In fact, the contract in question purchased 760,000 pounds of ham for $1.191m, at a cost of approximately $1.50 per pound. In terms of the dairy purchase referenced, USDA's Farm Service Agency (FSA) purchased 837,936 pounds of mozzarella cheese and 4,039,200 pounds of processed cheese.Vilsak defends it saying that the food products will be sent to food banks and commodity programs to feed those who don't have food available.
I think that if I were buying 3/4 of a million pounds of processed ham, I could probably get it cheaper than $1.50 per pound.
Then again, this could be pork in the budget. Technically, it is pork.