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AEC 309

AEC 309. Food Aid: Policies and Politics Aleta Botts November 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

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AEC 309

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  1. AEC 309 Food Aid: Policies and Politics Aleta Botts November 4, 2012 Source: “Celebrating 50 Years of Food For Peace, USAID, 2004”

  2. 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

  3. Role of the United States Average Annual Food Aid Contributions (%) by Major Donors, 1995-2009 As compiled by Congressional Research Service, 2010

  4. 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%)

  5. 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

  6. Public Law 480 – P.L. 480 • Important Provisions:

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

  8. Who Delivers Aid? • Private Voluntary Organizations (PVOs) • CARE • Catholic Relief Services • Save the Children • Many others • United Nations World Food Programme

  9. Commodities vs. Cash

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

  11. Impact of Monetization

  12. 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.'.

  13. 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.'.

  14. 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.

  15. 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.'.

  16. 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)

  17. The Iron Triangle

  18. 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

  19. Future of food aid?

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