2018 Farm Bill Primer: Agricultural Trade and Food Assistance

2018 Farm Bill Primer: Agricultural Trade and Food Assistance

May 22, 2019
2018 Farm Bill Primer: Agricultural Trade and Food Assistance
The provisions of Title III of the 2018 farm bill
provide technical assistance to farmers in developing
(Agricultural Improvement Act of 2018, P.L. 115-334)
countries. P.L. 115-334 authorizes a new grant program to
include programs designed to alleviate hunger and improve
facilitate new and innovative partnerships (§3116).
global food security and to expand foreign markets for U.S.
The McGovern-Dole International Food for Education
agricultural producers and food manufacturers. Title III
and Child Nutrition Program provides U.S. commodities
covers international food assistance programs, export credit
to developing countries for school feeding programs and for
guarantee programs, export market development programs,
pregnant and nursing mothers. P.L. 115-334 authorizes up
and international science and technical exchange programs
to 10% of annual program funds to be used for local and
and provisions. Title III programs derive their statutory
regional procurement—buying food in the country or
authorities from the Food for Peace Act of 1954 (P.L. 83-
region where it will be used rather than in the United States.
480) for international food assistance programs and the
It adds a provision that assistance be provided in a timely
Agricultural Trade Act of 1978 (P.L. 95-501) for foreign
manner and when needed throughout the applicable school
market expansion programs.
year (§3309).
International Food Assistance Programs
The Food for Progress Program (FPPr) monetizes U.S.
As summarized below, the 2018 farm bill amends and
commodities in recipient countries to fund humanitarian or
reauthorizes U.S. international food assistance programs.
development projects. P.L. 115-334 directs the Secretary of
Agriculture to include in annual program reports the rate of
Food for Peace Title II
return for each commodity provided under FPPr. It
The Food for Peace (FFP) Title II Program donates U.S.
authorizes a pilot program to directly fund activities rather
commodities to recipients in foreign countries. The 2018
than funding activities through the proceeds of monetized
farm bill eliminates the requirement to monetize at least
commodities, and it authorizes $10 million annually
15% of FFP Title II commodities—that is, sell on local
through FY2023 for the new pilot program (§3302).
markets to fund development projects (§3103). It increases
The Bill Emerson Humanitarian Trust (BEHT) is a
the minimum allocation for FFP Title II nonemergency
mandatory reserve of funds held by the U.S. Department of
assistance from $350 million to $365 million annually. The
Agriculture (USDA) that can supplement FFP Title II
maximum allocation for nonemergency assistance remains
assistance when FFP Title II alone cannot meet emergency
unchanged from prior law at 30% of FFP Title II funds
food needs. P.L. 115-334 reauthorizes BEHT through
(§3114).
FY2023 (§3303).
P.L. 115-334 requires that all FFP Title II assistance,
The Local and Regional Food Aid Procurement
including locally procured food and printed material that
Program (LRP Program) provides locally and regionally
accompanies other assistance, be labeled as from the
procured food to recipients instead of food procured from
American people (§3101). It also requires that no FFP Title
the United States. P.L. 115-334 reauthorizes the LRP
II assistance—including U.S. commodities, locally
Program through FY2023 (§3311).
procured food, vouchers, or cash transfers—be provided
unless the recipient country contains adequate storage
Export Credit Guarantee Programs
facilities and the assistance will not interfere with the local
agricultural economy (§3109). Under prior law, both of
The 2018 farm bill (§3201) extends provisions for the
these requirements applied only to food assistance provided
export credit guarantee program (GSM-102) and the
in the form of U.S. commodities.
Facility Credit Guarantee Program (FGP), funded through
USDA’s Commodity Credit Corporation (CCC). The CCC
The 2018 farm bill amends the maximum allocation for
is authorized under a permanent law—the CCC Charter Act
program oversight, monitoring, and evaluation from $17
of 1948. GSM-102 guarantees credit extended by U.S.
million to 1.5% of annual funds made available for FFP
private lenders (or, less commonly, by a U.S. exporter) to
Title II. It also specifies a minimum allocation of not less
approved foreign financial institutions of up to $5.5 billion
than $17 million (§3107) and directs the administrator of
annually for up to 18 months for the purchase of U.S. farm
the U.S. Agency for International Development (USAID),
and food products. FGP is designed to boost sales of U.S.
which administers FFP Title II, to issue all necessary
agricultural products in countries where demand may be
regulations and revisions to program guidance no later than
limited due to inadequate storage, processing, handling, or
270 days after the enactment of P.L. 115-334 (§3106).
distribution capabilities. The 2018 farm bill extends
authorization of at least $1 billion per year through FY2023
Other International Food Assistance Programs
in direct credits or credit guarantees of up to 10 years to
The Farmer-to-Farmer Program (FFP Title V)
facilitate the financing of manufactured goods and U.S.
coordinates short-term placements for U.S. volunteers to
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2018 Farm Bill Primer: Agricultural Trade and Food Assistance
services to improve or establish agriculture-related facilities
million, and P.L. 115-334 provisions allow for projects to
in emerging markets.
extend beyond a five-year period.
Export Market Development Programs
International Science and Technology
The 2018 farm bill consolidates four of USDA’s market
Programs and Provisions
development and export promotion programs into a new
The Global Crop Diversity Trust (§3310) is a program
Agricultural Trade Promotion and Facilitation Program
administered by USAID for conservation of food crop
(ATPFP, §3201), providing mandatory annual CCC funding
genetic diversity. P.L. 115-334 provides an authorization
of $255 million. This consolidation provides the programs
not to exceed $5.5 million annually or 33% (a change from
under ATPFP a built-in “baseline” for future funding. The
prior 25%) of the total amount of funds contributed to the
ATPFP includes a new funding of $3.5 million annually,
trust from all sources.
the Priority Trade Fund, to supplement one or more of the
ATPFP’s component programs for authorized activities to
The Biotechnology and Agricultural Trade Program
access, develop, maintain, and expand markets for U.S.
(§3301) addresses trade barriers to products produced with
agricultural commodities (§3201f). The four programs
agricultural biotechnology and under P.L. 115-334 is
consolidated under ATPFP include the following:
authorized $2 million annually until FY2023.
Through the Market Access Program (MAP, §3201b)
The Borlaug Fellowship (§3306) promotes food security
USDA partners with U.S. agricultural trade groups and state
and economic growth by providing training and research
agencies to share the costs of overseas marketing and
opportunities to fellows from low- and middle-income
promotional activities to help build export markets for U.S.
countries. P.L. 115-334 adds as a purpose the development
agricultural products. MAP allows promotion of branded
of agricultural extension services in foreign countries and
products, and P.L. 115-334 no longer restricts branded
also requires the Secretary of Agriculture to encourage
product participation to five years. MAP receives minimum
engagements with program alumni. P.L. 115-334 authorizes
annual mandatory funding for FY2019-2023 of $200
such sums as are necessary.
million.
The Cochran Fellowship (§3305) provides short-term
Through the Foreign Market Development Cooperator
training opportunities to agricultural professionals from
Program (FMD, §3201c), USDA’s Foreign Agricultural
developing countries. P.L. 115-334 allows for training in or
Service partners with U.S. nonprofit agricultural trade
at colleges or universities overseas with specific U.S. ties
associations to address long-term opportunities to reduce
and increases annual authorized appropriations, without
foreign import constraints or expand export growth
fiscal year limitation to $3 million for middle-income
opportunities for U.S. agricultural commodities. FMD
countries, $4 million for countries with ongoing relations,
funding is available for generic (not branded) product
and $6 million for newly democratic countries.
promotion. FMD mandatory annual allocations for
The International Agricultural Education Fellowship
FY2019-FY2023 is a minimum of $34.5 million.
Program authorizes annual appropriations of $5 million for
The 2018 farm bill allows funding for certain activities in
U.S. citizens to provide technical assistance to develop
Cuba under the MAP and FMD programs (§3201f) so long
agricultural extension and education programs for youths in
as funds are not used in contravention of the policy outlined
developing countries upon consultations with national 4H
in National Security Presidential Memorandum 5 of June
and Future Farmers of America (§3307).
16, 2017, which requires that funds be “channeled to
An International Food Security Technical Assistance
benefit Cuban people” and not “the Cuban government or
provision defines international food security as “access by
its military, intelligence, or security agencies or personnel.”
any person at any time to food and nutrition that is
The E (Kika) de la Garza Emerging Markets Program
sufficient for a healthy and productive life” (§3308). It
(EMP, §3201d) provides cost-share funding for technical
authorizes $1 million annually, through 2023, for the
assistance activities that support exports of generic U.S.
Secretary of Agriculture to collect and make available to
agricultural commodities and products. These activities
the public information related to international food security
include cooperation and exchange of information between
including foreign governments, non-governmental
institutions and agribusinesses in the United States and
organizations, and international organizations. It also
emerging markets. P.L. 115-334 modifies the definition of
authorizes USDA to provide technical assistance to users of
emerging market to include a territory, customs union, or
this data upon request.
other economic market. EMP annual mandatory allocations
Foreign Trade Missions
for FY2019-FY2023 cannot exceed $8 million and must
cover at least three emerging markets each year.
The 2018 farm bill directs the Secretary of Agriculture to
increase the inclusion of, and to report on, tribal agricultural
Technical Assistance for Specialty Crops (TASC)
and food products in trade-related activities (§3312).
(§3201e) provides funding to eligible U.S. organizations for
projects that address existing and potential sanitary,
For additional detail see CRS Report R45525, The 2018
phytosanitary, and technical barriers that prohibit or
Farm Bill (P.L. 115-334): Summary and Side-by-Side
threaten the export of U.S. specialty crops. Eligible crops
Comparison.
include all cultivated plants and their products produced in
Anita Regmi, Analyst in Agricultural Policy
the United States except wheat, feed grains, oilseeds,
Alyssa R. Casey, Analyst in Agricultural Policy
cotton, rice, peanuts, sugar, tobacco, and branded products.
TASC annual allocations through FY2023 are set at $9
IF11223
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2018 Farm Bill Primer: Agricultural Trade and Food Assistance

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