It is brilliant! I love it. Make it available to *anyone* (limited to per capita) to eliminate processing costs. No one starves, and no more food stamps or other government programs for food. Make it available in 10 and 25 lb bags, with one bag per person maximum per week.
Little point to that restriction -- just more paperwork. Sure, some people will hoard and stockpile, especially at first, but eventually those stocks will fill up and people will just take what they need.
I'd certainly recommend keeping a few extra bags as part of a disaster kit.