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Why Did They Stop Government Cheese?

Published in Food Policy History 3 mins read

Government cheese distribution was discontinued primarily due to the unsustainable scale of dairy overproduction, leading to massive, expensive stockpiles that were prone to spoilage.

The program, which became widely known for distributing surplus cheese to low-income Americans, was a byproduct of federal agricultural policies designed to support dairy farmers by purchasing excess milk and converting it into storable products like cheese and butter. While it provided much-needed food assistance, the system eventually became economically unviable.

The Rise and Fall of Commodity Surpluses

For decades, the U.S. government operated programs that purchased agricultural surpluses to stabilize prices for farmers. These commodities, including cheese, were then often distributed through various food assistance initiatives. This led to significant stockpiles, particularly in the dairy sector.

Key Reasons for Discontinuation

By the 1980s, the challenges associated with these vast government reserves became too great to manage, prompting a significant shift in policy.

  • Unprecedented Dairy Surpluses: The government accumulated an enormous amount of dairy products. By the 1980s, these stockpiles of cheese, butter, and powdered milk reached staggering levels, far exceeding any reasonable demand for distribution.
  • Soaring Storage Costs: Merely storing these immense quantities of dairy became prohibitively expensive. Warehouses across the country were filled to capacity, incurring significant costs for refrigeration and maintenance.
  • Risk of Spoilage and Waste: Cheese, while more stable than fresh milk, still has a shelf life. With such large quantities and limited outlets for distribution, there was a constant risk that the product would spoil before it could be utilized, leading to massive waste.
  • Government Intervention to Curb Production: To combat the ongoing oversupply and reduce the burden of storage, the government took drastic measures. This included paying dairy farmers not to produce milk for a period and even buying out farmers' cattle herds to reduce future production capacity. This aimed to decrease the supply at the source rather than just managing the surplus after it was produced.

Evolution of Food Assistance Programs

The discontinuation of large-scale commodity distribution like government cheese marked a shift in how food assistance was provided in the United States. While commodity distribution still exists through programs like The Emergency Food Assistance Program (TEFAP), there was a move towards more diversified approaches. Many programs evolved to provide financial assistance (like the Supplemental Nutrition Assistance Program, SNAP) or vouchers for specific foods (like the Special Supplemental Nutrition Program for Women, Infants, and Children, WIC), allowing recipients more choice and reducing the direct logistical burden of commodity storage and distribution on the government.

The shift away from government cheese was a direct response to an unsustainable system, driven by the practical and financial challenges of managing an overwhelming agricultural surplus.

Problem Impact
Massive Dairy Stockpiles Unmanageable quantities of cheese accumulated.
High Storage Expenses Prohibitively costly to maintain warehouses for the surplus.
Risk of Product Spoilage Without distribution, the cheese would eventually expire and be wasted.
Unsustainable Production Required government intervention to reduce dairy farming.