of commodity assistance 
authorized under section 6(e) of the Act, the Secretary was in past 
years required by July 1 of that school year to pay to each State 
educational agency funds equal to the difference between the value of 
programmed deliveries and the total level of authorized assistance for 
each State.
    However, section 102 of the Healthy Meals for Healthy Americans Act 
of 1994, amended section 6(b) of the Act by extending the delivery date 
of commodities to each State participating in the NSLP, until September 
30 of the following school year. The commodity delivery date extension 
eliminates the need to pay States cash in lieu of commodities, 
effective with school year 1995.

    Authority: Sections 6(e)(1)(A) and (B), 14(f) and 17(h)(1) of 
the National School Lunch Act, as amended (42 U.S.C. 1755(e)(1)(A) 
and (B), 1762a(f), and 1766(h)(1)).

    Dated: June 29, 1995.
William E. Ludwig,
Administrator.
[FR Doc. 95-16566 Filed 7-5-95; 8:45 am]
BILLING CODE 3410-30-U