Portland Public Schools - Food Services

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Commodity Letter of Credit (CLOC)

The Portland Public Schools entered the CLOC program during the school year 1981-1982. Schools participating in the National School Lunch Program receive two forms of Federal support from the U.S. Department of Agriculture: (1) cash subsidies and (2) donated agricultural commodities purchased under price support and surplus removal legislation.

Under the CLOC program donated commodities were replaced with "Commodity Letter Of Credits". Currently 15 cents for each reimbursable meal is received in cash and dispersed though letters of credit. Letters of credit are issued for the same commodities that the Department of Agriculture is buying for donation. We purchase the commodity in whatever form we desire from local vendors within a fixed time period. This gives us discretion over the location of purchase, form of the food, packaging, and timing of delivery.

While this was a test pilot program we have been grandfathered and will be allowed to buy our commodities for ever while most all other schools must take what is offered them by the Department of Agriculture. This has proven to save us money and allow us to purchase foods more to our students liking.