Is it permissible to substitute the sacrificial animal (a calf or a sheep) with the distribution of food portions to the needy, especially in light of difficult living conditions and high prices?

The Udhiyah (sacrifice) is a Sunnah according to the majority of scholars, and not obligatory. It becomes obligatory for the affluent according to those who hold it to be obligatory. There is no sin in not offering the Udhiyah during difficult circumstances, and feeding the hungry is a great act. Sacrificing the Udhiyah is better than donating its value, based on the Hadith of Salamah ibn al-Akwa', in which the Prophet, peace and blessings be upon him, encouraged those who offered sacrifices during the year of famine to give charity and feed the people. This is also indicated by the fact that the Prophet, peace and blessings be upon him, did not order people to spend the value of the sacrifices on the needy during the year of famine; rather, he approved of them sacrificing the animals and commanded them to distribute the meat.