2014 Farm Bill

Page 1

UNITED STATES DEPARTMENT OF AGRICULTURE

FARM SERVICE AGENCY FACT SHEET August 2014

DAIRY PRODUCT DONATION PROGRAM

OVERVIEW

The Dairy Product Donation Program (DPDP) is 

authorized by the 2014 Farm Bill through Dec. 31, 

2018. The DPDP addresses low margins for dairy 

operations by using Commodity Credit 

Corporation (CCC) funds to purchase dairy 

products for donation to public and private 

nonprofit organizations that provide nutrition 

assistance to low-income populations. Purchases are 

only made by USDA during periods of low margins. 

No enrollment is required for dairy operators to 

benefit from the DPDP. The Farm Service Agency 

(FSA) and the Food and Nutrition Service (FNS) 

will administer DPDP if ever triggered.

COMMENCEMENT OF DPDP 

PURCHASES

DPDP purchases begin when FSA determines that 

the actual dairy production margin has been $4 or 

less per hundredweight (cwt) for each of the preceding two months. The actual dairy production margin 

that applies to all participating dairy operations will 

be calculated on a national basis and is the amount 

by which the all-milk price exceeds the average feed 

cost for dairy producers. All calculations will be 

made on a per cwt basis. 

TERMINATION OF DPDP PURCHASES

DPDP purchases terminate if: 

1) Purchases were made for the preceding three 

months, even if the actual dairy production margin 

remains $4 or less per cwt of milk.

2) The actual dairy production margin has been 

greater than $4 per cwt of milk for the immediately 

preceding month.

3) The actual dairy production margin has been $4 

or less, but more than $3 per cwt for the 

immediately preceding month and during the same 

month:

(i) The price in the United States for cheddar cheese 

was more than 5 percent above the world price, or

(ii) The price in the United States for non-fat dry 

milk (NDM) was more than 5 percent above the 

world price of skim milk powder.

4) The actual dairy production margin has been $3 

or less per cwt of milk for the immediately 

preceding month and during the same month:

(i) The price in the United States for cheddar cheese 

was more than 7 percent above the world price; or

(ii) The price in the United States for NDM was 

more than 7 percent above the world price of skim 

milk powder.

DPDP PURCHASE AND DISTRIBUTION

The Secretary of Agriculture delegates the 

authority to determine DPDP dairy product 

purchase and distribution methods to FSA in 

consultation with FNS. FSA and FNS will 

determine the types and quantities of products that 

will be purchased in consultation with public and 

private nonprofit organizations and state and local 

agencies eligible to receive such products.

After appropriate consultations, FSA will 

determine the quantity of purchases to be made 

for a qualifying month. In making the determination, FSA will also take into account dairy product 

market conditions, logistical considerations involved 

in the efficient and immediate distribution of the 

dairy products, the potential effect on markets and 

margins, and time constraints of DPDP. FNS will be 

responsible for the distribution of DPDP products. 

Quantities approved for a month will not exceed the 

amount of product that is expected to be used within 

60 days. 
FACT SHEET

DPDP August 2014

FSA will try to complete all purchases within one 

month and will work with FNS to achieve delivery 

of products to recipient agencies within 90 days. 

Dairy products purchased with the DPDP cannot be 

stored by or for CCC, nor can CCC incur storage 

costs on behalf of recipient agencies.

Dairy products purchased under the DPDP will be 

at the prevailing open market price for like dairy 

products or at the price determined by normal FNS 

food procurement methods.

Public and private nonprofit organizations 

receiving donated dairy products under the DPDP 

will be held responsible for the proper handling and 

distribution.

The U.S. Department of Agriculture (USDA) prohibits 

discrimination against its customers, employees, and 

applicants for employment on the bases of race, color, 

national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, 

marital status, familial or parental status, sexual orientation, or all or part of an individual’s income is derived 

from any public assistance program, or protected 

genetic information in employment or in any program or 

activity conducted or funded by the Department. (Not all 

prohibited bases will apply to all programs and/or employment activities.) Persons with disabilities, who wish 

to file a program complaint, write to the address below 

or if you require alternative means of communication 

for program information (e.g., Braille, large print, audiotape, etc.) please contact USDA’s TARGET Center at 

(202) 720-2600 (voice and TDD). Individuals who are 

deaf, hard of hearing, or have speech disabilities and 

wish to file either an EEO or program complaint, please 

contact USDA through the Federal Relay Service at 

(800) 877-8339 or (800) 845-6136 (in Spanish). 

If you wish to file a Civil Rights program complaint 

of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://

www.ascr.usda.gov/complaint_filing_cust.html, or at 

any USDA office, or call (866) 632-9992 to request the 

form. You may also write a letter containing all of the 

information requested in the form. Send your completed 

complaint form or letter by mail to U.S. Department of 

Agriculture, Director, Office of Adjudication, 1400 Independence Avenue, S.W., Washington, D.C. 20250-9410, 

by fax (202) 690-7442 or email at program.intake@

usda.gov. 

USDA is an equal opportunity provider and employer.

Page 2