Why The USDA Is Buying $20 Million Worth Of Cheese

By Taylor Killough

Posted August 30, 2016

Earlier this year, we reported on a surplus of cheese in the U.S. - the largest in over 30 years - thanks to increased dairy exports from the European Union and a weak Euro.

So what do you do with all that extra American cheese? You buy it.

Last week, the USDA announced it is spending $20 million on 11 million pounds of cheese, and distributing it to food banks and through various USDA nutrition programs.

Congress, the National Farmers Union and the American Farm Bureau requested that the USDA make the purchase.

The federal agency paints it as a win-win situation for people who rely on food banks, and well as dairy producers, who face a 35 percent drop in revenues.

"This commodity purchase is part of a robust, comprehensive safety net that will help reduce a cheese surplus that is at a 30-year high while, at the same time, moving a high-protein food to the tables of those most in need," said Agriculture Secretary Tom Vilsack.

"USDA will continue to look for ways within its authorities to tackle food insecurity and provide for added stability in the marketplace."