A discount system in food distribution refers to a purchasing arrangement where a recipient agency buys food products directly from a processor. The price paid is the wholesale price minus the value of donated foods included in those products. This system aims to facilitate access to food resources while ensuring that the costs reflect the contributions made through donations.
This term is used primarily in the context of food distribution programs governed by federal regulations. It is relevant in areas such as agriculture and nutrition assistance. Agencies involved in these programs may utilize forms and procedures that allow them to manage purchases and donations effectively. Users can benefit from legal templates provided by US Legal Forms to navigate these processes.
Here are a couple of examples of abatement:
Example 1: A nonprofit organization that distributes meals to low-income families purchases bulk food items from a local processor. They apply the discount system, reducing their costs by the value of food donations received.
Example 2: A school district uses a discount system to procure food for its lunch program, allowing them to maximize their budget while providing nutritious meals to students. (hypothetical example)
The primary regulation governing the discount system in food distribution is found in 7 CFR 250.3, which outlines the provisions related to the donation of foods for use in the United States. This regulation establishes the framework for how discount systems operate within federal food assistance programs.
| Term | Definition | Difference |
|---|---|---|
| Donation System | A system where food is given without charge. | Unlike a discount system, there is no purchase involved. |
| Wholesale Pricing | The cost of goods sold in large quantities at a reduced price. | Wholesale pricing can exist independently of a discount system. |
If you are involved in food distribution and considering a discount system, start by reviewing the relevant regulations. Ensure you understand the pricing structure and the value of any donated foods. You may find it beneficial to use US Legal Forms' templates to help manage your contracts and purchases effectively. If your situation is complex, consulting a legal professional is advisable.
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| Attribute | Details |
|---|---|
| Typical Users | Nonprofits, schools, government agencies |
| Legal Framework | 7 CFR 250.3 |
| Cost Structure | Wholesale price minus donation value |
It is a purchasing arrangement where agencies buy food at wholesale prices minus the value of donated foods.