U.S. International Food Aid Programs

U.S. International Food Aid Programs

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Updated September 14, 2016
U.S. International Food Aid Programs
For over six decades, the United States has played a leading
Surplus Removal or Food Aid?
role in global efforts to alleviate hunger and malnutrition
and to enhance world food security through international
The Food for Peace Act (FFPA) is the main authority for
food aid—primarily through either the donation or sale on
U.S. international food aid. First authorized in 1954 by P.L.
concessional terms of U.S. agricultural commodities.
83-480 (or “P.L. 480” as it was commonly known), FFPA
was created in part to use government-owned surplus grain
The U.S. government has provided international food aid
stocks for international food aid purposes. The United
through a variety of programs (Table 1 and Figure 1) and
States remains one of the few countries that rely on in-kind
for a variety of reasons that have evolved with foreign
transfers of domestically purchased commodities for its
policy goals over the years. Current objectives include both
international food aid. Most other donor countries have
emergency response to international food crises and non-
converted primarily to cash-based food assistance. U.S.
emergency agricultural development assistance. U.S.
reliance on in-kind food aid has become controversial due
international food aid outlays have increased gradually
to its identified inefficiencies and potential market
since the 1950s in current year dollars (Figure 1) but have
distortions compared with cash-based assistance. To
declined in inflation-adjusted 2013 dollars (Figure 2).
expedite delivery and enhance flexibility, the Obama
Administration has initiated and expanded the cash-based
Figure 1. U.S. International Food Aid Since 1955
Emergency Food Security Program (EFSP) since 2010.
U.S. Food Aid Has Many Restrictions
All U.S. food aid shipments are subject to a set of
requirements that potentially limit the flexibility of the U.S.
response to emergency food crises. U.S. laws require that:
 all agricultural commodities be U.S.-sourced;
 at least 50% of U.S. food aid be shipped on
U.S.-flagged vessels;
 at least 20% (or $350 million) but not more
than 30% of FFPA funding be available for
non-emergency food aid;
 at least 75% of in-kind food transfers

dedicated to non-emergency assistance be in
Source: USAID (see Table 1 for program details).
a processed, fortified, or bagged form;

Figure 2. U.S. International Food Aid Since 1955,
at least 50% of any bagging consist of U.S.-
Inflation-Adjusted
bagged, whole-grain commodities; and
 at least 15% of non-emergency food aid
funding be made available to qualifying
nongovernmental organizations for
monetization—the process of selling donated
U.S. commodities in recipient-country
markets, often at a steep discount, to generate
cash for development programs.
The George W. Bush and Obama Administrations, along
with S. 525 of the 114th Congress, have proposed changes
to U.S. food aid programs that include at least partial
elimination of cargo preferences and monetization while
expanding flexibility for cash-based assistance.
More Information

For more analysis, see CRS Report R41072, U.S.
Source: USAID historical data adjusted for inflation by CRS using a
International Food Aid Programs: Background and Issues.
GDP deflator from the Economic Research Service, USDA.
https://crsreports.congress.gov

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Table 1. U.S. International Food Aid Programs
Statutory
First
Govt.
Program—Function and Funding Status
Authority
Year
Fundinga
Agcyb
Section 416(b)—Donations of government-owned (CCC)c stocks. Inactive since
1949 Farm Bil
1949
M
FAS,
2007 due to unavailability of CCC stocks.
(P.L. 81-439)
USDA
Food for Peace Act (FFPA), originally “P.L. 480,” renamed “Food for Peace Act”
FFPA
1954
D
FAS,
by 2008 farm bil (P.L. 110-246). FFPA has four main program titles.
(P.L. 83-480)
USDA
Title I—Concessional sales—using long-term (up to 30 years) low-interest loans—of U.S.
1954
D
FAS,
commodities.d Monetization proceeds fund food security and development projects. From
USDA
1955 through 1990, Title I was the primary program for distributing U.S. food aid (Figure 1).
However, no new funding has been appropriated since FY2006.
Title II—In-kindd or cash-based donations. Cash or monetization proceeds fund both emergency food
1954
D
USAID
needs and non-emergency development projects in foreign countries. Since 1990, FFPA Title
II has become the largest component of U.S. international food assistance, averaging nearly
$1.7 bil ion or 78% of outlays (Figure 1). The 2014 farm bil continued annual authorizations
for Title II at $2.5 bil ion—subject to appropriations—through FY2018.
Title III—Government-to-government grants fund long-term economic development. No funding
1990
D
USAID
requests have been made since FY2002.
Title V—Farmer-to-Farmer Program provides technical assistance (not food aid) to agriculture-related
1985
D
USAID
projects in developing countries. The 2014 farm bil requires minimum funding of the greater
of $15 mil ion or 0.6% of total FFPA funds. Outlays averaged $11 mil ion/yr. since 2010.
Food for Progress (CCC-funded)—U.S. commoditiesd sold on credit or donated
2014 Farm Bil
1985
M
FAS,
for monetization. Proceeds assist recipient countries strengthen free enterprise
(P.L. 113-79)
USDA
in agriculture sectors. By law, at least 400,000 metric tons of commodities must
be used annually (costs vary with prices), but not more than $40 mil ion can be
used for shipping costs. Outlays averaged $166 mil ion/yr. since 2010.
McGovern-Dole International Food for Education and Child Nutrition
2014 Farm Bil
2003
D
FAS,
(IFECN)—U.S. commoditiesd and financial and technical assistance, used for
(P.L. 113-79)
USDA
school feeding and maternal, infant, and child nutrition programs in countries
identified with critical food needs. “Such sums as necessary” are authorized
subject to appropriations. Outlays averaged $184 mil ion/yr. since 2010.
Emergency Food Security Program—Cash-based food aid program provides
FAA of 1961
2010
D
USAID
grants to eligible organizations for emergency food security needs. Funding is
(P.L. 87-195)
from USAID’s International Disaster Assistance account, authorized under the
Foreign Assistance Act (FAA). Used primarily when U.S.-purchased
commodities cannot arrive fast enough or when other interventions are more
appropriate than in-kind food aid due to local conditions. Outlays averaged $459
mil ion/yr. since 2010.Error! Reference source not found.
Local and Regional Procurement (LRP) Program—Awards grants to eligible
2014 Farm Bil
2014
D
FAS,
organizations to purchase eligible commodities in nearby markets in response to
(P.L. 113-79)
USDA
food crises and disasters. Pilot program in the 2008 farm bil . The 2014 farm bil
authorized LRP as a permanent program with funding of $80 mil ion per year—
subject to annual appropriations—through FY2018. No funding has been
appropriated from FY2014 through FY2016.
Source: Compiled by CRS.
Notes: Statutory authority derived from both the FFPA and the FAA is “as amended.”
a. D = discretionary funding via annual appropriations; M = mandatory funding financed through the borrowing authority of USDA’s
Commodity Credit Corporation (CCC) and thus not general y subject to annual appropriations.
b. The Foreign Agricultural Service (FAS) of USDA or the U.S. Agency for International Development (USAID) are implementing agencies.
c. CCC is a government-owned corporation with broad powers to support farm income and prices and assist U.S. agricultural exports.
d. Commodities requested under FFPA Titles I and II, as wel as the Food for Progress and McGovern-Dole IFECN programs, may be acquired
from CCC stocks or purchased in U.S. markets and are subject to U.S. cargo preference requirements.
e. The Global Food Security Act of 2016 (P.L. 114-195) codified the EFSP as a permanent program under the FAA (22 U.S.C. 9306).
Randy Schnepf, Specialist in Agricultural Policy
IF10194
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U.S. International Food Aid Programs

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