Commodity determinations
(a) Ineligible commodities
(1) Alcoholic beverages
Alcoholic beverages shall not be made available for disposition under this chapter.
(2) Tobacco
Tobacco or the products thereof shall not be made available under section 1727b of this title or subchapter III of this chapter.
(b) Market development activities
Subsection (a)(1) shall not be construed to prohibit representatives of the United States wine, beer, distilled spirits, or other alcoholic beverage industry from participating in agricultural market development activities carried out by the Secretary with foreign currencies made available under subchapter II of this chapter.
Definitions
As used in this chapter:
(1) Administrator
The term "Administrator" means the Administrator of the Agency for International Development, unless otherwise specified in this chapter.
(2) Agricultural commodity
The term "agricultural commodity", unless otherwise provided for in this chapter, includes any agricultural commodity or the products thereof produced in the United States, including wood and processed wood products, fish, and livestock as well as value-added, fortified, or high-value agricultural products. Effective beginning on October 1, 1991, for purposes of subchapter III, a product of an agricultural commodity shall not be considered to be produced in the United States if it contains any ingredient that is not produced in the United States, if that ingredient is produced and is commercially available in the United States at fair and reasonable prices.
(3) Appropriate committee of Congress
The term "appropriate committee of Congress" means—
(A) the Committee on Agriculture, Nutrition, and Forestry of the Senate;
(B) the Committee on Agriculture of the House of Representatives; and
(C) the Committee on Foreign Affairs of the House of Representatives.
(4) Cooperative
The term "cooperative" means a private sector organization whose members own and control the organization and share in its services and its profits and that provides business services and outreach in cooperative development for its membership.
(5) Developing country
The term "developing country" means a country that has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels.
(6) Food security
The term "food security" means access by all people at all times to sufficient food and nutrition for a healthy and productive life.
(7) Nongovernmental organization
The term "nongovernmental organization" means an organization that works at the local level to solve development problems in a foreign country in which the organization is located, except that the term does not include an organization that is primarily an agency or instrumentality of the government of the foreign country.
(8) Private voluntary organization
The term "private voluntary organization" means a not-for-profit, nongovernmental organization (in the case of a United States organization, an organization that is exempt from Federal income taxes under section 501(c)(3) of title 26) that receives funds from private sources, voluntary contributions of money, staff time, or in-kind support from the public, and that is engaged in or is planning to engage in voluntary, charitable, or development assistance activities (other than religious activities).
(9) Secretary
The term "Secretary" means the Secretary of Agriculture, unless otherwise specified in this chapter.
General provisions
(a) Prohibition
No agricultural commodity, food procured outside of the United States, food voucher, or cash transfer for food shall be made available under this chapter unless it is determined that—
(1) in the case of the provision of an agricultural commodity, adequate storage facilities will be available in the recipient country at the time of the arrival of the commodity to prevent the spoilage or waste of the commodity; and
(2) the distribution of the agricultural commodity or use of the food procured outside of the United States, food voucher, or cash transfer for food in the recipient country will not result in a substantial disincentive to or interference with domestic production or marketing in that country.
(b) Impact on local farmers and economy
The Secretary or the Administrator, as appropriate, shall ensure that the importation of United States agricultural commodities, the use of food procured outside of the United States, food vouchers, and cash transfers for food, and the use of local currencies for development purposes will not have a disruptive impact on the farmers or the local economy of the recipient country. The Secretary or the Administrator, as appropriate, shall seek information, as part of the regular proposal and submission process, from implementing agencies on the potential costs and benefits to the local economy within the recipient country.
(c) Transshipment
The Secretary or the Administrator, as appropriate, shall, under such terms and conditions as are determined to be appropriate, require commitments designed to prevent or restrict the resale or transshipment to other countries, or use for other than domestic purposes, of agricultural commodities donated or purchased under this chapter.
(d) Private trade channels and small business
Private trade channels shall be used under this chapter to the maximum extent practicable in the United States and in the recipient countries with respect to—
(1) sales from privately owned stocks;
(2) sales from stocks owned by the Commodity Credit Corporation; and
(3) donations.
Small businesses shall be provided adequate and fair opportunity to participate in such sales.
(e) World prices
(1) In general
In carrying out this chapter, reasonable precautions shall be taken to assure that sales or donations of agricultural commodities will not unduly disrupt world prices for agricultural commodities or normal patterns of commercial trade with foreign countries.
(2) Sale price
Sales of agricultural commodities described in paragraph (1) shall be made at a reasonable market price in the economy where the agricultural commodity is to be sold, as determined by the Secretary or the Administrator, as appropriate.
(f) Publicity
Commitments shall be obtained from countries or private entities, as appropriate, receiving commodities under this chapter that such countries or private entities will widely publicize, to the extent practicable, through the use of the public media and through other means, that such commodities are being provided through the friendship of the American people as food for peace.
(g) Participation of private sector
The Secretary or the Administrator, as appropriate, shall encourage the private sector of the United States and private importers in developing countries to participate in the programs established under this chapter.
(h) Safeguard usual marketings
In carrying out this chapter, reasonable precautions shall be taken to safeguard the usual marketings of the United States and to avoid displacing any sales of the United States agricultural commodities that the Secretary or Administrator determines would otherwise be made.
(i) Military distribution of food aid
(1) In general
The Secretary or the Administrator, as appropriate, shall attempt to ensure that agricultural commodities made available under this chapter will be provided without regard to the political affiliation, geographic location, ethnic, tribal, or religious identity of the recipient or without regard to other extraneous factors.
(2) Prohibition on handling of commodities by the military
(A) In general
Except as provided in subparagraph (B), the Secretary or the Administrator, as appropriate, shall not enter into an agreement under this chapter to provide agricultural commodities if such agreement requires or permits the distribution, handling, or allocation of such commodities by the military forces of any government or insurgent group.
(B) Exception
Notwithstanding subparagraph (A), the Secretary or the Administrator, as appropriate, may authorize the handling or distribution of commodities by the military forces of a country in exceptional circumstances in which—
(i) nonmilitary channels are not available for such handling or distribution;
(ii) such action is consistent with the requirements of paragraph (1); and
(iii) the Secretary or the Administrator, as appropriate, determines that such action is necessary to meet the emergency health, safety, or nutritional requirements of the recipient population.
(3) Encouragement of safe passage
When entering into agreements under this chapter that involve areas within recipient countries that are experiencing protracted warfare or civil strife, the Secretary or the Administrator, as appropriate, shall, to the extent practicable, encourage all parties to the conflict to permit safe passage of the commodities and other relief supplies and to establish safe zones for medical and humanitarian treatment and evacuation of injured persons.
(j) Violations of human rights
(1) Ineligible countries
The Secretary or the Administrator, as appropriate, shall not enter into any agreement under this chapter to provide agricultural commodities, or to finance the sale of agricultural commodities, to the government of any country determined by the President to engage in a consistent pattern of gross violations of internationally recognized human rights, including—
(A) the torture or cruel, inhuman, or degrading treatment or punishment of individuals;
(B) the prolonged detention of individuals without charges;
(C) the responsibility for causing the disappearance of individuals through the abduction and clandestine detention of such individuals; or
(D) other flagrant denials of the right to life, liberty, and the security of persons.
(2) Waiver
Paragraph (1) shall not prohibit the provision of assistance to such a country if the assistance is targeted to the most needy people in such country and is made available in such country through channels other than the government.
(k) Abortion prohibition
Local currencies that are made available for use under this chapter may not be used to pay for the performance of abortions as a method of family planning or to motivate or coerce any person to practice abortions.
(l) Sale procedure
(1) In general
Subsections (b) and (h) shall apply to sales of commodities in recipient countries to generate proceeds to carry out projects under—
(A) subchapters II and III;
(B) section 1431(b) of this title; and
(C) the Food for Progress Act of 1985 (7 U.S.C. 1736o).
(2) Currency
A sale described in paragraph (1) may be made in United States dollars or other currencies.
Agreements
(a) In general
Before entering into agreements with foreign countries under subchapters II and III–A for the provision of commodities, the Secretary or the Administrator, as appropriate, shall consider the extent to which the recipient country is undertaking measures for economic development purposes in order to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable development.
(b) Terms of agreement
An agreement entered into under this chapter shall—
(1) include an estimate of the annual value or volume of agricultural commodities proposed to be made available to the country or eligible organization under the agreement;
(2) with respect to agreements entered into with foreign countries under subchapters II and III–A, include a statement of the manner in which the agricultural commodities provided under the agreement or the revenues generated by the sale of such commodities (if such commodities are sold), will be integrated into the overall development plans of the country to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable agriculture and broad-based economic growth;
(3) with respect to agreements entered into under subchapters II and III–A, include a statement of the manner in which competitive private sector participation within the recipient country in the storage, marketing, transportation, and distribution of agricultural commodities made available under this chapter will be encouraged;
(4) include a statement that such agreement shall be subject to the availability, during each fiscal year to which the agreement applies, of the necessary appropriations and agricultural commodities; and
(5) contain such other terms and conditions as the Secretary or the Administrator, as appropriate, determines to be necessary.
(c) Multi-year agreements
(1) In general
Agreements to provide assistance on a multi-year basis to recipient countries or to eligible organizations—
(A) may be made available under subchapters II and III–A; and
(B) shall be made available under subchapter III.
(2) Exception
The Secretary or the Administrator, as appropriate, may determine not to make assistance available on a multi-year basis with respect to a recipient country or an eligible organization if it is determined that assistance should be provided to such country or through such organization only on an annual basis because—
(A) the past performance of the country or organization in meeting program objectives does not warrant a multi-year agreement;
(B) it is anticipated that the need of the country or organization for food aid does not extend beyond 1 year; or
(C) other circumstances, as determined by the Secretary or the Administrator, as appropriate, indicate there is only a need for a 1 year agreement.
(d) Review of agreements
The Secretary or the Administrator, as appropriate, may make a determination to terminate, or refuse to enter into, a multi-year agreement with respect to a recipient country if the Secretary or the Administrator determines that such country is not fulfilling the objectives or requirements of this chapter. In making such a determination, the Secretary or the Administrator, as appropriate, may consider the extent to which the country is—
(1) making significant economic development reforms;
(2) promoting free and open markets for food and agricultural producers; and
(3) fostering increased food security.
Consultation
The Secretary and the Administrator shall cooperate and consult in the implementation of this chapter.
Use of Commodity Credit Corporation
(a) In general
The Commodity Credit Corporation may acquire and make available such agricultural commodities as necessary to carry out agreements under this chapter.
(b) Included expenses
With respect to commodities made available under subchapters III and III–A, the Commodity Credit Corporation may pay—
(1) the cost of acquiring such commodities;
(2) the costs associated with packaging, enrichment, preservation, and fortification of such commodities, including the costs of carrying out section 1736g–2 of this title;
(3) the processing, transportation, handling, and other incidental costs up to the time of the delivery of such commodities free on board vessels in United States ports;
(4) the vessel freight charges from United States ports or designated Canadian transshipment ports, as determined by the Secretary, to designated ports of entry abroad;
(5) the costs associated with transporting such commodities from United States ports to designated points of entry abroad in the case—
(A) of landlocked countries;
(B) of ports that cannot be used effectively because of natural or other disturbances;
(C) of the unavailability of carriers to a specific country; or
(D) of substantial savings in costs or time that may be effected by the utilization of points of entry other than ports;
(6) in the case of commodities for urgent and extraordinary relief requirements (including pre-positioned commodities) the transportation costs incurred in moving the commodities from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage, distribution, and program implementation costs to use the commodities; and
(7) the charges for general average contributions arising out of the ocean transport of commodities transferred pursuant thereto.
(c) Commodity Credit Corporation
The funds, facilities, and authorities of the Commodity Credit Corporation may be used to carry out this chapter.
(d) Availability of funds
Funds shall be available under this chapter only to the extent provided in advance in appropriation Acts.
Consultation on grain marketing
Congress encourages the Secretary of Agriculture, in coordination with other appropriate Federal departments and agencies, to continue to consult with representatives of other major grain exporting nations toward the goal of establishing more orderly marketing of grain and achieving higher farm income for producers of grain.
Food for progress
(a) Short title
This section may be cited as the "Food for Progress Act of 1985".
(b) Definitions
In this section:
(1) Cooperative
The term "cooperative" has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).
(2) Corporation
The term "Corporation" means the Commodity Credit Corporation.
(3) Developing country
The term "developing country" has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).
(4) Eligible commodity
The term "eligible commodity" means an agricultural commodity, or a product of an agricultural commodity, in inventories of the Corporation or acquired by the Secretary or the Corporation for disposition through commercial purchases under a program authorized under this section.
(5) Eligible entity
The term "eligible entity" means—
(A) the government of an emerging agricultural country;
(B) an intergovernmental organization;
(C) a private voluntary organization;
(D) a nonprofit agricultural organization or cooperative;
(E) a nongovernmental organization;
(F) a college or university (as such terms are defined in section 3103(4) of this title); and
(G) any other private entity.
(6) Food security
The term "food security" means access by all people at all times to sufficient food and nutrition for a healthy and productive life.
(7) Nongovernmental organization
The term "nongovernmental organization" has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).
(8) Private voluntary organization
The term "private voluntary organization" has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).
(9) Program
The term "program" means a food assistance or development initiative proposed by an eligible entity and approved by the Secretary under this section.
(10) Rate of return
For purposes of applying subsection (j)(3), the rate of return for an eligible commodity shall be equal to the proportion that—
(A) the proceeds eligible entities generate through monetization of such commodity, bears to
(B) the cost to the Federal Government to procure and ship the commodity to the country where it is monetized.
(11) Secretary
The term "Secretary" means the Secretary of Agriculture.
(c) Program
In order to use the food resources of the United States more effectively in support of developing countries, and countries that are emerging democracies that have made commitments to introduce or expand free enterprise elements in their agricultural economies through changes in commodity pricing, marketing, input availability, distribution, and private sector involvement, the Secretary shall enter into agreements with eligible entities to furnish to the countries eligible commodities made available under subsections (e) and (f).
(d) Consideration for agreements
In determining whether to enter into an agreement under this section, the Secretary shall consider whether a potential recipient country is committed to carry out, or is carrying out, policies that promote economic freedom, private, domestic production of eligible commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of such eligible commodities. Such policies may provide for, among other things—
(1) access, on the part of farmers in the country, to private, competitive markets for their product;
(2) market pricing of eligible commodities to foster adequate private sector incentives to individual farmers to produce food on a regular basis for the country's domestic needs;
(3) establishment of market-determined foreign exchange rates;
(4) timely availability of production inputs (such as seed, fertilizer, or pesticides) to farmers;
(5) access to technologies appropriate to the level of agricultural development in the country; and
(6) construction of facilities and distribution systems necessary to handle perishable products.
(e) Funding of eligible commodities
(1) The Corporation shall make available to the Secretary such eligible commodities as the Secretary may request for purposes of furnishing eligible commodities under this section.
(2) Notwithstanding any other provision of law, the Corporation may use funds appropriated to carry out title I of the Food for Peace Act [7 U.S.C. 1701 et seq.] in carrying out this section with respect to eligible commodities made available under that Act [7 U.S.C. 1691], and subsection (g) does not apply to eligible commodities furnished on a grant basis or on credit terms under that title.
(3) The Corporation may finance the sale and exportation of eligible commodities, made available under the Food for Peace Act [7 U.S.C. 1691 et seq.], which are furnished under this section. Payment for eligible commodities made available under that Act which are purchased on credit terms under this section shall be on the same basis as the terms provided in section 103 of that Act [7 U.S.C. 1703].
(4) In the case of eligible commodities made available under the Food for Peace Act for purposes of this section, section 406 of that Act [7 U.S.C. 1736] shall apply to eligible commodities furnished on a grant basis under this section and sections 402, 403(a), 403(c), and 403(i) of that Act [7 U.S.C. 1732, 1733(a), (c), (i)] shall apply to all eligible commodities furnished under this section.
(5) No effect on domestic programs .—The Secretary shall not make an eligible commodity available for disposition under this section in any amount that will reduce the amount of the eligible commodity that is traditionally made available through donations to domestic feeding programs or agencies, as determined by the Secretary.
(f) Provision of eligible commodities to developing countries
(1) The Corporation may provide for—
(A) grants, or
(B) sales on credit terms,
of eligible commodities made available under section 1431(b) of this title for use in carrying out this section.
(2) In carrying out section 1431(b) of this title, the Corporation may purchase eligible commodities for use under this section if—
(A) the Corporation does not hold stocks of such eligible commodities; or
(B) Corporation stocks are insufficient to satisfy commitments made in agreements entered into under this section and such eligible commodities are needed to fulfill such commitments.
(3) No funds of the Corporation in excess of $40,000,000 (exclusive of the cost of eligible commodities) may be used for each of fiscal years 1996 through 2023 to carry out this section with respect to eligible commodities made available under section 1431(b) of this title unless authorized in advance in appropriation Acts.
(4) The cost of eligible commodities made available under section 1431(b) of this title which are furnished under this section, and the expenses incurred in connection with furnishing such eligible commodities, shall be in addition to the level of assistance programmed under the Food for Peace Act [7 U.S.C. 1691 et seq.] and may not be considered expenditures for international affairs and finance.
(5) Sale procedure .—In making sales of eligible eligible 1 commodities under this section, the Secretary shall follow the sale procedure described in section 403(l) of the Food for Peace Act [7 U.S.C. 1733(l)].
(g) Minimum tonnage
Subject to subsection (f)(3), not less than 400,000 metric tons of eligible commodities shall be provided under this section for the program for each of fiscal years 2002 through 2023.
(h) Prohibition on resale or transshipment of eligible commodities
An agreement entered into under this section shall prohibit the resale or transshipment of the eligible commodities provided under the agreement to other countries.
(i) Displacement of United States commercial sales
In entering into agreements under this section, the Secretary shall take reasonable steps to avoid displacement of any sales of United States commodities that would otherwise be made to such countries.
(j) Multicountry or multiyear basis
(1) In general
In carrying out this section, the Secretary, on request and subject to the availability of eligible commodities, is encouraged to approve agreements that provide for eligible commodities to be made available for distribution or sale by the recipient on a multicountry or multiyear basis if the agreements otherwise meet the requirements of this section.
(2) Deadline for program announcements
Before the beginning of any fiscal year, the Secretary shall, to the maximum extent practicable—
(A) make all determinations concerning program agreements and resource requests for programs under this section; and
(B) announce those determinations.
(3) Report
Not later than April 1 of each fiscal year, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate—
(A) a list of programs, countries, and eligible commodities, and the total amount of funds for transportation and administrative costs, approved during the prior fiscal year under this section;
(B) a description of the actual rate of return for each commodity made available under this section for the previous fiscal year including—
(i) factors that influenced the rate of return; and
(ii) with respect to the commodity, the costs of bagging or further processing, ocean transportation, inland transportation, storage costs, and any other information that the Secretary determines to be necessary; and
(C) for each instance in which a commodity was made available under this section at a rate of return less than 70 percent, an explanation for the rate of return realized.
(k) Effective and termination dates
This section shall be effective during the period beginning October 1, 1985, and ending December 31, 2023.
(l) Administrative expenses
(1) To enhance the development of private sector agriculture in countries receiving assistance under this section the Secretary may, in each of the fiscal years 1996 through 2023, use in addition to any amounts or eligible commodities otherwise made available under this section for such activities, not to exceed $15,000,000 (or, in the case of fiscal year 1999, $12,000,000) of Corporation funds (or eligible commodities of an equal value owned by the Corporation), to provide assistance in the administration, sale, and monitoring of food assistance programs, and to provide technical assistance for monetization programs, to strengthen private sector agriculture in recipient countries.
(2) To carry out this subsection, the Secretary may provide eligible commodities under agreements entered into under this section in a manner that uses the commodity transaction as a means of developing in the recipient countries a competitive private sector that can provide for the importation, transportation, storage, marketing and distribution of such eligible commodities.
(3) The Secretary may use the assistance provided under this subsection and proceeds derived from the sale of eligible commodities under paragraph (2) to design, monitor, and administer activities undertaken with such assistance, for the purpose of strengthening or creating the capacity of recipient country private enterprises to undertake commercial transactions, with the overall goal of increasing potential markets for United States agricultural eligible commodities.
(4) Humanitarian or development purposes .—The Secretary may authorize the use of proceeds to pay the costs incurred by an eligible entity under this section for—
(A)(i) programs targeted at hunger and malnutrition; or
(ii) development programs involving food security;
(B) transportation, storage, and distribution of eligible commodities provided under this section; and
(C) administration, sales, monitoring, and technical assistance.
(m) Secretarial approval
In carrying out this section, the Secretary shall approve, as determined appropriate by the Secretary, agreements with agricultural trade organizations, intergovernmental organizations, private voluntary organizations, and cooperatives that provide for—
(1) the sale of eligible commodities, including the marketing of eligible commodities through the private sector; and
(2) the use of the proceeds generated in the humanitarian and development programs of such agricultural trade organizations, intergovernmental organizations, private voluntary organizations, and cooperatives.
(n) Program management
(1) In general
The Secretary shall ensure, to the maximum extent practicable, that each eligible entity participating in 1 or more programs under this section—
(A) uses eligible commodities made available under this section—
(i) in an effective manner;
(ii) in the areas of greatest need; and
(iii) in a manner that promotes the purposes of this section;
(B) in using eligible commodities, assesses and takes into account the needs of recipient countries and the target populations of the recipient countries;
(C) works with recipient countries, and indigenous institutions or groups in recipient countries, to design and carry out mutually acceptable programs authorized under this section; and
(D) monitors and reports on the distribution or sale of eligible commodities provided under this section using methods that, as determined by the Secretary, facilitate accurate and timely reporting.
(2) Requirements
(A) In general
Not later than 270 days after May 13, 2002, the Secretary shall review and, as necessary, make changes in regulations and internal procedures designed to streamline, improve, and clarify the application, approval, and implementation processes pertaining to agreements under this section.
(B) Considerations
In conducting the review, the Secretary shall consider—
(i) revising procedures for submitting proposals;
(ii) developing criteria for program approval that separately address the objectives of the program;
(iii) pre-screening organizations and proposals to ensure that the minimum qualifications are met;
(iv) implementing e-government initiatives and otherwise improving the efficiency of the proposal submission and approval processes;
(v) upgrading information management systems;
(vi) improving commodity and transportation procurement processes; and
(vii) ensuring that evaluation and monitoring methods are sufficient.
(C) Consultations
Not later than 1 year after May 13, 2002, the Secretary shall consult with the Com mittee on Agriculture, and the Committee on International Relations, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on changes made in regulations and procedures.
(3) Reports
Each eligible entity that enters into an agreement under this section shall submit to the Secretary, at such time as the Secretary may request, a report containing such information as the Secretary may request relating to the use of eligible commodities and funds furnished to the eligible entity under this section.
(o) Private voluntary organizations and other private entities
In entering into agreements described in subsection (c), the Secretary—
(1) shall enter into agreements with eligible entities described in subparagraphs (C) and (G) of subsection (b)(5); and
(2) shall not discriminate against such eligible entities.
(p) Pilot agreements
(1) In general
For each of fiscal years 2019 through 2023, subject to the availability of appropriations pursuant to the authorization in paragraph (3), the Secretary shall enter into 1 or more pilot agreements with 1 or more eligible entities through which the Secretary shall provide financial assistance to the eligible entities to carry out activities consistent with subsection (l)(4)(A).
(2) Report required
In each of fiscal years 2020 through 2024, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing, with respect to the previous fiscal year—
(A) the amount provided to eligible entities under each pilot agreement pursuant to paragraph (1) and how the funds were used;
(B) the activities carried out under each pilot agreement;
(C) the number of direct and indirect beneficiaries of those activities; and
(D) the effectiveness of the pilot agreements, including as applicable the impact on food security and agricultural productivity.
(3) Authorization of appropriations
There is authorized to be appropriated to carry out pilot agreements pursuant to this subsection $10,000,000 for each of fiscal years 2019 through 2023.
Administrative provisions
(a) Subchapter II programs
(1) Acquisitions
The importing country or private entity that enters into an agreement under subchapter II shall acquire the agricultural commodities to be financed under subchapter II.
(2) Invitation for bid
No purchase of agricultural commodities from private stock or purchase of ocean transportation shall be financed under subchapter II unless such purchases are made on the basis of an invitation for bid that is publicly advertised in the United States, and on the basis of bid offerings that shall conform to such invitation and be received and publicly opened in the United States. All awards in the purchase of commodities or ocean transportation financed under subchapter II shall be consistent with open, competitive, and responsive bid procedures, as determined appropriate by the Secretary. Resulting contracts may contain such terms and conditions as the Secretary determines are necessary and appropriate.
(b) Agents
(1) Authority of Secretary or Commodity Credit Corporation
(A) General rule
Except as provided in subparagraph (B), if it is determined appropriate, the Secretary or the Commodity Credit Corporation may serve as the purchasing or shipping agent, or both, for the importer or importing country in arranging the purchase or shipping of commodities financed under subchapter II.
(B) Exception
Notwithstanding subparagraph (A), the Secretary or the Commodity Credit Corporation may award, under a competitive bidding process, contracts for establishing freight agents who shall act on behalf of the Secretary or the Corporation to handle the shipping of commodities financed under this chapter.
(C) Avoidance of conflict of interest of contractors
Freight agents employed by the Secretary or the Commodity Credit Corporation under subchapter II shall not represent any foreign government during the period of their contract with the United States Government.
(2) Reasonable fees and commissions
(A) Fees
Notwithstanding any other provision of law, the Secretary or the Commodity Credit Corporation may enter into an agreement with the importer or importing country that contains the terms and conditions that will govern the provision of purchasing or shipping agent services by the Secretary or the Corporation, including the establishment of fees for such services. Any such fees shall be fair and reasonable in relation to the services performed and shall be available as reimbursement for costs incurred in providing such services.
(B) Prohibition on commissions
Commissions, fees, or other payments to any selling agent or to any agent of a purchaser shall be prohibited in the purchase of agricultural commodities that are financed under subchapter II of this chapter.
(3) Limitations
No commission, fees, or other payments to an agent, broker, consultant, or other representative of the importer or importing country for ocean transportation brokerage serv ices in connection with the carriage of commodities provided under subchapter II of this chapter may—
(A) be paid in excess of an amount determined appropriate by the Secretary; and
(B) be shared by such person with the importer or importing country or any agent thereof.
(4) Avoidance of conflict of interest
A person may not be an agent, broker, consultant, or other representative of the United States Government, an importer, or an importing country in connection with agricultural commodities provided under this chapter during a fiscal year in which such person provides or acts as an agent, broker, consultant, or other representative of a person engaged in providing ocean transportation or transportation-related services for such commodities. For the purpose of this paragraph, the term "transportation-related services" means lightening, stevedoring, bagging, or inland transportation to the destination point.
(c) Subchapters III and III–A program
(1) Acquisition
(A) In general
The Administrator shall transfer, arrange for the transportation, and take other steps necessary to make available agricultural commodities to be provided under subchapter III and subchapter III–A.
(B) Certain commodities made available for nonemergency assistance
In the case of agricultural commodities made available for nonemergency assistance under subchapter III for least developed countries that meet the poverty and other eligibility criteria established by the International Bank for Reconstruction and Development for financing under the International Development Association, the Administrator may pay the transportation costs incurred in moving the agricultural commodities from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage and distribution costs.
(2) Freight procurement
Notwithstanding chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41 or other similar provisions of law relating to the making or performance of Federal Government contracts, ocean transportation under subchapters III and III–A may be procured on the basis of full and open competitive procedures. Resulting contracts may contain such terms and conditions as the Administrator determines are necessary and appropriate.
(3) Avoidance of conflict of interest
Freight agents employed by the Agency for International Development under subchapters III and III–A shall not represent any foreign government during the period of their contract with the United States Government.
(4) Prepositioning
(A) In general
Funds made available for fiscal years 2001 through 2023 to carry out subchapters III and III-A may be used by the Administrator to procure, transport, and store agricultural commodities for prepositioning within the United States and in foreign countries, except that for each of fiscal years 2001 through 2013 not more than $10,000,000 of such funds and for each of fiscal years 2014 through 2023 not more than $15,000,000 of such funds may be used to store agricultural commodities for prepositioning in foreign countries.
(B) Additional prepositioning sites
The Administrator may establish additional sites for prepositioning in foreign countries or change the location of current sites for prepositioning in foreign countries after conducting, and based on the results of, assessments of need, the availability of appropriate technology for long-term storage, feasibility, and cost.
(5) Nonemergency or multiyear agreements
Annual resource requests for ongoing nonemergency or ongoing multiyear agreements under subchapter III shall be finalized not later than October 1 of the fiscal year in which the agricultural commodities will be shipped under the agreement.
(d) Timing of shipments
In determining the timing of the shipment of agricultural commodities to be provided under this chapter, the Secretary or the Administrator, as appropriate, shall consider—
(1) the time of harvest of any competing commodities in the recipient country; and
(2) such other concerns determined to be appropriate.
(e) Deadline for agreements under subchapters II and III–A
An agreement under subchapters II and III–A shall, to the extent practicable, be entered into not later than—
(1) November 30 of the first fiscal year in which agricultural commodities are to be shipped under the agreement; or
(2) 60 days after the date of enactment of the annual Rural Development, Agriculture, and Related Agencies Appropriations Act for the first fiscal year in which agricultural commodities are to be shipped under the agreement,
whichever is later.
(f) Annual report regarding food aid programs and activities
(1) Annual report
Not later than April 1 of each fiscal year, the Administrator and the Secretary shall jointly, or each separately, prepare and submit to the appropriate committees of Congress a report regarding each program and activity carried out under this chapter by the Administrator, the Secretary, or both, as applicable, during the prior fiscal year.
(2) Contents
An annual report described in paragraph (1) shall include, with respect to the prior fiscal year, the following:
(A) A list that contains a description of each country and organization that receives food and other assistance under this chapter (including the quantity of food and assistance provided to each country and organization).
(B) A general description of each project and activity implemented under this chapter (including each activity funded through the use of local currencies) and the total number of beneficiaries of the project.
(C) A statement describing the quantity of agricultural commodities made available to, and the total number of beneficiaries in, each country pursuant to—
(i) this chapter;
(ii) section 1431(b) of this title;
(iii) the Food for Progress Act of 1985 (7 U.S.C. 1736o); and
(iv) the McGovern-Dole International Food for Education and Child Nutrition Program established by section 1736o–1 of this title.
(D) An assessment of the progress made through programs under this chapter towards reducing food insecurity in the populations receiving food assistance from the United States.
(E) A description of efforts undertaken by the Food Aid Consultative Group under section 1725 of this title to achieve an integrated and effective food assistance program.
(F) An assessment of—
(i) each program oversight, monitoring, and evaluation system implemented under section 1726a(f) of this title; and
(ii) the impact of each program oversight, monitoring, and evaluation system on the effectiveness and efficiency of assistance provided under this subchapter.
(G) An assessment of the progress made by the Administrator in addressing issues relating to quality with respect to the provision of food assistance.
(H) A statement of the amount of funds (including funds for administrative costs, indirect cost recovery, internal transportation, storage and handling, and associated distribution costs) provided to each eligible organization that received assistance under this chapter, that further describes the following:
(i) How such funds were used by the eligible organization.
(ii) The actual rate of return for each commodity made available under this chapter, including factors that influenced the rate of return, and, for the commodity, the costs of bagging or further processing, ocean transportation, inland transportation in the recipient country, storage costs, and any other information that the Administrator and the Secretary determine to be necessary.
(iii) For each instance in which a commodity was made available under this chapter at a rate of return less than 70 percent, the reasons for the rate of return realized.
(I) For funds expended for purposes of section 1 1722(e), 1736(b)(6), and 1736a(c)(1)(B) of this title, a detailed accounting of the expenditures and purposes of such expenditures with respect to each such section.
(3) Rate of return described
For purposes of applying subparagraph (H) of paragraph (2), the rate of return for a commodity shall be equal to the proportion that—
(A) the proceeds the implementing partners generate through monetization; bears to
(B) the cost to the Federal Government to procure and ship the commodity to a recipient country for monetization.
Expiration date
No agreements to finance sales or to provide other assistance under this chapter shall be entered into after December 31, 2023.
Debt forgiveness
(a) Authority
The President, taking into account the financial resources of a country, may waive payments of principal and interest that such country would otherwise be required to make to the Commodity Credit Corporation under dollar sales agreements under subchapter II if—
(1) that country is a least developed country; and
(2) either—
(A) an International Monetary Fund standby agreement is in effect with respect to that country;
(B) a structural adjustment program of the International Bank for Reconstruction and Development or of the International Development Association is in effect with respect to that country;
(C) a structural adjustment facility, enhanced structural adjustment facility, or similar supervised arrangement with the International Monetary Fund is in effect with respect to that country; or
(D) even though such an agreement, program, facility, or arrangement is not in effect, the country is pursuing national economic policy reforms that would promote democratic, market-oriented, and long term economic development.
(b) Request for debt relief by President
The President may provide debt relief under subsection (a) only if a notification is submitted to Congress at least 10 days prior to providing the debt relief. Such a notification shall—
(1) specify the amount of official debt the President proposes to liquidate; and
(2) identify the countries for which debt relief is proposed and the basis for their eligibility for such relief.
(c) Appropriations action required
The aggregate amount of principal and interest waived under this section may not exceed the amount approved for such purpose in an Act appropriating funds to carry out this chapter.
(d) Limitation on new credit assistance
If the authority of this section is used to waive payments otherwise required to be made by a country pursuant to this chapter, the President may not provide any new credit assistance for that country under this chapter during the 2-year period beginning on the date such waiver authority is exercised, unless the President provides to the Congress, before the assistance is provided, a written justification for the provision of such new credit assistance.
(e) Applicability
The authority of this section applies with respect to credit sales agreements entered into before November 28, 1990.
Authorization of appropriations
(a) Authorization of appropriations
There are authorized to be appropriated—
(1) for fiscal year 2008 and each fiscal year thereafter, $2,500,000,000 to carry out the emer gency and nonemergency food assistance programs under subchapter III; and
(2) such sums as are necessary—
(A) to carry out the concessional credit sales program established under subchapter II;
(B) to carry out the grant program established under subchapter III–A; and
(C) to make payments to the Commodity Credit Corporation to the extent the Commodity Credit Corporation is not reimbursed under the programs under this chapter for the actual costs incurred or to be incurred by the Commodity Credit Corporation in carrying out such programs.
(b) Transfer of funds
(1) In general
Except as provided in paragraph (2) and notwithstanding any other provision of law, the President may direct that up to 15 percent of the funds available for any fiscal year for carrying out any subchapter of this chapter be used to carry out any other subchapter of this chapter.
(2) Subchapter III–A funds
The President may direct that up to 50 percent of the funds available for any fiscal year for carrying out subchapter III–A be used to carry out subchapter III.
(c) Budget
In presenting the Budget of the United States, the President shall classify expenditures under this chapter as expenditures for international affairs and finance rather than for agriculture and agricultural resources.
(d) Value of commodities
Notwithstanding any other provision of law, in determining the reimbursement due the Commodity Credit Corporation for all expenses incurred under this chapter, commodities from the inventory of the Commodity Credit Corporation that were acquired under dairy price support operations shall be valued at a price not greater than the export market price for such commodities, as determined by the Secretary, as of the time such commodity is made available under this chapter.
(e) Minimum level of nonemergency food assistance
(1) In general
For each of fiscal years 2019 through 2023, not less than $365,000,000 of the amounts made available to carry out emergency and nonemergency food assistance programs under subchapter II, nor more than 30 percent of such amounts, shall be expended for nonemergency food assistance programs under such subchapter.
(2) Community development funds
Funds appropriated each year to carry out part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) that are made available through grants or cooperative agreements to strengthen food security in developing countries and that are consistent with section 1722(e)(1)(C) of this title may be considered amounts expended for nonemergency food assistance programs for purposes of paragraph (1).
(3) Farmer-to-farmer program
In determining the amount expended for a fiscal year for nonemergency food assistance programs under paragraph (1), amounts expended for that year to carry out programs under section 1737 of this title may be considered amounts expended for nonemergency food assistance programs.
Coordination of foreign assistance programs
To the maximum extent practicable, assistance for a foreign country under subchapter III–A shall be coordinated and integrated with United States development assistance objectives and programs for that country and with the overall development strategy of that country. Special emphasis should be placed on, and funds devoted to, activities that will increase the nutritional impact of programs of assistance under subchapter III–A, and child survival programs and projects, in least developed countries by improving the design and implementation of such programs and projects.
Congressional consultation on bilateral commodity supply agreements
As soon as practicable before the Government of the United States enters into any bilateral international agreement, other than a treaty, involving a commitment on the part of the United States to assure access by a foreign country or instrumentality thereof to United States agricultural commodities or products thereof on a commercial basis, the President is encouraged to notify and consult with the appropriate committees of Congress for the purpose of setting forth in detail the terms of and reasons for negotiating such agreement.
Trade policy declaration
It is hereby declared to be the agricultural trade policy of the United States to—
(1) be the premier supplier of agricultural and food products to world markets and expand exports of high value products;
(2) support the principle of free trade and the promotion of fair trade in agricultural commodities and products;
(3) cooperate fully in all efforts to negotiate with foreign countries further reductions in tariff and nontariff barriers to trade, including sanitary and phytosanitary measures and trade-distorting subsidies;
(4) aggressively counter unfair foreign trade practices as a means of encouraging fairer trade;
(5) remove foreign policy constraints to maximize United States economic interests through agricultural trade; and
(6) provide for consideration of United States agricultural trade interests in the design of national fiscal and monetary policy that may foster continued strength in the value of the dollar.
Trade negotiations policy
(a) Findings
Congress finds that—
(1) on a level playing field, United States producers are the most competitive suppliers of agricultural products in the world;
(2) exports of United States agricultural products accounted for $54,000,000,000 in 1995, contributing a net $24,000,000,000 to the merchandise trade balance of the United States and supporting approximately 1,000,000 jobs;
(3) increased agricultural exports are critical to the future of the farm, rural, and overall United States economy, but the opportunities for increased agricultural exports are limited by the unfair subsidies of the competitors of the United States, and a variety of tariff and nontariff barriers to highly competitive United States agricultural products;
(4) international negotiations can play a key role in breaking down barriers to United States agricultural exports;
(5) the Uruguay Round Agreement on Agriculture made significant progress in the attainment of increased market access opportunities for United States exports of agricultural products, for the first time—
(A) restraining foreign trade-distorting domestic support and export subsidy programs; and
(B) developing common rules for the application of sanitary and phytosanitary restrictions;
that should result in increased exports of United States agricultural products, jobs, and income growth in the United States;
(6) the Uruguay Round Agreement on Agriculture did not succeed in completely eliminating trade distorting domestic support and export subsidies by—
(A) allowing the European Union to continue unreasonable levels of spending on export subsidies; and
(B) failing to discipline monopolistic state trading entities, such as the Canadian Wheat Board, that use nontransparent and discriminatory pricing as a hidden de facto export subsidy;
(7) during the period 1996 through 2002, there will be several opportunities for the United States to negotiate fairer trade in agricultural products, including further negotiations under the World Trade Organization, and steps toward possible free trade agreements of the Americas and Asian-Pacific Economic Cooperation (APEC); and
(8) the United States should aggressively use these opportunities to achieve more open and fair opportunities for trade in agricultural products.
(b) Goals of the United States in agricultural trade negotiations
The objectives of the United States with respect to future negotiations on agricultural trade include—
(1) increasing opportunities for United States exports of agricultural products by eliminating tariff and nontariff barriers to trade;
(2) leveling the playing field for United States producers of agricultural products by limiting per unit domestic production supports to levels that are no greater than those available in the United States;
(3) ending the practice of export dumping by eliminating all trade distorting export subsidies and disciplining state trading entities so that they do not (except in cases of bona fide food aid) sell in foreign markets at prices below domestic market prices or prices below their full costs of acquiring and delivering agricultural products to the foreign markets; and
(4) encouraging government policies that avoid price-depressing surpluses.
Cooperator market development program
(a) Sense of Congress
It is the sense of Congress that the cooperator market development program of the Foreign Agricultural Service should be continued to help develop new markets and expand and maintain existing markets for United States agricultural commodities, using nonprofit agricultural trade organizations to the maximum extent practicable.
(b) Exemption from requirements of OMB circular
The cooperator market development program shall be exempt from the requirements of Circular A 110 issued by the Office of Management and Budget.
Contract sanctity and producer embargo protection
It is hereby declared to be the policy of the United States—
(1) to foster and encourage the export of agricultural commodities and the products of such commodities;
(2) not to restrict or limit the export of such commodities and products except under the most compelling circumstances;
(3) that any prohibition or limitation on the export of such commodities or products should be imposed only in time of a national emergency declared by the President under the Export Administration Act; and
(4) that contracts for the export of such commodities or products entered into before the imposition of any prohibition or limitation on the export of such commodities or products should not be abrogated.
International food security technical assistance
(a) Definition of international food security
In this section, the term "international food security" means access by any person at any time to food and nutrition that is sufficient for a healthy and productive life.
(b) Collection of information
The Secretary of Agriculture (referred to in this section as the "Secretary") shall compile information from appropriate mission areas of the Department of Agriculture (including the Food, Nutrition, and Consumer Services mission area) relating to the improvement of international food security.
(c) Public availability
To benefit programs for the improvement of international food security, the Secretary shall organize the information described in subsection (b) and make the information available in a format suitable for—
(1) public education; and
(2) use by—
(A) a Federal, State, or local agency;
(B) an agency or instrumentality of the government of a foreign country;
(C) a domestic or international organization, including a domestic or international nongovernmental organization; and
(D) an intergovernmental organization.
(d) Technical assistance
On request by an entity described in subsection (c)(2), the Secretary may provide technical assistance to the entity to implement a program for the improvement of international food security.
(e) Program priority
In carrying out this section, the Secretary shall give priority to programs relating to the development of food and nutrition safety net systems with a focus on food insecure countries.
(f) Authorization of appropriations
There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2019 through 2023.
McGovern-Dole International Food for Education and Child Nutrition Program
(a) Definition of agricultural commodity
In this section, the term "agricultural commodity" means an agricultural commodity, or a product of an agricultural commodity, that—
(1) is produced in the United States; or
(2)(A) is produced in and procured from—
(i) a developing country that is a recipient country; or
(ii) a developing country in the same region as a recipient country; and
(B) at a minimum, meets each nutritional, quality, and labeling standard of the recipient country, as determined by the Secretary.
(b) Program
Subject to subsection (l), the Secretary may establish a program, to be known as "McGovern-Dole International Food for Education and Child Nutrition Program", requiring the procurement of agricultural commodities and the provision of financial and technical assistance to carry out—
(1) preschool and school food for education programs in foreign countries to improve food security, reduce the incidence of hunger, and improve literacy and primary education, particularly with respect to girls; and
(2) maternal, infant, and child nutrition programs for pregnant women, nursing mothers, infants, and children who are 5 years of age or younger.
(c) Eligible commodities and cost items
Notwithstanding any other provision of law—
(1) any agricultural commodity is eligible to be provided under this section;
(2) as necessary to achieve the purposes of this section, funds appropriated under this section may be used to pay—
(A)(i) the cost of acquiring agricultural commodities;
(ii) the costs associated with packaging, enrichment, preservation, and fortification of agricultural commodities;
(iii) the processing, transportation, handling, and other incidental costs up to the time of the delivery of agricultural commodities free on board vessels in United States ports;
(iv) the vessel freight charges from United States ports or designated Canadian transshipment ports, as determined by the Secretary, to designated ports of entry abroad;
(v) the costs associated with transporting agricultural commodities from United States ports to designated points of entry abroad in the case—
(I) of landlocked countries;
(II) of ports that cannot be used effectively because of natural or other disturbances;
(III) of the unavailability of carriers to a specific country; or
(IV) of substantial savings in costs or time that may be effected by the utilization of points of entry other than ports;
(vi) the costs associated with transporting the commodities described in subsection (a)(2) from a developing country described in subparagraph (A)(ii) of that subsection to any designated point of entry within the recipient country; and
(vii) the charges for general average contributions arising out of the ocean transport of agricultural commodities transferred pursuant thereto;
(B) all or any part of the internal transportation, storage, and handling costs incurred in moving the eligible commodity, if the Secretary determines that—
(i) payment of the costs is appropriate; and
(ii) the recipient country is a low income, net food-importing country that—
(I) meets the poverty criteria established by the International Bank for Reconstruction and Development for Civil Works Preference; and
(II) has a national government that is committed to or is working toward, through a national action plan, the goals of the World Declaration on Education for All convened in 1990 in Jomtien, Thailand, and the followup Dakar Framework for Action of the World Education Forum, convened in 2000;
(C) the costs of activities conducted in the recipient countries by a nonprofit voluntary organization, cooperative, or intergovernmental agency or organization that would enhance the effectiveness of the activities implemented by such entities under this section; and
(D) the costs of meeting the allowable administrative expenses of private voluntary organizations, cooperatives, or intergovernmental organizations that are implementing activities under this section.
(d) General authorities
The Secretary shall—
(1) implement the program established under this section;
(2) ensure that the program established under this section is consistent with the foreign policy and development assistance objectives of the United States; and
(3) consider, in determining whether a country should receive assistance under this section, whether the government of the country is taking concrete steps to improve the preschool and school systems in the country.
(e) Eligible entities
Assistance may be provided under this section to private voluntary organizations, cooperatives, intergovernmental organizations, governments of developing countries and their agencies, and other organizations.
(f) Procedures
(1) In general
In carrying out subsection (b), the Secretary shall ensure that procedures are established that—
(A) provide for the submission of proposals by eligible entities, each of which may include 1 or more recipient countries, for commodities and other assistance under this section;
(B) provide for eligible commodities and assistance on a multiyear basis;
(C) ensure that eligible entities demonstrate the organizational capacity and the ability to develop, implement, monitor, report on, and provide accountability for activities conducted under this section;
(D) provide for the expedited development, review, and approval of proposals submitted in accordance with this section;
(E) ensure to the maximum extent practicable that assistance—
(i) is provided under this section in a timely manner; and
(ii) is available when needed throughout the applicable school year;
(F) ensure monitoring and reporting by eligible entities on the use of commodities and other assistance provided under this section; and
(G) allow for the sale or barter of commodities by eligible entities to acquire funds to implement activities that improve the food security of women and children or otherwise enhance the effectiveness of programs and activities authorized under this section.
(2) Priorities for program funding
In carrying out paragraph (1) with respect to criteria for determining the use of commodities and other assistance provided for programs and activities authorized under this section, the Secretary may consider the ability of eligible entities to—
(A) identify and assess the needs of beneficiaries, especially malnourished or undernourished mothers and their children who are 5 years of age or younger, and school-age children who are malnourished, undernourished, or do not regularly attend school;
(B)(i) in the case of preschool and school-age children, target low-income areas where children's enrollment and attendance in school is low or girls' enrollment and participation in preschool or school is low, and incorporate developmental objectives for improving literacy and primary education, particularly with respect to girls; and
(ii) in the case of programs to benefit mothers and children who are 5 years of age or younger, coordinate supplementary feeding and nutrition programs with existing or newly-established maternal, infant, and children programs that provide health-needs interventions, including maternal, prenatal, and postnatal and newborn care;
(C) involve indigenous institutions as well as local communities and governments in the development and implementation of the programs and activities to foster local capacity building and leadership; and
(D) carry out multiyear programs that foster local self-sufficiency and ensure the longevity of programs in the recipient country.
(g) Use of Food and Nutrition Service
The Food and Nutrition Service of the Department of Agriculture may provide technical ad vice on the establishment of programs under subsection (b)(1) and on implementation of the programs in the field in recipient countries.
(h) Multilateral involvement
(1) In general
The Secretary is urged to engage existing international food aid coordinating mechanisms to ensure multilateral commitments to, and participation in, programs similar to programs supported under this section.
(2) Reports
The Secretary shall annually submit to the Committee on International Relations and the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the commitments and activities of governments, including the United States government, in the global effort to reduce child hunger and increase school attendance.
(i) Private sector involvement
The Secretary is urged to encourage the support and active involvement of the private sector, foundations, and other individuals and organizations in programs assisted under this section.
(j) Graduation
An agreement with an eligible organization under this section shall include provisions—
(1) to—
(A) sustain the benefits to the education, enrollment, and attendance of children in schools in the targeted communities when the provision of commodities and assistance to a recipient country under a program under this section terminates; and
(B) estimate the period of time required until the recipient country or eligible organization is able to provide sufficient assistance without additional assistance under this section; or
(2) to provide other long-term benefits to targeted populations of the recipient country.
(k) Requirement to safeguard local production and usual marketing
The requirement of section 1733(a) of this title applies with respect to the availability of commodities under this section.
(l) Funding
(1) Use of Commodity Credit Corporation funds
Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $84,000,000 for fiscal year 2009, to remain available until expended.
(2) Authorization of appropriations
There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2023.
(3) Administrative expenses
Funds made available to carry out this section may be used to pay the administrative expenses of the Department of Agriculture or any other Federal agency assisting in the implementation of this section.
(4) Purchase of commodities
Of the funds made available to carry out this section, not more than 10 percent shall be used to purchase agricultural commodities described in subsection (a)(2).
Special Assistant for Agricultural Trade and Food Assistance
(a) Appointment by President
The President shall appoint a Special Assistant to the President for Agricultural Trade and Food Assistance (hereinafter in this section referred to as the "Special Assistant"). The President shall appoint the initial Special Assistant not later than May 1, 1986.
(b) Service in Executive Office of President
The Special Assistant shall serve in the Executive Office of the President.
(c) Required functions
The Special Assistant shall—
(1) assist and advise the President in order to improve and enhance food assistance programs carried out in the United States and foreign countries;
(2) be available to receive suggestions and complaints concerning the implementation of United States food aid and agricultural export programs anywhere in the United States Government and provide prompt responses thereto, including expediting the program implementation in any instances in which there is unreasonable delay;
(3) make recommendations to the President on means to coordinate and streamline the manner in which food assistance programs are carried out by the Department of Agriculture and the Agency for International Development, in order to improve their overall effectiveness;
(4) make recommendations to the President on measures to be taken to increase use of United States agricultural commodities and the products thereof through food assistance programs;
(5) advise the President on agricultural trade;
(6) advise the President on the Food for Progress Program and expedite its implementation;
(7) serve as a member of the Development Coordination Committee and the Food Aid Subcommittee of such Committee;
(8) advise departments and agencies of the Federal Government on their policy guidelines on basic issues of food assistance policy to the extent necessary to assure the coordination of food assistance programs, consistent with law, and with the advice of such Subcommittee; and
(9) submit a report to the President and Congress each year through 1990 containing—
(A) a global analysis of world food needs and production; and
(B) a detailed plan for using available export and food aid authorities to increase United States agricultural exports to those targeted countries.
(d) Compensation
Compensation for the Special Assistant shall be fixed by the President at an annual rate of basic pay of not less than the rate applicable to positions in level III of the Executive Schedule.
Establishment of commodity trust
(a) In general
To provide for a trust solely to meet emergency humanitarian food needs in developing countries, the Secretary of Agriculture (referred to in this section as the "Secretary") shall establish and maintain a trust of wheat, rice, corn, or sorghum, any combination of the commodities, or funds for use as described in subsection (c).
(b) Commodities or funds in trust
(1) In general
The trust established under this section shall consist of—
(A) wheat in the reserve established under the Food Security Wheat Reserve Act of 1980 as of April 4, 1996;
(B) wheat, rice, corn, and sorghum (referred to in this section as "eligible commodities") acquired in accordance with paragraph (2) to replenish eligible commodities released from the trust, including wheat to replenish wheat released from the reserve established under the Food Security Wheat Reserve Act of 1980 but not replenished as of April 4, 1996;
(C) such rice, corn, and sorghum as the Secretary may, at such time and in such manner as the Secretary determines appropriate, acquire as a result of exchanging an equivalent value of wheat in the trust established under this section; and
(D) funds made available—
(i) under paragraph (2)(B);
(ii) as a result of an exchange of any commodity held in the trust for an equivalent amount of funds from the market, if the Secretary determines that such a sale of the commodity on the market will not unduly disrupt domestic markets; or
(iii) to maximize the value of the trust, in accordance with subsection (d)(3).
(2) Replenishment of trust
(A) In general
Subject to subsection (h), commodities of equivalent value to eligible commodities in the trust established under this section may be acquired—
(i) through purchases—
(I) from producers; or
(II) in the market, if the Secretary determines that the purchases will not unduly disrupt the market; or
(ii) by designation by the Secretary of stocks of eligible commodities of the Commodity Credit Corporation.
(B) Funds
Any funds used to acquire eligible commodities through purchases from producers or in the market to replenish the trust shall be derived—
(i) with respect to fiscal years 2000 through 2023 from funds made available to carry out the Food for Peace Act (7 U.S.C. 1691 et seq.) that are used to repay or reimburse the Commodity Credit Corporation for the release of eligible commodities under subsections (c)(1) and (f)(2), except that, of such funds, not more than $20,000,000 may be expended for this purpose in each of the fiscal years 2000 through 2023;
(ii) from funds authorized for that use by an appropriations Act; or
(iii) from funds accrued through the management of the trust under subsection (d).
(c) Release of eligible commodities
(1) Releases for emergency assistance
(A) Definition of emergency
(i) In general
In this paragraph, the term "emergency" means an urgent situation—
(I) in which there is clear evidence that an event or series of events described in clause (ii) has occurred—
(aa) that causes human suffering; and
(bb) for which a government concerned has not chosen, or has not the means, to remedy; or
(II) created by a demonstrably abnormal event or series of events that produces dislocation in the lives of residents of a country or region of a country on an exceptional scale.
(ii) Event or series of events
An event or series of events referred to in clause (i) includes 1 or more of—
(I) a sudden calamity, such as an earthquake, flood, locust infestation, or similar unforeseen disaster;
(II) a human-made emergency resulting in—
(aa) a significant influx of refugees;
(bb) the internal displacement of populations; or
(cc) the suffering of otherwise affected populations;
(III) food scarcity conditions caused by slow-onset events, such as drought, crop failure, pest infestation, and disease, that result in an erosion of the ability of communities and vulnerable populations to meet food needs; and
(IV) severe food access or availability conditions resulting from sudden economic shocks, market failure, or economic collapse, that result in an erosion of the ability of communities and vulnerable populations to meet food needs.
(B) Releases
(i) In general
Any funds or commodities held in the trust may be released to provide food, and cover any associated costs, under title II of the Food for Peace Act (7 U.S.C. 1721 et seq.)—
(I) to assist in averting an emergency, including during the period immediately preceding the emergency;
(II) to respond to an emergency; or
(III) for recovery and rehabilitation after an emergency.
(ii) Procedure
A release under clause (i) shall be carried out in the same manner, and pursuant to the same authority as provided in title II of that Act.
(C) Insufficiency of other funds
The funds and commodities held in the trust shall be made immediately available on a determination by the Administrator that funds available for emergency needs under title II of that Act (7 U.S.C. 1721 et seq.) for a fiscal year are insufficient to meet emergency needs during the fiscal year.
(D) Waiver relating to minimum tonnage requirements
Nothing in this paragraph requires a waiver by the Administrator of the Agency for International Development under section 204(a)(3) of the Food for Peace Act (7 U.S.C. 1724(a)(3)) as a condition for a release of funds or commodities under subparagraph (B).
(2) Processing of eligible commodities
Eligible commodities that are released from the trust established under this section may be processed in the United States and shipped to a developing country when conditions in the recipient country require processing.
(3) Exchange
The Secretary may exchange an eligible commodity for another United States commodity of equal value, including powdered milk, pulses, and vegetable oil.
(4) Use of normal commercial practices
To the maximum extent practicable consistent with the fulfillment of the purposes of this section and the effective and efficient administration of this section, the Secretary shall use the usual and customary channels, facilities, arrangements, and practices of trade and commerce to carry out this subsection.
(d) Management of trust
(1) In general
The Secretary shall provide for the management of eligible commodities and funds held in the trust in a manner that is consistent with maximizing the value of the trust, as determined by the Secretary.
(2) Eligible commodities
The Secretary shall provide—
(A) for the management of eligible commodities in the trust established under this section as to location and quality of eligible commodities needed to meet emergency situations;
(B) for the periodic rotation or replacement of stocks of eligible commodities in the trust to avoid spoilage and deterioration of the commodities; 1
(C) subject to the need for release of commodities from the trust under subsection (c)(1), for the management of the trust to preserve the value of the trust through acquisitions under subsection (b)(2); and 2
(3) Funds
(A) Exchanges
If any commodity held in the trust is exchanged for funds under subsection (b)(1)(D)(ii), the funds shall be held in the trust until the date on which the funds are released in the case of an emergency under subsection (c).
(B) Investment
The Secretary may invest funds held in the trust in any short-term obligation of the United States or any other low-risk short-term instrument or security insured by the Federal Government in which a regulated insurance company may invest under the laws of the District of Columbia.
(e) Treatment of trust under other law
Eligible commodities in the trust established under this section shall not be—
(1) considered a part of the total domestic supply (including carryover) for the purpose of subsection (c) or for the purpose of administering the Food for Peace Act (7 U.S.C. 1691 et seq.); and
(2) subject to any quantitative limitation on exports that may be imposed under section 4606 3 of title 50.
(f) Use of Commodity Credit Corporation
(1) In general
Subject to the limitations provided in this section, the funds, facilities, and authorities of the Commodity Credit Corporation shall be used by the Secretary in carrying out this section, except that any restriction applicable to the acquisition, storage, or disposition of eligible commodities owned or controlled by the Commodity Credit Corporation shall not apply.
(2) Reimbursement of trust
(A) In general
The Commodity Credit Corporation shall be reimbursed for the release of eligible commodities from funds made available to carry out the Food for Peace Act (7 U.S.C. 1691 et seq.) and the funds shall be available to replenish the trust under subsection (b).
(B) Basis for reimbursement
The reimbursement shall be made on the basis of the lesser of—
(i) the actual costs incurred by the Commodity Credit Corporation with respect to the eligible commodity; or
(ii) the export market price of the eligible commodity (as determined by the Secretary) as of the time the eligible commodity is released from the trust.
(C) Source of funds
The reimbursement may be made from funds appropriated for subsequent fiscal years.
(g) Finality of determination
Any determination by the Secretary under this section shall be final.
(h) Termination of authority
(1) In general
The authority to replenish stocks of eligible commodities to maintain the trust established under this section shall terminate on September 30, 2023.
(2) Disposal of eligible commodities
Eligible commodities remaining in the trust after September 30, 2025, shall be disposed of by release for use in providing for emergency humanitarian food needs in developing countries as provided in this section.
Assistance in furtherance of narcotics control objectives of United States
(a) Substantial injury
Local currencies that are made available for use under this chapter may not be used to finance the production for export of agricultural commodities (or products thereof) that would compete in the world market with similar agricultural commodities (or products thereof) produced in the United States, if such competition would cause substantial injury to the United States producers, as determined by the President.
(b) Exception for narcotics control
Notwithstanding subsection (a), the President may provide assistance under this chapter, including assistance through the use of local currencies generated by the sale of commodities under such chapter, for economic development activities undertaken in an eligible country that is a major illicit drug producing country (as defined in section 2291(i)(2) 1 of title 22), for the purpose of reducing the dependence of the economy of such country on the production of crops from which narcotic and psychotropic drugs are derived.
Micronutrient fortification programs
(a) In general
(1) Programs
Not later than September 30, 2008, the Administrator, in consultation with the Secretary, shall establish micronutrient fortification programs.
(2) Purpose
The purpose of a program shall be to—
(A) assist developing countries in correcting micronutrient dietary deficiencies among segments of the populations of the countries; and
(B) assess and apply technologies and systems to improve and ensure the quality, shelf life, bioavailability, and safety of fortified food aid agricultural commodities, and products of those agricultural commodities.
(b) Fortification
Under a program, grains and other commodities made available to a developing country selected to participate in a program may be fortified with 1 or more micronutrients (such as vitamin A, iron, iodine, and folic acid) with respect to which a substantial portion of the population in the country is deficient. The commodity may be fortified in the United States or in the developing country.
(c) Termination of authority
The authority to carry out programs established under this section shall terminate on September 30, 2023.
Use of certain local currency
Local currency payments received by the United States pursuant to agreements entered into under subchapter II (as in effect on November 27, 1990) may be utilized by the Secretary in accordance with section 1708 of this title (as in effect on November 27, 1990).
Source: United States Code / CFR (uscode.house.gov, govinfo.gov) — U.S. federal law, public domain (17 U.S.C. § 105).
