Andy Montoya
The Great Government Free Cheese Movement in the US began in 1949, when the Agricultural Act granted the Commodity Credit Corporation (CCC) the authority to subsidize dairy farmers by purchasing their excess goods. The government became the largest consumer of the nation's dairy supply, and soon faced a surplus of dairy products, with over 500 million pounds of cheese in storage across 35 states. In 1981, President Reagan created the Temporary Emergency Food Assistance Program, which began distributing the cheese to the elderly and low-income families. However, the program was administratively cumbersome and costly, and by the 1990s, the Federal government exited the cheese-making industry, bringing the free cheese giveaway to an end.
| Characteristics | Values |
|---|---|
| Reason for the program | To reduce the dairy surplus |
| Date of occurrence | 1980s |
| People involved | President Reagan, former U.S. Secretary of Agriculture John R. Block |
| Cost | $2 billion in subsidies to farmers, $10 million a month for storage |
| Problems | High cost, distribution issues, negative perception |
| Outcome | Temporary Emergency Food Assistance Program created |
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What You'll Learn
Dairy shortage in the 1970s
The 1970s saw a drastic dairy shortage in the US, resulting in a 30% price increase. The dairy shortage was caused by volatile milk production during the 1980s recession. This led to government intervention and $2 billion in subsidies awarded to dairy farmers over four years. The government became the largest consumer of the nation's dairy supply, and soon entered the business of butter churning, powdered milk making, and cheese processing.
The government's intervention led to a surplus of dairy products, with over 500 million pounds of dairy products stored in warehouses across 35 states. The government had no idea what to do with all the dairy products. In 1981, the public got wind of the surplus cheese, and President Reagan was criticized for it. Reagan had been elected based on, in part, his pledge to reduce the federal food stamp program and inaccurate stereotypes of "welfare queens" and poor people who gamed the system.
In December 1981, Reagan relented and created the Temporary Emergency Food Assistance Program, which began handing out the blocks of processed cheese to the elderly, low-income people, and organizations that served them. The cheese was distributed to the needy, but it was moldy and of questionable palatability. Some appreciated the extra help, while others saw it as socioeconomically stigmatizing. The Federal government eventually exited the cheese-making industry in the 1990s.
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Government intervention and subsidies
The US government's intervention in the dairy industry and its subsequent free cheese program in the 1980s can be traced back to the Agricultural Act of 1949, which granted the Commodity Credit Corporation (CCC) the authority to subsidize dairy farmers by purchasing their excess goods. The CCC, a government-owned entity, was tasked with stabilizing farm incomes during challenging economic periods.
In the 1970s, Americans faced a dairy shortage, which led to a 30% increase in dairy prices. The government intervened, and over a four-year period, $2 billion in subsidies were awarded to dairy farmers. This resulted in the government becoming the largest consumer of the nation's dairy supply.
As dairy farmers increased their production to take advantage of the government support, stockpiles of dairy products ballooned. The government began processing the excess milk into cheese, butter, and dehydrated milk powder, but soon faced another challenge—they had no market for these processed goods. The crisis came to a head when the US Secretary of Agriculture, John R. Block, brought a five-pound block of moldy, deteriorating cheese to the White House, declaring they had 60 million pounds of cheese that they couldn't sell.
Facing public criticism and with millions of pounds of cheese in storage, President Reagan created the Temporary Emergency Food Assistance Program in December 1981. This program began distributing the processed cheese to the elderly, low-income families, and organizations serving them. While some appreciated the extra help, others viewed it as socioeconomically stigmatizing.
The free cheese program continued through the 1980s, with state governments, food banks, and charitable agencies bearing the burden of distribution and administrative costs. However, by the 1990s, the Federal government exited the cheese-making industry, bringing an end to the infamous "government cheese" giveaways.
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Volatile milk production in the 1980s
The 1970s saw a drastic dairy shortage in the US, resulting in a 30% price increase. The government intervened, awarding $2 billion in subsidies to dairy farmers over four years. This led to an oversupply of dairy, with the government becoming the largest consumer of the nation's dairy supply.
In 1977, under President Jimmy Carter, the government set a new subsidy policy, encouraging dairy farmers to produce as much milk as possible to take advantage of the government support. As a result, stockpiles of dairy products ballooned, and the government began processing the excess milk into cheese, butter, and dehydrated milk powder.
By the early 1980s, the US government was stuck with a glut of dairy products and began dropping milk prices. This period was marked by volatile milk production, with milk prices fluctuating between record highs and lows. The high prices encouraged more production, but soon after, milk prices collapsed due to the continued expansion of California dairy producers, who were not under the federal pricing system.
The five-year farm bill passed in 1985 continued the trend of market-oriented policies, and the 1990 farm bill froze milk prices at a low level, threatening the survival of many small, traditional farms. The volatile milk production in the 1980s was a result of various factors, including government interventions, market demand, and the expansion of large dairy farms.
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Distribution and cost problems
In the 1970s, the United States faced a dairy shortage, which led to a 30% increase in dairy prices. The government intervened and awarded $2 billion in subsidies to dairy farmers over four years, becoming the largest consumer of the nation's dairy supply. However, the government had no plan for what to do with the excess dairy it had purchased, and soon warehouses across 35 states were filled with over 500 million pounds of dairy products.
The government's attempt to address the dairy surplus resulted in the creation of the Temporary Emergency Food Assistance Program by President Reagan in 1981. The program aimed to distribute the stockpiled cheese to the elderly, low-income families, and organizations serving them. While some appreciated the extra help, others viewed it as socioeconomically stigmatizing.
However, the distribution of the cheese faced significant challenges. The European Economic Community, which had a long history of giving away milk products, posed competition. Additionally, the cost of shipping bulky and perishable goods like butter and cheese was high. Local charitable agencies in some states, such as Florida, withdrew from the program due to the burden of paperwork and unexpected administrative costs.
The federal pilot projects for distributing surplus dairy products also encountered issues. The extensive paperwork and record-keeping requirements imposed a financial strain on participating organizations. Despite the good intention of feeding people rather than wasting food, the process was ""administratively cumbersome." These distribution and cost problems highlighted the challenges of implementing such large-scale giveaway programs and the unintended consequences they can create.
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Socioeconomic stigmatization
In the 1970s, the United States experienced a drastic dairy shortage, resulting in a 30% increase in dairy prices. The government intervened by awarding $2 billion in subsidies to dairy farmers over four years, becoming the largest consumer of the nation's dairy supply. This intervention, however, led to a new problem: the government now had a massive surplus of dairy products, with stockpiles exceeding 500 million pounds in warehouses across 35 states.
Facing criticism for his administration's handling of the situation, President Reagan relented in December 1981 and created the Temporary Emergency Food Assistance Program. The program aimed to distribute the surplus cheese, butter, and dehydrated milk powder to the needy, including the elderly and low-income families. While some appreciated the extra help, others viewed it as socioeconomically stigmatizing.
The distribution of these dairy products, particularly the five-pound blocks of cheese, became known as the "Great Government Free Cheese Movement." This movement evoked mixed reactions, with some recalling the unappetizing texture and strong odor of the cheese, while others considered it a comfort food. Despite the varied responses, the Federal government eventually exited the cheese-making industry in the 1990s, bringing an end to the free cheese giveaway.
The free cheese giveaway, though well-intentioned, highlighted the complexities of government intervention in addressing economic challenges. It also underscored the importance of considering the potential socio-economic implications of such programs and their impact on the recipients. While the program aimed to provide assistance, the unintended consequence of socioeconomic stigmatization affected how the program was perceived and received by the public.
In conclusion, the free cheese giveaway, born out of a dairy surplus crisis, evoked mixed reactions and highlighted the challenges of government intervention in economic matters. The socioeconomic stigmatization associated with the program underscored the need for thoughtful policy approaches that address the root causes of economic disparities while preserving the dignity of those they aim to help.
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Frequently asked questions
The free milk and cheese giveaway ended due to the high costs and administrative burdens associated with the program. The federal government faced challenges in distributing bulky and perishable goods, and there were concerns about the potential change in federal policy signaled by the giveaways.
The impact of the free milk and cheese giveaway was mixed. Some appreciated the extra help, while others viewed it as socioeconomically stigmatizing. The program provided assistance to the elderly and low-income families during difficult economic times, but it also led to criticism of President Ronald Reagan for his previous pledges to reduce the federal food stamp program.
One of the main challenges was the cost of distributing bulky and perishable goods, such as butter and cheese. There were also concerns about the quality and palatability of the cheese, which was described as moldy and deteriorating. Additionally, the program created a significant amount of paperwork and administrative costs for participating organizations.
The government played a significant role in the free milk and cheese giveaway. In the 1970s, the government intervened in response to a dairy shortage, which led to increased production and stockpiles of dairy products. The government then had to find a way to dispose of the excess cheese, and the Temporary Emergency Food Assistance Program was created to distribute the cheese to those in need.
