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SMP Pricing with Free Milk Option

Pricing Plan with Free Milk Option

The POS counting system must determine how many ½ pint equivalents (8 fl oz) are served to students by benefit category without overt identification.  The two benefit categories are “free” for students who qualify for free milk and “paid” for milk served to students who do not qualify for the free benefit.  The SFA may choose to use a classroom roster or an electronic system to track participation by category. SMP POS Templates are posted on the main SMP webpage. Tracking consumption of milk flavor (i.e., white versus chocolate) by individual student is not a requirement unless this information is used to ensure student takes the milk type specified by parent or used for ordering milk from supplier.

Milk Pricing for Students

Reimbursement should be maximized to reduce the cost of milk for students. It is recommended to charge a student the difference between the anticipated per half-pint milk cost and the reimbursement rate. Consider adding on 2 cents to cover any milk price adjustments and administrative costs associated with the SMP program. Documentation needs to be maintained to justify milk price adjustments and administrative costs greater than 2 cents.

Example: ½ pint cost $__.__ + 2¢ – reimbursement $__.__ = $__._½ pint price X 180 days = $__.__ annual charge

Eligibility Manual For School Meals

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For use in processing applications for free milk.

The Food and Nutrition Service will not release an updated Eligibility Manual for School Meals for School Year 2020-21. State agencies and program operators can continue to use the  2017 Edition of the Eligibility Manual for upcoming school year.

Application Materials

School Year 2020-21 (Do not distribute before July 1, 2020)

All School Food Authorities (SFAs) are required to distribute a Public Release before the start of the school year. SFAs should send the public release to media and grassroots organizations. In addition, SFAs should send the release to major employers contemplating or experiencing large layoffs and local unemployment offices, as applicable. SFAs are not required to pay to have it published but must maintain documentation of whom the release was sent to along with the specific materials distributed.

Free Milk Application materials must be distributed to all households and used to qualify students for free milk benefits. SFAs may also choose to use Direct Certification to find students that qualify for free milk.


If the SFA exercises the option to provide the opportunity to waive or subsidize other district/school fees (e.g., registration, athletic fees, technology fees, etc.) based on a student’s free milk benefit status, the SFA must provide the Sharing Information with Other Programs form to all recipients as determined through an application as well as Direct Certification. SFAs must allow households to limit consent to only those programs they wish to share information. SFAs are not allowed to have a blanket fee waiver. Additional benefits outside of the milk benefit cannot be provided until a signed form is returned to the SFA allowing the information to be shared. For anyone receiving benefit information to approve students for non-milk benefits, a Disclosure Agreement form should be signed and on file at the SF

The Income Eligibility Guidelines for School Year 2020-21 are for school staff only and are used in the processing of Free Milk Applications.