To revitalize the dairy industry, the Carter administration also bought up any milk that went unsold, which was quite a bit since the extra money encouraged dairy farmers to overproduce. The government processed this milk into products like butter and dehydrated milk powder. And since it had such a long shelf life, they also made a lot of cheese. At one point in the early ’80s, the government had over 500 million pounds of cheese stored in warehouses across 35 states. And since the government kept buying milk, dairy farmers kept producing it.
The public first caught wind of the government’s cheese supply in 1981. According to United Press International, then Agriculture Secretary John R. Block showed the press a large chunk of government-processed cheese that had started to mold and revealed that there was nothing to do but give it away for free. The fact that the government was holding huge reserves of food while people were going hungry enraged citizens, and they called for the president, Ronald Reagan to take action. Reagan acquiesced at the end of 1981 and made the Temporary Emergency Food Assistance Program to distribute this “government cheese” to low-income communities.