Revisiting Agricultural Trade and Food Assistance Programs in the Farm Bill - Farm Bureau News

Title III of the 2018 workplace bill, commonly referred to arsenic the commercialized title, includes planetary nutrient assistance programs, export marketplace improvement programs, export recognition warrant programs and planetary subject and method speech programs and provisions. Over galore years, these programs person helped to assistance U.S. cultivation exports a grounds level of astir $177 cardinal successful 2021. Despite a beardown dollar and a tumultuous planetary market, done the archetypal 8 months of 2022, U.S. cultivation exports by worth are up implicit 16% compared to the archetypal 8 months of 2021. Developing semipermanent customers, successful semipermanent markets is worthy the investment. We item those programs here.

International Food Assistance Programs

The United States is the largest planetary nutrient assistance donor successful the world. The benefits of nutrient assistance are many, some for the recipient countries and for the United States. In summation to the evident payment of providing hunger relief, nutrient assistance stimulates maturation successful the world’s poorest regions and increases planetary stability. International nutrient assistance successful the modern epoch began successful 1954 with the transition of the Food for Peace Act (PL 83-480), commonly referred to arsenic PL 480, which established the Food for Peace programs. Since then, Congress has authorized further programs, which autumn into 2 buckets: those established successful agriculture authorities and those established successful overseas affairs legislation. The programs established done agriculture authorities - Food for Peace Title II Program, McGovern-Dole International Food for Education and Child Nutrition Program, Food for Progress Program, the Bill Emerson Humanitarian Trust, Local and Regional Food Aid Procurement Program and the Farmer-to-Farmer Program (FFP Title V) - are reauthorized done the workplace bill.

U.S. International Food Assistance: An Overview, a Congressional Research Service report, states that “U.S. planetary nutrient assistance programs supply enactment done 2 chiseled methods: (1) in-kind aid, which ships U.S. commodities to regions successful need, and (2) market-based assistance, which provides recipients with vouchers, nonstop currency transfers, oregon locally and regionally procured food.” The programs nether the Senate and House Agriculture committees’ jurisdiction, those authorized nether the workplace bill, are based chiefly connected in-kind aid.

The Food for Peace (FFP) Title II Program donates U.S. commodities to recipients successful overseas countries. Since the 2018 workplace measure went into effect done 2021, much than $7.5 cardinal successful assistance nether Title II of the Food for Peace Act has funded the procurement of much than 6.2 cardinal metric tons (MT) of food, serving much than 116.4 cardinal beneficiaries.

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The McGovern-Dole International Food for Education and Child Nutrition Program provides U.S. commodities to processing countries for schoolhouse feeding programs and for large and nursing mothers. Between fiscal twelvemonth 2018 and 2022, McGovern-Dole has provided astir $1.1 cardinal successful assistance, with much than 5.7 cardinal beneficiaries.

The Food for Progress Program (FPPr) monetizes U.S. commodities successful recipient countries to money humanitarian oregon improvement projects. Between fiscal twelvemonth 2018 and 2022, Food for Progress has provided much than $721 cardinal successful assistance to astir 1 cardinal beneficiaries. USDA’s Foreign Agriculture Service helpfully maintains a map of their progressive McGovern-Dole and FPPr nutrient assistance projects.

The Bill Emerson Humanitarian Trust (BEHT) is simply a mandatory reserve of funds held by USDA that tin supplement FFP Title II assistance erstwhile FFP Title II unsocial cannot conscionable exigency nutrient needs. In April 2022, arsenic portion of USDA’s and U.S. Agency for International Development’s planetary nutrient insecurity response, the money was drawn down by the afloat equilibrium of $282 cardinal successful bid to procure U.S. nutrient commodities to bolster existing exigency nutrient operations successful six countries facing terrible nutrient insecurity – Ethiopia, Kenya, Somalia, Sudan, South Sudan and Yemen. This was the archetypal utilization of the BEHT since 2014.

The Local and Regional Food Aid Procurement Program (LRP Program) provides locally and regionally procured nutrient to recipients alternatively of nutrient procured from the United States. Between fiscal twelvemonth 2018 and 2019, LRP provided astir $25 cardinal successful assistance, with astir 165,000 beneficiaries. There person been nary programme outlays since FY 2019.

Export Market Development Programs

A halfway constituent of Title III is the 5 export marketplace improvement programs. These programs - Market Access Program (MAP), Foreign Market Development Cooperator Program (FMD), E. (Kika) de la Garza Emerging Markets Program (EMP), Technical Assistance for Specialty Crops (TASC) and the Priority Trade Fund - are designed to supply enactment for the enlargement of U.S. cultivation exports.

Prior to the 2018 workplace measure 2 Title III commercialized programs lacked baseline. This included the FMD and TASC. With estimated mandatory spending of $34.5 cardinal per twelvemonth and $9 cardinal per year, for FMD and TASC, respectively, these programs lacked baseline due to the fact that they fell beneath the $50 cardinal scoring threshold. The deficiency of baseline meant that these programs were perchance connected the chopping artifact during each and each workplace bill.

The 2018 workplace measure resolved the contented by creating the Agricultural Trade Promotion and Facilitation Program, which consolidated 4 of USDA’s marketplace improvement and export promotion programs, providing mandatory yearly CCC backing of $255 million. Of that money, not little than $200 cardinal was to beryllium spent connected MAP, not little than $34.5 cardinal connected FMD, not much than $8 cardinal connected EMP, not much than $9 cardinal connected TASC and $3.5 cardinal connected the Priority Trade Fund. The 2018 backing level for MAP and FMD was unchanged from the 2014 workplace bill. In fact, backing levels for MAP and FMD person not changed since fiscal twelvemonth 2006 and fiscal twelvemonth 2002, respectively. In the 2018 workplace bill, EMP and TASC were each authorized astatine $1 cardinal little than successful the 2014 workplace bill.

The Market Access Program provides cost-sharing of overseas selling and promotional activities that assistance physique commercialized markets for U.S. cultivation exports. The MAP programme began successful 1985. MAP backing is utilized for some generic and marque promotion of processed products, fruits, vegetables, nuts and different consumer-oriented oregon high-value products arsenic good arsenic immoderate bulk and intermediate products. In fiscal twelvemonth 2022, the MAP programme allocated $175.6 cardinal successful backing to 67 cultivation commercialized organizations.

The Foreign Market Development Cooperator Program funds projects that supply commercialized servicing and commercialized capableness gathering done efforts to open, grow and support semipermanent markets for U.S. cultivation products. The FMD programme was archetypal established successful 1956 nether authorization of nationalist instrumentality 480 and past reauthorized by Title VII of the Agricultural Trade Act of 1978. In fiscal twelvemonth 2022, the FMD programme allocated $26.8 cardinal successful backing to 21 cultivation commercialized organizations.

A study released successful 2022, commissioned by USDA's FAS arsenic required by Congress and conducted by IHS Markit moving with Texas A&M University economists, showed that connected an yearly ground betwixt 2002 and 2019 ag export gross accrued by an mean of $9.6 cardinal due to the fact that of MAP and FMD programme activities. At the workplace level, the MAP and FMD programs led to an yearly summation successful workplace currency receipts of $12.2 cardinal (3.4%) and an yearly summation of $3.1 cardinal successful nett currency workplace income. The yearly assistance successful export revenues successful this survey for 1977 to 2019 was 13.7%.

The Emerging Markets Program helps U.S. organizations beforehand exports of U.S. cultivation products to countries that person -- oregon are processing -- market-oriented economies and that person the imaginable to beryllium viable commercialized markets. Sample EMP projects see method assistance activities specified arsenic feasibility studies, marketplace research, sectorial assessments, predisposition visits, specialized grooming and concern workshops. The EMP supports exports of generic U.S. cultivation commodities and products, meaning projects that endorse oregon beforehand branded products oregon circumstantial companies are not eligible. There is nary fixed database of "emerging market" countries.

The Technical Assistance for Specialty Crops Program funds projects that code sanitary, phytosanitary and method barriers that prohibit oregon endanger the export of U.S. specialty crops. The TASC programme is intended to payment an full manufacture oregon commodity alternatively than a circumstantial institution oregon brand. Eligible activities include seminars and workshops, survey tours, tract surveys, pest and illness research, and pre-clearance programs. Eligible crops see each cultivated plants and their products produced successful the United States but wheat, provender grains, oilseeds, cotton, rice, peanuts, sweetener and tobacco. Awards are for a maximum of $500,000 per twelvemonth and for projects of up to 5 years.

The Priority Trade Fund was created successful the 2018 workplace measure to supply further backing to beryllium allocated among the different programs arsenic needed. The money supports activities to access, develop, support and grow markets for U.S. cultivation exports.

Export Credit Guarantee Programs

The 2018 workplace measure reauthorized $1 cardinal annually done fiscal twelvemonth 2023 successful nonstop credits oregon export recognition guarantees for exports to emerging markets. Under 2 programs, the Commodity Credit Corporation provides outgo guarantees connected commercialized financing and assumes the hazard of default connected payments by the overseas purchasers connected loans to facilitate U.S. exports.

The GSM-102 Program guarantees recognition extended by U.S. backstage lenders (or, little commonly, by a U.S. exporter) to approved overseas fiscal institutions of up to $5.5 cardinal annually for up to 24 months for the acquisition of U.S. workplace and nutrient products. GSM-102 is chiefly utilized to warrant exports to processing countries. According to a report from CRS, “the full GSM guarantees for FY2020 were $2.2 billion, implicit 86% of which went to Latin America. Over 99% of the guarantees successful FY2020 supported export income of grains, soybeans and flour, soybean meal, oregon soybean oil.”

The United States is bound by its World Trade Organization (WTO) commitments made successful Nairobi successful 2015 connected Export Competition, and specifically connected the export recognition provisions that screen the GSM-102 program. As a effect of the Nairobi decision, developed and processing state members whitethorn lone connection a maximum repayment word for export financing enactment of nary much than 18 months. However, least-developed and nett food-importing processing countries listed successful G/AG/5/Rev.10 are accorded differential and much favorable treatment, which allows those countries a repayment word betwixt 36 and 54 months for the acquisition of basal foodstuffs. High planetary nutrient prices, person spurred involvement successful exploring ways to grow the repayment word for these countries.

The Facility Guarantee Program (FGP) provides outgo guarantees to amended oregon found agriculture-related facilities successful emerging markets. As described by FAS, “By supporting specified facilities, the FGP is designed to heighten the merchantability of U.S. cultivation commodities and products to emerging markets wherever the request whitethorn beryllium constricted owed to inadequate storage, processing, handling, oregon organisation capabilities.” FGP covers recognition presumption of up to 10 years. Available fiscal twelvemonth 2022 FGP allocations totaled $500 million. A database of eligible countries tin beryllium recovered here.

International Science and Technology Programs and Provisions

The planetary subject and exertion programs are designed to strengthen and heighten commercialized linkages betwixt eligible countries and cultivation interests successful the United States. Over the years, AFBF has welcomed countless groups into our office done these programs.

The Borlaug Fellowship promotes nutrient information and economical maturation by providing grooming and probe opportunities to fellows from low- and middle-income countries. Borlaug Fellows are mostly scientists, researchers oregon policymakers who are successful the aboriginal oregon mediate stages of their careers. By improving participants' knowing of cultivation science, the programme helps foster science-based commercialized policies that amended planetary marketplace entree for U.S. cultivation products. The 2018 workplace measure added arsenic a intent the improvement of cultivation Extension services successful overseas countries and authorizes specified sums arsenic are necessary.

The Cochran Fellowship provides short-term grooming opportunities to cultivation professionals from processing countries. Fellows person hands-on grooming to heighten their method cognition and skills successful areas related to cultivation trade, agribusiness development, management, argumentation and marketing. The 2018 workplace measure allows for grooming successful oregon astatine colleges oregon universities overseas with circumstantial U.S. ties and increases yearly authorized appropriations, without fiscal twelvemonth limitation, to $3 cardinal for middle-income countries, $4 cardinal for countries with ongoing relations and $6 cardinal for recently antiauthoritarian countries. An infographic from USDA FAS details that arsenic of 2018, much than 18,000 cultivation professionals from 126 countries person participated successful the Cochran Fellowship program.

The International Agricultural Education Fellowship Program provides fellowships to eligible U.S. citizens to assistance processing countries successful establishing school-based cultivation acquisition and younker Extension programs. The programme was established successful 2018 and authorizes yearly appropriations of $5 million. In fiscal twelvemonth 2020, Texas A&M and Catholic Relief Services received backing for projects successful Ghana and Uganda, respectively. In fiscal twelvemonth 2021, Texas A&M received backing for a task successful Guatemala.

The Biotechnology and Agricultural Trade Program addresses commercialized barriers to products produced with cultivation biotechnology and different cultivation technologies. The programme was primitively portion of the Food Agriculture and Conservation Act of 1990 and was appropriated $6 cardinal annually from 2002 to 2007. The programme lapsed successful 2007 and was re-authorized $2 cardinal annually nether the 2018 workplace measure until fiscal twelvemonth 2023.

The descriptions for the pursuing 2 programs travel from the CRS report: 2018 Farm Bill Primer: Agricultural Trade and Food Assistance. An International Food Security Technical Assistance provision defines “international nutrient security” arsenic “access by immoderate idiosyncratic astatine immoderate clip to nutrient and nutrition that is capable for a steadfast and productive life.” It authorizes $1 cardinal annually, done 2023, for the Secretary of Agriculture to cod and marque disposable to the nationalist accusation related to planetary nutrient information including overseas governments, non-governmental organizations and planetary organizations. It besides authorizes USDA to supply method assistance to users of this information upon request.

The Global Crop Diversity Trust is a programme administered by USAID for conservation of nutrient harvest familial diversity. The 2018 workplace measure provides an authorization not to transcend $5.5 cardinal annually oregon 33% (a alteration from anterior 25%) of the full magnitude of funds contributed to the spot from each sources.

Conclusion

Trade and planetary assistance programs successful the Farm Bill supply a captious nexus to planetary markets, present captious humanitarian enactment and assistance make overseas countries to go amended partners and customers. These programs service arsenic different reminder of the captious relation that agriculture plays astatine location and astir the world.