More New York schools are eligible for free and reduced lunch than ever before – but that expansion is hurting a program to use more locally grown food in schools.

The state’s 2023 budget boosted access to free and reduced lunch by creating the Community Eligibility Provision (CEP) state subsidy. The new subsidy program, according to the American Farmland Trust, conflicts with the 30% NYS Initiative for Farm to School which encourages schools to buy more food from New York farms. Schools choosing to participate in the Community Eligibility Program found themselves receiving up to 58% less from the Farm to School initiative.

The conflict affects at least 70% of schools that were approved for additional Farm to School Initiative reimbursement in 2023-24 that have a total student enrollment of over 60,000. The funding loss will increase if the state moves toward universally free school breakfast and lunch, according to the advocacy organization.

Assemblywoman Donna Lupardo, D-Binghamton and chairwoman of the state Assembly Agriculture Committee,, has introduced legislation (A.8587) that would implement the American Farmland Trust’s proposed solution by changing state law to eliminate the conflict.

“Last year, the State took the first step toward instituting universal free school meals by creating the Community Eligibility Provision (CEP) state subsidy. The creation of CEP program, unfortunately, has resulted in a disincentive for school districts to participate in the Farm to School program,” Lupardo wrote in her legislative justification. ”

At the same time the state was creating its CEP subsidy program, the federal government decreased the qualifying standards for schools to participate in its CEP program. According to the state Department of Education’s website, other Chautauqua County schools that have at least one school building that is CEP qualified include; Brocton, Cassadaga Valley, Chautauqua Lake, Dunkirk, Fredonia, Forestville, Frewsburg, Jamestown, Pine Valley, Sherman, Silver Creek and Westfield. While several local school districts participate in the CEP program, relatively few participate in the Farm To School Initiative’s 30% program. According to the state Education Department, Forestville Central School is the only local school district to participate in the program in the 2023-24 school year.

That lack of participation highlights a bigger problem with the 30% initiative program.When it was created in 2018 the 30% initiative increased the state’s per meal reimbursement from 5.9 cents up to 25 cents for schools that spend 30% of their food budget for lunch on qualifying local products. At the time the state reimbursement for lunch hadn’t increased in 40 years.

“Over the last five years, participation appears to have stagnated; less than 10% of New York’s SFAs qualified for the initiative since its establishment, and less than a third of the program’s $10 million budget is disbursed each year,” the American Farmland Trust report states. “Additional investment in complementary efforts such as the Farm to School Grant program and regional farm to school coordinator positions have increased local food purchasing across the state, yet have not substantially yielded greater participation in the initiative.”

In addition to changing the conflicting reimbursement language as Lupardo proposes, the American Farmland Trust proposes the state change the 30% initiative program to boost participation by including all school meals, not just lunch; change the way the local food threshold is calculated to make it easier for schools to participate, create tiers of financial reimbursement rather than a flat 30% purchasing requirement so that schools that can’t meet the 30% sourcing requirement can participate.

Gov. Kathy Hochul’s recently proposed 2024-25 state budget proposal includes $180 million for subsidized lunch and breakfast programs for schools. The New York State Food Incentive again is budgeted for $10 million.