Farm Bill Primer: International Food Aid Programs, McGovern-Dole and Local and Regional Procurement

Farm Bill Primer: International Food Aid Programs, McGovern-Dole and Local and Regional Procurement

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April 21, 2022
International Food Aid Programs: McGovern-Dole and Local
and Regional Procurement
The U.S. government administers international food
(P.L. 113-79) and reauthorized in the 2018 farm bill (P.L.
assistance programs that aim to alleviate hunger and improve
115-334). Provisions for LRP are organized under Subchapter
food security around the world. The U.S. Department of
III: Emergency and Private Assistance Programs of P.L 480.
Agriculture (USDA) administers several of these programs,
Table 1 compares selected statutory requirements for
including the McGovern-Dole International Food for
McGovern-Dole and LRP.
Education and Child Nutrition Program (McGovern-Dole)
and the Local and Regional Procurement Program (LRP).
Table 1. Selected McGovern-Dole and LRP Statutory
These two programs have several parallel provisions that aim
Requirements
to achieve the same goal of providing nonemergency food aid
McGovern-Dole
LRP
in an effort to help communities boost agricultural
productivity, strengthen local food systems, and improve
Origin of agricultural
Origin of agricultural
nutrition.
commodities: Agricultural
commodities: Agricultural
commodities must either be
commodities must be produced
This In Focus provides an overview of the McGovern-Dole
produced in the United States
in and procured from a
and LRP programs, including their legislative authority,
or be produced and procured in developing country (7 U.S.C.
statutory requirements, funding trends, recent projects, and
the recipient country or
§1726c(a)(3)).
selected issues for Congress.
another developing country in
the same region (7 U.S.C.
Legislative Authority
§1736o-1(a)).
The Food for Peace Act of 1954 (FFPA; P.L. 83-480, 7
Food aid distribution:
Food aid distribution:
U.S.C. §1691 et seq.), commonly referred to as “P.L. 480,”
Importation of agricultural
Provision food aid to affected
provides statutory authority for the United States to provide
commodities shall not have a
populations without significantly
foreign food assistance. FFPA provisions for McGovern-Dole
disruptive impact on farmers or increasing commodity costs for
appear in 7 U.S.C. §1736o-1; provisions for LRP appear in 7
the local economy of the
low-income consumers who
U.S.C. §1726c of the act. (For more on international food aid
recipient country (7 U.S.C.
procure commodities sourced
programs, see CRS Report R45422, U.S. International Food
§1733(b)).
from the same markets at which
Assistance: An Overview.)

the eligible commodity is
procured (7 U.S.C. §1726c(c)).
McGovern-Dole focuses on improving children’s health and
Program timespan: The
Program timespan: A
nutrition by providing primarily in-kind aid (via food
program shall establish
portion of funds shall be made
commodities sourced in the United States) to school-aged
procedures that provide
available for projects that
children, pregnant and nursing mothers, and infants.
assistance for multiple years (7 provide development assistance
McGovern-Dole also supports capacity-building efforts by
U.S.C. §1736o-1(f)(1)); multiyear projects for a minimum of one
governments in recipient countries by providing technical
programs are given priority (7
year (7 U.S.C. §1726c(d)(3)(B)).
assistance to establish national feeding programs. USDA
U.S.C. §1736o-1(f)(2)).
primarily works with the governments and organizations in
recipient countries to implement the national feeding
Source: 7 U.S.C. Ch. 41: Food For Peace.
program. Congress established McGovern-Dole in the 2002
farm bill (P.L. 107-171) and has reauthorized the program in
Funding
subsequent farm bills. Provisions for McGovern-Dole are
In the 2014 farm bill, Congress authorized appropriations for
organized under Subchapter IV: General Provisions of P.L
LRP of $80 million annually, giving preference to eligible
480, which establishes statutory requirements for several in-
organizations that have, or are working toward, projects
kind international food assistance programs.
under McGovern-Dole. The FY2016-FY2019 appropriation
acts funded LRP through a set-aside from McGovern-Dole
LRP provides funding to partner organizations to procure
that grew from $5 million to $20 million annually during this
locally or regionally sourced commodities to be used for
time frame. Funding for LRP has not been authorized since
international food assistance. The procured commodities are
2019.
distributed to program participants that receive food
assistance. Although Congress has not directed program-
McGovern-Dole receives discretionary appropriations, which
specific uses for LRP funding, USDA typically has used LRP
have steadily risen over the past several years—from $185
to supplement in-kind assistance in McGovern-Dole projects.
million for FY2014 to $237 million for FY2022 (Figure 1).
LRP started as a pilot program in the 2008 farm bill (P.L.
The program has been responsive to emerging food needs: in
110-246). The program was authorized in the 2014 farm bill
2020, McGovern-Dole adjusted programming to meet needs
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International Food Aid Programs: McGovern-Dole and Local and Regional Procurement
related to the Coronavirus Disease 2019 (COVID-19) and
costly, as shipping on U.S.-flag vessels typically costs more
provided over 48 metric tons of in-kind food aid valued at
than shipping on foreign-flag vessels. (For more on
about $38 million. The 2018 farm bill amended FFPA to
international food aid and shipping, see CRS In Focus
authorize USDA to use up to 10% of annual McGovern-Dole
IF12018, International Food Assistance and Agricultural
funding to procure local or regional agricultural food
Cargo Preference.)
commodities through the McGovern-Dole program itself.
This offered USDA a second avenue through which it could
Proponents of market-based assistance, such as LRP,
procure commodities either locally or regionally for
emphasize that it allows for quicker response times than in-
McGovern-Dole. From FY2020 to FY2022, Congress
kind assistance. According to the U.S. Government
authorized funding for local purchases of agricultural food
Accountability Office (GAO), LRP can arrive 14-16 weeks
commodities through the McGovern-Dole program itself. For
sooner than in-kind aid. Proponents also contend that market-
FY2022, Congress appropriated $23.7 million for local and
based assistance is less costly than in-kind aid, allowing
regional procurement of agricultural commodities through
donors to reach more people in need with less funding.
McGovern-Dole.
Critics of market-based assistance contend that in poorly
controlled settings, cash transfers or food vouchers could be
Figure 1. McGovern-Dole and LRP Appropriations
stolen or used to purchase nonfood items. Additionally, using
LRP in food-deficit regions or in underdeveloped markets
could create local or regional shortages, causing food prices
to rise. Congress may consider whether the current mix of
market-based and in-kind assistance is achieving U.S.
international food assistance priorities.
Implementation Challenges
According to USDA, the McGovern-Dole program seeks to
involve local communities and governments in project
implementation to foster local capacity building and self-
sufficiency. The 2018 farm bill conference report (H.Rept.
115-1072) directed USDA to incorporate LRP assistance,
particularly in the final years of McGovern-Dole projects, “to
support the transition to full local ownership and
implementation.” USDA routinely partners with local
organizations to manage and oversee projects; in some
instances, however, difficulties in recipient communities have
impeded the program’s success. For example, 2020
Source: Figure created by CRS using FY2014-FY2022 annual
McGovern-Dole projects in Nepal and Laos cited inadequate
appropriations.
incentives for community members, insufficient training, and
Issues for Congress
weak program monitoring as factors that negatively affected
program implementation. Congress may consider whether the
Historically, the United States provided international food aid
current McGovern-Dole authorization is sufficiently flexible
predominately via in-kind commodities. McGovern-Dole is
to support personnel that are critical to in-country program
the second-highest funded in-kind international food
delivery and to support the transition to local ownership.
assistance program after the Food for Peace Act, Title II
program. However, in recent years, Congress has
Potential for Program Duplication
appropriated funds for local and regional procurement of
Some experts suggest there is duplication in LRP and in the
agricultural commodities for food assistance through market-
market-based McGovern-Dole programs, as both contain
based assistance provisions of LRP and McGovern-Dole.
provisions related to market-based food assistance. Market-
Congress may consider the advantages and disadvantages of
based food assistance provided via McGovern-Dole is
in-kind assistance and market-based assistance and the
statutorily required to be used for food for education projects
overlap between McGovern-Dole and LRP market-based
as well as maternal, infant, and child nutrition projects in
assistance provisions.
recipient countries. LRP does not have the same statutory
In-Kind vs. Market-Based Food Assistance
requirements for use of funds but gives preference to active
McGovern-Dole projects. Congress could consider whether
In-kind and market-based assistance have unique advantages
there is a need to more clearly differentiate the two programs,
and challenges. According to USDA, McGovern-Dole’s in-
possibly by adjusting their respective authorizations to
kind assistance may be particularly appropriate when food
establish distinct program parameters or objectives or by
supplies at the local and regional level are scarce. Proponents
adding specific funding directives in annual appropriations
of in-kind aid contend it supports American agriculture by
acts.
providing U.S.-grown commodities and supports American
jobs by shipping those commodities on U.S.-flag ships.
Critics of in-kind aid emphasize that it takes longer to reach
Amber D. Nair, Analyst in Agricultural Policy
recipients than market-based assistance and can be more
IF12081

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International Food Aid Programs: McGovern-Dole and Local and Regional Procurement

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