Public Policy

FY 2001 Farm Aid Package Update
In July 2001, the Senate Agriculture, Nutrition and Forestry Committee approved S. 1246, the "Emergency Agricultural Assistance Act of 2001." Included in this $7.4 billion farm aid package was $10 million to cover the direct and indirect costs related to the processing, transportation and distribution of commodities through TEFAP.

The Senate action follows on the heels of the House, which passed H.R. 2213, the "Crop Year 2001 Agricultural Economic Assistance Act," on June 26th. The House-passed bill provides $5.5 billion in aid to farmers and also includes $10 million for FY 2001 TEFAP administrative costs.

Under S. 1246 and H.R. 2213, the $10 million for TEFAP administrative costs would be distributed to states based on each state's population of low-income and unemployed persons, as compared to national statistics. Because the two proposals provide supplemental funding for FY 2001, states would be required to obligate the new TEFAP storage and distribution funds by September 30, 2001.

This increased funding provided for TEFAP administrative costs is the direct result of the many letters and calls made by food banks to their Members of Congress, urging them to provide sufficient funding for the storage and distribution of federal commodities. In addition, a number of food banks made a strong case for increased TEFAP administrative costs in testimony before the Congress.