USDA Food Box 3.0: What needs to happen
One of the most controversial federally subsidized food programs over the past year has been the Farmers to Families Food Box Program. The program was put in place by the U.S. Department of Agriculture about a year ago because the foodservice supply chain had been broken. Farmers were left with nowhere to go with the product that they grew, and distributors who delivered product the last mile had lost 80% or more of their revenue overnight.
On top of this economic concern, the USDA attempted to remedy the humanitarian concern that had manifested in the form of millions of people who had become food insecure due to the loss of a job. The USDA collaborated with the produce industry and put a massive program together in extremely short order that helped alleviate some of these issues.
Love it or not, there is no doubt that the Farmers to Families Food Box Program pumped federal dollars into the produce supply chain that helped the industry overall.
The program began as a type of economic stimulus program aimed at assisting businesses that may otherwise soon have collapsed. It happened to have the added benefit of feeding the growing number of jobless citizens.
Love it or not, there is no doubt that the Farmers to Families Food Box Program pumped federal dollars into the produce supply chain that helped the industry overall.
When the program launched, no one quite knew what to expect, and bid prices were all over the board with some companies making more than their fair share. Some companies should not have even been qualified to bid in the first place and fell flat on their face when it came time to perform.
In response to some of the issues in the earlier rounds of the program, USDA changed the specs of the box to include a combination of produce, dairy and meat, all while putting pressure on the cost of the box. The price and the quality of the boxes that have been purchased through this program have continually declined because of this undue pressure on cost.
Now that the Biden administration has taken charge and Agriculture Secretary Tom Vilsack has the reins of the USDA, what remains in store for the Farmers to Families Food Box Program after April 30?
The price and the quality of the boxes that have been purchased through this program have continually declined because of this undue pressure on cost.
No one is certain, but we do not need to reinvent the wheel here; we just need to adjust the alignment. Specifically, there are three things that need adjusted:
- A produce-only box. Produce is the most desirable of the commodities, the most beneficial, and the least accessible for nutritionally insecure people. Separate the box contents.
- A value-based bidding process rather than a low-cost bidding process. Cost-based programs will continue to provide low-quality boxes. It will also inhibit smaller farms and distributors from participating in the program, thereby reducing the economic impact the program was intended to have.
- Moderate the size and scale of contracts to give incentive for local distribution. Help the businesses that really need help – small, regional foodservice distributors and farms who have been disproportionally affected by the pandemic. Do not give outsized contracts to companies that outsource all the work.
The issues that created this program have not gone away. Now is not the time to dismantle a program that gives life to people and small businesses.
Alex DiNovo is president and COO of DNO Produce group of companies, Columbus, Ohio.
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