Opinion // Editorials

Editorial: Investigate USDA food box contracts

Although it has just begun, the USDA’s Farmers to Families Food Box Program is off to a disturbing start, one that appears to be a betrayal of taxpayers and unlikely to deliver for Americans in need.

Many questions have been raised about the contracts the U.S. Department of Agriculture has awarded to companies to package and distribute produce, dairy and meat to food banks across the nation. Questions that are, unfortunately, best reflected in the awarding of a $39.1 million contract to a San Antonio-based event planning company, CRE8AD8 LLC (pronounced Create a date).

Has CRE8AD8 ever distributed wholesale food to food banks and nonprofits? No, owner Gregorio Palomino told Express-News reporter Tom Orsborn.

Does CRE8AD8 have a Perishable Agricultural Commodities ACT, or PACA, license?

“It’s been applied for,” Palomino said.

Can CRE8AD8 hit the ground running, getting food boxes to families in need as quickly as possible?

Nope. Palomino is scrambling to hire people, and hopes to be up and running in June.

Does CRE8AD8 have the warehouse and logistics operations to supply the massive Southwestern Region, which stretches across Texas, Arkansas, Arizona, Louisiana, New Mexico, Oklahoma and Utah.

We don’t think so.

“We knew that we easily could do this because instead of putting tchotchkes in a bag that is going to go to a conference attendee, this is the same exact thing except it’s just food going into a box,” Palomino said.

In principle, the Farmers to Families Food Box Program is a worthy idea. With the closure of restaurants and schools during the pandemic, the program purchases surplus dairy, meat and produce. The idea is to package this food into family-sized boxes and then distribute it to food banks. So, why not contract with known food distributors instead of doling out millions to an event planner?

Other questionable awards in the $1.2 billion program include contracts for two meat processors under investigation and a bankrupt dairy producer. A number of contracts went to companies outside the regions they are supposed to serve.

It’s almost as if USDA doesn’t care if the food makes it to those in need. When an event planner secures a contract like this, it’s time for Congress to investigate.