The USDA has agreed to purchase up to $5 million worth of cranberry concentrate. It will then be used in distributions to federal food programs, schools and food banks.
The purchase comes after requests from growers, supported by several members of congress. A record season last year has created a difficult economic environment in which to trade this year.
Government officials have also been heard to vice concern over the fact that Canada has produced a bumper crop this year, which is likely to further depress prices, to below production costs.
The purchase will be made under the USDA's Section 32 program. Section 32 of the Agricultural Act of 1935 provides fund for purchasing surplus USDA funds from farmers. The food is then donated through USDA food programs under the same section.
Wisconsin leads the country in cranberry production, growing nearly half the nation's crop. Wisconsin Congressmen were also instrumental in making the purchase possible.
