[House Report 110-257]
[From the U.S. Government Publishing Office]
110th Congress Rept. 110-257
HOUSE OF REPRESENTATIVES
1st Session Part 1
======================================================================
FOOD SECURITY AND AGRICULTURAL DEVELOPMENT ACT OF 2007
_______
July 23, 2007.--Ordered to be printed
_______
Mr. Lantos, from the Committee on Foreign Affairs, submitted the
following
R E P O R T
[To accompany H.R. 2844]
[Including cost estimate of the Congressional Budget Office]
The Committee on Foreign Affairs, to whom was referred the
bill (H.R. 2844) to promote United States emergency and non-
emergency food and other assistance programs, to promote United
States agricultural export programs, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
TABLE OF CONTENTS
Page
The Amendment.................................................... 2
Summary.......................................................... 12
Background and Purpose........................................... 13
Hearings......................................................... 16
Committee Consideration.......................................... 17
Votes of the Committee........................................... 17
Committee Oversight Findings..................................... 18
New Budget Authority and Tax Expenditures........................ 18
Congressional Budget Office Cost Estimate........................ 18
Performance Goals and Objectives................................. 23
Constitutional Authority Statement............................... 23
New Advisory Committees.......................................... 23
Congressional Accountability Act................................. 23
Earmark Identification........................................... 23
Section-by-Section Analysis and Discussion....................... 24
Changes in Existing Law Made by the Bill, as Reported............ 38
The Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Food Security and
Agricultural Development Act of 2007''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
TITLE I--UNITED STATES EMERGENCY AND NON-EMERGENCY FOOD AND OTHER
ASSISTANCE PROGRAMS
Subtitle A--Agricultural Trade Development and Assistance Act of 1954
Sec. 101. United States policy.
Sec. 102. General authority.
Sec. 103. Provision of agricultural commodities.
Sec. 104. Generation and use of currencies by private voluntary
organizations and cooperatives.
Sec. 105. Levels of assistance.
Sec. 106. Food Aid Consultative Group.
Sec. 107. Administration.
Sec. 108. Assistance for stockpiling and rapid transportation,
delivery, and distribution of shelf-stable prepackaged foods.
Sec. 109. Administrative provisions.
Sec. 110. Expiration date.
Sec. 111. Authorization of appropriations.
Sec. 112. Coordination and integration of foreign assistance programs.
Sec. 113. Micronutrient fortification programs.
Sec. 114. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program.
Subtitle B--Related Statutes and Other Provisions
Sec. 121. Bill Emerson Humanitarian Trust.
Sec. 122. McGovern-Dole International Food for Education and Child
Nutrition Program.
Sec. 123. International disaster assistance under the Foreign
Assistance Act of 1961.
Sec. 124. Report on efforts to improve procurement planning.
TITLE II--UNITED STATES AGRICULTURAL EXPORT PROGRAMS
Sec. 201. Export credit guarantee program.
Sec. 202. Market access program.
Sec. 203. Export enhancement program.
Sec. 204. Assistance to address sanitary and phytosanitary barriers to
trade.
Sec. 205. Foreign market development cooperator program.
Sec. 206. Emerging markets and facility guarantee loan program.
Sec. 207. Food for Progress Act of 1985.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Technical assistance for specialty crops.
Sec. 302. Support for sanitary and phytosanitary priorities of the
United States within certain international organizations.
Sec. 303. Technical assistance for the resolution of trade disputes.
Sec. 304. Sense of Congress concerning the Global Crop Diversity Trust.
Sec. 305. Technical and conforming amendments.
Sec. 306. Rule of construction.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress makes the following findings:
(1) The United Nations Food and Agricultural Organization
reports, that in 2006, an estimated 850,000,000 people in the
world, with 824,000,000 in developing countries, were
chronically hungry.
(2) The largest concentrations of the chronically hungry--an
estimated 298,000,000 individuals--are in South Asia, with most
of those individuals concentrated in India, where there are an
estimated 212,000,000 undernourished individuals, and in sub-
Saharan Africa, where there are an estimated 206,000,000 hungry
people.
(3) The number of food and humanitarian emergencies has
doubled from an average of about 15 per year in the 1980s to
more than 30 per year since 2000, due in large part to
increasing conflicts, poverty, and natural disasters around the
world. Some emergencies are exacerbated by multiple shocks,
such as civil wars, recurring droughts, and endemic disease,
adding to their complexity and protracting the crises for many
years.
(4) The United Nations reports that progress is being made
toward reaching the Millennium Development Goal of reducing the
proportion of hungry people in the world by half by 2015. In
1990, the proportion of people in the developing countries
living with insufficient food was estimated to be 20 percent.
By 2003, that percentage declined to 17 percent. However, from
1996 to 2006, the absolute number of hungry people increased
from 790,000,000 to 850,000,000.
(5) The number of hungry people in the most seriously
affected regions of the world, namely South Asia and sub-
Saharan Africa, is increasing. In sub-Saharan Africa, in 1990,
there were an estimated 169,000,000 chronically-hungry people;
in 2003, the number of chronically-hungry people increased to
206,000,000.
(6) The major United States Government response to reducing
hunger in developing countries is to provide United States
agricultural commodities as food assistance. In fiscal year
2006, the United States provided 3,000,000 metric tons of food
valued at more than $2,000,000,000 to meet emergency food needs
and to support development projects in developing countries.
(7) In 2006, the United States provided food assistance to 65
countries, more than half of which were in sub-Saharan Africa.
Approximately $1,200,000,000, or 60 percent of such assistance,
was provided as emergency food assistance. The United States
Agency for International Development estimates that 50,000,000
to 70,000,000 people benefit from United States food assistance
programs annually.
(8)(A) Food assistance contributed by the United States
Government has totaled more than $73,000,000,000 since 1946.
Over the last decade, the United States has been the single
largest donor of international food assistance, with a large
proportion of the assistance provided through the United
Nations World Food Program and most of that assistance is for
emergencies.
(B) The United States contributed more than 52,000,000 tons
of food assistance between 1996 and 2005, more than half of the
nearly 100,000,000 tons of food assistance delivered worldwide
in this period. In 2006, the United States contributed
$1,125,000,000 or about 40 percent of total donor contributions
to the World Food Program in that year.
(9) Private voluntary organizations and cooperatives are
critical implementing partners in United States food assistance
programs. In addition to assisting people whose lives and
livelihoods are endangered due to crises, such organizations
and cooperatives help communities that suffer from chronic
hunger, delivering technical assistance and training and
building local institutional capacity.
(10)(A) Although the Farm Security and Rural Investment Act
of 2002 (Public Law 107-171) called for increased levels of
non-emergency food assistance in order to address chronic
hunger needs and to have lasting impacts on vulnerable
communities, according to the Government Accountability Office,
by 2006, non-emergency food assistance programs were reduced to
42 percent of their 2001 levels.
(B) Implementing partner organizations report that due to
these reductions, such organizations have been forced to close
operations in countries that are prone to emergencies and with
populations that suffer from chronic hunger. As a result of
such reductions, there is little opportunity to develop new
programs that address food insecurity in developing countries.
(11) Food assistance experts, advocates, and implementers
have argued that distributing food commodities alone will not
reduce food insecurity. Food assistance needs to be combined
with other non-food resources, such as assistance to promote
agricultural development, economic growth, and assistance to
support education, water, and health programs, to ensure that
food assistance has an impact on chronically-hungry people.
(12) Women play an essential role in promoting food security
and production throughout the world. According to the United
Nations Food and Agricultural Organization, rural women are
responsible for half of the world's food production and produce
between 60 and 80 percent of the food in most developing
countries.
(b) Purposes.-- The purposes of this Act are--
(1) to promote United States emergency and non-emergency food
and other assistance programs as described in title I of this
Act in an efficient and effective manner; and
(2) to promote United States agricultural export programs as
described in title II of this Act in an efficient and effective
manner.
SEC. 3. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the United States Agency for International
Development.
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Agriculture of the House of
Representatives; and
(B) the Committee on Agriculture, Nutrition, and
Forestry of the Senate.
(3) Secretary.--The term ``Secretary'' means the Secretary of
Agriculture.
TITLE I--UNITED STATES EMERGENCY AND NON-EMERGENCY FOOD AND OTHER
ASSISTANCE PROGRAMS
Subtitle A--Agricultural Trade Development and Assistance Act of 1954
SEC. 101. UNITED STATES POLICY.
Section 2 of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1691) is amended--
(1) in paragraph (1), by inserting ``chronic'' before
``world''.
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following new paragraphs:
``(7) respond to emergency needs and food crises;
``(8) implement an effective and efficient food assistance
program that incorporates adequate resources for both emergency
and non-emergency food assistance programs; and
``(9) provide adequate resources for non-emergency food
assistance programs to address the causes of chronic hunger and
food insecurity, to protect the livelihoods and health of
vulnerable populations, to meet the nutritional needs of all
members of the community (particularly children), to prevent
future hunger related emergencies, and to promote participation
in productive activities.''.
SEC. 102. GENERAL AUTHORITY.
(a) In General.-- Section 201 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1721) is amended--
(1) in paragraph (1), to read as follows:
``(1) address famine and food crises and respond to emergency
food needs arising from manmade disasters, such as policy-based
disasters, economic shocks, and conflict or civil strife, and
natural disasters;'';
(2) in paragraph (5), by striking ``and'' at the end;
(3) in paragraph (6), by striking the period at the end and
inserting ``; and''; and
(4) by inserting at the end the following new paragraph:
``(7) promote participation in educational, training, and
other productive activities.''.
(b) Technical Amendments.--Such section is further amended--
(1) by striking ``The President'' and inserting ``(a) Program
Required.--The President''; and
(2) by striking ``Such program'' and inserting the following:
``(b) Implementation.--Such program''.
SEC. 103. PROVISION OF AGRICULTURAL COMMODITIES.
(a) Support for Eligible Organizations.--Subsection (e)(1) of section
202 of the Agricultural Trade Development and Assistance Act of 1954 (7
U.S.C. 1722) is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``5 percent nor more than 10
percent'' and inserting ``10 percent but not more than
12.5 percent'' ; and
(B) by striking ``to assist the organizations in''
and inserting ``to provide such organizations financial
assistance in order to'';
(2) in subparagraph (A)--
(A) by striking ``establishing'' and inserting
``establish''; and
(B) by striking ``and'' at the end;
(3) in subparagraph (B)--
(A) by striking ``meeting'' and inserting ``meet'';
(B) by striking ``management, personnel and internal
transportation and distribution costs'' and inserting
``management, operational, technical, personnel and
other programming costs'';
(C) by striking the period at the end and inserting
``; and''; and
(4) by adding at the end the following new subparagraph:
``(C) improve and implement methodologies for food
assistance programs, including needs assessments and
monitoring and evaluation.''.
(b) Streamlined Program Management.--Subsection (h)(3)(B) of such
section is amended by striking ``Committee on International Relations''
and inserting ``Committee on Foreign Affairs''.
SEC. 104. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY
ORGANIZATIONS AND COOPERATIVES.
Subsection (b) of section 203 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1723) is amended by striking ``1
or more recipient countries'' and inserting ``in 1 or more recipient
countries''.
SEC. 105. LEVELS OF ASSISTANCE.
Subsection (a) of section 204 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1724) is amended--
(1) in paragraph (1), by striking ``2002 through 2007'' and
inserting ``2008 through 2012'';
(2) in paragraph (2), by striking ``2002 through 2007'' and
inserting ``2008 through 2012''; and
(3) in paragraph (3), by striking ``International Relations''
and inserting ``Foreign Affairs''.
SEC. 106. FOOD AID CONSULTATIVE GROUP.
(a) Sense of Congress on Integrated and Effective Food Assistance.--
Section 205 of the Agricultural Trade Development and Assistance Act of
1954 (7 U.S.C. 1725) is amended--
(1) by redesignating subsections (e) and (f) as subsections
(f) and (g), respectively; and
(2) by inserting after subsection (d) the following new
subsection:
``(e) Sense of Congress on Integrated and Effective Food Assistance
Program.--It is the sense of Congress that the Group should make every
effort to develop a strategy to achieve a more integrated and effective
food assistance program.''.
(b) Report to Congress.--Such section is further amended--
(1) by redesignating subsections (f) and (g) (as redesignated
by subsection (a)(1)) as subsections (g) and (h), respectively;
and
(2) by inserting after subsection (e) (as added by subsection
(a)(2)) the following new subsection:
``(f) Report to Congress.--
``(1) In general.--Not later than 180 days after the date of
the enactment of the Food Security and Agricultural Development
Act of 2007, and annually thereafter until December 31, 2012,
the Administrator of the United States Agency for International
Development, in close consultation with the Group, shall submit
to the appropriate congressional committees a report on efforts
taken by the United States Agency for International Development
and the Department of Agriculture to develop a strategy under
this section to achieve an integrated and effective food
assistance program.
``(2) Appropriate congressional committees defined.--In this
subsection, the term `appropriate congressional committees'
means--
``(A) the Committee on Foreign Affairs and the
Committee on Agriculture of the House of
Representatives; and
``(B) the Committee on Agriculture, Nutrition, and
Forestry of the Senate.''.
(c) Termination.--Such section is further amended in subsection (h)
(as redesignated by subsection (b)(1)) by striking ``2007'' and
inserting ``2012''.
SEC. 107. ADMINISTRATION.
(a) Proposals.--Subsection (a)(3) of section 207 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1726a) is
amended by striking ``and the conditions that must be met for the
approval of such proposal''.
(b) Regulations.--Subsection (c) of such section is amended by
striking paragraph (3).
(c) Program Oversight, Monitoring, and Evaluation.--Such section is
further amended by adding at the end the following new subsection:
``(f) Program Oversight, Monitoring, and Evaluation.--
``(1) In general.--The Administrator, in consultation with
the Secretary, shall establish systems to improve, monitor, and
evaluate the effectiveness and efficiency of assistance
provided under this title in order to maximize the impact of
such assistance.
``(2) Report to congress.--Not later than 180 days after the
date of enactment of Food Security and Agricultural Development
Act of 2007, the Administrator shall submit to the appropriate
congressional committees a report on efforts undertaken to
implement paragraph (1).
``(3) Government accountability office.--Not later than 270
days after the date of the submission of the report under
paragraph (2), the Comptroller General of the United States
shall submit to the appropriate congressional committees a
report that--
``(A) reviews and comments on the report under
paragraph (2); and
``(B) provides recommendations regarding any
additional actions necessary to improve the monitoring
and evaluation of assistance provided under this title.
``(4) Contracting authority.--In carrying out this
subsection, notwithstanding any other provision of law, the
Administrator may contract with individuals for personal
services, provided that such individuals shall not be regarded
as employees of the United States Government for the purpose of
any law administered by the Civil Service Commission.
``(5) Appropriate congressional committees defined.--In this
subsection, the term `appropriate congressional committees'
means--
``(A) the Committee on Foreign Affairs and the
Committee on Agriculture of the House of
Representatives; and
``(B) the Committee on Agriculture, Nutrition, and
Forestry of the Senate.''.
(d) Indirect Support Costs to United Nations World Food Program.--
Such section is further amended by adding at the end the following new
subsection:
``(g) Indirect Support Costs to United Nations World Food Program.--
``(1) In general.--Notwithstanding any other provision of
law, in providing assistance under this title, the
Administrator may make contributions to the United Nations
World Food Program to the extent that such contributions are
made in accordance with the United Nations World Food Program's
rules and regulations for indirect cost rates. Prior to making
a contribution to the United Nations World Food Program under
this subsection, the Administrator shall submit to the
appropriate congressional committees a report that contains the
proposed level of the contribution and the reasons for such
proposed level.
``(2) Appropriate congressional committees defined.--In this
subsection, the term `appropriate congressional committees'
means--
``(A) the Committee on Foreign Affairs and the
Committee on Agriculture of the House of
Representatives; and
``(B) the Committee on Agriculture, Nutrition, and
Forestry of the Senate.''.
SEC. 108. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
DELIVERY, AND DISTRIBUTION OF SHELF-STABLE
PREPACKAGED FOODS.
Subsection (f) of section 208 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1726b) is amended by striking
``2007'' and inserting ``2012''.
SEC. 109. ADMINISTRATIVE PROVISIONS.
(a) Prepositioning.--Subsection (c)(4) of section 407 of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1736a) is amended--
(1) by striking ``Funds'' and inserting:
``(A) In general.--Funds'';
(2) by striking ``2007'' and inserting ``2012'';
(3) by striking ``, except that for each such fiscal year not
more than $2,000,000 of such funds may be used to store
agricultural commodities for prepositioning in foreign
countries''; and
(4) by adding at the end the following new subparagraph:
``(B) Additional prepositioning sites.--
``(i) Feasibility assessment.--On or after
the date of the enactment of the Food Security
and Agricultural Development Act of 2007, the
Administrator is authorized to carry out
assessments for the establishment of not less
than two sites to determine the feasibility of
and costs associated with using such sites for
the purpose of storing and handling
agricultural commodities for prepositioning in
foreign countries.
``(ii) Establishment of sites.--Based on the
results of the assessments carried out under
clause (i), the Administrator is authorized to
establish additional sites for prepositioning
in foreign countries.
``(iii) Authorization of appropriations.--To
carry out this subparagraph, there are
authorized to be appropriated to the
Administrator such sums as may be necessary for
each of the fiscal years 2008 through 2012.''.
(b) Annual Reports.--Subsection (f) of such section is amended--
(1) in paragraph (2)--
(A) in subparagraph (B), by adding at the end before
the semicolon the following: ``, and the amount of
funds, tonnage levels, and types of activities for non-
emergency food assistance programs under title II of
this Act'';
(B) in subparagraph (C), by adding at the end before
the semicolon the following: ``, and a general
description of the projects and activities
implemented''; and
(C) by amending subparagraph (D) to read as follows:
``(D) an assessment of the progress toward reducing
food insecurity in the populations receiving food
assistance from the United States.''; and
(2) in paragraph (3), by striking ``January 15'' and
inserting ``March 1''.
SEC. 110. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1736b) is amended by striking ``2007'' and inserting
``2012''.
SEC. 111. AUTHORIZATION OF APPROPRIATIONS.
Subsection (a) of section 412 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736f) is amended to read as
follows:
``(a) Authorization of Appropriations.--
``(1) In general.--For each of the fiscal years 2008 through
2012, there are authorized to be appropriated to the
President--
``(A) such sums as may be necessary to carry out the
concessional credit sales program established under
title I;
``(B) $2,500,000,000 to carry out the emergency and
non-emergency food assistance programs under title II ;
and
``(C) such sums as may be necessary to carry out the
grant program established under title III.
``(2) Minimum level of non-emergency food assistance.--For
each of the fiscal years 2008 through 2012, of the amounts made
available to carry out emergency and non-emergency food
assistance programs under title II, not less than $600,000,000
for each such fiscal year shall be obligated and expended for
non-emergency food assistance programs under title II.
``(3) Reimbursement.--For each of the fiscal years 2008
through 2012, there are authorized to be appropriated such sums
as may be necessary to make payments to the Commodity Credit
Corporation to the extent the Commodity Credit Corporation is
not reimbursed under the programs under this Act for the actual
costs incurred or to be incurred by such Corporation in
carrying out such programs.
``(4) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under this subsection are--
``(A) authorized to remain available until expended;
and
``(B) in addition to funds otherwise available for
such purposes.''.
SEC. 112. COORDINATION AND INTEGRATION OF FOREIGN ASSISTANCE PROGRAMS.
(a) In General.--Section 413 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736g) is amended--
(1) by striking the first sentence and inserting the
following: ``The Administrator shall, to the maximum extent
practicable, coordinate and integrate assistance to a foreign
country provided under title III with other United States
development assistance programs and objectives provided under
chapter 1 of part I of the Foreign Assistance Act of 1961 (22
U.S.C. 2151 et seq.), including assistance to combat HIV/AIDS,
tuberculosis, and malaria, assistance for child and maternal
health, assistance for education, and assistance for
agricultural development and economic growth. Such assistance
shall also be coordinated and integrated with other United
States foreign assistance programs, such as the Millennium
Challenge Account. Such assistance shall also be coordinated
and integrated with the overall development strategy of the
recipient country, including the poverty reduction strategy of
the recipient country, and in the recipient country with other
donors, including international and regional organizations and
other donor countries.''; and
(2) by striking ``Special emphasis should be placed on'' and
inserting ``Special consideration should be given to''
(b) Conforming Amendment.--The heading for such section is amended by
inserting ``and integration'' after
``coordination''.
SEC. 113. MICRONUTRIENT FORTIFICATION PROGRAMS.
(a) Purpose.--Subsection (a)(2)(C) of section 415 of the Agricultural
Trade Development and Assistance Act of 1954 (7 U.S.C. 1736g-2) is
amended--
(1) by striking ``using the same mechanism that was used to
assess the micronutrient fortification program in'' and
inserting ``utilizing recommendations from''; and
(2) by striking ``with funds from the Bureau for Humanitarian
Response of the United States Agency for International
Development'' and inserting ``with implementation by an
independent entity with proven impartiality and a mechanism
that incorporates the range of stakeholders implementing
programs under title II of this Act as well as other food
assistance industry experts''.
(b) Termination of Authority.--Subsection (d) of such section is
amended by striking ``2007'' and inserting ``2012''.
SEC. 114. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.
(a) Minimum Funding.--Subsection (d) of section 501 of the
Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C.
1737) is amended by striking ``2002 through 2007'' and inserting ``2008
through 2012''.
(b) Authorization of Appropriations.--Subsection (e)(1) of such
section is amended by striking ``2002 through 2007'' and inserting
``2008 through 2012''.
Subtitle B--Related Statutes and Other Provisions
SEC. 121. BILL EMERSON HUMANITARIAN TRUST.
(a) In General.--Subsection (a) of section 302 of the Bill Emerson
Humanitarian Trust Act (7 U.S.C. 1736f-1) is amended by inserting after
``metric tons'' the following: ``, an amount of funds equivalent to
4,000,000 metric tons of commodities, or any combination of commodities
and funds equivalent to 4,000,000 metric tons''.
(b) Commodities or Funds in Trust.--Subsection (b)(2)(B)(i) of such
section is amended--
(1) by striking ``2000 through 2007'' each place it appears
and inserting ``2008 through 2012''; and
(2) by striking ``$20,000,000'' and inserting
``$60,000,000''.
(c) Termination of Authority.--Subsection (h) of such section is
amended in paragraphs (1) and (2) by striking ``2007'' each place it
appears and inserting ``2012''.
SEC. 122. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD
NUTRITION PROGRAM.
(a) Administration of Program.--Section 3107 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 1736o-1) is amended--
(1) in subsection (d), in the matter preceding paragraph (1),
by striking ``The President shall designate 1 or more Federal
agencies to'' and inserting ``The Secretary shall'';
(2) in subsection (f)(2), in the matter preceding
subparagraph (A), by striking ``implementing agency'' and
inserting ``Secretary''; and
(3) in subsections (c)(2)(B), (f)(1), (h)(1) and (2), and
(i), by striking ``President'' each place it appears and
inserting ``Secretary''.
(b) Funding.--Subsection (l) of such section is amended--
(1) by striking paragraphs (1) and (2) and inserting the
following:
``(1) Use of commodity credit corporation funds.--Of the
funds of the Commodity Credit Corporation, the Secretary shall
use to carry out this section--
``(A) $140,000,000 for fiscal year 2008;
``(B) $180,000,000 for fiscal year 2009;
``(C) $220,000,000 for fiscal year 2010;
``(D) $260,000,000 for fiscal year 2011; and
``(E) $300,000,000 for fiscal year 2012.'';
(2) by redesignating paragraph (3) as paragraph (2); and
(3) in paragraph (2) (as redesignated by paragraph (2)), by
striking ``any Federal agency implementing or assisting'' and
inserting ``the Department of Agriculture or any other Federal
department or agency assisting''.
SEC. 123. INTERNATIONAL DISASTER ASSISTANCE UNDER THE FOREIGN
ASSISTANCE ACT OF 1961.
(a) Sense of Congress.--It is the sense of Congress that the
President, acting through the Administrator, should exercise the
President's authority under section 491 of the Foreign Assistance Act
of 1961 (22 U.S.C. 2292) to purchase and to distribute to a recipient
country agricultural commodities produced--
(1) in the recipient country, or
(2) in developing countries in the region of the recipient
country,
for the purposes of famine prevention and relief.
(b) Availability of Funding for Famine Prevention and Relief.--For
each of the fiscal years 2008 through 2012, of the amounts made
available to carry out section 491 of the Foreign Assistance Act of
1961, not less than $40,000,000 for each such fiscal year shall be made
available for the purposes of famine prevention and relief under such
section.
SEC. 124. REPORT ON EFFORTS TO IMPROVE PROCUREMENT PLANNING.
(a) Report Required.--Not later than 90 days after the date of the
enactment of this Act, the Administrator and the Secretary shall submit
to the appropriate congressional committees a report on efforts taken
by both the United States Agency for International Development and the
Department of Agriculture to improve planning for food and
transportation procurement, including efforts to eliminate bunching of
food purchases.
(b) Contents.--The report required under subsection (a) should
include, among other things, a description of efforts taken to--
(1) improve coordination of food purchases by the United
States Agency for International Development and the Department
of Agriculture;
(2) increase flexibility in procurement schedules;
(3) increase utilization of historical analyses and
forecasting; and
(4) improve and streamline legal claims processes for
resolving transportation disputes.
TITLE II--UNITED STATES AGRICULTURAL EXPORT PROGRAMS
SEC. 201. EXPORT CREDIT GUARANTEE PROGRAM.
(a) Repeal of Supplier Credit Guarantee Program and Intermediate
Export Credit Guarantee Program.--
(1) Repeals.--Section 202 of the Agricultural Trade Act of
1978 (7 U.S.C. 5622) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by striking ``(1)'' and
all that follows through ``The Commodity'' and
inserting ``The Commodity''; and
(ii) by striking paragraphs (2) and (3);
(B) by striking subsections (b) and (c); and
(C) by redesignating subsections (d) through (l) as
subsections (b) through (j), respectively.
(2) Conforming amendments.--Such section is further amended--
(A) in subsection (b)(4) (as redesignated by
paragraph (1)(C)), by striking ``, consistent with the
provisions of subsection (c)'';
(B) in subsection (d) (as redesignated by paragraph
(1)(C))--
(i) by striking ``(1)'' and all that follows
through ``The Commodity'' and inserting ``The
Commodity''; and
(ii) by striking paragraph (2); and
(C) in subsection (g)(2) (as redesignated by
paragraph (1)(C)), by striking ``subsections (a) and
(b)'' and inserting ``subsection (a)''.
(b) Process and High-Value Products.--Section 202 of such Act (7
U.S.C. 5622) is amended in paragraph (1) of subsection (i) (as
redesignated by subsection (a)(1)(C)) by striking ``2007'' and
inserting ``2012''.
(c) Export Credit Guarantee Programs.--Subsection (b) of section 211
of such Act (7 U.S.C. 5641) is amended to read as follows:
``(b) Export Credit Guarantee Programs.--The Commodity Credit
Corporation shall make available, to the maximum extent practicable,
for each of fiscal years 2008 through 2012 not less than $5,500,000,000
in credit guarantees under section 202(a).''.
SEC. 202. MARKET ACCESS PROGRAM.
(a) Organic Commodities.--Subsection (a) of section 203 of the
Agricultural Trade Act of 1978 (7 U.S.C. 5623) is amended by inserting
after ``agricultural commodities'' the following: ``(including
commodities that are organically produced (as defined in section 2103
of the Organic Foods Production Act of 1990 (7 U.S.C. 6502)))''.
(b) Funding.--Subsection (c)(1)(A) of section 211 of such Act (7
U.S.C. 5641) is amended by striking ``, and $200,000,000 for each of
fiscal years 2006 and 2007'' and inserting ``$200,000,000 for each of
fiscal years 2006 and 2007, and $225,000,000 for each of fiscal years
2008 through 2012''.
SEC. 203. EXPORT ENHANCEMENT PROGRAM.
Subsection (e) of section 301 of the Agricultural Trade Act of 1978
(7 U.S.C. 5651) is amended by striking paragraph (1) and inserting the
following:
``(1) In general.--The Commodity Credit Corporation shall
make available to carry out the program established under this
section not more than $478,000,000 for each of fiscal years
2008 through 2012.''.
SEC. 204. ASSISTANCE TO ADDRESS SANITARY AND PHYTOSANITARY BARRIERS TO
TRADE.
Title III of the Agricultural Trade Act of 1978 (7 U.S.C. 5651 et
seq.) is amended by adding at the end the following new section:
``SEC. 304. ASSISTANCE TO ADDRESS SANITARY AND PHYTOSANITARY BARRIERS
TO TRADE.
``(a) Assistance Authorized.--The Secretary is authorized to enter
into contracts with technical experts and scientists, or provide grants
to appropriate entities, as determined by the Secretary, to address
sanitary, phytosanitary, and technical barriers to the export of United
States agricultural commodities, including meat, poultry, and specialty
crops, by--
``(1) contracting with technical experts and scientists
outside of the Federal government to address sanitary and
phytosanitary issues, and other issues regarding technical
barriers, involving agricultural commodities and the products
of such agricultural commodities; and
``(2) commissioning targeted outside scientific reports on
sanitary and phytosanitary issues, and other issues regarding
technical barriers, involving agricultural commodities and the
products of such agricultural commodities.
``(b) Targeted Trade Issues.--Projects funded under this section may
include projects relating to the acceptance by foreign markets of--
``(1) antimicrobial treatments;
``(2) wood-packaging material;
``(3) irradiation;
``(4) biotechnology;
``(5) science-based maximum residue level standards;
``(6) testing procedures and controls for mycotoxins;
``(7) labeling; and
``(8) shelf life.
``(c) Funding.--
``(1) Commodity credit corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this section.
``(2) Funding amount.--The Secretary shall use, to the
maximum extent practicable, $2,000,000 of the funds of the
Commodity Credit Corporation to carry out this section for each
of fiscal years 2008 through 2012.''.
SEC. 205. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
(a) Foreign Market Development Cooperator Program.--Subsection (c) of
section 702 of the Agricultural Trade Act of 1978 (7 U.S.C. 5722) is
amended by striking ``Committee on International Relations'' and
inserting ``Committee on Foreign Affairs''.
(b) Funding.--Section 703 of such Act (7 U.S.C. 5723) is amended--
(1) in subsection (a), by striking ``2002 through 2007'' and
inserting ``2008 through 2012''; and
(2) in subsection (b), by striking ``2001'' and inserting
``2007''.
SEC. 206. EMERGING MARKETS AND FACILITY GUARANTEE LOAN PROGRAM.
(a) Promotion of Agricultural Exports to Emerging Markets.--
Subsections (a) and (d)(1)(A)(i) of section 1542 of the Food,
Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 5622 note;
Public Law 101-624) is amended by striking ``2007'' each place it
appears and inserting ``2012''.
(b) Facility Guarantee Loan Program.--Such section is further
amended--
(1) in subsection (b)--
(A) in the first sentence, by redesignating
paragraphs (1) and (2) as subparagraphs (A) and (B),
respectively, and adjusting the margins accordingly;
(B) by striking ``A portion'' and inserting the
following:
``(1) In general.--A portion'';
(C) in the second sentence--
(i) by striking ``The Commodity Credit
Corporation'' and inserting the following:
``(2) Priority.--The Commodity Credit Corporation''; and
(ii) by moving the margins of subparagraphs
(A) and (B) two ems to the right; and
(D) by adding at the end the following:
``(3) Initial payment.--The Secretary may require an initial
down payment, upon such terms as the Secretary may determine,
by the beneficiary of the credit guarantee as a condition of
providing a credit guarantee under this subsection.
``(4) Maximum liability.--The liability of the Commodity
Credit Corporation under a guarantee provided pursuant to this
section may not exceed 98 percent of--
``(A) the principal amount involved in the underlying
financial arrangement for construction of the facility;
and
``(B) the interest on the outstanding principal
amount at the rate specified in the underlying
financial arrangement for construction of the facility.
``(5) Term of guarantee.--A facility payment guarantee under
this subsection shall be for a term that is not more than the
lesser of--
``(A) the term of the depreciation schedule of the
facility assisted; or
``(B) a maximum period, as determined by the
Secretary.''.
SEC. 207. FOOD FOR PROGRESS ACT OF 1985.
(a) Provision of Eligible Commodities to Developing Countries.--
Subsection (f)(3) of the Food for Progress Act of 1985 (7 U.S.C. 1736o;
section 1110 of the Food Security Act of 1985) is amended by striking
``1996 through 2007'' and inserting ``2008 through 2012''.
(b) Minimum Tonnage.--Subsection (g) of such Act is amended--
(1) by striking ``400,000'' and inserting ``500,000''; and
(2) by striking ``2002 through 2007'' and inserting ``2008
through 2012''.
(c) Report.--Subsection (j)(3) of such Act is amended by inserting
``and the Committee on Foreign Affairs'' after ``Committee on
Agriculture'' the first place such term appears.
(d) Effective and Termination Dates.--Subsection (k) of such Act is
amended by striking ``2007'' and inserting ``2012''.
(e) Administrative Expenses.--Subsection (l)(1) of such Act is
amended by striking ``1996 through 2007'' and inserting ``2008 through
2012''.
(f) Program Management.--Subsection (n)(2)(C) of such Act is amended,
by striking ``Committee on International Relations'' and inserting
``Committee on Foreign Affairs''.
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
(a) Additional Requirements.--Section 3205 of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C. 5680) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Additional Requirements.--
``(1) Maximum award.--The maximum amount of assistance
provided annually to a project under the program shall be
$500,000.
``(2) Project duration.--The Secretary may extend a project
under the program irrespective of the initial estimated
duration of the project.''.
(b) Funding.--Such section is further amended in subsection (e) (as
redesignated by subsection (a)(1)), to read as follows:
``(e) Funding.--
``(1) Commodity credit corporation.--The Secretary shall use
the funds, facilities, and authorities of the Commodity Credit
Corporation to carry out this section.
``(2) Funding amount.--The Secretary shall make available the
following amounts of the funds of, or an equal value of
commodities owned by, the Commodity Credit Corporation, to the
maximum extent practicable, for the following fiscal years to
carry out this section:
``(A) $4,000,000 for fiscal year 2008.
``(B) $6,000,000 for fiscal year 2009.
``(C) $8,000,000 for fiscal year 2010.
``(D) $10,000,000 for each of fiscal years 2011
through 2015.''.
SEC. 302. SUPPORT FOR SANITARY AND PHYTOSANITARY PRIORITIES OF THE
UNITED STATES WITHIN CERTAIN INTERNATIONAL
ORGANIZATIONS.
(a) Support Authorized.--The Secretary of Agriculture is authorized
to enhance United States support for international organizations,
including international organizations described in subsection (b), that
establish international standards regarding food, food safety, plants,
and animals by funding additional positions of associate professional
officers to address sanitary and phytosanitary priorities of the United
States within such international organizations. The Secretary shall
carry out this subsection pursuant to the authority of the Secretary
under section 1458(a)(3) of the Food and Agriculture Act of 1977 (7
U.S.C. 3291(a)(3)).
(b) International Organizations Described.--The international
organizations referred to in subsection (a) are the Food and
Agriculture Organization, the Codex Alimentarius Commission, the
International Plant Protection Convention, and the World Organization
for Animal Health.
SEC. 303. TECHNICAL ASSISTANCE FOR THE RESOLUTION OF TRADE DISPUTES.
(a) Technical Assistance Authorized.--The Secretary of Agriculture is
authorized to provide monitoring, analytic support, and other technical
assistance to limited-resource persons and organizations associated
with agricultural trade (as determined by the Secretary) to address
unfair trade practices of foreign countries, including intellectual
property right violations, and to reduce trade barriers.
(b) Authorization of Appropriations.--To carry out this section,
there are authorized to be appropriated to the Secretary such sums as
may be necessary for each of the fiscal years 2008 through 2012.
SEC. 304. SENSE OF CONGRESS CONCERNING THE GLOBAL CROP DIVERSITY TRUST.
(a) Findings.--Congress finds the following:
(1) Crop diversity--the natural diversity exhibited in the
array of varieties in every crop--is one of the world's least
recognized, but most valuable resources. It provides the
genetic building blocks for adapting crops to constantly
evolving pests, diseases, and changing climates. Without crop
diversity, agriculture cannot retain current productivity
levels and cannot meet anticipated future challenges associated
with population growth and global warming.
(2) Currently, much of the world's crop diversity is neither
safely conserved, nor readily available to scientists and
farmers who rely on it to safeguard agricultural productivity.
(3) The Global Crop Diversity Trust, an independent
organization created by the United Nations Food and
Agricultural Organization in conjunction with the 2001
International Treaty on Plant Genetic Resources, is the only
organization working globally to solve the problem of
protecting crop diversity. The Global Crop Diversity Trust
became a legal entity at the end of 2004, but has already
raised $135,000,000 from a broad alliance of partners,
including developed and developing countries, private
corporations, and philanthropic foundations, including a joint
initiative with the United Nations Foundation funded by The
Bill and Melinda Gates Foundation.
(4) The United States was an early supporter of the Global
Crop Diversity Trust, and has so far contributed $6,500,000 to
the Global Crop Diversity Trust. Robust involvement of the
United States in the Global Crop Diversity Trust ensures
significant benefits to United States farmers.
(b) Sense of Congress.--It is the sense of Congress that the
President should provide significant United States financial resources
to the Global Crop Diversity Trust to ensure the conservation of crop
diversity which can yield significant benefits to United States
farmers.
SEC. 305. TECHNICAL AND CONFORMING AMENDMENTS.
Subsection (a) of section 3206 of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 5603a) is amended by striking
``Committee on International Relations'' and inserting ``Committee on
Foreign Affairs''.
SEC. 306. RULE OF CONSTRUCTION.
Nothing in this Act or any amendment made by this Act shall be
construed to supersede the provisions of the Trade Sanctions Reform and
Export Enhancement Act of 2000 (22 U.S.C. 7201 et seq.).
Summary
The ``Food Security and Agricultural Development Act of
2007'' amends various statutes related to international food
assistance and agricultural export promotion programs. There
are three titles to this Act. Title I amends the Agricultural
Trade Development and Assistance Act of 1954 by: updating the
purposes of the program to provide emergency and non-emergency
food assistance to developing countries within the overall
framework of reducing food insecurity; establishing a stable
funding level for non-emergency food assistance that reduces
food insecurity; providing sufficient funding to support needs
assessments and program management and implementation; and
expanding the authority for monitoring and evaluating emergency
and non-emergency food assistance programs. Title II amends the
Agricultural Trade Act of 1978 and other statutes related to
agricultural export promotion programs and export credit
guarantee programs. Title III contains provisions that are
designed to address technical assistance for specialty crops
and the resolution of trade disputes, as well as enhance
support for international trade standards.
Background and Purpose
The United Nations Food and Agricultural Organization
estimates that in 2006, approximately 850 million people in the
world were chronically hungry, with 824 million of them in
developing countries. The largest concentrations of the
chronically hungry--an estimated 298 million--are in South
Asia, particularly in India where 212 million are
undernourished. In Sub-Saharan Africa an estimated 206 million
people are chronically hungry. The number of food and
humanitarian emergencies has doubled from an average of about
15 per year in the 1980s to more than 30 per year since 2000,
due in large part to increasing conflicts, poverty, and natural
disasters around the world. Some emergencies are exacerbated by
multiple shocks, such as civil wars, recurring droughts, and
endemic disease, adding to their complexity and protracting the
crises for many years.
The United Nations reports that progress is being made
toward reaching the Millennium Development Goal of reducing the
proportion of hungry people in the world by half by 2015. In
1990, the proportion of people in the developing countries
living with insufficient food was estimated to be 20 percent.
By 2003, that percentage had declined to 17 percent. However,
from 1996 to 2006, the absolute number of hungry people
increased from 790 to 850 million. The number of hungry people
in the most seriously affected regions of the world, namely
South Asia and Sub-Saharan Africa, is increasing. In Sub-
Saharan Africa, in 1990, an estimated 169 million people were
chronically hungry; in 2003, the number of chronically hungry
increased to 206 million.
The major United States Government response to reducing
hunger in developing countries is to provide U.S. agricultural
commodities as food assistance. In fiscal year 2006, the United
States provided 3 million metric tons of food valued at more
than $2 billion to meet emergency food needs and to support
development projects in developing countries. In 2006, the
United States provided food assistance to 65 countries, more
than half of them in Sub-Saharan Africa. Approximately $1.2
billion, or 60 percent of such assistance, was for emergencies.
The United States Agency for International Development (USAID)
estimates that 50 to 70 million people benefit from United
States food assistance programs annually. Food assistance
contributed by the United States Government has totaled more
than $73 billion since 1946. Over the last decade, the United
States has been the single largest donor of international food
assistance, with a large proportion of the assistance provided
through the United Nations World Food Program for the purpose
of addressing emergencies. The United States contributed more
than 52 million tons of food assistance between 1996 and 2005,
more than half of the nearly 100 million tons of food
assistance delivered worldwide in this period. In 2006, the
United States contributed $1.125 billion, or about 40 percent
of total donor contributions to the World Food Program that
year.
The Committee notes that private voluntary organizations
and cooperatives are critical implementing partners in United
States food assistance programs. In addition to assisting
people whose lives and livelihoods are endangered due to
crises, these organizations help communities that suffer from
chronic hunger, integrating food assistance with technical
assistance and training, and building local institutional
capacity, thereby decreasing malnutrition among children and
increasing household incomes and food supplies.
The Committee understands that the Farm Security and Rural
Investment Act of 2002 (Public Law 107-171) called for
increased levels of non-emergency food assistance in order to
address chronic hunger needs and to ensure a long-term impact
on vulnerable communities. However, by 2006, non-emergency food
assistance programs were reduced to 42 percent of their 2001
levels. The Committee believes that these reductions have
seriously impeded the United States' ability to effectively
address food insecurity in the developing world.
The Committee strongly encourages USAID to increase
financial, technical, and other assistance for non-emergency
food needs. The Committee also believes that food assistance
needs to be combined with other non-food resources, such as
assistance to communities affected by HIV/AIDS and to promote
agricultural development, economic growth, and education, as
well as water and health programs, in order to mitigate the
underlying causes of chronic hunger.
U.S. agricultural commodities have been the backbone of the
U.S. international food assistance programs since the creation
of the P.L. 480 program in the Agricultural Trade Development
and Assistance Act of 1954. The Committee believes that the
success of U.S. international food assistance programs stems
from the combination of the American people's compassion and
generosity and the private organizations and the companies that
make it work. The Committee notes that the unparalleled
dedication and productivity of U.S. farmers, processors, and
other groups that administer, transport, and distribute food
assistance is the basis for why Congress and the Executive
Branch have sustained strong funding levels for these programs.
America's farmers also deserve our continued support
through increased assistance to promote U.S. agricultural
commodities overseas. Farm income and agriculture's economic
well-being depend heavily on exports, which account for more
than 25 percent of U.S. producers' cash receipts, provide jobs
for nearly one million Americans, and make a positive
contribution to our nation's overall trade balance. The
Committee understands that the U.S. Department of Agriculture
estimates that U.S. agriculture exports are projected to be $78
billion in fiscal year 2007, up $9.3 billion over last year and
up $25 billion since 2002. The Committee is aware that this is
the second largest increase on record and the fourth
consecutive year of record exports. While these are impressive
gains, expanded and comprehensive assistance to U.S. farmers is
critical if we want to expand access to overseas markets, where
95 percent of the world's consumers live.
The ``Food Security and Agricultural Development Act of
2007'':
(1) Increases P.L. 480 Title II funds that may be made
available to support eligible organizations from not less than
5 and not more than 10 percent, to not less than 10 but no more
than 12.5 percent of total P.L. 480 Title II funds, and allow
such assistance to be used for improving and implementing
methodologies such as needs assessments and monitoring and
evaluation, and to meet specific administrative, management,
operational, and other programming costs for carrying out P.L.
480 Title II food assistance programs.
(2) Reauthorizes requirements related to commodity tonnage
levels for emergency and non-emergency P.L. 480 Title II food
assistance programs through 2012.
(3) Reauthorizes the Food Aid Consultative Group through
2012 and directs the Administrator of USAID to consult with the
Group in developing a strategy to achieve a more integrated and
effective food assistance program and to report to Congress
within 180 days on efforts to develop such strategy.
(4) Modifies administrative procedures for the submission
and review of P.L. 480 Title II proposals.
(5) Requires the Administrator, in consultation with the
Secretary, to establish a system to improve monitoring and
evaluating the efficiency and effectiveness of P.L. 480 Title
II food assistance programs, requires a report to Congress on
efforts to implement the requirement to establish such system
in 180 days, and requires the GAO to submit a report to
Congress within 270 days after the Administrator's report is
submitted with its reviews and comments on USAID's report to
Congress and recommendations to improve monitoring and
evaluation of P.L. 480 Title II food assistance programs.
(6) Authorizes the Administrator to use P.L. 480 Title II
funds to make contributions to the World Food Program for
indirect support costs, provided that the level and reasons are
first submitted to Congress.
(7) Reauthorizes the P.L. 480 Title II Assistance for
Stockpiling, and Rapid Transportation, Delivery, and
Distribution of Shelf-Stable Prepackaged Foods Program through
2012.
(8) Extends the P.L. 480 authority to preposition U.S.
agricultural commodities in foreign countries through 2012,
removes the $20 million limitation for prepositioning in
foreign countries, and authorizes the Administrator of USAID to
expand the number of prepositioning sites in foreign countries.
(9) Changes the due date for USAID annual reports on food
assistance from January 15 to March 1, and requires more
information in such reports about the levels and types of
assistance provided and program impact.
(10) Authorizes appropriations for such sums as needed for
P.L. 480 Title I and Title III food assistance programs through
2012; authorizes $2.5 billion for P.L. 480 Title II programs
through 2012; and of the amounts made available for P.L. 480
Title II, requires not less than $600 million for each fiscal
year shall be obligated and expended for non-emergency food
assistance programs.
(11) Requires USAID to coordinate and integrate non-
emergency food assistance programs under P.L. 480 Title III
with other U.S. development and foreign assistance objectives,
with the poverty reduction strategies and development
objectives of assistance recipient countries, and with
assistance provided by international and regional organizations
and other donor countries.
(12) Extends the Micronutrient Fortification Program for
P.L. 480 Title II commodities through 2012.
(13) Extends the authorization of the John Ogonowski and
Doug Bereuter Farmer-to-Farmer Program through 2012.
(14) Reauthorizes the Bill Emerson Humanitarian Trust
through 2012 and increases the amount of reimbursed funds that
can be held in the trust to $60 million from $20 million.
(15) Authorizes mandatory funding for the McGovern-Dole
International Food for Education and Child Nutrition Program
with $140 million for fiscal year 2008 and increasing in $40
million increments each subsequent year through fiscal year
2012, and authorizes the Secretary, rather than the President,
to administer the program.
(16) Requires the Administrator of USAID to exercise its
current authority under section 491 of the Foreign Assistance
Act of 1961 to purchase food locally and regionally. Of the
amounts appropriated for section 491, the bill authorizes $40
million for famine prevention and relief.
(17) Requires USAID and the Department of Agriculture to
report on efforts taken to improve planning for food and
transportation procurement.
(18) Repeals the Supplier Credit Guarantee Program and the
Intermediate Export Credit Guarantee Program (GSM-103 program).
(19) Reauthorizes $5.5 billion for other export credit
guarantee programs through 2012.
(20) Reauthorizes the Market Access Program through 2012 at
the Administration's requested level of $225 million for U.S.
agricultural commodities.
(21) Reauthorizes the Export Enhancement Program through
2012 at the current spending level of $478 million.
(22) Creates a new program to address international
sanitary and phytosanitary issues for U.S. agricultural
commodities.
(23) Extends the authorization of the Foreign Market
Development Cooperator Program through 2012.
(24) Reauthorizes the Emerging Market and Facility
Guarantee Loan Program through 2012.
(25) Reauthorizes the Food for Progress program through
2012 and raises the minimum level from 400,000 metric tons to
500,000 metric tons.
(26) Reauthorizes $2 million for a program to provide
technical assistance for specialty crops through 2012.
(27) Authorizes the Department of Agriculture to enhance
U.S. support for international standard setting organizations
that address sanitary and phytosanitary issues.
(28) Authorizes such sums for technical assistance for the
resolution of trade disputes.
Hearings
In the 110th Congress, the Committee on Foreign Affairs,
Subcommittee on Africa and Global Health held a hearing
entitled, ``International Food Aid Programs: Options to Enhance
Effectiveness,'' on May 24, 2007. The Subcommittee heard
testimony from William Hammink, Director of the Office of Food
for Peace at the U.S. Agency for International Development;
Thomas Melito, Director, International Affairs and Trade at the
U.S. Government Accountability Office; Annemarie Reilly, Chief
of Staff at Catholic Relief Services; and David Evans, Vice
President of Government Resources and Programs at Food for the
Hungry. In the 109th Congress, the Committee on International
Relations' Subcommittee on Africa, Global Human Rights and
International Operations held a hearing entitled ``The World
Hunger Crisis,'' on May 25, 2006. The Subcommittee heard
testimony from James Morris, Executive Director at the United
Nations World Food Program; Michael Hess, Assistance
Administrator for Democracy, Conflict and Humanitarian
Assistance at the U.S. Agency for International Development;
Ambassador Tony Hall, former Ambassador to the U.S. Mission to
the United Nations Agencies for Food and Agriculture; Sean
Callahan, Vice President of Overseas Operations at Catholic
Relief Services; Gabriel Laizer, a beneficiary of the McGovern-
Dole International Food for Education and Child Nutrition
Program in Tanzania; and Gawain Kripke, Senior Policy Advisor
at Oxfam America. In the 108th Congress, the Committee on
International Relations held a full committee briefing entitled
``Current Issues in World Hunger'' on May 11, 2004. The
Committee heard testimony from Ambassador Tony Hall.
Committee Consideration
The Committee considered H.R. 2844 on June 26, 2007, and
the bill was favorably reported to the House by a vote of 38-9,
as amended, a quorum present.
Votes of the Committee
There were two votes during consideration of H.R. 2844:
(1) Mr. Manzullo offered an amendment to the amendment in
the nature of a substitute which generally reduced some funding
in parts of the bill. The amendment was defeated by a vote of
17-30.
Voting yes: Ros-Lehtinen, Burton, Rohrabacher, Manzullo, Royce,
Chabot, Tancredo, Paul, Flake, Pence, Wilson, Boozman,
Barrett, Mack, McCaul, Poe, and Bilirakis.
Voting no: Lantos, Berman, Ackerman, Faleomavaega, Payne,
Sherman, Wexler, Engel, Delahunt, Meeks, Watson, Smith
(WA), Carnahan, Tanner, Woolsey, Jackson Lee, Hinojosa,
Crowley, Wu, Miller, Sanchez, Scott, Costa, Sires,
Giffords, Klein, Smith (NJ), Fortenberry, Inglis, and
Fortuno.
(2) H.R. 2844, as amended, was reported favorably to the
House by a vote of 38-9.
Voting yes: Lantos, Berman, Ackerman, Faleomavaega, Payne,
Sherman, Wexler, Engel, Delahunt, Meeks, Watson, Smith
(WA), Carnahan, Tanner, Woolsey, Jackson Lee, Hinojosa,
Crowley, Wu, Miller, Sanchez, Scott, Costa, Sires,
Giffords, Klein, Ros-Lehtinen, Smith (NJ), Burton,
Pence, Wilson, Boozman, Mack, Fortenberry, McCaul,
Inglis, Fortuno, and Bilirakis.
Voting no: Rohrabacher, Manzullo, Royce, Chabot, Tancredo,
Paul, Flake, Barrett, and Poe.
Ms. Jackson-Lee offered an amendment en block regarding
coordination with donor countries and international
organizations and preventing hunger-related emergencies. The
amendment was agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
New Budget Authority and Tax Expenditures
This legislation authorizes funds to provide emergency and
nonemergency food assistance to developing countries to help
end hunger, and to promote U.S. agricultural exports overseas.
Congressional Budget Office Cost Estimate
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, the Committee sets forth, with
respect to the bill, H.R. 1681, the following estimate and
comparison prepared by the Director of the Congressional Budget
Office under Section 402 of the Congressional Budget Act of
1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 17, 2007.
Hon. Tom Lantos,
Chairman, Committee on Foreign Affairs,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2844, the Food
Security and Agricultural Development Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sam
Papenfuss, who can be reached at 226-2840.
Sincerely,
Peter R. Orszag.
Enclosure.
cc:
Honorable Ileana Ros-Lehtinen
Ranking Member
H.R. 2844--Food Security and Agricultural Development Act of 2007
Summary: H.R. 2844 would amend trade promotion and food
assistance programs administered by the U.S. Department of
Agriculture (USDA) and the U.S. Agency for International
Development (USAID) and extend the authorization for those
programs, generally through 2012. The bill would increase
spending limits and authorize new purposes for spending from
the Commodity Credit Corporation (CCC). H.R. 2844 also would
authorize the appropriation of funds for several programs
through 2012.
CBO estimates that enacting H.R. 2844 would increase direct
spending by $159 million in 2008, about $1.5 billion over the
2008-2012 period, and more than $3.5 billion over the 2008-2017
period. Additionally, CBO estimates that implementing H.R. 2844
would have discretionary costs of $1.3 billion in 2008 and
$10.7 billion over the 2008-2012 period, assuming appropriation
of the estimated amounts. Enacting the bill would not affect
revenues.
H.R. 2844 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would not affect the budgets of state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2844 is shown in the following table.
The costs of this legislation fall within budget functions 150
(international affairs) and 350 (agriculture).
TABLE 1. ESTIMATED BUDGETARY IMPACT OF H.R. 2844
----------------------------------------------------------------------------------------------------------------
By Fiscal Year, in Millions of Dollars
-----------------------------------------------------
2007 2008 2009 2010 2011 2012
----------------------------------------------------------------------------------------------------------------
DIRECT SPENDING
Direct Spending Under Current Law for International 371 398 397 397 396 396
Assistance and Trade Programs
Estimated Budget Authority \1\
Estimated Outlays 371 398 397 397 396 396
Proposed Changes 0 159 245 308 350 391
Estimated Budget Authority
Estimated Outlays 0 159 245 308 350 391Direct Spending Under H.R. 2844 for International 371 557 642 705 746 787
Assistance and Trade Programs
Estimated Budget Authority
Estimated Outlays 371 557 642 705 746 787SPENDING SUBJECT TO APPROPRIATIONDiscretionary Spending Under Current Law for International 2,125 0 0 0 0 0
Assistance and Trade Programs
Budget Authority \2\
Estimated Outlays 2,081 1,189 462 169 56 26Proposed Changes 0 2,557 2,557 2,557 2,558 2,558
Estimated Authorization Level
Estimated Outlays 0 1,285 2,057 2,358 2,480 2,524Discretionary Spending Under H.R. 2844 for International 2,125 2,557 2,557 2,557 2,558 2,558
Assistance and Trade Programs
Estimated Authorization Level
Estimated Outlays 2,081 2,474 2,519 2,527 2,536 2,550
----------------------------------------------------------------------------------------------------------------
\1\ The amounts shown as spending under current law for 2007-2012 are CBO's baseline estimates of spending for
the affected programs.
\2\ The 2007 budget authority is the amount appropriated in 2007 for the following programs: Public Law 480
title II ($1,665 million), International Disaster and Famine Assistance ($361 million), and McGovern-Dole
Program ($99 million).
Basis of estimate: For this estimate, CBO assumes that the
bill will be enacted near the start of fiscal year 2008, that
the estimated amounts will be appropriated each year, and that
outlays will follow historical spending patterns.
Direct Spending
Enacting H.R. 2844 would increase direct spending for
several programs, as shown in Table 2 and described below. In
total, CBO estimates that under H.R. 2844, direct spending
would increase by $159 million in 2008, about $1.5 billion over
the 2008-2012 period, and over $3.5 billion over the 2008-2017
period.
TABLE 2. CHANGES IN DIRECT SPENDING UNDER H.R. 2844
--------------------------------------------------------------------------------------------------------------------------------------------------------
By Fiscal Year, in Millions of Dollars
-------------------------------------------------------------------------------------------
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008-2012 2008-2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
McGovern-Dole Program 73 139 195 235 275 294 300 300 300 300 917 2,411
Estimated Budget
Authority
Estimated Outlays 73 139 195 235 275 294 300 300 300 300 917 2,411Bill Emerson Humanitarian Trust 85 85 85 85 85 85 85 85 85 86 425 851
Estimated Budget
Authority
Estimated Outlays 85 85 85 85 85 85 85 85 85 86 425 851Market Access 1 20 25 25 25 25 25 25 25 25 96 221
Estimated Budget
Authority
Estimated Outlays 1 20 25 25 25 25 25 25 25 25 96 221Other Programs 0 1 3 5 6 4 4 4 4 4 15 35
Estimated Budget
Authority
Estimated Outlays 0 1 3 5 6 4 4 4 4 4 15 35Total Changes 159 245 308 350 391 408 414 414 414 415 1,453 3,518
Estimated Budget
Authority
Estimated Outlays 159 245 308 350 391 408 414 414 414 415 1,453 3,518
--------------------------------------------------------------------------------------------------------------------------------------------------------
McGovern-Dole Program. Section 122 would change the
spending authority for the McGovern-Dole International Food for
Education and Child Nutrition Program. Under current law,
funding for this program is provided in annual appropriation
acts ($99 million was appropriated in 2007). Under H.R. 2844,
funding would be provided by the U.S. Department of
Agriculture's Commodity Credit Corporation in amounts specified
in the bill, increasing from $140 million in 2008 to $300
million in 2012. CBO estimates that implementing this section
would increase direct spending by $917 million over the next
five years and by $2,411 million over the 2008-2017 period.
Enacting this section also could reduce the need for
discretionary spending as discussed below under the heading
``Spending Subject to Appropriation.''
Bill Emerson Humanitarian Trust. Section 121 would
reauthorize the Bill Emerson Humanitarian Trust. The trust is
authorized to hold agricultural commodities that can be donated
overseas to meet emergency food needs in developing countries.
Under current law, the CCC pays the costs of shipping
commodities donated from the trust, while up to $20 million of
the funds appropriated to the Public Law 480 program can be
used to reimburse the trust for the cost of the donated
commodities. H.R. 2844 would raise the annual cap on these
reimbursements from $20 million to $60 million. CBO estimates
that raising that cap would increase donations from the reserve
and the associated additional shipping costs would increase
direct spending by $425 million over the next five years and
$851 million over the 2008-2017 period.
Market Access Program. Section 202 would reauthorize and
increase funding for the Market Access Program, an export
promotion program funded through the Commodity Credit
Corporation. The bill would increase annual funding for the
program by $25 million, from $200 million to $225 million a
year. Under the bill, CBO estimates direct spending would
increase by $96 million over the 2008-2012 period and by $221
million over the 2008-2017 period.
Other Programs. H.R. 2844 would affect direct spending in
three other programs described below. In total, CBO estimates
that enacting those provisions would increase direct spending
by $15 million over the 2008-2012 period and $35 million over
the 2008-2017 period.
Section 201 and section 206 would amend the Export
Credit Guarantee Program to eliminate the Supplier Credit
Program, increase loan origination fees, and raise the amount
of loans guaranteed under the Facilities Credit Program. CBO
estimates that, together, these changes would reduce direct
spending by $19 million over the next five years and by $39
million over the next 10 years.
Section 301 would increase funding for the
Technical Assistance for Specialty Crops Program by $2 million
a year from the previous year's level. CBO estimates that
amending the program to increase funding would increase direct
spending by $24 million over the next five years and by $64
million over the next 10 years.
Section 204 would increase direct spending by $2
million a year over the 2008-2012 period for a new grant
program to address sanitary and phytosanitary (pests and
diseases harmful to plants) barriers to trade. CBO assumes
direct spending for this new program would not be continued
beyond its expiration in 2012. Under this assumption, CBO
estimates that the new grant program would increase direct
spending by $10 million over the next five years.
Spending Subject to Appropriation
H.R. 2844 would authorize the appropriation of funds for
several programs. As shown in Table 3, CBO estimates that
implementing H.R. 2844 would incur spending subject to
appropriation of about $1.3 billion in 2008 and $10.7 billion
over the 2008-2017 period.
Public Law 480. The Agricultural Trade Development and
Assistance Act of 1954, typically referred to as Public Law
480, established a variety of programs to provide food
assistance to countries around the world. Section 111 would
authorize the appropriation of funds through 2012 for titles I,
II, and III of Public Law 480.
The largest program in Public Law 480 is title II which
provides emergency and nonemergency food aid around the world.
(The appropriation for this program in 2007 totals about $1.7
billion.) H.R. 2844 would authorize the appropriation of $2.5
billion a year through 2012 for title II assistance.
There is no current appropriation for programs under title
I or title III, and the bill would authorize such sums as may
be necessary for those programs through 2012. Based on
information from the U.S. Agency for International Development,
and the last appropriation for each program, CBO estimates that
$100 million ($70 million for title I and $30 million for title
III) in 2008 would be sufficient to implement those programs.
Adjusting for anticipated inflation and based on historical
spending patterns for those programs, CBO estimates that, in
total, implementing section 111 would cost $1.4 billion in 2008
and $11 billion over the 2008-2012 period, assuming
appropriation of the estimated and specified amounts.
McGovern-Dole Program. As discussed above, under ``Direct
Spending,'' enacting section 122 would change the spending
authority for the McGovern-Dole International Food for
Education and Child Nutrition Program. Under this section,
there would be no need for future appropriations for this
program. Thus, CBO expects that the authorization of spending
subject to appropriation would decline each year by the amount
appropriated for this program in 2007 ($99 million), adjusted
for anticipated inflation. Therefore, CBO estimates
discretionary savings under section 122 of $101 million in 2008
and $523 million over the 2008-2017 period, assuming
appropriations are reduced by the estimated amounts.
TABLE 3. CHANGES IN SPENDING SUBJECT TO APPROPRIATION
----------------------------------------------------------------------------------------------------------------
By Fiscal Year, in Millions of Dollars
--------------------------------------------
2008 2009 2010 2011 2012
----------------------------------------------------------------------------------------------------------------
Public Law 480 2,600 2,602 2,604 2,606 2,608
Estimated Authorization Level
Estimated Outlays 1,366 2,118 2,410 2,528 2,574McGovern-Dole Program -101 -103 -105 -106 -108
Estimated Authorization Level
Estimated Outlays -101 -103 -105 -106 -108Disaster and Famine Assistance 40 40 40 40 40
Authorization level
Estimated Outlays 10 28 36 40 40Other Programs 18 18 18 18 18
Estimated Authorization Level
Estimated Outlays 10 14 17 18 18Total Changes 2,557 2,557 2,557 2,558 2,558
Estimated Authorization Level
Estimated Outlays 1,285 2,057 2,358 2,480 2,524
----------------------------------------------------------------------------------------------------------------
Disaster and Famine Assistance. Section 123 would designate
funds for the International Disaster and Famine Assistance
(IDFA) Program. (In 2007, the Congress appropriated $361
million for this program.) The bill would require that $40
million a year be spent through 2012 from funds provided to
IDFA. CBO estimates that implementing this section would cost
$10 million in 2008 and $154 million over the 2008-2012 period,
assuming appropriation of the authorized amounts.
Other Programs. H.R. 2284 also would authorize the
appropriation of funds for four additional programs. In total,
CBO estimates that implementing these programs would cost $10
million in 2008 and $77 million over the 2008-2012 period,
assuming appropriation of the estimated amounts.
Section 114 would authorize the appropriation
of $10 million a year through 2012 for the John
Ogonowski and Doug Bereuter Farmer-to-Farmer Program.
This program provides technical assistance to farmers
in countries in sub-Saharan Africa and the Caribbean
basin.
Section 109 would authorize the appropriation
of such sums as may be necessary through 2012 for a
program to establish sites to pre-position agricultural
commodities in foreign countries to more quickly
deliver food during emergencies. Based on information
from USAID, CBO estimates that this program would cost
$4 million a year.
Section 108 would authorize the appropriation
of $3 million a year through 2012 for a program to
provide shelf-stable prepackaged foods to organizations
that deliver food to needy individuals.
Section 303 would authorize the appropriation
of such sums as may be necessary through 2012 for the
Secretary of Agriculture to provide assistance to
certain entities to help reduce trade barriers and
address intellectual property rights violations. Based
on information from the Department of Agriculture, CBO
estimates that implementing this section would cost $1
million a year.
Intergovernmental and private-sector impact: H.R. 2844
contains no intergovernmental or private-sector mandates as
defined in UMRA and would not affect the budgets of state,
local, or tribal governments.
Estimate prepared by: Federal costs: Sam Papenfuss and Greg
Hitz; Impact on State, local, and Tribal Governments: Neil
Hood; Impact on the Private Sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Performance Goals and Objectives
Pursuant to clause (3)(c) of House rule XIII, upon
enactment of this legislation, funds will be provided to help
reduce hunger in developing countries and to promote U.S.
agricultural exports overseas.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds the authority for
this legislation in article I, section 8 of the Constitution.
New Advisory Committees
H.R. 2844 does not establish or authorize any new advisory
committees.
Congressional Accountability Act
H.R. 2844 does not apply to the Legislative Branch.
Earmark Identification
H.R. 2844 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9(d), 9(e), or 9(f) of rule XXI.
Section-by-Section Analysis and Discussion
Section 1. Short Title and Table of Contents
This section states that the act may be referred to as the
``Food Security and Agricultural Development Act of 2007''.
This section also provides for a table of contents.
Section 2. Findings and Purposes
This section contains congressional findings describing the
food security situation throughout the world and the current
U.S. and international food assistance programs. The findings
also include a finding on status of non-emergency food
assistance programs funded by the United States.
Section 3. Definitions
This section provides definitions for use in the act.
Section 4. Purposes
Section 4 states that the purposes of this Act are to:
provide United States food assistance for emergency and non-
emergency situations as described in Title I of this Act;
provide United States emergency and non-emergency food
assistance in an efficient and effective manner; and to promote
agricultural export programs in an efficient and effective
manner.
TITLE I--UNITED STATES EMERGENCY AND NON-EMERGENCY FOOD AND OTHER
ASSISTANCE PROGRAMS
SUBTITLE A--AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954
Section 101. United States Policy
This section amends section 2 of the Agricultural Trade
Development and Assistance Act of 1954 by expanding United
States policy on food assistance to include responding to
emergency needs and food crises; implementing an effective and
efficient food assistance program that incorporates adequate
resources for both emergency and non-emergency food assistance
programs; and providing adequate resources for non-emergency
food assistance programs to address the causes of chronic
hunger and food security, to protect the livelihoods and health
of vulnerable populations, and to promote participation in
productive activities. This section also makes conforming
changes.
The Committee expects the U.S. Agency for International
Development and the U.S. Department of Agriculture to
effectively and efficiently manage the implementation of food
assistance programs, including effectively responding to
emergencies and food crises and effectively addressing the
underlying causes of chronic hunger in the developing world.
The Committee believes that, in addition to responding to the
growing number of food emergencies throughout the world, the
U.S. Agency for International Development and the U.S.
Department of Agriculture should direct increased levels of
food assistance and other assistance to address the challenge
of chronic hunger in the developing world.
Section 102. General Authority
Section 102 amends Section 201 of the Agricultural Trade
Development and Assistance Act of 1954 by amending the
definition of emergency food assistance provided under Title II
of the Agricultural Trade Development and Assistance Act of
1954 to include addressing famine and food crises and to
respond to emergency food needs arising from man-made
disasters, including policy-based disasters, economic shocks,
conflict or civil strife, and natural disasters. This section
also amends Section 201 by providing an additional authority to
use P.L. 480 Title II resources to promote participation in
education, training, and other productive activities.
The Committee understands that, increasingly, manmade
disasters, such as policy-based disasters and conflict, are a
major source for food emergencies. Therefore, the Committee
believes that United States emergency food assistance
effectively should be provided in all instances in which a food
emergency has developed regardless of whether the cause of such
crisis is man-made or natural, with the understanding that all
possible measures must be taken to ensure that United States
food assistance is not diverted to military forces, unless such
diversion is in the national interest of the United States, is
directed primarily at populations impacted by a food emergency,
and is not subjected to theft by corrupt government entities or
officials or other corrupt entities. The Committee also
understands that protracted and complex food crises have become
more common and that adequate financial and other assistance is
needed to address both the food crisis and the causes of such
crisis.
The Committee recognizes that food assistance may be used
in a variety of ways to reduce food insecurity in developing
countries. While program objectives are typically built around
food security related indicators, they may also be built around
indicators that demonstrate increased capacity to address
crises and other issues that can improve food insecurity. In
addition, activities supported by food assistance programs may
be intended to promote participation in education, training and
other activities that increase individuals' productivity and
build community and institutional capacity.
Section 103. Provision of Agricultural Commodities
This section amends Section 202(e) of the Agricultural
Trade Development and Assistance Act of 1954 by increasing the
percentage of funds made available under Title II of the of the
Agricultural Trade Development and Assistance Act of 1954 to
support certain activities and expense incurred by eligible
organizations from not less than 5 to not more than 10 percent
to not less than 10 and not more than 12.5 percent. This
section allows these funds to be provided to eligible
organizations to support the development of new programs; for
financial and technical assistance to meet specific
administrative, management, operation, personnel, and other
programming costs to carry out programs in foreign countries;
and for improving and implementing methodologies for food
assistance programs, including needs assessments and monitoring
and evaluation of programs in foreign countries. Section 103
also makes conforming changes.
The Committee understands that assistance provided under
section 202(e) of the Agricultural Trade Development and
Assistance Act of 1954 is provided to eligible organizations
that implement non-emergency food assistance programs. This
assistance maybe used to help such organizations support the
establishment of new programs, and to address the specific
administrative, management and other costs associated with
carrying out non-emergency food assistance programs in
developing countries. The Committee has provided additional
flexibility for eligible organizations to use funds under
section 202(e) for development activities associated with a
non-emergency food assistance program and to use funds for
improving program methodologies in such areas as needs
assessments, monitoring and evaluation, and to implement such
methodologies in P.L. 480 Title II programs.
The Committee is aware that the real causes of global food
insecurity and chronic hunger are complex and cannot be solved
over the long-term by the provision of food assistance alone.
The Committee expects that the U.S. Agency for International
Development should provide increased assistance to carry out
section 202(e) to effectively support targeted activities that
can more effectively address the root causes of chronic hunger
and food insecure populations. As this section also expands
P.L. 480 title II non-emergency programming levels, the
Committee expects USAID to use the authority under section
202(e) to provide funds so more eligible organizations may
participate in P.L. 480 title II programs and to support the
development of new programs by eligible organizations.
Section 104. Generation and Use of Currencies by Private Voluntary
Organizations and Cooperatives
This section makes a technical change.
Section 105. Levels of Assistance
Section 105 amends Section 204(a) of the Agricultural Trade
Development and Assistance Act of 1954 by extending authorities
related to commodity levels for emergency and non-emergency
programs through 2012 and making other conforming changes.
Section 106. Food Aid Consultative Group
This section amends Section 205(f) of the Agricultural
Trade Development and Assistance Act of 1954 by extending the
authorization through 2012 and adding a sense of Congress that
the Food Aid Consultative Group should make every effort to
develop a strategy to achieve a more integrated and effective
food assistance program. This section also requires the
Administrator of the U.S. Agency for International Development,
in close consultation with the Group, to submit a report to
Congress within 180 days on efforts taken by the U.S. Agency
for International Development and the U.S. Department of
Agriculture to develop a strategy to achieve an integrated and
effective food assistance program.
The Food Aid Consultative Group is chaired by the
Administrator and consists of representatives of the major food
assistance stakeholders, including the U.S. Department of
Agriculture, organizations that are eligible to carry out P.L.
480 title II programs and representatives of agricultural
groups. The Committee believes that every effort must be made
to achieve an integrated and effective food assistance program.
The Committee expects that the Administrator, in full
consultation and coordination with the Group, will thoroughly
review how program effectiveness and efficiency may be enhanced
by such things as greater certainty about individual program
agreements, funding levels and approvals early in the fiscal
year and alternative ways to improve the ordering, procurement
and provision of commodities.
Section 107. Administration
This section amends Section 207 of the Agricultural Trade
Development and Assistance Act of 1954 in a number of ways.
First, it removes the requirement that the U.S. Agency for
International Development must identify conditions in order for
the U.S. Agency for International Development to approve a
proposal by an eligible organization to provide non-emergency
food assistance. This section instead maintains the requirement
that USAID provide, in the case where a proposal is denied,
reasons why a proposal by an eligible organization to provide
non-emergency food assistance was disapproved.
Second, it removes the requirement that the Administrator
for the U.S. Agency for International Development develop
handbooks to assist in carrying out emergency and non-emergency
food assistance programs. This amendment seeks to make the law
consistent with current USAID practices of using regulations
and guidelines, and eliminating the use of handbooks.
Third, Section 207 of the Agricultural Trade Development
and Assistance Act of 1954 is amended by adding a new
subsection (f), which requires the Administrator of the USAID,
in consultation with the Secretary of Agriculture, to establish
systems to improve the monitoring and evaluation of the
effectiveness and efficiency of assistance provided under title
II of the Agricultural Trade Development and Assistance Act of
1954 in order to maximize the impact of such assistance. The
Committee expects the Administrator to take every necessary
step to establish a system to monitor and evaluate the
efficiency and effectiveness of P.L. 480 Title II programs. To
understand what necessary steps are needed to improve the
monitoring and evaluation of P.L. 480 Title II programs, the
Committee directs the Comptroller General of the United States
to submit a report to the appropriate congressional committees
that reviews and comments on the Administrator's report and
recommends any additional actions needed to improve monitoring
and evaluation of P.L. 480 Title II assistance. In carrying out
this subsection, the Administrator may contract for personal
services from persons not employed by the U.S. Government.
The Committee understands that the Government
Accountability Office report of April 2007 on U.S. food
assistance programs found that monitoring of food assistance
programs in-country by the U.S. Agency for International
Development has been insufficient due to various factors,
including limited staff, competing priorities, and legal
restrictions on the use of food assistance resources. The
Committee is concerned about the significant gaps in monitoring
and evaluation of U.S. international food assistance programs
and expects the U.S. Agency for International Development to
address this problem immediately by establishing a system to
monitor food assistance programs. The Committee believes that
independent evaluation of this effort should be carried out by
the Government Accountability Office so that the Committee can
adequately determine if all efforts are being taken to respond
to this challenge.
The Committee is aware that USAID has received significant
cuts in the President's budget and in Congressional
appropriations over the last several years to carry out their
operating expense which increasingly affects the Agency's
ability to monitor its programs. Although the Committee
appreciates these constraints, it expects the Agency to make
every effort to improve the monitoring and evaluation of U.S.
food assistance programs. The Committee provides authority to
the Administrator of the U.S. Agency for International
Development to contract with individuals for personal services
to establish the system for monitoring and evaluation of food
assistance programs. The Committee does not require, however,
that only personal services contractors be used for this
purpose, when other authorities and other authorized funding
are available, nor does it require that assistance under Title
II of the Agricultural Trade Development and Assistance Act of
1954 be used to hire personal services contracts for this
purpose.
Finally, this section authorizes the Administrator for the
U.S. Agency for International Development to make contributions
to the World Food Program for indirect support costs that are
in accordance with the World Food Program's rules and
regulations for indirect cost rates. This section also requires
the Administrator to submit a report to Congress with the
proposed level of the contribution and the reasons for the
proposed level.
Section 108. Assistance for Stockpiling and Rapid Transportation,
Delivery, and Distribution of Shelf-Stable Prepackaged Foods
This section amends Section 208(f) of the Agricultural
Trade Development and Assistance Act of 1954 by extending the
authorization through 2012.
Section 109. Administrative Provisions
This section amends Section 407 of the Agricultural Trade
Development and Assistance Act of 1954 in a number of ways.
First, it amends subsection (c)(4) by extending the authority
to preposition agricultural commodities through 2012 and to
remove the $2,000,000 limitation on funds that can be used to
store agricultural commodities for prepositioning in foreign
countries. It provides the Administrator of USAID with the
additional authority to carry out assessments of no less than
two additional sites to determine the feasibility of and costs
associated with using such sites for the purpose of
prepositioning and it authorizes the Administrator to establish
additional sites for prepositioning in foreign countries. This
section authorizes such sums for fiscal years 2008 through 2012
to carry out this section.
Second, section 109 amends subsection (f) by requiring the
President to submit the annual report to Congress on activities
under the Agricultural Trade Development and Assistance Act of
1954 on March 1st of each year rather than January 15th. It
adds more specific requirements for including information in
such reports regarding the amount of funds, tonnage levels, and
types of activities for P.L. 480 Title II non-emergency food
assistance programs and a general description of the projects
implemented under such programs. The Committee also directs the
Administrator to report on assessing progress toward reducing
food insecurity rather than increasing food security.
The U.S. Agency for International Development currently has
two sites designated for prepositioning of food--one domestic
site in Houston, Texas and one foreign site in Djibouti. The
Committee is aware of the interest within the U.S. Agency for
International Development to expand the number of sites to
store U.S. agricultural commodities for prepositioning in
foreign countries. Current law limits the ability to
preposition commodities in foreign countries by placing a cap
on the amount of assistance that can be used for this purpose.
The Committee feels that, by lifting this cap, the U.S. Agency
for International Development will be able to expand the number
of prepositioning sites in foreign countries, which will enable
the United States to improve its response to food emergencies
in a more efficient and effective manner. The Committee expects
the U.S. Agency for International Development to undertake all
efforts to enhance its prepositioning capabilities. The
Committee strongly believes that prepositioning U.S.
agricultural commodities in foreign countries will
significantly reduce the amount of time it takes to respond to
food emergencies by being able to deliver critical food
assistance in a more rapid and efficient manner.
This section also expands the annual reporting requirements
under Section 407 of the Agricultural Trade Development and
Assistance Act of 1954 to include reporting on amounts of
funds, tonnage levels, and types of activities for non-
emergency food assistance programs under Title II of the Act
and a general description of projects and activities
implemented under Title II of the Act. This information is
needed to allow Congress to better understand the status of
programs and whether legislative requirements are being met. In
addition, while there is regular reporting on and evaluation of
P.L. 480 Title II non-emergency programs conducted by private
voluntary organizations and cooperatives, this information is
not adequately reported to Congress by USAID. Finally, it
amends the annual reporting requirement under Section 407 by
extending the deadline for the annual report to Congress to
March 1st to allow USAID to prepare a more comprehensive
report. The current deadline of January 1st does not allow the
U.S. Agency for International Development to aggregate the data
from various results reporting that inform the annual report.
Extending the deadline allows for a more comprehensive report.
Section 110. Expiration Date
This section amends Section 408 of the Agricultural Trade
Development and Assistance Act of 1954 by extending the
authorization for all titles under this Act through 2012.
Section 111. Authorization of Appropriations
This section amends section 412 of the Agricultural Trade
Development and Assistance Act of 1954 by authorizing such sums
for each of fiscal years 2008 through 2012 for title I of the
Agricultural Trade Development and Assistance Act of 1954;
$2,500,000,000 for each of fiscal years 2008 through 2012 for
title II of the Agricultural Trade Development and Assistance
Act of 1954; and such sums as needed for each of fiscal years
2008 through 2012 for the grant program established under Title
III of the Agricultural Trade Development and Assistance Act of
1954. This section further amends Section 412 by authorizing
that no less than $600 million of the sums made available under
title II of the Agricultural Trade Development and Assistance
Act of 1954 shall be used for non-emergency food assistance
programs in each of fiscal years 2008 through 2012.
The Committee notes with concern that while the Farm
Security and Rural Investment Act of 2002 called for increased
levels of P.L. 480 title II non-emergency programs, tonnage
levels decreased from 2001 to 2006 by over 40 percent, and
USAID continues to cut back on the number of countries that can
receive such assistance. The Committee's intent in requiring
$600,000,000 to be used in each fiscal year for non-emergency
title II food assistance programs is to reverse this trend and
to increase the United States' commitment to helping people who
suffer from chronic hunger. The Committee expects that this
funding level for non-emergency food assistance programs would
cover all costs associated with such programs, including
agricultural products, transportation, assistance under section
202(e) of P.L. 480 and internal transport, shipping and
handling. It would also cover the application of a non-
governmental organization's negotiated indirect cost recovery
rate to funds provided through section 202(e).
The world's efforts to meet the Millennium Development Goal
of cutting hunger in half by 2015 is far from being met--the
number of people suffering from chronic hunger is estimated to
be 850 million. While U.S. food assistance alone cannot resolve
this tragic and complex crisis, non-emergency, developmental
food assistance programs are a critical component of the United
States' international food security strategy and are
particularly effective in countries with chronic food deficits
and for vulnerable, low-income populations.
Non-emergency food programs conducted by private voluntary
organizations and cooperatives under P.L. 480 Title II that
address the underlying causes of chronic hunger include mother-
child health care, agricultural and rural development, food as
payment for work on community infrastructure projects, meals in
schools and take-home rations to encourage school attendance,
and assistance for HIV/AIDS-affected communities. These
programs have measurable results and lasting benefits,
including decreasing childhood malnutrition and increasing
household food supplies, incomes and agricultural productivity.
The presence of ongoing food assistance programs in areas of
need also allow for earlier identification of potential crises
and more rapid and less expensive responses to increasing food
needs.
Chronic hunger leads to high infant and child mortality and
morbidity, poor physical and cognitive development, low
productivity, high susceptibility to disease, and premature
death. It deepens the cycle of poverty and makes communities
more vulnerable to crises. Reducing these non-emergency food
programs has been counterproductive, as such food assistance
helps improve communities' resilience to droughts and economic
downturns. Giving people the means to improve their living
conditions and incomes, to protect their livelihoods, and to
improve their health also provides hope for a better future and
helps stabilize vulnerable areas.
Section 112. Coordination and Integration of Foreign Assistance
Programs
This section amends section 413 of the Agricultural Trade
Development and Assistance Act of 1954 by requiring the
Administrator to coordinate and integrate assistance to a
foreign country provided under title III of the Agricultural
Trade Development and Assistance Act of 1954 with other U.S.
development assistance objectives and programs for such
country, such as assistance to combat HIV/AIDS, tuberculosis,
and malaria, assistance for child and maternal health,
assistance for education, and assistance for agricultural
development and economic growth. This section also requires
that assistance provided under title III of the Agricultural
Trade Development and Assistance Act of 1954 be coordinated
with other foreign assistance programs such as the Millennium
Challenge Account.
Section 113. Micronutrient Fortification Programs
This section amends Section 415 of the Agricultural Trade
Development and Assistance Act of 1954 by extending the
authorization for this program through 2012. Section 112 also
amends Section 415 of the Agricultural Trade Development and
Assistance Act of 1954 by requiring the U.S. Agency for
International Development, when implementing the micronutrient
fortification programs, to assess and apply technologies and
systems to improve and ensure the quality, shelf life,
bioavailability, and safety of fortified commodities that are
provided to developing countries by utilizing the
recommendations from the October 2001 ``Micronutrient
Compliance Review of P.L. 480 Commodities''. The organization
implementing this program must have a proven record of
impartiality and a mechanism that incorporates the range of
P.L. 480 Title II implementing partners as well as other food
assistance industry experts.
Section 114. John Ogonowski and Doug Bereuter Farmer-to-Farmer Program
This section amends Section 501 of the Agricultural Trade
Development and Assistance Act of 1954 by extending the
authorization of this program through 2012.
SUBTITLE B--RELATED STATUTES AND OTHER PROVISIONS
Section 121. Bill Emerson Humanitarian Trust
Section 121 amends Section 302 of the Bill Emerson
Humanitarian Trust Act by expanding the general authority of
the trust so that the trust may include 4 million metric tons
of wheat, rice, corn or sorghum or any combination of the
commodities, an amount of funds equivalent to 4 million metric
tons of commodities, or any combination of commodities and
funds equivalent to 4 million metric tons. This makes the
general authority in Section 302 consistent with the rest of
the Act.
This section also amends Section 302 of the Bill Emerson
Humanitarian Trust Act by extending the authorization of the
trust through 2012 and by increasing the amount of reimbursed
funds that can be held in the trust to $60 million (from $20
million) in any fiscal year. This change would provide a more
reliable means of regularly replenishing the trust.
The Committee is aware that the Trust can currently hold
both funds and commodities that can be released in two cases,
(1) when there is short supply of a commodity in the U.S.
market and therefore the Secretary determines to use PL 480
title II funds to buy commodities from the trust rather than on
the market; or (2) when there are ``unanticipated'' emergency
needs. The ``unanticipated emergency needs'' purpose has been
used for needs in places such as Iraq, Darfur, and southern and
eastern Africa. However, the Committee is aware that the U.S.
Department of Agriculture interprets the current law as only
permitting the release of funds or commodities as a last
resort. Therefore, the commodities are not available in a
timely manner as a backup to Title II emergency food assistance
when such assistance is insufficient. The Committee believes
that the Trust should, as appropriate, be the primary mechanism
by which the U.S. government responds to a food emergency in a
developing country. The Committee further notes that the
legislation does not differentiate between releasing the
commodities held or the funds held when allowing for their use
for food emergencies.
Current law requires that the Commodity Credit Corporation
be reimbursed for the value of commodities or funds released
``in subsequent years'' from funds appropriated for PL 480.
Currently, up to $20 million of reimbursed funds in any fiscal
year can be used to replenish the trust. The Committee believes
that this amount severely limits the U.S. Department of
Agriculture's ability to utilize the trust to respond to food
emergencies abroad. The Committee supports increasing the
amount of reimbursed funds that can be held in the trust to $60
million in any fiscal year, thereby providing a more reliable
means of regularly replenishing the trust. The Committee
directs the Administrator of USAID to use this replenishment
authority to restore funds to the Trust.
Section 122. McGovern-Dole International Food for Education and Child
Nutrition Program
This section amends Section 3107 of the Farm Security and
Rural Investment Act of 2002 by specifying that the Secretary
of Agriculture, rather than the President, has the authority to
carry out the program under Section 3107. This section also
authorizes mandatory funding for this program, by requiring CCC
funds to be used to carry out this program. This section
authorizes the use of Commodity Credit Corporation funds to
provide $140 million for fiscal year 2008, $180 million for
fiscal year 2009, $220 million for fiscal year 2010, $260
million for fiscal year 2011, and $300 million for fiscal year
2012. This section also makes conforming changes to Section
3107 of the Farm Security and Rural Investment Act of 2002.
The George McGovern-Robert Dole International Food for
Education and Child Nutrition Program (McGovern-Dole) began as
a $300 million pilot food-for-education program conducted by
the U.S. Department of Agriculture that reached more than 7
million children in 38 countries through 48 projects carried
out by NGOs, the World Food Program (WFP) and one government
(the Dominican Republic). Regrettably, in FY 2006, the program
was funded at a paltry $99 million, and scarcely reached 2.5
million children in 15 countries.
In 2002, the pilot program was established as a permanent
program--the McGovern-Dole Program--in the Farm Security and
Rural Investment of 2002, and authority to implement programs
to improve the nutrition of younger children and infants was
added. The President designated the U.S. Department of
Agriculture to continue as the administrative agency for the
program. Project proposals continue to be chosen through an
inter-agency process, which includes the U.S. Agency for
International Development and the Department of State.
The statutory requirements for McGovern-Dole project
proposals, based upon best practices in the field, have
strengthened and raised the standards of all food for education
programs. The program's flexible combination of commodities,
cash assistance and technical assistance--determined by the
project design of each proposal--is the envy of other U.S. food
assistance programs.
The Committee is aware that this program has received
stellar evaluations from the Administration and has a proven
track record on reducing the incidence of child hunger;
increasing school enrollment, attendance and academic
performance by students in vulnerable and disadvantaged
communities; and serving as a catalyst for parental and
community involvement in both education and other community-
based development initiatives. This program has also proven to
be an effective initiative to convincing families to send their
daughters to school and to allow them to stay in school.
The Committee determines that the priorities for the next
five-year period of the McGovern-Dole International Food for
Education and Child Nutrition Program are to:
(1) Bring the program funding back to the levels of
the pilot program;
(2) Provide a reliable funding stream by establishing
adequate funding levels and allowing individual
programs to be funded for several fiscal years;
(3) Allow for existing programs to expand and new
programs to be established; and
(4) Fund the program at levels that demonstrate U.S.
commitment to this program which will serve as a
catalyst both for long-term sustainability and
continuing the increased support from other donor
nations.
Section 123. International Disaster Assistance Under the Foreign
Assistance Act of 1961
This section includes a sense of Congress that directs the
Administrator of USAID to exercise his authority under section
491 of the Foreign Assistance Act of 1961 to purchase and
distribute to a recipient country agricultural commodities
produced in the recipient country or in developing countries in
the region of the recipient country. This section authorizes
$40 million for famine prevention and relief under section 491
of the Foreign Assistance Act of 1961. This assistance may be
used for various purposes such as providing funding for early
warning systems or for local and regional procurement of food
for emergencies, among other purposes.
The Committee is deeply concerned that the Administration
has proposed several times to convert a portion of P.L. 480
Title II funds for use in procuring local and regional food to
respond to emergencies. The Committee's bill does not support
this proposal and rejects any authority to use P.L. 480 Title
II assistance for such purpose. The Administration already has
the authority to purchase food in developing countries for
emergency purposes under section 491 of the Foreign Assistance
Act of 1961. The Committee is aware that in 2003 the
Administration used this authority to purchase food for
Afghanistan from Kazakhstan. The Administration informed the
Committee that it has not used its full authority for local and
regional procurement of food under section 491 of the Foreign
Assistance Act of 1961 due to a shortage of funds. The
legislation directs the Administration to use the existing
authority under section 491 rather than divert critical
assistance from the P.L. 480 Title II food assistance program.
The Committee also provides $40 million for famine prevention
and relief, a doubling of the Administration's request for this
program. The Committee expects the Administration to use this
additional assistance to respond to food emergencies, which may
include purchasing food from developing countries as well as
fund other famine prevention and relief programs such as
improving early warning systems.
Section 124. Report on Efforts to Improve Procurement Planning
This section requires a report to Congress within 90 days
of enactment of the legislation on efforts taken by both the
U.S. Agency for International Development and the Department of
Agriculture to improve planning for food and transportation
procurement, including efforts to eliminate bunching of food
purchases.
The Committee notes that the Government Accountability
Office's report of April 2007 on U.S. international food
assistance programs identified bunching of food purchases as a
major obstacle in achieving an efficient and effective food
assistance program. The GAO report notes that uncertain funding
processes for emergencies can result in bunching of food
assistance purchases, which increases food and transportation
costs and lengthens delivery time frames. Inadequately planned
food and transportation procurement reflects the uncertainty of
food assistance funding. The Committee understands that the
U.S. Agency for International Development is undertaking
efforts to reduce procurement bunching through improved cash
flow management; however the U.S. Department of Agriculture has
not yet adequately addressed this issue. The Committee expects
the U.S. Agency for International Development and the U.S.
Department of Agriculture to improve planning of food and
transportation procurement to address the challenge of
bunching. The Committee expects the report to include
information describing how commodity orders for P.L. 480 title
II programs can be placed throughout the year, thereby
spreading out commodity procurement more evenly throughout the
year, which the Government Accountability Office found can
create cost savings.
TITLE II--UNITED STATES AGRICULTURAL EXPORT PROGRAMS
Section 201. Export Credit Guarantee Program
This section amends Section 202 of the Agricultural Trade
Act of 1978 by removing the one percent cap on fees that can be
collected under the short-term Export Credit Guarantee Program
(GSM-102) and eliminating the specific authority for the
Intermediate Export Credit Guarantee Program (GSM-103). This
section also repeals the authority for the Supplier Credit
Guarantee Program due to the approximately $227 million in
defaults and evidence of fraudulent activity under the program.
The amendment extends the authorization of the other export
guarantee programs through 2012 and authorizes not less than
$5.5 billion in credit guarantees under section 202.
Section 202. Market Access Program
This section amends the Agricultural Trade Act of 1978 in a
number of ways. First, it applies the program to organic
commodities. Section 202 expands the mandatory funding for the
Market Access Program from $200 million per year to $225
million per year through 2012.
The Committee notes that the Market Access Program is
administered on a cost-share basis with farmers and other
participants, who are required to contribute up to 50 percent
of their own resources. The Market Access Program is among the
few tools specifically allowed in unlimited amounts under World
Trade Organization (WTO) rules to help American agriculture and
American workers remain competitive in a global marketplace
still characterized by highly subsidized foreign competition. A
recent study of the Market Access Program showed that
additional funding provided in the Farm Security and Rural
Investment Act of 2002 increased the United States share of
world trade by over 1 market share point to 19 percent,
boosting U.S. agricultural exports by $3.8 billion. The
Committee strongly believes that this program has been
tremendously successful and extremely cost-effective in helping
maintain and expand U.S. agricultural exports, protect American
jobs, and strengthen farm income.
Section 203. Export Enhancement Program.
This section amends Section 301 of the Agricultural Trade
Act of 1978 by extending the authorization of the program
through 2012 and authorizes mandatory spending at current
levels of $478 million for each of fiscal years 2008 through
2012.
Section 204. Assistance to Address Sanitary and Phytosanitary Barriers
to Trade
This section amends Title III of the Agricultural Trade Act
of 1978 by creating a new grant program to address
international sanitary and phytosanitary issues for all U.S.
agricultural commodities, and identifies target issues for
acceptance by foreign markets relating to U.S. agricultural
commodities. This section authorizes $2 million in mandatory
spending for each of fiscal years 2008 through 2012 for this
program.
Section 205. Foreign Market Development Cooperator Program
This section amends section 702 of the Agricultural Trade
Act of 1978 by extending the authorization of this program
through 2012 and making other conforming changes.
Section 206. Emerging Markets and Facility Guarantee Loan Program
This section amends Section 1542 of the Food, Agricultural,
Conservation, and Trade Act of 1990 by extending the authority
of the emerging markets program through 2012. The section also
expands the Facility Guarantee Program loan authority to allow
liability to not exceed 98 percent of the principle amount
involved in the underlying financial arrangement for the
construction of the facility and the interest on the
outstanding principal amount at the rate specified in the
underlying financial arrangement for construction of the
facility. This section authorizes that the facility payment
guarantee should be for the term of the depreciation schedule
or a maximum period determined by the Secretary of Agriculture.
Section 207. Food for Progress Act of 1985
This section amends Section 1110 of the Food Security Act
of 1985 (the Food for Progress Program) by extending the
authorization of the program through 2012. The Food for
Progress program, under which donated commodities provide for
development projects in recipient countries, is reauthorized
and established at a 500,000 tonnage minimum per year rather
than the current 400,000 metric tonnage level.
The Food for Progress Act directs USDA through the
Commodity Credit Corporation (CCC) to provide a minimum of
400,000 metric tons of commodities each year to developing
countries that are introducing market reforms and supporting
private sector development. These programs may be implemented
by private voluntary organizations, cooperatives,
intergovernmental organization and recipient country
governments. The amount actually provided through CCC falls
short of 400,000 metric tons because there is a limit on the
amount of funds that CCC can provide for delivering the
commodities and administering the programs overseas.
USDA has authority to use P.L. 480 Title I funds in
addition to the CCC funds to implement Food for Progress
programs. In FY 2006, about 75 percent of Title I funds were
used for this purpose. As no funds were appropriated for Title
I in FY 2007, and the Administration seeks no funding in FY
2008, the Committee is concerned that this means a cut in
funding for Food for Progress programs.
Many poor, developing countries are undergoing economic
reform and, therefore, the demand for Food for Progress
programs is great. Forty-six different private voluntary
organizations applied for Food for Progress programs and only a
small fraction, about 12 percent, can be approved.
TITLE III. MISCELLANEOUS PROVISIONS
Section 301. Technical Assistance for Specialty Crops
Section 301 amends Section 3205 of the Farm Security and
Rural Investment Act of 2002 (2002 Farm Bill) by increasing the
maximum amount of assistance that can be provided to a project
under this program to $500,000. This section also expands
mandatory funding for the TASC grant program by $2 million per
year up to $10 million in 2011.
Section 302. Support for Sanitary and Phytosanitary Priorities of the
United States Within Certain International Organizations
Section 302 authorizes the Department of Agriculture to
enhance United States support for international organizations,
such as the Codex Alimentarius, the International Plant
Protection Convention, and the World Animal Health
Organization, that establish international standards regarding
food, food safety, plants, and animals, respectively, to
address sanitary and phytosanitary priorities of the United
States within applicable organizations.
Section 303. Technical Assistance for the Resolution of Trade Disputes
This section authorizes such sums for enhanced monitoring,
technical assistance, and analytical support to limited
resource agriculture persons and organizations, as determined
by the Secretary, to address unfair trade practices, property
right violations, and to reduce trade barriers.
Section 304. Sense of Congress Concerning the Global Crop Diversity
Trust
This section provides a series of findings on the
importance of crop diversity and the role of the Global Crop
Diversity Trust in addressing this issue. The section also
provides a sense of Congress that Congress should provide
significant U.S. financial resources to the Trust to ensure the
conservation of crop diversity.
The Committee has included language in Section 304
acknowledging the important work of the Global Crop Diversity
Trust, and its efforts to ensure the long-term productivity of
agriculture worldwide by conserving and making available key
collections of crop diversity required by crop improvement
programs. The Trust was established as an independent entity
and is formally linked to the 2001 International Treaty on
Plant Genetic Resources for Food and Agriculture. It is an
essential element of the Treaty's funding strategy to conserve
crop diversity and make it readily available, for example to
plant breeders and researchers in their efforts to combat
disease and pest outbreaks and to increase drought tolerance,
foster climatic adaptation, and enhance the nutritional quality
of food. Crop diversity is one of the world's least recognized
but most valuable resources. Without crop diversity,
agriculture cannot retain current productivity levels.
Conserving crop diversity is a prerequisite for eradicating
poverty in developing countries, providing sufficient food for
the world's growing population, and responding to climate
change and any future constraints to water and energy supplies.
The Committee notes that an endowment has been established
by the Trust, which will ensure the conservation and
availability of this priceless biological resource in
perpetuity, through a scientific, cost efficient strategy
relying on existing institutions and simple proven
technologies. This will protect crop diversity from the dangers
of unpredictable and unreliable funding, eliminate the
duplication and waste inherent in the haphazard funding
arrangements currently in place, and allow for the creation of
an efficient and effective system for the conservation and
availability of crop diversity worldwide. A global response is
required, as neither the US nor any other country in the world
is self-sufficient in plant genetic resources.
Since its formal establishment in 2004 the Trust has
secured over $135 million from a wide array of donors. While
the U.S. was an early supporter and has contributed $6.5
million to date, the Committee believes that the U.S. should
provide significant financial resources to the Trust. The
Trust's ultimate goal is to raise $260 million which will
enable the establishment of an endowment that will (in
conjunction with other efforts now underway) secure the
conservation and availability of the genetic diversity of the
world's major crops in perpetuity. The Committee believes that
the appropriate U.S. contribution to the effort should be
$60,000,000 over the next five years. Since crop genebanks
around the world are so critical for sustaining the U.S. food
supply system and a major sector of the U.S. economy, full
support of the Global Crop Diversity Trust and its conservation
goals is essential.
Section 305. Technical and Conforming Changes
This section amends Section 3206 of the Farm Security and
Rural Investment Act of 2002 by making conforming changes to
the Global Market Strategy section.
Section 306. Rule of Construction
This section states that nothing in the Act shall be
construed to supersede any provision of the Trade Sanctions and
Export Enhancement Act of 2000.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, existing law in which no change
is proposed is shown in roman):
AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954
* * * * * * *
SEC. 2. UNITED STATES POLICY.
It is the policy of the United States to use its abundant
agricultural productivity to promote the foreign policy of the
United States by enhancing the food security of the developing
world through the use of agricultural commodities and local
currencies accruing under this Act to--
(1) combat chronic world hunger and malnutrition and
their causes;
* * * * * * *
(5) foster and encourage the development of private
enterprise and democratic participation in developing
countries; [and]
(6) prevent conflicts[.]; and
(7) respond to emergency needs and food crises;
(8) implement an effective and efficient food
assistance program that incorporates adequate resources
for both emergency and non-emergency food assistance
programs; and
(9) provide adequate resources for non-emergency food
assistance programs to address the causes of chronic
hunger and food insecurity, to protect the livelihoods
and health of vulnerable populations, to meet the
nutritional needs of all members of the community
(particularly children), to prevent future hunger
related emergencies, and to promote participation in
productive activities.
* * * * * * *
TITLE II--EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS
SEC. 201. GENERAL AUTHORITY.
[The President]
(a) Program Required.--The President shall establish a
program under this title to provide agricultural commodities to
foreign countries on behalf of the people of the United States
to--
[(1) address famine or other urgent or extraordinary
relief requirements;]
(1) address famine and food crises and respond to
emergency food needs arising from manmade disasters,
such as policy-based disasters, economic shocks, and
conflict or civil strife, and natural disasters;
* * * * * * *
(5) promote sound environmental practices; [and]
(6) carry out feeding programs[.]; and
(7) promote participation in educational, training,
and other productive activities.
[Such program]
(b) Implementation.--Such program shall be implemented by the
Administrator.
SEC. 202. PROVISION OF AGRICULTURAL COMMODITIES.
(a) * * *
* * * * * * *
(e) Support for Eligible Organizations.--
(1) In general.--Of the funds made available in each
fiscal year under this title to the Administrator, not
less than [5 percent nor more than 10 percent] 10
percent but not more than 12.5 percent of the funds
shall be made available in each fiscal year to eligible
organizations described in subsection (d), [to assist
the organizations in] to provide such organizations
financial assistance in order to--
(A) [establishing] establish new programs
under this title; [and]
(B) [meeting] meet specific administrative,
[management, personnel and internal
transportation and distribution costs]
management, operational, technical, personnel
and other programming costs for carrying out
programs in foreign countries under this
title[.]; and
(C) improve and implement methodologies for
food assistance programs, including needs
assessments and monitoring and evaluation.
* * * * * * *
(h) Streamlined Program Management.--
(1) * * *
* * * * * * *
(3) Consultation.--
(A) * * *
(B) Consultation with congressional
committees.--Not later than 180 days after the
date of enactment of this subsection, the
Administrator shall consult with the Committee
on Agriculture and the [Committee on
International Relations] Committee on Foreign
Affairs of the House of Representatives and the
Committee on Agriculture, Nutrition, and
Forestry of the Senate on progress made in
carrying out this subsection.
* * * * * * *
SEC. 203. GENERATION AND USE OF CURRENCIES BY PRIVATE VOLUNTARY
ORGANIZATIONS AND COOPERATIVES. .
(a) * * *
(b) Minimum Level of Local Sales.--In carrying out agreements
of the type referred to in subsection (a), the Administrator
shall permit private voluntary organizations and cooperatives
to sell, [1 or more recipient countries] in 1 or more recipient
countries, or in 1 or more countries in the same region, an
amount of commodities equal to not less than 15 percent of the
aggregate amounts of all commodities distributed under non-
emergency programs under this title for each fiscal year, to
generate proceeds to be used as provided in this section.
* * * * * * *
SEC. 204. LEVELS OF ASSISTANCE.
(a) Minimum Levels.--
(1) Minimum assistance.--Except as provided in
paragraph (3), the Administrator shall make
agricultural commodities available for food
distribution under this title in an amount that for
each of fiscal years [2002 through 2007] 2008 through
2012 is not less than 2,500,000 metric tons.
(2) Minimum non-emergency assistance.--Of the amounts
specified in paragraph (1), and except as provided in
paragraph (3), the Administrator shall make
agricultural commodities available for non-emergency
food distribution through eligible organizations under
section 202 in an amount that for each of fiscal years
[2002 through 2007] 2008 through 2012 is not less than
1,875,000 metric tons.
(3) Exception.--The Administrator may waive the
requirements of paragraphs (1) and (2) for any fiscal
year if the Administrator determines that such
quantities of commodities cannot be used effectively to
carry out this title or in order to meet an emergency.
In making a waiver under this paragraph, the
Administrator shall prepare and submit to the
Committees on [International Relations] Foreign
Affairs, Agriculture and Appropriations of the House of
Representatives, and the Committees on Appropriations
and Agriculture, Nutrition, and Forestry of the Senate
a report containing the reasons for the waiver. No
waiver shall be made before the beginning of the
applicable fiscal year.
* * * * * * *
SEC. 205. FOOD AID CONSULTATIVE GROUP.
(a) * * *
* * * * * * *
(e) Sense of Congress on Integrated and Effective Food
Assistance Program.--It is the sense of Congress that the Group
should make every effort to develop a strategy to achieve a
more integrated and effective food assistance program.
(f) Report to Congress.--
(1) In general.--Not later than 180 days after the
date of the enactment of the Food Security and
Agricultural Development Act of 2007, and annually
thereafter until December 31, 2012, the Administrator
of the United States Agency for International
Development, in close consultation with the Group,
shall submit to the appropriate congressional
committees a report on efforts taken by the United
States Agency for International Development and the
Department of Agriculture to develop a strategy under
this section to achieve an integrated and effective
food assistance program.
(2) Appropriate congressional committees defined.--In
this subsection, the term ``appropriate congressional
committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Agriculture of the House of
Representatives; and
(B) the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
[(e)] (g) Advisory Committee Act.--The Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply to the Group.
[(f)] (h) Termination.--The Group shall terminate on December
31, [2007] 2012.
* * * * * * *
SEC. 207. ADMINISTRATION.
(a) Proposals.--
(1) * * *
* * * * * * *
(3) Denial.--If a proposal under paragraph (1) is
denied, the response shall specify the reasons for
denial [and the conditions that must be met for the
approval of such proposal].
* * * * * * *
(c) Regulations.--
(1) * * *
* * * * * * *
[(3) Handbooks.--Handbooks developed by the
Administrator to assist in carrying out the program
under this title shall be designed to foster the
development of programs under this title by eligible
organizations.]
* * * * * * *
(f) Program Oversight, Monitoring, and Evaluation.--
(1) In general.--The Administrator, in consultation
with the Secretary, shall establish systems to improve,
monitor, and evaluate the effectiveness and efficiency
of assistance provided under this title in order to
maximize the impact of such assistance.
(2) Report to congress.--Not later than 180 days
after the date of enactment of Food Security and
Agricultural Development Act of 2007, the Administrator
shall submit to the appropriate congressional
committees a report on efforts undertaken to implement
paragraph (1).
(3) Government accountability office.--Not later than
270 days after the date of the submission of the report
under paragraph (2), the Comptroller General of the
United States shall submit to the appropriate
congressional committees a report that--
(A) reviews and comments on the report under
paragraph (2); and
(B) provides recommendations regarding any
additional actions necessary to improve the
monitoring and evaluation of assistance
provided under this title.
(4) Contracting authority.--In carrying out this
subsection, notwithstanding any other provision of law,
the Administrator may contract with individuals for
personal services, provided that such individuals shall
not be regarded as employees of the United States
Government for the purpose of any law administered by
the Civil Service Commission.
(5) Appropriate congressional committees defined.--In
this subsection, the term ``appropriate congressional
committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Agriculture of the House of
Representatives; and
(B) the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
(g) Indirect Support Costs to United Nations World Food
Program.--
(1) In general.--Notwithstanding any other provision
of law, in providing assistance under this title, the
Administrator may make contributions to the United
Nations World Food Program to the extent that such
contributions are made in accordance with the United
Nations World Food Program's rules and regulations for
indirect cost rates. Prior to making a contribution to
the United Nations World Food Program under this
subsection, the Administrator shall submit to the
appropriate congressional committees a report that
contains the proposed level of the contribution and the
reasons for such proposed level.
(2) Appropriate congressional committees defined.--In
this subsection, the term ``appropriate congressional
committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Agriculture of the House of
Representatives; and
(B) the Committee on Agriculture, Nutrition,
and Forestry of the Senate.
SEC. 208. ASSISTANCE FOR STOCKPILING AND RAPID TRANSPORTATION,
DELIVERY, AND DISTRIBUTION OF SHELF-STABLE
PREPACKAGED FOODS.
(a) * * *
* * * * * * *
(f) Authorization of Appropriations.--There is authorized to
be appropriated to the Administrator to carry out this section,
in addition to amounts otherwise available to carry out this
section, $3,000,000 for each of fiscal years 2001 through
[2007] 2012, to remain available until expended.
* * * * * * *
TITLE IV--GENERAL AUTHORITIES AND REQUIREMENTS
* * * * * * *
SEC. 407. ADMINISTRATIVE PROVISIONS.
(a) * * *
* * * * * * *
(c) Title II and III Program.--
(1) * * *
* * * * * * *
(4) Prepositioning.--[Funds]
(A) In general.--Funds made available for
fiscal years 2001 through [2007] 2012 to carry
out titles II and III 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 such fiscal
year not more than $2,000,000 of such funds may
be used to store agricultural commodities for
prepositioning in foreign countries].
(B) Additional prepositioning sites.--
(i) Feasibility assessment.--On or
after the date of the enactment of the
Food Security and Agricultural
Development Act of 2007, the
Administrator is authorized to carry
out assessments for the establishment
of not less than two sites to determine
the feasibility of and costs associated
with using such sites for the purpose
of storing and handling agricultural
commodities for prepositioning in
foreign countries.
(ii) Establishment of sites.--Based
on the results of the assessments
carried out under clause (i), the
Administrator is authorized to
establish additional sites for
prepositioning in foreign countries.
(iii) Authorization of
appropriations.--To carry out this
subparagraph, there are authorized to
be appropriated to the Administrator
such sums as may be necessary for each
of the fiscal years 2008 through 2012.
* * * * * * *
(f) Annual Reports.--
(1) * * *
(2) Contents.--Each report shall include--
(A) * * *
(B) a general description of the projects or
activities implemented under this Act,
including local currency funded activities, and
the amount of funds, tonnage levels, and types
of activities for non-emergency food assistance
programs under title II of this Act;
(C) a statement of the amount of agricultural
commodities made available to each country
pursuant to section 416(b) of the Agricultural
Act of 1949 and the Food for Progress Act of
1985, and a general description of the projects
and activities implemented; and
[(D) an assessment of the progress towards
achieving food security in each country
receiving food assistance from the United
States Government, with special emphasis on the
nutritional status of the poorest populations
in each country.]
(D) an assessment of the progress toward
reducing food insecurity in the populations
receiving food assistance from the United
States.
(3) Submission.--The President shall submit such
report not later than [January 15] March 1 of each year
to the Committee on Agriculture and the Committee on
Foreign Affairs of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of
the Senate.
SEC. 408. EXPIRATION DATE.
No agreements to finance sales or to provide other assistance
under this Act shall be entered into after December 31, [2007]
2012.
* * * * * * *
SEC. 412. AUTHORIZATION OF APPROPRIATIONS.
[(a) Reimbursement.--There are authorized to be appropriated
such sums as may be necessary to carry out--
[(1) the concessional credit sales program
established under title I;
[(2) the emergency and private assistance program
under title II; and
[(3) the grant program established under title III,
including such amounts as may be required to make payments to
the Commodity Credit Corporation to the extent the Commodity
Credit Corporation is not reimbursed under the programs under
this Act for the actual costs incurred or to be incurred by
such Corporation in carrying out such programs.]
(a) Authorization of Appropriations.--
(1) In general.--For each of the fiscal years 2008
through 2012, there are authorized to be appropriated
to the President--
(A) such sums as may be necessary to carry
out the concessional credit sales program
established under title I;
(B) $2,500,000,000 to carry out the emergency
and non-emergency food assistance programs
under title II ; and
(C) such sums as may be necessary to carry
out the grant program established under title
III.
(2) Minimum level of non-emergency food assistance.--
For each of the fiscal years 2008 through 2012, of the
amounts made available to carry out emergency and non-
emergency food assistance programs under title II, not
less than $600,000,000 for each such fiscal year shall
be obligated and expended for non-emergency food
assistance programs under title II.
(3) Reimbursement.--For each of the fiscal years 2008
through 2012, there are authorized to be appropriated
such sums as may be necessary to make payments to the
Commodity Credit Corporation to the extent the
Commodity Credit Corporation is not reimbursed under
the programs under this Act for the actual costs
incurred or to be incurred by such Corporation in
carrying out such programs.
(4) Availability.--Amounts appropriated pursuant to
the authorization of appropriations under this
subsection are--
(A) authorized to remain available until
expended; and
(B) in addition to funds otherwise available
for such purposes.
* * * * * * *
SEC. 413. COORDINATION AND INTEGRATION OF FOREIGN ASSISTANCE PROGRAMS.
[To the maximum extent practicable, assistance for a foreign
country under title III 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.] The Administrator shall, to the
maximum extent practicable, coordinate and integrate assistance
to a foreign country provided under title III with other United
States development assistance programs and objectives provided
under chapter 1 of part I of the Foreign Assistance Act of 1961
(22 U.S.C. 2151 et seq.), including assistance to combat HIV/
AIDS, tuberculosis, and malaria, assistance for child and
maternal health, assistance for education, and assistance for
agricultural development and economic growth. Such assistance
shall also be coordinated and integrated with other United
States foreign assistance programs, such as the Millennium
Challenge Account. Such assistance shall also be coordinated
and integrated with the overall development strategy of the
recipient country, including the poverty reduction strategy of
the recipient country, and in the recipient country with other
donors, including international and regional organizations and
other donor countries. [Special emphasis should be placed on]
Special consideration should be given to, and funds devoted to,
activities that will increase the nutritional impact of
programs of assistance under title III, and child survival
programs and projects, in least developed countries by
improving the design and implementation of such programs and
projects.
* * * * * * *
SEC. 415. MICRONUTRIENT FORTIFICATION PROGRAMS.
(a) In General.--
(1) * * *
(2) Purpose.--The purpose of a program shall be to--
(A) * * *
* * * * * * *
(C) assess and apply technologies and systems
to improve and ensure the quality, shelf life,
bioavailability, and safety of fortified food
aid commodities, and products of those
commodities, that are provided to developing
countries, by [using the same mechanism that
was used to assess the micronutrient
fortification program in] utilizing
recommendations from the report entitled
``Micronutrient Compliance Review of Fortified
P.L. 480 Commodities', published October 2001
[with funds from the Bureau for Humanitarian
Response of the United States Agency for
International Development] with implementation
by an independent entity with proven
impartiality and a mechanism that incorporates
the range of stakeholders implementing programs
under title II of this Act as well as other
food assistance industry experts.
* * * * * * *
(d) Termination of Authority.--The authority to carry out
programs established under this section shall terminate on
September 30, [2007] 2012.
* * * * * * *
TITLE V--FARMER-TO-FARMER PROGRAM
SEC. 501. JOHN OGONOWSKI AND DOUG BEREUTER FARMER-TO-FARMER PROGRAM.
(a) * * *
* * * * * * *
(d) Minimum Funding.--Notwithstanding any other provision of
law, in addition to any funds that may be specifically
appropriated to carry out this section, not less than 0.5
percent of the amounts made available for each of fiscal years
[2002 through 2007] 2008 through 2012 to carry out this Act
shall be used to carry out programs under this section, with--
(1) not less than 0.2 percent to be used for programs
in developing countries; and
(2) not less than 0.1 percent to be used for programs
in sub-Saharan African and Caribbean Basin countries.
(e) Authorization of Appropriations.--
(1) In general.--There is authorized to be
appropriated to carry out programs under this section
in sub-Saharan African and Caribbean Basin countries
$10,000,000 for each of fiscal years [2002 through
2007] 2008 through 2012.
* * * * * * *
----------
BILL EMERSON HUMANITARIAN TRUST ACT
TITLE III--BILL EMERSON HUMANITARIAN TRUST
* * * * * * *
SEC. 302. 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 title as the
``Secretary'') shall establish a trust stock of wheat, rice,
corn, or sorghum, or any combination of the commodities,
totaling not more than 4,000,000 metric tons, an amount of
funds equivalent to 4,000,000 metric tons of commodities, or
any combination of commodities and funds equivalent to
4,000,000 metric tons for use as described in subsection (c).
(b) Commodities or Funds in Trust.--
(1) * * *
(2) Replenishment of trust.--
(A) * * *
(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 2007] 2008 through 2012
from funds made available to carry out
the Agricultural Trade Development and
Assistance Act of 1954 (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)(2)
and (f)(2), except that, of such funds,
not more than [$20,000,000] $60,000,000
may be expended for this purpose in
each of the fiscal years [2000 through
2007] 2008 through 2012; and
* * * * * * *
(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,
[2007] 2012.
(2) Disposal of eligible commodities.--Eligible
commodities remaining in the trust after September 30,
[2007] 2012, shall be disposed of by release for use in
providing for emergency humanitarian food needs in
developing countries as provided in this section.
* * * * * * *
----------
FARM SECURITY AND RURAL INVESTMENT ACT OF 2002
* * * * * * *
TITLE III--TRADE
* * * * * * *
Subtitle B--Agricultural Trade Act of 1978
* * * * * * *
SEC. 3107. MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD
NUTRITION PROGRAM.
(a) * * *
* * * * * * *
(c) Eligible Commodities and Cost Items.--Notwithstanding any
other provision of law--
(1) * * *
(2) as necessary to achieve the purposes of this
section, funds appropriated under this section may be
used to pay--
(A) * * *
(B) all or any part of the internal
transportation, storage, and handling costs
incurred in moving the eligible commodity, if
the [President] Secretary determines that--
(i) * * *
* * * * * * *
(d) General Authorities.--[The President shall designate 1 or
more Federal agencies to] The Secretary shall--
(1) * * *
* * * * * * *
(f) Procedures.--
(1) In general.--In carrying out subsection (b), the
[President] Secretary shall ensure that procedures are
established that--
(A) * * *
* * * * * * *
(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 [implementing agency] Secretary may
consider the ability of eligible entities to--
(A) * * *
* * * * * * *
(h) Multilateral Involvement.--
(1) In general.--The [President] 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 [President] 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 [President] 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.
* * * * * * *
(l) Funding.--
[(1) In general.--Of the funds of the Commodity
Credit Corporation, the President shall use
$100,000,000 for fiscal year 2003 to carry out this
section.
[(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 2004 through 2007.]
(1) Use of commodity credit corporation funds.--Of
the funds of the Commodity Credit Corporation, the
Secretary shall use to carry out this section--
(A) $140,000,000 for fiscal year 2008;
(B) $180,000,000 for fiscal year 2009;
(C) $220,000,000 for fiscal year 2010;
(D) $260,000,000 for fiscal year 2011; and
(E) $300,000,000 for fiscal year 2012.
[(3)] (2) Administrative expenses.--Funds made
available to carry out this section may be used to pay
the administrative expenses of [any Federal agency
implementing or assisting] the Department of
Agriculture or any other Federal department or agency
assisting in the implementation of this section.
* * * * * * *
Subtitle C--Miscellaneous
* * * * * * *
SEC. 3205. TECHNICAL ASSISTANCE FOR SPECIALTY CROPS.
(a) * * *
* * * * * * *
(d) Additional Requirements.--
(1) Maximum award.--The maximum amount of assistance
provided annually to a project under the program shall
be $500,000.
(2) Project duration.--The Secretary may extend a
project under the program irrespective of the initial
estimated duration of the project.
[(d) Funding.--For each of fiscal years 2002 through 2007,
the Secretary shall make available $2,000,000 of the funds of,
or an equal value of commodities owned by, the Commodity Credit
Corporation.]
(e) Funding.--
(1) Commodity credit corporation.--The Secretary
shall use the funds, facilities, and authorities of the
Commodity Credit Corporation to carry out this section.
(2) Funding amount.--The Secretary shall make
available the following amounts of the funds of, or an
equal value of commodities owned by, the Commodity
Credit Corporation, to the maximum extent practicable,
for the following fiscal years to carry out this
section:
(A) $4,000,000 for fiscal year 2008.
(B) $6,000,000 for fiscal year 2009.
(C) $8,000,000 for fiscal year 2010.
(D) $10,000,000 for each of fiscal years 2011
through 2015.
* * * * * * *
SEC. 3206. GLOBAL MARKET STRATEGY.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, and biennially thereafter, the Secretary
of Agriculture shall consult with the Committee on Agriculture,
and the [Committee on International Relations] Committee on
Foreign Affairs, of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate
on the formulation and implementation of a global market
strategy for the Department of Agriculture that, to the maximum
extent practicable--
(1) * * *
* * * * * * *
----------
AGRICULTURAL TRADE ACT OF 1978
* * * * * * *
TITLE II--AGRICULTURAL EXPORT PROGRAMS
Subtitle A--Programs
* * * * * * *
SEC. 202. EXPORT CREDIT GUARANTEE PROGRAM.
(a) Short-Term Credit Guarantees.--
[(1) In general.--The Commodity] The Commodity Credit
Corporation may guarantee the repayment of credit made
available to finance commercial export sales of
agricultural commodities, including processed
agricultural products and high-value agricultural
products, from privately owned stocks on credit terms
that do not exceed a 3-year period.
[(2) Supplier credits.--In carrying out this section,
the Commodity Credit Corporation may issue guarantees
for the repayment of credit made available for a period
of not more than 180 days by a United States exporter
to a buyer in a foreign country.
[(3) Extended supplier credits.--
[(A) In general.--Subject to the
appropriation of funds under subparagraph (B),
in carrying out this section, the Commodity
Credit Corporation may issue guarantees for the
repayment of credit made available for a period
of more than 180 days, but not more than 360
days, by a United States exporter to a buyer in
a foreign country.
[(B) Authorization of appropriations.--There
are authorized to be appropriated such sums as
are necessary to fund the additional costs
attributable to the portion of any guarantee
issued under this paragraph to cover the
repayment of credit beyond the initial 180-day
period.
[(b) Intermediate-Term Credit Guarantees.--Subject to the
provisions of subsection (c), the Commodity Credit Corporation
may guarantee the repayment of credit made available by
financial institutions in the United States to finance
commercial export sales of agricultural commodities, including
processed agricultural products and high-value agricultural
products, from privately owned stocks on credit terms that are
for not less than a 3-year period nor for more than a 10-year
period in a manner that will directly benefit United States
agricultural producers.
[(c) Required Determinations.--The Commodity Credit
Corporation shall not guarantee under subsection (b) the
repayment of credit made available to finance an export sale
unless the Secretary determines that such sale will--
[(1) develop, expand, or maintain the importing
country as a foreign market, on a long-term basis, for
the commercial sale and export of United States
agricultural commodities, without displacing normal
commercial sales;
[(2) improve the capability of the importing country
to purchase and use, on a long-term basis, United
States agricultural commodities; or
[(3) otherwise promote the export of United States
agricultural commodities.
The reference in paragraphs (1) and (2) to ``on a long-term
basis'' shall not apply in the case of determinations with
respect to sales to the independent states of the former Soviet
Union.]
[(d)] (b) Purpose of Program.--The Commodity Credit
Corporation may use export credit guarantees authorized under
this section--
(1) * * *
* * * * * * *
(4) for such other purposes as the Secretary
determines appropriate[, consistent with the provisions
of subsection (c)].
[(e)] (c) Restrictions on Use of Credit Guarantees.--Export
credit guarantees authorized by this section shall not be used
for foreign aid, foreign policy, or debt rescheduling purposes.
The provisions of the cargo preference laws shall not apply to
export sales with respect to which credit is guaranteed under
this section.
[(f)] (d) Restrictions.--
[(1) In general.--The Commodity] The Commodity Credit
Corporation shall not make credit guarantees available
in connection with sales of agricultural commodities to
any country that the Secretary determines cannot
adequately service the debt associated with such sale.
[(2) Criteria for determination.--In making the
determination required under paragraph (1) with respect
to credit guarantees under subsection (b) for a
country, the Secretary may consider, in addition to
financial, macroeconomic, and monetary indicators--
[(A) whether an International Monetary Fund
standby agreement, Paris Club rescheduling
plan, or other economic restructuring plan is
in place with respect to the country;
[(B) whether the country is addressing issues
such as--
[(i) the convertibility of the
currency of the country;
[(ii) adequate legal protection for
foreign investments;
[(iii) the viability of the financial
markets of the country; and
[(iv) adequate legal protection for
the private property rights of citizens
of the country; or
[(C) any other factors that are relevant to
the ability of the country to service the debt
of the country.]
[(g)] (e) Terms.--Export credit guarantees issued pursuant to
this section shall contain such terms and conditions as the
Commodity Credit Corporation determines to be necessary.
[(h)] (f) United States Agricultural Commodities.--The
Commodity Credit Corporation shall finance or guarantee under
this section only United States agricultural commodities.
[(i)] (g) Ineligibility of Financial Institutions.--
(1) * * *
* * * * * * *
(2) Third country banks.--The Commodity Credit
Corporation may guarantee under [subsections (a) and
(b)] subsection (a) the repayment of credit made
available to finance an export sale irrespective of
whether the obligor is located in the country to which
the export sale is destined.
[(j)] (h) Conditions for Fish and Processed Fish Products.--
In making available any guarantees of credit under this section
in connection with sales of fish and processed fish products,
the Secretary shall make such guarantees available under terms
and conditions that are comparable to the terms and conditions
that apply to guarantees provided with respect to sales of
other agricultural commodities under this section.
[(k)] (i) Processed and High-Value Products.--
(1) In general.--In issuing export credit guarantees
under this section, the Commodity Credit Corporation
shall, subject to paragraph (2), ensure that not less
than 25 percent for each of fiscal years 1996 and 1997,
30 percent for each of fiscal years 1998 and 1999, and
35 percent for each of fiscal years 2000 through [2007]
2012, of the total amount of credit guarantees issued
for a fiscal year is issued to promote the export of
processed or high-value agricultural products and that
the balance is issued to promote the export of bulk or
raw agricultural commodities.
* * * * * * *
[(l)] (j) Consultation on Agricultural Export Credit
Programs.--The Secretary and the United States Trade
Representative shall consult on a regular basis with the
Committee 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 the
status of multilateral negotiations regarding agricultural
export credit programs.
SEC. 203. MARKET ACCESS PROGRAM.
(a) In General.--The Commodity Credit Corporation shall
establish and carry out a program to encourage the development,
maintenance, and expansion of commercial export markets for
agricultural commodities (including commodities that are
organically produced (as defined in section 2103 of the Organic
Foods Production Act of 1990 (7 U.S.C. 6502))) through cost-
share assistance to eligible trade organizations that implement
a foreign market development program.
* * * * * * *
Subtitle B--Implementation
SEC. 211. FUNDING LEVELS.
(a) * * *
[(b) Export Credit Guarantee Programs.--
[(1) Export credit guarantees.--The Commodity Credit
Corporation shall make available for each of fiscal
years 1996 through 2007 not less than $5,500,000,000 in
credit guarantees under subsections (a) and (b) of
section 202.
[(2) Limitation on origination fee.--Notwithstanding
any other provision of law, the Secretary may not
charge an origination fee with respect to any credit
guarantee transaction under section 202(a) in excess of
an amount equal to 1 percent of the amount of credit to
be guaranteed under the transaction, except with
respect to an export credit guarantee transaction
pursuant to section 1542(b) of the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-
624; 7 U.S.C. 5622 note).]
(b) Export Credit Guarantee Programs.--The Commodity Credit
Corporation shall make available, to the maximum extent
practicable, for each of fiscal years 2008 through 2012 not
less than $5,500,000,000 in credit guarantees under section
202(a).
(c) Market Access Programs.--
(1) In general.--The Commodity Credit Corporation or
the Secretary shall make available for market access
activities authorized to be carried out by the
Commodity Credit Corporation under section 203--
(A) in addition to any funds that may be
specifically appropriated to implement a market
access program, not more than $90,000,000 for
fiscal year 2001, $100,000,000 for fiscal year
2002, $110,000,000 for fiscal year 2003,
$125,000,000 for fiscal year 2004, $140,000,000
for fiscal year 2005[, and $200,000,000 for
each of fiscal years 2006 and 2007]
$200,000,000 for each of fiscal years 2006 and
2007, and $225,000,000 for each of fiscal years
2008 through 2012, of the funds of, or an equal
value of commodities owned by, the Commodity
Credit Corporation; and
* * * * * * *
TITLE III--EXPORT ENHANCEMENT PROGRAM
SEC. 301. EXPORT ENHANCEMENT PROGRAM.
(a) * * *
* * * * * * *
(e) Funding Levels.--
[(1) In general.--The Commodity Credit Corporation
shall make available to carry out the program
established under this section not more than--
[(A) $350,000,000 for fiscal year 1996;
[(B) $250,000,000 for fiscal year 1997;
[(C) $500,000,000 for fiscal year 1998;
[(D) $550,000,000 for fiscal year 1999;
[(E) $579,000,000 for fiscal year 2000;
[(F) $478,000,000 for fiscal year 2001; and
[(G) $478,000,000 for each of fiscal years
2002 through 2007.]
(1) In general.--The Commodity Credit Corporation
shall make available to carry out the program
established under this section not more than
$478,000,000 for each of fiscal years 2008 through
2012.
* * * * * * *
SEC. 304. ASSISTANCE TO ADDRESS SANITARY AND PHYTOSANITARY BARRIERS TO
TRADE.
(a) Assistance Authorized.--The Secretary is authorized to
enter into contracts with technical experts and scientists, or
provide grants to appropriate entities, as determined by the
Secretary, to address sanitary, phytosanitary, and technical
barriers to the export of United States agricultural
commodities, including meat, poultry, and specialty crops, by--
(1) contracting with technical experts and scientists
outside of the Federal government to address sanitary
and phytosanitary issues, and other issues regarding
technical barriers, involving agricultural commodities
and the products of such agricultural commodities; and
(2) commissioning targeted outside scientific reports
on sanitary and phytosanitary issues, and other issues
regarding technical barriers, involving agricultural
commodities and the products of such agricultural
commodities.
(b) Targeted Trade Issues.--Projects funded under this
section may include projects relating to the acceptance by
foreign markets of--
(1) antimicrobial treatments;
(2) wood-packaging material;
(3) irradiation;
(4) biotechnology;
(5) science-based maximum residue level standards;
(6) testing procedures and controls for mycotoxins;
(7) labeling; and
(8) shelf life.
(c) Funding.--
(1) Commodity credit corporation.--The Secretary
shall use the funds, facilities, and authorities of the
Commodity Credit Corporation to carry out this section.
(2) Funding amount.--The Secretary shall use, to the
maximum extent practicable, $2,000,000 of the funds of
the Commodity Credit Corporation to carry out this
section for each of fiscal years 2008 through 2012.
* * * * * * *
TITLE VII--FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM
* * * * * * *
SEC. 702. FOREIGN MARKET DEVELOPMENT COOPERATOR PROGRAM.
(a) * * *
* * * * * * *
(c) Report to Congress.--The Secretary shall annually submit
to the Committee on Agriculture and the [Committee on
International Relations] Committee on Foreign Affairs of the
House of Representatives and the Committee on Agriculture,
Nutrition, and Forestry of the Senate a report on activities
under this section describing the amount of funding provided,
the types of programs funded, the value-added products that
have been targeted, and the foreign markets for those products
that have been developed.
SEC. 703. FUNDING.
(a) In General.--To carry out this title, the Secretary shall
use funds of the Commodity Credit Corporation, or commodities
of the Commodity Credit Corporation of a comparable value, in
the amount of $34,500,000 for each of fiscal years [2002
through 2007] 2008 through 2012.
(b) Program Priorities.--In providing any amount of funds or
commodities made available under subsection (a) for any fiscal
year that is in excess of the amount made available under this
section for fiscal year [2001] 2007, the Secretary shall, to
the maximum extent practicable--
(1) * * *
* * * * * * *
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SECTION 1542 OF THE FOOD, AGRICULTURE, CONSERVATION, AND TRADE ACT OF
1990
* * * * * * *
SEC. 1542. PROMOTION OF AGRICULTURAL EXPORTS TO EMERGING MARKETS.
(a) Funding.--The Commodity Credit Corporation shall make
available for fiscal years 1996 through [2007] 2012 not less
than $1,000,000,000 of direct credits or export credit
guarantees for exports to emerging markets under section 201 or
202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5621 and
5622), in addition to the amounts acquired or authorized under
section 211 of the Act (7 U.S.C. 5641) for the program.
(b) Facilities and Services.--[A portion]
(1) In general.--A portion of such export credit
guarantees shall be made available for--
[(1)] (A) the establishment or improvement of
facilities, or
[(2)] (B) the provision of services or United
States products goods,
in emerging markets by United States persons to improve
handling, marketing, processing, storage, or distribution of
imported agricultural commodities and products thereof if the
Secretary of Agriculture determines that such guarantees will
primarily promote the export of United States agricultural
commodities (as defined in section 102(7) of the Agricultural
Trade Act of 1978). [The Commodity Credit Corporation]
(2) Priority.--The Commodity Credit Corporation shall
give priority under this subsection to--
(A) projects that encourage the privatization
of the agricultural sector or that benefit
private farms or cooperatives in emerging
markets; and
(B) projects for which nongovernmental
persons agree to assume a relatively larger
share of the costs.
(3) Initial payment.--The Secretary may require an
initial down payment, upon such terms as the Secretary
may determine, by the beneficiary of the credit
guarantee as a condition of providing a credit
guarantee under this subsection.
(4) Maximum liability.--The liability of the
Commodity Credit Corporation under a guarantee provided
pursuant to this section may not exceed 98 percent of--
(A) the principal amount involved in the
underlying financial arrangement for
construction of the facility; and
(B) the interest on the outstanding principal
amount at the rate specified in the underlying
financial arrangement for construction of the
facility.
(5) Term of guarantee.--A facility payment guarantee
under this subsection shall be for a term that is not
more than the lesser of--
(A) the term of the depreciation schedule of
the facility assisted; or
(B) a maximum period, as determined by the
Secretary.
* * * * * * *
(d) E (Kika) de la Garza Agricultural Fellowship Program.--
The Secretary of Agriculture (hereafter in this section
referred to as the ``Secretary'') shall establish a program, to
be known as the ``E (Kika) de la Garza Agricultural Fellowship
Program'', to develop agricultural markets in emerging markets
and to promote cooperation and exchange of information between
agricultural institutions and agribusinesses in the United
States and emerging markets, as follows:
(1) Development of agricultural systems.--
(A) In general.--
(i) Establishment of program.--For
each of the fiscal years 1991 through
[2007] 2012, the Secretary of
Agriculture (hereafter in this section
referred to as the ``Secretary''), in
order to develop, maintain, or expand
markets for United States agricultural
exports, is directed to make available
to emerging markets the expertise of
the United States to make assessments
of the food and rural business systems
needs of such democracies, make
recommendations on measures necessary
to enhance the effectiveness of the
systems, including potential reductions
in trade barriers, and identify and
carry out specific opportunities and
projects to enhance the effectiveness
of those systems.
* * * * * * *
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FOOD FOR PROGRESS ACT OF 1985
Sec. 1110. (a) This section may be cited as the ``Food for
Progress Act of 1985''.
* * * * * * *
(f) Provision of Eligible Commodities to Developing
Countries.--(1) * * *
* * * * * * *
(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 2007] 2008 through 2012 to
carry out this section with respect to eligible commodities
made available under section 416(b) of the Agricultural Act of
1949 unless authorized in advance in appropriation Acts.
* * * * * * *
(g) Minimum Tonnage.--Subject to subsection (f)(3), not less
than [400,000] 500,000 metric tons of eligible commodities may
be provided under this section for the program for each of
fiscal years [2002 through 2007] 2008 through 2012.
* * * * * * *
(j) Multicountry or Multiyear Basis.--
(1) * * *
* * * * * * *
(3) Report.--Not later than December 1 of each fiscal
year, the President shall submit to the Committee on
Agriculture and the Committee on Foreign Affairs of the
House of Representatives and the Committee on
Agriculture, Nutrition, and Forestry of the Senate a
list of programs, countries, and eligible commodities,
and the total amount of funds for transportation and
administrative costs, approved to date for the fiscal
year under this section.
(k) Effective and Termination Dates.--This section shall be
effective during the period beginning October 1, 1985, and
ending December 31, [2007] 2012.
(l) Administrative Expenses.--(1) To enhance the development
of private sector agriculture in countries receiving assistance
under this section the President may, in each of the fiscal
years [1996 through 2007] 2008 through 2012, 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.
* * * * * * *
(n) Program Management.--
(1) * * *
(2) Requirements.--
(A) * * *
* * * * * * *
(C) Consultations.--Not later than 1 year
after the date of enactment of this paragraph,
the President shall consult with the Committee
on Agriculture, and the [Committee on
International Relations] Committee on Foreign
Affairs, of the House of Representatives and
the Committee on Agriculture, Nutrition, and
Forestry of the Senate on changes made in
regulations and procedures.
* * * * * * *