Food for Peace

Public Law 480 also known as Food for Peace (and commonly abbreviated PL 480)is a funding avenue by which US food can be used for overseas aid.

It has four parts, title 1,2,3 and title 5. Title 1 is managed by the USDA (United States Department of Agriculture), while titles 2, 3 and 5 are managed by the U.S. Agency for International Development (USAID).

The full name for Public Law 480 is the Agricultural Trade Development Assistance Act, signed into law on July, 10, 1954, by President Dwight D. Eisenhower. In signing the legislation, Eisenhower stated that the legislation's purpose was to "lay the basis for a permanent expansion of our exports of agricultural products with lasting benefits to ourselves and peoples of other lands." [ [http://www.usaid.gov/our_work/humanitarian_assistance/ffp/50th/history.html The History of America's Food Aid] ]

In 1961, President John F. Kennedy renamed it as "Food for Peace," stating, "Food is strength, and food is peace, and food is freedom, and food is a helping to people around the world whose good will and friendship we want." [ [http://www.usaid.gov/our_work/humanitarian_assistance/ffp/50th/history.html The History of America's Food Aid] ]

This was reauthorised through the Federal Agriculture Improvement and Reform Act of 1996 (FAIR), commonly known as 1996 Farm Bill.

PL 480 / Food for Peace

The purpose of PL 480 is to:
* Combat world hunger and malnutrition
* Promote sustainable development including agriculture development
* Expand international trade
* Develop and expand export market for US agricultural commodities and products
* Foster private enterprise and democratic participation
* Profitably supply surplus US commodities to foreign countries
* Make foreign coutries dependent on US agricultural products allowing the US government to control those countries' defense budgets and other policies.
* Used to mitigate US overproduction and ensuing farmers' discontent.

PL 480 can be divided into 4 Titles: Each is administered by different US agencies.

* Title 1, Trade and Development Assistance (Managed by USDA)
* Title 2, Emergency & Development Assistance Program (Managed by USAID)
* Title 3, "Food for Development" (Managed by USAID)
* Title 5, "Farmer to Farmer" (Managed by USAID)

Title 1

The main focus of title 1 is "Trade and Development Assistance". It allows concessional sales of agricultural products to friendly developing nations, either by government to government (main means) or government to private entities (rare).

Surplus bulk commodities purchased from the US are monetized in the recipient's country market. Income generated is to support stated objectives in the predetermined agreement between the US government and the recipient government.

Concessional terms are very favourable: it can be long-term credit up to thirty years, with no minimum repayment for ten years, grace period for payment of principle up to five years at low interest such as 2 - 4%.

Ths program is flexible and facilitates collaboration with international bodies such as the World Bank in support of development programs.

Priority is given to
* Countries with little foreign exchange
* Countries with food security problems
* Programs concentrating on alleviating poverty
* Countries with agricultural development needs

Recipients’ countries must also demonstrate potential to become commercial markets for US agricultural products.

Title 2

The main use of this program is for "Emergency and Development Assistance Progams". Title 2 allows donation of US agricultural products to meet humanitarian food needs. Emergency and non emergency (development) food aid activities support broader USAID objectives and can be used for both direct feeding and monetisation programs.

Recipients can be any of the following, operating in conjunction with cooperative sponsors (CS):
* PVO - Private voluntary organization
* NGO - Non-governmental organization
* IO - International organization such as WFP - World Food Programme

For non-emergency aid Title 2 can be often seen to be in support of:
* Development Food Aid (Non emergency)
* Health and Nutrition program
* Agriculture (Food for Work, Food for agriculture…).
* Educational program
* Humanitarian Relief - Vulnerable Population
* Micro-enterprise development

Title 2 has a subsection that gives funding for strengthening of the management ability of the CS especially in the area of management improvement, such as administration and implementation improvement as well as monitoring and reviews.

"Section 202 (e)" - logistic, information system, research

"International Strengthening Assist." "(ISA)" - Better accountability

Title 3

Also known as "Food for Development". It is a government-to-government grant to the least developed countries, and aims at addressing food and nutrition problems, countries most in need of food to enhance long term food security. Programs with direct links to increased food production and consumption have priority.

It can be used by monetisation of donated commodities in the domestic market, but some may be kept as reserve. To support the program, the US government will pay for all charges involved. Programmes may include:

* Privatisation of food market
* Attract poor children to school
* Address chronic food shortages
* Infrastructure development, such as roads

Title 5

Known as "Farmer to Farmer", established in 1986, re-authorised by the 1996 Farm Bill Act. It is not a food aid programme, but a short term technical assistance by linking American volunteer farmers with farmers in developing countries, whereby the US farmer will spend time in the developing country working with the developing country farmers to improve food production, marketing and distribution.

This program was established aimed mainly at the NIS of the former Soviet Union, but also covers Asia, Africa, and Central and South America.

References

External Links

* [http://www.diplomatictraffic.com/debate.asp?ID=673 America's Food for Peace Critical During Global Food Crisis]