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.
