They have responded saying it is food for food assistance/soup kitchens.
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2009/07/0322.xml
That makes a lot more sense than the original posting. I have to wonder why in the world the 760,000 pound figure wasn’t listed on the recovery.gov posting.