Farm to Food Bank Legislation

A broad coalition of New York legislators, farmers, anti-hunger and environmental advocates asked Governor Cuomo to step up to the dinner plate and fund the Farm to Food Bank bill (S.1606/A.6192) in the final New York State budget. The group held a joint press conference on the bill at the Capitol in Albany.The bipartisan legislation, which has tremendous support in the legislature, would provide a refundable tax credit to farmers of 25% of the wholesale value of donated food up to $5,000 annually. The money would partially offset the costs of labor, packaging and transportation needed to get fresh food from the fields to regional food banks and pantries across the state to benefit New Yorkers in need.

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USDA announces cheese purchase to benefit food banks

Agriculture Secretary Tom Vilsack recently announced that the U.S. Department of Agriculture (USDA) is offering to purchase $20 million of cheddar cheese to reduce a private cheese surplus that has reached record levels, while assisting food banks and other food assistance recipients. 

While USDA projects dairy prices to increase throughout the rest of the year, many factors including low world market prices, increased milk supplies and inventories, and slower demand have contributed to a sluggish marketplace for dairy producers and caused dairy revenues to drop 35 percent over the past two years. Section 32 of the Agriculture Act of 1935 authorizes USDA to purchase surplus food to benefit food banks and families in need through its nutrition assistance programs.

“America’s farming families are being called on to demonstrate their world-famous resourcefulness and resilience in the face of this current market downturn, and USDA is making use of every tool that we have to help them,” said Vilsack. “For dairy farmers, this has included $11.2 million in payments in August through the Dairy Margin Protection Program, in addition to the surplus purchase offers. While our analysis predicts the market will improve for these hardworking men and women, reducing the surplus can give them extra reassurance while also filling demand at food banks and other organizations that help our nation’s families in need. Farmers at other points in the supply chain are also receiving a boost with over $7 billion in Agriculture Risk Coverage and Price Loss Coverage payments for the 2015 crop year, which by design kick in when times are tough. As always, we continue to watch market conditions and will explore opportunities for further assistance in the coming months. For producers challenged by weather, disease and falling revenue, we will continue to ensure the availability of a strong safety net to keep them farming or ranching.” 

A solicitation will be issued shortly, and cheese deliveries to food banks and other food assistance recipients are expected to occur beginning in March 2017.

Food banks to receive cheese from USDA purchase

US dairy farmers are facing record-levels of excess cheese, so USDA is purchasing about $20 million worth of cheese from dairy farmers and giving it to food banks across the country. (The dairy industry asked USDA to buy $150 million worth of cheese.) This is good news for dairy farmers who have seen falling prices and excess cheese in storage and for food banks, who say that cheese is popular but ‘hard to get.’ But, while cheese is in high demand at food banks, high dairy consumption is linked to obesity, diabetes, and inflammation. The USDA distribution comes at a time when some food banks are refusing low-nutrient, high-calorie foods and encouraging their retail partners to donate fruits and vegetables instead.

Source: NPR, 8/26/16, Say Cheese

NEW YORK CONSIDERING TAX CREDIT FOR FOOD DONATIONS

Last year New York farmers give 12 million of pounds of apples, squash, corn, and other agricultural products to the state's food banks. Now, legislation awaiting action by Governor Cuomo would offer farmers a tax break of up to $5,000 a year for donations to the regional food banks that serve hundreds of food pantries, soup kitchens, and homeless shelters around the state. The federal government already offers a tax credit to farmers who donate goods to food banks. Several states have created their own tax credits, including California, Oregon and Colorado.

Source: Fox Business News, 8/20/16, Tax Credits