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1 1 (May 22, 2019)

handle is hein.crs/govzus0001 and id is 1 raw text is: Congressional Research Servict ft Lv r r g it Vgi lative debat since 1914 0 May 22, 2019 2018 Farm Bill Primer: Agricultural Trade and Food Assistance The provisions of Title III of the 2018 farm bill (Agricultural Improvement Act of 2018, P.L. 115-334) include programs designed to alleviate hunger and improve global food security and to expand foreign markets for U.S. agricultural producers and food manufacturers. Title III covers international food assistance programs, export credit guarantee programs, export market development programs, and international science and technical exchange programs and provisions. Title III programs derive their statutory authorities from the Food for Peace Act of 1954 (P.L. 83- 480) for international food assistance programs and the Agricultural Trade Act of 1978 (P.L. 95-501) for foreign market expansion programs. International Food Assistance Programs As summarized below, the 2018 farm bill amends and reauthorizes U.S. international food assistance programs. Food for Peace Title 11 The Food for Peace (FFP) Title II Program donates U.S. commodities to recipients in foreign countries. The 2018 farm bill eliminates the requirement to monetize at least 15% of FFP Title II commodities-that is, sell on local markets to fund development projects (§3103). It increases the minimum allocation for FFP Title II nonemergency assistance from $350 million to $365 million annually. The maximum allocation for nonemergency assistance remains unchanged from prior law at 30% of FFP Title II funds (§3114). P.L. 115-334 requires that all FFP Title II assistance, including locally procured food and printed material that accompanies other assistance, be labeled as from the American people (§3101). It also requires that no FFP Title II assistance-including U.S. commodities, locally procured food, vouchers, or cash transfers-be provided unless the recipient country contains adequate storage facilities and the assistance will not interfere with the local agricultural economy (§3109). Under prior law, both of these requirements applied only to food assistance provided in the form of U.S. commodities. The 2018 farm bill amends the maximum allocation for program oversight, monitoring, and evaluation from $17 million to 1.5% of annual funds made available for FFP Title II. It also specifies a minimum allocation of not less than $17 million (§3107) and directs the administrator of the U.S. Agency for International Development (USAID), which administers FFP Title II, to issue all necessary regulations and revisions to program guidance no later than 270 days after the enactment of P.L. 115-334 (§3106). Other International Food Assistance Programs The Farmer-to-Farmer Program (FFP Title V) coordinates short-term placements for U.S. volunteers to provide technical assistance to farmers in developing countries. P.L. 115-334 authorizes a new grant program to facilitate new and innovative partnerships (§3116). The McGovern-Dole International Food for Education and Child Nutrition Program provides U.S. commodities to developing countries for school feeding programs and for pregnant and nursing mothers. P.L. 115-334 authorizes up to 10% of annual program funds to be used for local and regional procurement-buying food in the country or region where it will be used rather than in the United States. It adds a provision that assistance be provided in a timely manner and when needed throughout the applicable school year (§3309). The Food for Progress Program (FPPr) monetizes U.S. commodities in recipient countries to fund humanitarian or development projects. P.L. 115-334 directs the Secretary of Agriculture to include in annual program reports the rate of return for each commodity provided under FPPr. It authorizes a pilot program to directly fund activities rather than funding activities through the proceeds of monetized commodities, and it authorizes $10 million annually through FY2023 for the new pilot program (§3302). The Bill Emerson Humanitarian Trust (BEHT) is a mandatory reserve of funds held by the U.S. Department of Agriculture (USDA) that can supplement FFP Title II assistance when FFP Title II alone cannot meet emergency food needs. P.L. 115-334 reauthorizes BEHT through FY2023 (§3303). The Local and Regional Food Aid Procurement Program (LRP Program) provides locally and regionally procured food to recipients instead of food procured from the United States. P.L. 115-334 reauthorizes the LRP Program through FY2023 (§3311). Export Credit Guarantee Programs The 2018 farm bill (§3201) extends provisions for the export credit guarantee program (GSM-102) and the Facility Credit Guarantee Program (FGP), funded through USDA's Commodity Credit Corporation (CCC). The CCC is authorized under a permanent law-the CCC Charter Act of 1948. GSM-102 guarantees credit extended by U.S. private lenders (or, less commonly, by a U.S. exporter) to approved foreign financial institutions of up to $5.5 billion annually for up to 18 months for the purchase of U.S. farm and food products. FGP is designed to boost sales of U.S. agricultural products in countries where demand may be limited due to inadequate storage, processing, handling, or distribution capabilities. The 2018 farm bill extends authorization of at least $1 billion per year through FY2023 in direct credits or credit guarantees of up to 10 years to facilitate the financing of manufactured goods and U.S. https:!icrsreports cong --sg

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