aec 309

AEC 309Food Aid: Policies and PoliticsAleta BottsNovember 4, 2012

Source: “Celebrating 50 Years of Food For Peace, USAID, 2004”

Food Aid and Development Assistance: Policies/Politics Food Aid Policy – the Law and Rationale Issues Associated with Current Policy Efforts to Change that Food Aid Policy Agricultural Development Assistance The Future

Role of the United StatesAverage Annual Food Aid Contributions (%) by Major Donors, 1995-2009

As compiled by Congressional Research Service, 2010

How much money? US Food Aid over the past ten years averaged

around $2 billion per year.

To put it in perspective: The Farm Bill annual budget: $95 billion (2.1%) The annual budget deficit: $1.1 trillion (0.18%) The federal government budget: $3.5 trillion

(0.057%) The total federal debt: $16 trillion (0.0125%)

Food For Peace – The Foundation

1954: Surplus of government food stocks combined with countries facing food shortages

Eisenhower: The Ag Trade and Development Act “lay the basis for a permanent expansion of our exports of agricultural products with lasting benefits to ourselves and peoples of other lands.”

2008: Evolution completed from “surplus disposal” to humanitarian aims

Public Law 480 – P.L. 480

Important Provisions:

Key Issues Who Actually Delivers Aid? Commodities vs. _________________ Emergency vs. _________________ Cargo Preference Food Aid Vs. Development Assistance

Who Delivers Aid? Private Voluntary Organizations (PVOs)

CARE Catholic Relief Services Save the Children Many others

United Nations World Food Programme

Commodities vs. Cash

Emergency vs. Developmental

Source: Ho, Melissa and Charles Hanrahan, “International Food Aid Programs: Background and Issues. Congressional Research Service, Feb 3, 2010

Impact of Monetization

House Language on the “Safebox” (e) Minimum Level of Nonemergency Food Assistance- (1) FUNDS- Of the amounts made available to carry out

emergency and nonemergency food assistance programs under title II, not less than $450,000,000 for each of fiscal years 2008 through 2012 shall be expended for nonemergency food assistance programs under title II.

(2) EXCEPTION- The Administrator may use less than the amount specified in paragraph (1) for a fiscal year for nonemergency food assistance programs under title II if--

(A) the Administrator submits to [Congress] a report requesting the reduction and containing the reasons for the reduction; and

`(B) following submission of the report, Congress enacts a law approving the Administrator's request.'.

Senate Language on the “Safebox” `(b) Minimum Level of Nonemergency Food

Assistance- For each of fiscal years 2008 through 2012, of the amounts made available to carry out emergency and nonemergency food assistance programs under title II, not less than $600,000,000 for each of those fiscal years shall be obligated and expended for nonemergency food assistance programs under title II.'.

Final Language on the “Safebox” `(e) Minimum Level of Nonemergency Food

Assistance- `(1) FUNDS AND COMMODITIES- Of the amounts

made available to carry out emergency and nonemergency food assistance programs under title II, not less than $375,000,000 for fiscal year 2009, $400,000,000 for fiscal year 2010, $425,000,000 for fiscal year 2011, and $450,000,000 for fiscal year 2012 shall be expended for nonemergency food assistance programs under title II.

Final Language on the “Safebox” `(2) EXCEPTION- The President may use less than the amount

specified in paragraph (1) in a fiscal year for nonemergency food assistance programs under title II only if--

`(A) the President has made a determination that there is an urgent need for additional emergency food assistance;

`(B) the funds and commodities held in the Bill Emerson Humanitarian Trust have been exhausted; and

`(C) the President has submitted to Congress a supplemental appropriations request for a sum equal to the amount needed to reach the required spending level for nonemergency food assistance under paragraph (1) and the amount exhausted under paragraph (2)(B).

`(3) NOTIFICATION TO CONGRESS- If the President makes the determination described in paragraph (2)(A), the President shall submit to Congress written notification that the determination has been made.'.

Cargo Preference A minimum share of US food aid

(currently 75% by law) must be shipped on US-flag vessels.

That requirement may mean as much as $104 million in extra costs to taxpayers in any given year, a 46 percent markup. (Bageant, Barrett, and Lentz, 2010)

The Iron Triangle

Food Aid vs. Agricultural Assistance

Food Aid: $2 billion/year

Development Assistance (DA) for Agriculture: $1.4 billion/year for 2010 Afghanistan: $412 million Colombia: $67 million

Future of food aid?