Exhibit_1_-_Comparison_of_Operations_Features.pdf

Exhibit 1: Comparison of Operations Features

COMPARISON OF OPERATIONS FEATURES

OPERATIONAL

FEATURE

COMMODITY DONATION PROGRAM COMMODITY LETTER OF CREDIT (CLOC)

Purchasing Agent Central decision-making by USDA

USDA purchases based on reported needs from States

Combined central and local decision-making by USDA and local school district

School Food Authority (SFA) purchases

Form of Commodity School district receives USDA Foods through State Distributing Agency (SDA)

CLOCs issued by USDA at various times throughout the school year

SFA receives products ordered with CLOC

Level of Support

Calculation Entitlement earned by State at annual meal rate per eligible National School Lunch

Program (NSLP) meal served

School district receives prorated share of

USDA Foods delivered to State

SY2015 meal rate: $0.3044

Entitlement earned by SFA at annual meal rate per eligible NSLP meal served

School district receives CLOCs to purchase commodities equal to entitlement

SY2015 meal rate: $0.3044

Frequency of

Receipt Periodic deliveries of commodities

Schedule varies by State and commodity

CLOC issuance and cash advance tied to

USDA purchase plan

36% first quarter, 36% second quarter, 21% third quarter, 7% fourth quarter

Restrictions Commodities received by State in form acquired by USDA

Commodities may, at State’s discretion, be processed into more usable forms

Time of deliveries determined by State orders, USDA delivery schedules, and intra-

State distribution system

CLOCs apply to food products containing the stated commodity in whole or in part

Value charged against CLOC limited to value of the specified commodity ingredient

Must be used within stipulated time period

Products must be of domestic origin

Bonus Commodities School districts can order “as much as can be used without waste”

Delivery through SDAs

Schools districts can order “as much as can be used without waste”

Delivery through SDAs