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Rules and Regulations
Federal Register Vol. 86, No. 167
Wednesday, September 1, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

Erin Taylor, Director, Order Formulation and Enforcement, AMS Dairy Program, USDA; 1400 Independence Avenue SW, Room 2973S, Washington, DC 20250;
telephone: 202 7204392; email: DDP@
usda.gov; web address:
www.ams.usda.gov/ddp.

FOR FURTHER INFORMATION CONTACT:

Section 762 of the Consolidated Appropriations Act of 2021 CAA Pub. L. 116260
authorizes the Secretary of Agriculture Secretary to establish a program to reimburse dairy organizations for donated dairy products to non-profit organizations for distribution to recipient individuals and families. The Secretary delegated authority to establish and administer this program to the Agricultural Marketing Service AMS. This rule outlines the provisions of the new Dairy Donation Program DDP codified at 7 CFR part 1147.
Program provisions are intended to encourage the donation of dairy products and to prevent and minimize food waste. The DDP is an additional dairy donation program that overlays on existing USDA dairy milk donation activities such as the Milk Donation Reimbursement Program MDRP. The MDRP was established as part of the 2018 Farm Bill to facilitate the donation of fluid milk products and avoid food waste. The program was funded for $9
million in fiscal year 2019, and $5
million per fiscal year thereafter. DDP
and MDRP are separate from USDA
purchase programs. The donation program provides for reimbursement of certain costs for donations made between two private entities. USDAs TEFAP and Section 32 are done through a bid process where USDA purchases the product and arranges for delivery to the distribution point.
This rule also amends provisions of the MDRP codified at 7 CFR part 1146, where appropriate, to gain administrative efficiencies and lessen the burden for entities participating in the two programs. DDP and MDRP are separate and distinct from the USDA
safety net program Dairy Margin Coverage, indemnity and disaster assistance programs, risk management tools through the public-private partnership of the Federal Crop Insurance Program, or USDA purchases of commodities, which may include dairy products depending on the market
SUPPLEMENTARY INFORMATION:

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service 7 CFR Parts 1146 and 1147
Doc. No. AMSDA210013
RIN 0581AE00

Establishment of a Dairy Donation Program Agricultural Marketing Service, USDA.
ACTION: Interim final rule; request for comments.
AGENCY:

This rule establishes the Dairy Donation Program as required by the Consolidated Appropriations Act of 2021. Under the program, eligible dairy organizations that account to a Federal milk marketing order and incur a qualified expense related to certain dairy product donations may apply for and receive reimbursements for those donations. The program is intended to facilitate donation of eligible dairy products and prevent and minimize food waste.
DATES:
Effective Date: This interim final rule is effective September 2, 2021 and expires September 1, 2023, unless extended by notification in the Federal Register.
Public Comment Date: Public comments on this interim final rule must be submitted on or before November 1, 2021.
Information Collection Comment Date: Pursuant to the Paperwork Reduction Act, comments on the information collection burden must be received by November 1, 2021.
ADDRESSES: Comments can be submitted online at www.regulations.gov.
Comments received will be posted without change, including any personally identifying information provided. Comments will be made available via the internet at www.regulations.gov.

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conditions and demand from school lunch or nutrition programs.
Background In 2020, the COVID19 pandemic disrupted dairy supply chains and displaced significant volumes of milk normally used in food service channels.
This led to milk being dumped or fed to animals across the United States; AMS
estimates that the volume of milk dumped due to pandemic-related supply chain issues was almost triple what is typically observed during normal market conditions.1 At the same time, amidst surging unemployment and economic hardship nationwide, an increasing number of individuals have been in need of nutrient-dense foods such as dairy products. Throughout 2020 and 2021, milk and dairy products have been in food donations authorized under the Coronavirus Aid, Relief, and Economic Security Act CARES and through the Commodity Credit Corporation CCC. In December 2020, Congress also authorized an additional $400 million until expended to establish the DDP, designed to encourage the timely and efficient distribution of dairy products to families and individuals while reducing food waste.
While the DDP is intended to assist in balancing the supply chain during the pandemic recovery, it also will provide the benefit of creating an incentive to donate dairy products during the normal spring flush of milk production.
During normal marketing years prepandemic, daily milk production in the spring averaged 6 to 7 percent more than in the lower production months of the fall.2 Economic Research Service ERS 2019 food security data estimates that 10.5 percent of U.S. households were food insecure at some time during 2019.3 ERS 2020 data has not been released, but it is reasonable to assume food insecurity was higher in 2020
because of high unemployment and nationwide economic hardship. The United States remains in the midst of the recovery, and even when 1 USDA Federal Milk Marketing Order Statistics, Other Use Volumes, March and April, 2015 through 2021.
2 USDA, National Agricultural Statistics Service, Monthly Milk Production data, 2012 through 2020.
3 Trends in U.S. Food Security, 2019; Update for September 9, 2020. https www.ers.usda.gov/
topics/food-nutrition-assistance/food-security-inthe-us/interactive-charts-and-highlights/
childtrends, accessed August 23, 2021.

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