State Processing Program [USDA] Law and Legal Definition

The State Processing Program is a United States Department of Agriculture (USDA) initiative that allows states and eligible recipient agencies such as school districts to contract with commercial food processors to convert bulk or raw USDA commodities into more convenient ready-to-use end products.

The State Processing Program has the authority to convert raw bulk USDA foods into more convenient processed end products such as chicken nuggets by entering into agreements with commercial food processors. Most of these products go to schools participating in the National School Lunch Program. Through the State Processing Program, recipient agencies can provide more varied and higher quality meals at a reduced cost.