I was wrong about the USDA's actions in response to the sequester. The law says that all programs must be cut equally, which means that the food inspection service of the UDSA must be cut as much as everything else. It is not possible to transfer money from the rest of USDA to keep food inspection running. Since 87% the inspection budget is salaries of inspectors and the rest is support staff, there is no other place the money can come from.
So there will be problems, and there is nothing UDSA can do right now without a new law or some action by the White House to change the process to give agencies more flexibility.
Source, and I checked it for accuracy by reading the OMB report on sequestration.
I have little commentary to add, but see here for political analysis.