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NSIAD-84-69 1 (1984-04-19)

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BY THE U.S. GNERA_ ACCOUNIOdG OFF CE




Report To The Secretary Of Agriculture


Opportunities For Greater Cost Effectiveness

In Public Law 480, Title I Food Purchases


Two basic objectives of Title I are to (1) provide
concessional financing for developing nations to pur-
chase basic food commodities and (2) protect and
develop U S agricultural markets

GAO reviewed fiscal year. 1982 purchases under Title
I and concluded that Agriculture needs to exert more
control over the program. Financing costs were in-
creased because recipient countries were permitted
to buy premium commodities, specify restrictive
commodity specifications, and require short lead
times for shipping the commodities Due to delays in
negotiating agreements, many purchases were con-
centrated in the spring and early summer, exac-
erbating price and procurement problems Moreover,
some recipient countries' proportions of commercial
imports from the United States have declined,

Agriculture also needs to strengthen its system for
evaluating Title I purchase prices for several com-
modities and to establish firm price ceilings for
evaluating all purchases

This report contains a series of recommendations that
should reduce this program's cost or permit a larger
volume of exports at no additional cost.


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GAO/NSIAD-84-69
APRIL 19, 1984


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