Commodity 

Procurement 

Program Overview

Jenny Babiuch, Senior Contracting Officer

Proteins, Grains, and Oilseeds Procurement Division

Dairy, Grain, and Oilseed Branch

Commodity Procurement Program
Commodity Procurement Mission

AMS Commodity Procurement facilitates the 

marketing of 100% domestic agricultural products 

through the purchase of food for International and 

Domestic nutrition assistance programs...feeding 

the hungry around the world.
Federal Procurement Program

Federal Acquisition Regulations (FAR)

Agriculture Acquisition Regulations (AGAR) This Photo by Unknown Author is licensed 

under CC BY-SA-NC
Products Purchased

Domestic Nutrition Programs International Nutrition Programs

Peanut Products Peanut Products

Oil Products Oil Products

Dry Beans Dry Beans

Peas/Lentils Peas/Lentils

Grain Products Grain Products

Rice Rice

Fruit Bulgur

Vegetables Corn Products

Livestock

Poultry

Fish

Dairy
Programs Supported

Domestic Nutrition Programs International Nutrition Programs

National School Lunch Program Food for Peace

Child and Adult Care Food Program McGovern-Dole Food for Education

Summer Food Service Program Food for Progress

Nutrition Services Incentive Program

The Emergency Food Assistance 

Program

Commodity Supplemental Food Program

Food Distribution Program on Indian 

Reservations
Types of Purchases

• Entitlement/Meal Package/Program Purchases

• Largely based on nutrition program recipient demand

• Procurement agent for USDA’s Food and Nutrition Service, U.S. Agency for International Development, USDA’s 

Foreign Agricultural Service and the Nutrition and Food Aid Programs they administer

• Relatively consistent year-to-year
Types of Purchases 1

• Section 32

o Clause 2 of Section 32 of the Act of August 24,1935: “encourage the domestic 

consumption”

o AMS analyzes market conditions and recipient needs – “good product at a good price”

o Typically distributed to Food Banks
Types of Purchases 2

• Disaster/Emergency

o Presidentially declared disasters within the United States or its territories

o Emergency food assistance around the world

o Conflict

o Natural disasters
Fiscal Year 2021 Dairy Purchases

Pounds and Totals:

AMS Dairy 410,805,445 $482,636,146.13

Schools 101,224,720 $176,202,389.67

Cheese 99,056,241 $173,812,460.05

Milk, UHT 381,427 $251,215.58

Yogurt 1,787,052 $2,138,714.04

Child/Adult Care Feeding 128,720 $252,436.32

Cheese 128,720 $252,436.32

Summer Feeding 1,094,865 $1,831,284.91

Cheese 1,018,580 $1,784,445.65

Milk, UHT 76,285 $46,839.26

Elderly (CSFP) 38,387,988 $45,859,203.21

Cheese 14,077,800 $24,273,675.37

Milk, Instant 3,714,048 $11,728,370.39

Milk, UHT 20,596,140 $9,857,157.45

Food Banks (TEFAP) 12,363,631 $9,767,064.39

Cheese 2,423,100 $4,278,163.91

Milk, Fluid 1,222,443 $389,318.11

Milk, UHT 8,718,088 $5,099,582.37

Indian Reservations (FDPIR) 1,723,617 $2,079,214.24

Butter 82,080 $170,574.55

Cheese 910,800 $1,564,504.92

Milk, Evaporated 111,537 $77,785.89

Milk, UHT 619,200 $266,348.88
Dairy Purchases with Section 32

• Section 32 can not be used for price supported 

commodities

• First purchase of dairy products under Section 32 

was in September 2016 – Cheese

• First fluid milk purchase by AMS was in September 

2018
New Type of Purchase – COVID RELIEF

• Due to the Global Pandemic, COVID 

Relief funds were granted to USDA for 

Food Purchase and Distribution 

Programs administered by AMS and 

FNS

• COVID Relief Purchases for DGO Branch FY 2021:

•

Commodity Pounds Dollars

Butter 225,720 $464,725.68

Cheese 17,164,590 $33,838,919.73

Milk, Evaporated 371,790 $306,644.95

Milk, Fluid 10,527,687 $3,116,675.34

Milk, Instant 119,808 $390,364.42

Milk, UHT 16,287,375 $8,374,997.84

Commodity Pounds Dollars

Cereal 19,923,742 $22,740,679.38

Corn 4,747,824 $2,050,937.22

Crackers 1,905,120 $4,492,454.40

Flour 10,837,700 $4,094,415.24

Oil 12,237,136 $10,068,338.35

Pasta 39,819,624 $25,546,099.22

Peanut 18,980,016 $27,596,209.03

Rice 28,745,400 $13,127,696.95

Tortillas 2,268,000 $2,142,986.40
Grain and Oilseed Purchases: Domestic Feeding Programs

AMS-Domestic 305,709,912 $244,070,146.81

Schools 29,615,422 $18,872,096.30

Food Banks (TEFAP)

94,679,330 $74,254,347.99

Elderly (CSFP) 40,696,470 $37,080,442.43

Indian Reservations (FDPIR) 1,134,395 $1,890,257.19

Summer Feeding 32,197 $46,701.11

Child/Adult Care Feeding 87,536 $66,485.60

COVID Relief 139,464,562 $111,859,816.19
AMS Team Effort

• CPP expertise is in Contracting

• Rely upon other AMS Programs for agricultural 

market expertise

• Dairy Graders 

• Federal Grain Inspection Service

• Livestock and Poultry

• Specialty Crops Division
AMS Team Effort 1

• Partnership with AMS Programs 

• Facilitate discussions with Industry

• Market research for new purchase programs

• New vendor outreach

• Expertise for specification/requirements development and modifications

• Economic analysis and documentation for Section 32 purchases

• Input on Independent Government Cost Estimates and Fair and 

Reasonable Pricing

• Quality Assurance

• Complaint resolution
DGO Contact List