A common question from teachers and other adults enjoying school lunch is: "Why do I have to pay more for my meal when the portion size is the same?" The short answer: USDA regulations require it!
Each year, the USDA sets meal reimbursement rates for schools. During the 2024–2025 school year, schools receive $4.52 for each free or reduced-price meal served and $0.51 for each paid student meal. Additionally, schools earn $0.45 per meal in USDA Foods entitlement dollars based on lunch participation.
Since adult meals are not eligible for federal reimbursement, their prices must fully cover meal costs without relying on subsidies from student meal payments.
Here’s how the adult meal price is calculated:
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Lunch: Highest Student Meal Price + Paid Reimbursement Rate ($0.51) + USDA Entitlement Value ($0.45) = Adult Meal Price
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Breakfast: Highest Student Meal Price + Paid Reimbursement Rate ($0.39)
For schools operating under non-pricing programs (such as Provision 2 or CEP), adult meal prices must be calculated using the free meal reimbursement rate plus the USDA Entitlement Value. This means adult meal prices must be set at:
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$4.99 or higher for lunch
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$2.84 or higher for breakfast
These requirements ensure that adult meal prices reflect the true cost of the meal without tapping into funds intended for student nutrition programs.
The DPI CNFD office has received many questions about the new Medicaid Direct Certification. To help address these concerns, we have compiled a list of questions and answers to clarify many of the issues schools may be experiencing. Please let us know if we can help with any other issues or need further clarification.
The extra 25% allowance for excess funds will no longer apply after the end of SY23-24. Schools should prepare to return to normal guidelines for calculating excess funds in the Nonprofit School Food Service (NPSFS) account at the end of this school year.
1. Excess Funds Definition: An ending NPSFS account balance that exceeds three months of expenses.
2. Excess Funds Calculation: No other reimbursements have been received from USDA in school year 24-25 therefore we must return to the normal calculation of excess funds for the Nonprofit School Food service account. The normal calculation is division of all school food service account expenses by the number of operating months (usually 9 months, however RCCIs are 12) and multiplying the result by 3 (months). Subtract the Ending balance from the 3-month operating expenses. If the result is positive, this would be the excess funds in the NPSFS account.
Use the following formula to calculate excess funds:
(Total Expenses in 05 Foodservice/# of months of School) x 3 = 3 month Operating Expense
Ending balance 05 Foodservice account – 3 month Operating Expense = Excess Funds, if positive.
3. Restricted Use Funds: All funds in the NPSFS account are restricted and must be used exclusively for school food service.
4. Reporting to DPI Fiscal: Determine if you are carrying excess funds and address them before submitting end-of-year numbers to DPI Fiscal. This helps avoid extra paperwork and prevents triggering a comprehensive financial review during the Administrative Review. Excess funds also disqualify schools from applying for USDA NSLP equipment grants.
5. Plans for Last Year’s Excess Funds: Schools with excess funds from last year (as reported to DPI Fiscal) have been notified. Please submit a plan for spending down those funds for approval.
Here are some ideas to consider if you need an excess spending plan for this year, or if you want to pre-plan for next year.
- Pay for kitchen labor or other kitchen expenses from the food service fund.
- Improve equipment for the kitchen. Remember to follow proper procurement procedures and see the ‘Pre-approved equipment list’ for equipment ideas.
- Enhance school meals by adding foods that allow for more choices, variety, or higher quality while also meeting meal pattern requirements.
- Purchase marketing and merchandising materials to promote the breakfast and lunch programs. Purchase district or school specific staff aprons, t-shirts, or uniforms.
- Book a nutrition education speaker for students and/or staff.
- Cover registration costs and travel to conferences or other nutrition training for staff. Pay for membership in the state and national School Nutrition Association.
- Book a consultant to advise on everything from kitchen flow to food service account management. Contact NDDPI-CNFD for a list of who does this kind of consulting.
- If a school district is considering using their excess funds on anything else, please contact NDDPI-CNFD first.
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Ho, Ho, Ho and Merry Christmas! We have an exciting ‘gift’ for you – all your procurement worries wrapped up with a big bow on top!
Yes! The Cooperative Purchasing Connection (CPC) will be joining us for the December KCC to discuss the newly revised solicitation for North Dakota School Foodservice.
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CPC staff will share updates on the upcoming bid process, including timelines, procedures, and key contacts. We do not know which distribution companies will be bidding on the proposal however indications are that more than just two companies want your business this time around!
If time allows, we’ll also review the Buy American requirements and Procurement policy essentials. Come prepared with your procurement-related questions!
Don’t forget to register to receive the meeting link and reminders: [Microsoft Virtual Events Powered by Teams]
We look forward to seeing you there!
As always, prior webinar recordings are posted on our website for viewing: UPDATES | North Dakota Department of Public Instruction (nd.gov).
Farm to School Updates
December Harvest of the Month
This December we are celebrating those yummy potatoes. And how fitting for a cold month! Potatoes are my favorite comfort dish and can be eaten in so many ways! My favorite is baked potatoes and offering all the delicious toppings. I hope you can have a baked potato bar this month. If you are serving local potatoes this month, please share your pictures and thank you for celebrating and serving local foods.
Potato Recipes:
You can find the Harvest of the Month calendar and posters online at this link:Farm to Child Nutrition | North Dakota Department of Public Instruction
North Dakota took 2nd place for the third year in a row! We increased our participation numbers again as well, by 186%! We had nearly 50,000 participants! Our population per capita participant rate was 6.32%.
North Dakota won Event of the Year for the Bismarck Public School football game on October 11. NDDPI, North Dakota Department of Agriculture, Bismarck Public Schools, and North Dakota Corn Council partnered together to have a crunch off event at the game and celebrated with North Dakota Corn Nibblets (crunchy snack similar to Corn Nuts). Thank you for your hard work to pull this fun event off!
Wyoming took 1st place (knocking Nebraska out as dynasty champs for the first time in a few years). Wyoming increased their numbers by 2000% and had a population per capita participant rate of 6.93%. Meaning, North Dakota only lost by a tiny percent. Watch out Wyoming, we are gearing up for a successful year in 2025 😊
Thank you for participating in the USDA Mountain Plains Crunch Off in 2024. We appreciate the efforts you made to celebrate National Farm to School Month, Fresh from North Dakota Lunch Week, and to serve healthy food. We have big plans and ideas for 2025 and so excited to expand our efforts to build a strong North Dakota Farm to School Program.
Pomegranates are a truly unique fruit with hundreds of edible reddish-purple seeds called arils. With a taste that is both tart and sweet, it will awaken everyone's taste buds. The white flesh surrounding these seeds is bitter and most people avoid eating it. Pomegranates have been cultivated in the Middle East, India, and the Mediterranean region throughout history. As we enter the month of December, USA-grown pomegranates are at their peak.
As we talk about incorporating variety into our program, this item is perfect. Most children have never experienced these sweet tart crunchy seeds. I guarantee it will get them talking. You can purchase whole pomegranates and spend the time deseeding them or buy them ready to eat. If purchasing whole, be careful while deseeding as the juices stain everything! The ready-to-eat version will run more money, but if you have a few extra dollars to spend, give them a try.
Remember, the goal of the FFVP program is to give the kids a taste, not be their entire snack. This would be the perfect item to give a taste.
New USDA Memos
SP 05-2025 – Guidance for Accepting Processed Product Documentation for Meal Pattern Requirements
- Recaps requirements for obtaining Child Nutrition (CN) labels and Product Formulation (PFS) before the commercial product is used and served in school meals.
- CN Labels are USDA issued for products containing at least .5 oz of meat/meat alternate while PFS may include crediting for any meal component.
- Program operators are responsible for maintaining copies of this crediting information with menus.
- Find the memo here.
SP04-2025: Fees for Electronic Payment Services in School Meal Programs
- Effective SY27-28, families eligible for free/reduced-price meals cannot be charged additional fees (e.g., electronic payment fees).
- Schools are encouraged to offer free or low-cost payment options and ensure families are informed. USDA-FNS will provide technical assistance in implementing this requirement later.
- Read the memo here
SP03-2025 - Substituting Vegetables for Grains in American Samoa, Guam, Hawaii, Puerto Rico, the U.S. Virgin Islands, and Tribal Communities.
- Applies to American Samoa, Guam, Hawaii, Puerto Rico, the U.S. Virgin Islands, and Tribal Communities.
- Allows ½ cup of vegetables to substitute for 1 oz. of grain in any meal. Schools must meet daily vegetable requirements.
- Contact CNFD at dpicfnd@nd.gov if planning to use this flexibility.
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Read the memo here.
SP02-2025 - Substitution of Vegetables for Fruit Flexibility in the School Breakfast Program: Questions and Answers for Program Operators.
- Schools may substitute any vegetable for fruits if served only once a week. If substituting vegetables for fruit more than once a week then vegetable subgroups apply.
- Schools are not required to serve vegetables at breakfast.
- Learn more here.
SP01-2025 - Fluid Milk Requirements for School Meals.
- Starting SY25-26, flavored milk must contain ≤10g added sugars per 8 oz. carton for school meals.
- Smart Snack compliance also includes ‘Added sugar limits’; Elementary students can only purchase 8 oz. containers with 10g or less added sugars; middle/high school students may purchase 12 oz. containers with ≤15g added sugars.
- Added sugar limits apply only to cow’s milk, not non-dairy milk substitutes.
- Notify NDDPI-CNFD about non-dairy milk substitutes offered as a non-disability milk variety selection. Send nutrition labels along with the site it will be offered at to: dpicnfd@nd.gov.
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View the memo here.
In North Dakota, we love our locally raised beef. We are proud of the high-quality beef produced in our state. With that high-quality beef and the ability to support local foods, as school professionals, we want to feed children the best quality, too. When considering purchasing North Dakota beef to serve in the school nutrition program, make sure that beef has been processed at a state or federally-inspected processor. The product you receive will have the special stamp with the North Dakota seal of approval (see picture below) and then will have the name of the processor.
Here is a list of meat processors that schools can purchase from, or that a beef producer must work with, to supply meat for a school nutrition program. The same process applies for other meats like chicken, pork, or bison:
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North Dakota Meat Processors | North Dakota Department of Agriculture
- Use facilities listed under State Slaughter or Federal Slaughter, as they are the most common options for schools.
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DO NOT USE any facility from the Custom Exempt list. These facilities are not authorized to process meat for institutions like schools. Products from Custom Exempt facilities are marked "Not for Sale" and are for individual use only.
For further guidance, reference the updated USDA Memo SP01-2016, Procuring Local Meat, Poultry, Game, and Eggs for Child Nutrition Programs (Revised for 2023). This memo includes guidance on using locally grown meat, poultry, and eggs (such as FFA animals). View the guidance here.
North Dakota Team Nutrition is working to bring on the culinary expert that will assist us in planning the hands-on culinary experience for your training day.
The program we are planning for you will involve an in-person culinary experience along with all of the background information and education for you to successfully implement the new USDA Meal Pattern Requirements. We will start our sessions in the summer or early fall of 2025 looking at reducing added sugars in our menus including the product specific limitations and scratch cooking recipes. Then, for the 2026 school year we will focus on reducing sodium through various recipes and other cooking tips. Each of these sessions will include some traditional indigenous foods or recipes.
Our goal is to provide this training four times in each school year in North Dakota and twice each school year in South Dakota. Each of these sessions will accommodate up to 50 participants to ensure an engaging experience for all.
Equipment Assistance Grant through CNFD
Accepting applications through December 11!
USDA distributed $10 million to State agencies for competitive Equipment Assistance Grants aimed at eligible School Food Authorities (SFAs). These grants are designed to enhance meal quality and support the implementation of updated nutrition standards for school meals.
North Dakota was appropriated just over $31,000 to competitively award to SFAs.
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The application to apply is now available! The process is new this year - it is all to be submitted virtually, through a Microsoft Form.
Applications will be accepted through December 11, 2024.
Find the application HERE.
Find the informational webinar and more details here: CNFD School Nutrition Kitchen Counter Conversation Resources
If there are any questions as your District applies, please reach out to Amy Nelson (amylnelson@nd.gov).
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Now Open - 2025 Youth Garden Grant!
Since 1982, the Youth Garden Grant has supported school and youth educational garden projects that enhance the quality of life for youth and their communities. Today, KidsGardening begins accepting applications for the 2025 grant, marking the 43rd year of this flagship award that exemplifies our mission: to create opportunities for kids to play, learn, and grow through gardening.
The grant is open until December 13, 2024, and programs can apply in either English or Spanish.
Any organization in the United States or US Territories planning a new or improving an existing garden program that serves at least 15 youth between the ages of 0 and 18 is eligible to apply. In early 2025, 50 organizations will be awarded $500 in funding for their youth garden program.
Apply now! kidsgardening.org
National Head Start Association
The GroMoreGood initiative makes garden grants, garden kits, educational curriculum, and garden training available to all Head Start programs with the goal of creating more edible gardens for young children and their families. The initiative also supports the creation of green space projects—land that is partly or completely covered with grass, trees, shrubs, or other vegetation—as an option for children and the community to learn.
GroMoreGood Garden Grants - NHSA
$500 Soy Foods Reimbursement
The North Dakota Soybean Council is looking to partner with ND schools to support the purchase of soy foods for sampling or menuing during the 2024-25 School Year, or at least during soy foods month, in April 2025!
The North Dakota Soybean Council will reimburse the District up to $500!
Find the application HERE.
Grant Applications Open for 2025 Patrick Leahy Farm to School Program
USDA is excited to continue its support for local foods in schools by opening applications for the 2025 Patrick Leahy Farm to School Grants.
For the first time, USDA is allowing organizations to select the type of Farm to School Grant that best fits their needs by offering three different requests for applications. Each organization can only submit one application for one grant:
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- The Implementation Grant ($50,000 to $500,000) supports the establishment or expansion of comprehensive farm to school projects.
- The State Agency Grant ($50,000 to $500,000) helps state-level agencies implement local sourcing and agricultural education activities.
- The Turnkey Grant ($5,000 to $50,000) is for organizations interested in projects related to launching or enhancing farm to school activities; agricultural education; or edible gardens.
Applications are due by January 10, 2025.
K-12 schools nationwide serve meals to about 30 million children every school day. These meals provide critical nutrition to children and the foundation for our nation to have a healthier future. And when local foods are incorporated into school meals, it boosts nutrition, strengthens supply chains, and supports farmers and producers across America.
Earlier this year, USDA awarded the 2024 Farm to School Grants, a record-breaking $14.3 million for 154 projects in 43 states, the District of Columbia, Guam and Puerto Rico. These investments will help 1.9 million children eat more tasty, nutritious foods in school, while supporting farmers and producers in their local and regional communities.
More About Farm to School
While an important part of farm to school is serving local foods, it can also include activities such as growing a school garden, tasting new foods and visiting local farms, which provide experiential learning opportunities for children.
The new USDA Farm to School Census reports that North Dakota’s participation in farm to school activities has grown since 2019. However, USDA announced exact results will be shared with us in January. Learn more about what’s happening with farm to school across the country by visiting the Farm to School Census website.
Farm to school is also a team effort. A new FNS report, “Bringing Local Foods to Students: Achievements and Learnings from Farm to School Grantees,” found that the grants led to higher student participation in school meal programs and more collaboration between school, community and supply chain partners. Learn more about the effectiveness of Farm to School Grants by reading the full report.
Reminder: the date has changed!! The conference has been held historically in June. Please keep an open mind on the date change as an October date may help school districts with procurement and menu planning.
Festivities from North Dakota Schools
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