HUMANITARIAN ASSISTANCE
Food aid may be provided through
four program authorities: Public Law
480 (P.L. 480), Food for
Progress; Section 416(b); and the
McGovern-Dole International Food for
Education and Child Nutrition
Program.
The Cargo Preference Act of 1954 (P.L.
83-664), as amended, requires that
at least 50 percent of the gross
tonnage of all Government-generated
cargo be transported on privately
owned, U.S.-flag commercial vessels
to the extent such vessels are
available at fair and reasonable
rates. In 1985, the Merchant
Marine Act of 1936 was amended to
require that the percentage of
certain agricultural cargoes to be
carried on U.S.-flag vessels be
increased from 50 to 75 percent.
P.L.480
has three titles, and each title has
a specific objective and provides
assistance to countries at a
particular level of economic
development. Title I of P.L. 480 is
administered by USDA, and Titles II
and III are administered by the U.S.
Agency for International Development
(USAID).
P.L. 480, Title I--Trade and
Development Assistance,
provides for
government-to-government sales of
U.S. agricultural commodities to
developing countries on credit terms
or for local currencies. Agreements
also may be signed with
nongovernmental private entities.
Depending on the agreement,
commodities provided under the
program may be sold in the recipient
country and the proceeds used to
support agricultural, economic, or
infrastructure development projects.
Agreements under the Title I credit
program may provide for repayment
terms of up to 30 years, low
interest rates, and grace periods of
up to 5 years. This program is
geared primarily toward countries
that have a shortage of foreign
exchange earnings and are
experiencing difficulty in meeting
their food needs through commercial
channels. Priority goes to
countries with the greatest need for
food that are undertaking economic
development to improve food security
and agricultural development,
alleviate poverty, and promote
broad-based, equitable, and
sustainable development. These
countries also must have the
potential to become commercial
markets for U.S. agricultural
commodities.
P.L. 480, Title II -- Emergency and
Private Assistance,
provides for
government-to-government
agricultural commodities to meet
emergency and
nonemergency food needs in
other countries, including support
for food security goals.
Agricultural commodities donated by
the U.S. government to meet
emergency needs may be provided
under government-to-government
agreements or through public and
private agencies, including
intergovernmental organizations,
such as the United Nations World
Food Program and other multilateral
organizations.
Nonemergency assistance may
only be provided through private
voluntary organizations,
cooperatives, and intergovernmental
organizations.
P.L. 480, Title III-- Food for
Development,
provides for
government-to-government grants to
support long-term growth in the
least developed countries.
Donated commodities are sold in the
recipient country, and the revenue
generated is used to support
economic development programs.
In recent years, this title has been
inactive.
The
Food for Progress
program, authorized by the Food for
Progress Act of 1985, provides for
the donation or credit sale of U.S.
commodities to developing countries
and emerging democracies to support
democracy and an expansion of
private enterprise. To date,
all food aid under this program has
been by donation. Commodities may be
provided under the authority of P.L.
480 or Section 416(b). USDA's
Commodity Credit Corporation (CCC)
also may purchase commodities for
use in the program. Depending
on the agreement, the commodities
donated through Food for Progress
may be sold in the recipient
country, and the proceeds used to
support agricultural, economic, or
infrastructure development programs.
Assistance is provided through
foreign governments, private
voluntary organizations, nonprofit
organizations, cooperatives, or
intergovernmental organizations.
The
Section 416(b)
program is authorized by the
Agricultural Act of 1949, as
amended. This program provides for
overseas donations of surplus
commodities acquired by the CCC.
Donations may not reduce the amounts
of commodities that are
traditionally donated to U.S.
domestic feeding programs or
agencies, and may not disrupt normal
commercial sales. Availability of
commodities under Section 416(b)
depends on CCC inventories and
acquisitions, and programming varies
from year to year. The commodities
are made available for donation
through agreements with foreign
governments, private voluntary
organizations, cooperatives, and
intergovernmental organizations.
Depending on the agreement, the
commodities donated under Section
416(b) may be sold in the recipient
country, and the proceeds used to
support agricultural, economic, or
infrastructure development programs.
The
McGovern-Dole International Food for
Education and Child Nutrition
Program helps
support education, child
development, and food security for
some of the world's poorest
children. It provides for donations
of U.S. agricultural products, as
well as financial and technical
assistance, for school feeding and
maternal and child nutrition
projects in low-income, food-deficit
countries that
are committed to universal
education. The commodities are made
available for donation through
agreements with private voluntary
organizations, cooperatives,
intergovernmental organizations, and
foreign governments.
Commodities may be donated for
direct feeding or for local sale to
generate proceeds to support school
feeding and nutrition projects.
The Foreign Agricultural Service has
the lead responsibility for the four
USDA-administered food aid programs:
P.L. 480, Title I; Food for
Progress; Section 416(b); and the
McGovern-Dole International Food for
Education and Child Nutrition
Program. USDA's Farm Service
Agency is responsible for procuring
and supplying commodities for all
U.S. food aid donation programs.
USDA agencies also coordinate
shipments of food aid, assure
commodity specifications are met,
and provide quality control and
cargo inspection services.
The interagency Food Assistance
Policy Council, chaired by USDA's
Under Secretary for Farm and Foreign
Agricultural Services, coordinates
U.S. food aid policies and programs.
The council includes representatives
from the Office of Management and
Budget (OMB), USAID, the U.S.
Department of State, and USDA. At
the staff level, program planners in
USAID and USDA meet on a regular
basis to review and coordinate
plans.
The
Bill Emerson Humanitarian Trust
is another important resource to
ensure that the U.S. government can
respond to emergency food aid needs.
The Emerson Trust is not a food aid
program, but a food reserve
administered under the authority of
the Secretary of Agriculture. U.S.
commodities from this reserve can be
tapped to respond to humanitarian
food crises in developing countries,
particularly when a crisis emerges
unexpectedly. Up to 4 million metric
tons of U.S. wheat, corn, sorghum,
and rice can be kept in the reserve.
The Secretary of Agriculture is
authorized to release commodities
from the Emerson Trust to provide
food aid for unanticipated emergency
needs that cannot otherwise be met
through P.L. 480. |