Some North Carolina schools are threatening to drop out of a school lunch program, citing surcharges from the federal government and a contractor.
The "farm-to-school" program is supposed to use the Defense Department's purchasing power to subsidize locally grown produce bought by more than 60 North Carolina school districts.
Officials say they've just realized Foster-Caviness Foodservice of Colfax has begun adding a $4.30-a-case surcharge.
Foster-Caviness Foodservice won a 38 million dollar contract in May to supply military bases and school lunch programs.
Defense Department purchasing agents already put a 6 percent charge on every fruit and vegetable transaction. Gary Gay with the state Agriculture Department says many schools say they can't afford the North Carolina produce.
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