[Federal Register Volume 69, Number 137 (Monday, July 19, 2004)]
[Notices]
[Pages 42963-42964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-16331]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Food Distribution Program: Value of Donated Foods From July 1, 
2004 Through June 30, 2005

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

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SUMMARY: This notice announces the national average value of donated 
foods or, where applicable, cash in lieu of donated foods, to be 
provided in school year 2005 (July 1, 2004 through June 30, 2005) for 
each lunch served by schools participating in the National School Lunch 
Program (NSLP), and for each lunch and supper served by institutions 
participating in the Child and Adult Care Food Program (CACFP). It also 
announces the national average value of donated foods to be provided in 
school year 2005 for each lunch served by commodity only schools.

EFFECTIVE DATE: July 1, 2004.

FOR FURTHER INFORMATION CONTACT: Dave Tuckwiller, Chief, Schools and 
Institutions Branch, Food Distribution Division, Food and Nutrition 
Service, U.S. Department of Agriculture, 3101 Park Center Drive, 
Alexandria, Virginia 22302 or telephone (703) 305-2254.

SUPPLEMENTARY INFORMATION: 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 1995 (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, 
2004 Through June 30, 2005

    This notice implements mandatory provisions of sections 6(c), 14(f) 
and 17(h)(1)(B) of the National School Lunch Act (the Act) (42 U.S.C. 
1755(c), 1762a(f), and 1766(h)(1)(B)). Section 6(c)(1)(A) of the Act 
establishes the national average value of donated food assistance to be 
given to States for each

[[Page 42964]]

lunch served in NSLP at 11.00 cents per meal. Pursuant to section 
6(c)(1)(B), this amount is subject to annual adjustments on July 1 of 
each year to reflect changes in a three-month average value of the 
Price Index for Foods Used in Schools and Institutions for March, 
April, and May each year (Price Index). Section 17(h)(1)(B) of the Act 
provides that the same value of donated foods (or cash in lieu of 
donated foods) for school lunches shall also be established for lunches 
and suppers served in CACFP. 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 CACFP 
(7 CFR part 226) shall be 17.25 cents for the period July 1, 2004 
through June 30, 2005.
    The Price Index is computed using 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 weighted using the 
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 average value of the Price Index for 
March, April and May each year. The three-month average of the Price 
Index increased by 10 percent from 139.09 for March, April and May of 
2003 to 152.98 for the same three months in 2004. 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, 2004 through June 
30, 2005 will be 17.25 cents per meal. This is an increase of 1.50 
cents from the school year 2004 (July 1, 2003 through June 30, 2004) 
rate.
    Section 14(f) of the Act provides that commodity only 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(c) 
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 per meal of this value in cash for processing and handling 
expenses related to the use of such commodities.
    Commodity only schools are defined in section 12(d)(2) of the Act 
(42 U.S.C. 1760(d)(2)) 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 school year 2005, commodity only schools shall be 
eligible to receive donated food assistance valued at 38.25 cents for 
each free, reduced price, and paid lunch served. This amount is based 
on the sum of the section 6(c) level of assistance announced in this 
notice and the adjusted section 4 minimum national average payment 
factor for school year 2005. The section 4 factor for commodity only 
schools does not include the two cents per lunch increase for schools 
where 60 percent of the lunches served in the school lunch program in 
the second preceding school year were served free or at reduced prices, 
because that increase is applicable only to schools participating in 
NSLP.

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

    Dated: July 13, 2004.
Jerome A. Lindsay,
Associate Administrator.
[FR Doc. 04-16331 Filed 7-16-04; 8:45 am]
BILLING CODE 3410-30-P