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Resource | Policy FD-40: Inventory Draw Down in USDA Foods Processing (Revised)

This memorandum provides clarification on the value pass through methods available under 7 CFR 250.36 and on the timing of processor inventory reductions of USDA Foods under each system.

07/16/2021
Resource | Guidance Documents Management of Donated Food Inventories at Processors

This memorandum addresses inventory limitations and requirements that USDA Foods processors must follow when manufacturing processed end products for use in child nutrition programs.

04/02/2019
Resource | Guidance Documents Market Basket Analysis when Procuring Program Goods and Modifying Contracted-For Product Lists

This memorandum provides guidance to state distributing agencies and recipient agencies on the use of market basket analysis in procuring processed end products for USDA Foods in Schools and commercial goods for the National School Lunch Program, School Breakfast Program, Summer Food Service Program, and Child and Adult Care Food Program. 

01/18/2018
Resource | Policy Value of USDA Donated Foods for Audits: Revised

The purpose of this audit guidance policy memorandum is to clarify the options available to state distributing agencies or recipient agencies in assigning value to USDA donated foods for audit purposes.

12/02/2016
Resource | Guidance Documents Alternative Value Pass-Through System Pilot Project under the Department of Defense Fresh Program

The revised policy memo requires supplemental reporting from processors and requires state verification of credits provided by the processor to the SFA. Processors wishing to continue participation in the pilot will have to sign the attached revised NPA amendment to extend their participation in the pilot.

08/22/2016
Resource | Policy Interagency Letter to Promote the Use of Career Pathways in Federal Education and Training Programs

Interagency Letter to Promote the Use of Career Pathways in Federal Education and Training Programs

04/28/2016
Resource | Guidance Documents Minimum Inventory Protection Requirements for Processors Participating in the National Processing Program

The purpose of this memorandum is to inform processors of minimum inventory protection requirements effective beginning in School Year 2014-2015.

03/21/2014
Resource | Guidance Documents USDA Foods Bone-in-Chicken Products

USDA Food and Nutrition Administration policy memo SP 26-2013, "Extending Flexibility in the Meat/Meat Alternate and Grains Maximums for School Year 2013-14" extends the flexibility regarding Meat/Meat Alternate (M/MA) maximums for SY 2013-13, allowing state agencies to assess compliance based on the minimum daily and weekly serving requirements only.  

03/07/2013
Resource | Guidance Documents Approval of End Products and Monitoring of End Product Sales

The purpose of this policy memorandum is to clarify a state distributing agency's (SDA) responsibilities regarding (1) the approval of end products for processing; and (2) monitoring of sales of such end products to school food authorities (SF A) in the National School Lunch Program (NSLP) by reviewing a processor's monthly performance report.

11/07/2012
Resource | Guidance Documents Substitution of Donated Foods in Advance of Purchase and Negative Inventories

In accordance with 7 CFR 250.30(1), a processor may. in most cases, substitute Department of Agriculture (USDA) donated foods with commercially purchased foods of U.S. origin, and of equal or better quality in all USDA purchase specifications than the donated food. The substitution option permits processors to conduct their business efficiently and provide finished end products to school food authorities (SFAs) and other recipient agencies in a timely manner.

05/30/2012
Page updated: June 02, 2026