Trade Title of the 2002 Farm Bill: Comparison of Final Provisions with the House and Senate Proposals, and Prior Law

Trade Title of the 2002 Farm Bill: Comparison of Final Provisions with the House and Senate Proposals, and Prior Law

Order Code RL31581
CRS Report for Congress
Received through the CRS Web
Trade Title of the 2002 Farm Bill:
Comparison of Final Provisions with the
House and Senate Proposals, and Prior Law
September 27, 2002
name redacted
Specialist in Agricultural Policy
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

Trade Title of the 2002 Farm Bill:
Comparison of Final Provisions with the
House and Senate Proposals, and Prior Law
Summary
Exports, whether commercial or provided as food aid, are viewed by most U.S.
agricultural groups as critical to their prosperity. Thus, the trade and food aid
provisions of the omnibus farm bill, the Farm Security and Rural Investment Act of
2002 (H.R. 2646), signed into law (P.L. 107-171) by the President on May 13, 2002,
are of great interest to the agricultural community.
The measure includes a trade title (Title III) amending and/or extending, through
2007, the major agricultural export and foreign food aid programs. These include
direct export subsidies (the Export Enhancement Program and Dairy Export Incentive
Program); market promotion programs (the Market Access Program and Foreign
Market Development Cooperator Program); food aid (for example, P.L. 480, the
Food for Peace Program; and Food for Progress); and export credit guarantees (the
so-called GSM-102 and GSM-103 programs).
The law also contains (in Title X) provisions setting new country-of-origin
labeling requirements for meat, seafood, peanuts, and fruits and vegetables. Title I,
the commodity title, significantly expands the availability of domestic U.S. farm
subsidies. Both have implications for U.S. trade relations, particularly as the United
States currently is negotiating new agricultural trade rules in the World Trade
Organization. Stated U.S. goals are the elimination of all countries’ export subsidies,
as well as substantial reductions in domestic farm support and import restrictions.
This report, which is not intended for future updates, provides a side-by-side
comparison of the new law’s major trade provisions with prior law, and with the
differing farm bills passed earlier in the 107th Congress by the House and Senate.

Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Selected Policy Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Projected Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Comparison of Provisions: Prior Law, House and Senate Bills, New Law . . . . . . 4
Agricultural Export Assistance Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Market Access Program (MAP)
Foreign Market Development Cooperator Program
Export Enhancement Program
Dairy Export Incentive Program
Export Credit Guarantees (GSM)
Emerging Markets Program
Food Aid Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
P.L. 480 (Food for Peace) General
P.L.480 Assistance Levels and Funding
P.L. 480 Operation & Administration
Certified Institutional Partners
Farmer-to-Farmer Program
CCC (Section 416) Surplus Donations
Bill Emerson Humanitarian Trust
Food for Progress
International Food for Education
Farmers for Africa & Caribbean Basin
Terrorism and Foreign Assistance
Other Trade Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Trade Agreement Compliance
Technical Assistance for Barriers to Trade
Biotechnology and Agricultural Trade Program
Trade Negotiating Objectives
Exporter Assistance Initiative
Cuba Trade Sanctions
Studies and Reports
Country of Origin Labeling; Grading

Trade Title of the 2002 Farm Bill:
Comparison of Final Provisions with the
House and Senate Proposals, and Prior Law
Introduction1
With agricultural exports accounting for about one-fourth of U.S. farm income,
policymakers view efforts to develop and maintain overseas markets as vital to the
sector’s financial health. The Administration and Congress, primarily through its
Agriculture Committees, attempt to promote U.S. exports through an array of
domestic farm programs, agricultural export subsidy and promotion activities, and
foreign food aid programs. Most of these programs are periodically reviewed,
amended, and reauthorized as part of an omnibus, multi-year farm bill.
A new farm bill, the Farm Security and Rural Investment Act of 2002 (H.R.
2646), was cleared by Congress in early May. The President signed the measure into
law (P.L. 107-171) on May 13, 2002.
The measure includes a trade title (Title III) amending and/or extending, through
2007, the major foreign food aid and agricultural export programs. These include
direct export subsidies [the Export Enhancement Program (EEP) and Dairy Export
Incentive Program (DEIP)]; market promotion programs [the Market Access
Program (MAP) and Foreign Market Development Cooperator Program (FMDP)];
food aid (for example, P.L. 480, the Food for Peace Program; and Food for
Progress); and export credit guarantees (the so-called GSM-102 and GSM-103
programs).
Also, Title X of the law sets out new country-of-origin labeling requirements for
meat, seafood, peanuts, and fruits and vegetables. Title I, the commodity title,
significantly expands the availability of domestic U.S. farm subsidies. Both have
implications for U.S. trade relations, particularly as the United States currently is
negotiating new agricultural trade rules in the World Trade Organization (WTO).
1 A primary source for this report is the conference report (H.Rept. 107-424) to accompany
H.R. 2646, the Farm Security and Rural Investment Act of 2002. For a lengthier discussion
of U.S. agricultural export and food aid programs, including data on recent spending levels,
how the programs are funded in the federal budget, and current issues, see CRS Issue Brief
IB98006, Agricultural Export and Food Aid Programs, updated periodically. For details
on the entire farm law, including projected costs and other information, see CRS Report
RL31195, The 2002 Farm Bill: Overview and Status.

CRS-2
Selected Policy Issues
Some critics believe that the availability of expanded farm support under the
commodity title increases the possibility that the United States will exceed its subsidy
limits ($19.1 billion per year in trade-distorting subsidies) set forth in the multilateral
1994 Uruguay Round Agreement on Agriculture (URAA). To allay such concerns,
the bill’s drafters included, in Title I, a requirement that the Secretary of Agriculture,
to the maximum extent practicable, make adjustments in domestic farm support to
ensure that subsidies do not exceed the limits. Some have questioned the feasibility
of implementing this provision — the so-called “circuit breaker” — and how it could
be applied equitably among programs and producers.
Also, the expansion of domestic farm support has caused some critics here and
abroad to question the sincerity of the U.S. proposal, in the current global trade
negotiations, to further reduce all countries’ trade-distorting farm policies. Defenders
counter that the United States has remained within its URAA limits and is not likely
to exceed them in the future, and, furthermore, that so long as the European Union
and others heavily subsidize their farmers, the United States should not unilaterally
cut back on aid. (See CRS Report RL30612, Farm Support Programs and World
Trade Commitments.)
In renewing the food aid and export assistance programs, the 107th Congress
again was confronted with questions of policy direction and funding. Levels of
spending and volumes of product subsidized under EEP and DEIP are subject to
limitations under the multilateral 1994 Uruguay Round Agreement on Agriculture
(URAA). In practice, EEP has been used little in recent years; DEIP has been used
to the limits of the URAA. Market promotion programs like MAP, the food aid
programs, and export credits (GSM) are not considered to be trade distorting under
the current URAA, and therefore are not subject to spending disciplines. However,
foreign trading partners argue that the United States has utilized food aid and export
credits as ways to dispose of heavily subsidized farm surpluses, thereby distorting
trade — and want such programs to be disciplined in the new round of negotiations.
(The United States says it is willing to discuss export credits during the negotiations.)
Some have questioned whether export subsidy and promotion activities actually
increase overseas sales or simply displace commercial sales. Even if sales increase,
do they translate into higher farm prices and incomes — or might direct farm
subsidies be more cost-effective? Some critics claim that these programs benefit
primarily large food and export companies (who can afford to pay for promotion
activities themselves) or foreign buyers more than U.S. producers. Defenders cite
studies claiming positive outcomes from such spending. Similar questions arise with
regard to foreign food aid.

CRS-3
Projected Costs
The Congressional Budget Office (CBO) in March 2002 projected that under the
trade title of the new farm bill, mandatory spending over six years (FY2002-2007)
would increase by $532 million (new budget authority) over the baseline of $1.572
billion, for total mandatory spending of $2.104 billion. Actual spending is expected
to be higher, because some programs are so-called discretionary programs, meaning
that their funding is determined through annual appropriations. Most notably, P.L.
480 food aid receives more than $1 billion in annual appropriations.

CRS-4
Comparison of Provisions: Prior Law, House and Senate Bills, New Law
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
A. Agricultural Export Assistance Programs
1. Market Access Program (MAP)
a. MAP helps exporters (mainly
a. Extends current law, except it
a. Extends current law, except that
a. Extends current law through
nonprofit industry trade associations,
increases mandatory funding to not
in addition to any funds specifically
FY2007 at the following mandatory
who allocate the funds to others
more than $200 million yearly in CCC
appropriated for the program,
funding levels: $100 million in
including agricultural cooperatives
funds through FY2011. [§301]
mandatory funding of not more than
FY2002; $110 for FY2003; $125
and small businesses) finance
$100 million in FY2002; $120
million for FY2004; $140 million for
promotional activities overseas
million in FY2003; $140 million in
FY2005; $200 million for FY2006;
(usually for more consumer-oriented,
FY2004; $180 million in FY2005;
$200 million for FY2007. [§3103]
higher value products). Required
in $200 million in FY2006 (in CCC
(mandatory) funding of not more than
funds or equivalent CCC
$90 million yearly in CCC funds
commodities). [§322]
through FY2002. [Agricultural Trade
Act of 1978 as amended by §244 of
Federal Agriculture Improvement and
Reform (FAIR) Act of 1996]
b. No provision.
b. No provision.
b. Priority, for funds in excess of
b. In providing funds in excess of
$90 million in any year, for eligible
the FY2001 level (i.e., $90 million)
organizations that have not
Secretary shall, for proposals from
participated in the past, and for
new program participants and for
programs in emerging markets.
emerging markets, give
[Section 322]
consideration equal to that given to
current participants. [§3103]
c. No provision.
c. No provision.
c. New U.S. Quality Export
c. No provision.
Initiative (using appropriated MAP,
FMDP funds), to promote U.S.
products with a new “U.S. Quality”
seal overseas. [Section 322]

CRS-5
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
2. Foreign Market Development
Cooperator Program (FMDP)
a. FMDP helps U.S. exporters
a. Extends current law, except sets
a. Extends current law, except sets
a. Extends current law, except sets
(mainly through commodity based
mandatory funding at $37 million in
mandatory funding of $37.5 million
mandatory funding at $34.5 million
trade associations) to finance
CCC funds yearly through FY2011.
for FY2002; $40 million for
annually from FY2002 to FY2007.
promotional activities overseas.
[§305]
FY2003; and $42.5 million for
[§3105]
Statutory authority (at such sums as
FY2004 and subsequent years (in
necessary) through FY2002; current
CCC funds or equivalent CCC
funding is $28 million per year.
commodities). [§324]
[Agricultural Trade Act of 1978 as
amended by §252 of FAIR Act of
1996]
b. FMDP has focused on promoting
b. New emphasis on exporting value-
b. Establishes a priority, for funds
b. In providing funds in excess of
mainly bulk and partially processed
added products to emerging markets.
above $35 million in any year, for
the FY2001 level (i.e., $28 million)
commodities, targeted to foreign
Requires annual report to Congress on
eligible organizations that have not
the Secretary shall, for proposals
importers/processors — although
program. [§305]
participated in the past, and for
from new program participants and
about a third of program promotes
programs in emerging markets.
for emerging markets, give
value-added products.
[§324]
consideration equal to that given to
current participants. Calls for “a
continued significant emphasis” on
value-added products to emerging
markets. Requires annual report to
Congress. [§3105]
3. Export Enhancement Program
(EEP)
a. EEP authorizes cash payments or
a. Current law extended through
a. Current law extended through
a. Current law extended through
CCC commodities as bonus subsidies
FY2011, at current level of up to $478
FY2006, at current level of up to
FY2007 at current level of up to
to help exporters sell agricultural
million per year. [§304]
$478 million per year. [§323]
$478 million per year. [§3104]
products (although not statutorily
prescriptive, mainly wheat and other
grains have used EEP) at more
competitive prices in targeted foreign
markets. Authority through FY2002,
with CCC funding at up to $478

CRS-6
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
million per year. [Agricultural Trade
Act of 1978 as amended by §245 of
FAIR Act of 1996]
b. EEP may be used to help mitigate
b. No expanded definition.
b. Expands the definition of unfair
b. Expands definition of unfair trade
or offset the effects of unfair trade
trade practices to include (1) pricing
practices to include (1) an exporting
practices, now defined as any foreign
practices by an exporting state
STE that prices its commodities
act or policy that “violates, or is
trading enterprise (STE) that “are
inconsistently with sound
inconsistent with, the provisions of,
not consistent with sound
commercial practice; (2) provision
or otherwise denies benefits to the
commercial practices conducted in
of subsidies that decrease U.S.
United States under, any trade
the ordinary course of trade,” or (2)
export market opportunities or
agreement...” or “is unjustifiable,
changing U.S. “export terms of
unfairly distort market opportunities
unreasonable, or discriminatory and
trade through a deliberate change in
to detriment of U.S. exporters; (3)
burdens or restricts United States
the dollar exchange rate of a
unfair technical barriers to trade
commerce.” [Agricultural Trade Act
competing exporter.” [§323]
including commercial requirements
of 1978, §102]
adversely affecting new technology
like biotechnology and unjustified
sanitary or phytosanitary restrictions;
(4) unfair implementation of tariff
rate quota rules; (5) failure to meet
trade agreement obligations with the
United States. [§3104]
4. Dairy Export Incentive Program
(DEIP)
DEIP authorizes cash or CCC
Extends current law through 2011.
Extends current law through
Extends current law through 2007.
commodities as bonus subsidies to
[Title I-C, §143]
FY2006. [Title I-C, §133]
[Title I- E, §1503]
help exporters sell specified dairy
products at more competitive prices
in targeted foreign markets.
Authority through FY2002, with CCC
funding to provide commodities to
the maximum levels consistent with
U.S. obligations as a member of the
World Trade Organization. [Food
Security Act of 1985 as amended by
§148 of the FAIR Act of 1996]

CRS-7
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
5. Export Credit Guarantees
(GSM)
a. Extends current law through
a. Extends current law through
a. Extends current law through
a. Authority through FY2002 with
FY2011. [§306]
FY2006. Requires a report to
FY2007. Instead of report, requires
CCC funding, where USDA
Congress within 1 year on the status
regular consultations with Congress
guarantees commercial financing of
of multilateral negotiations
on the status of multilateral
not less than $5.5 billion annually of
regarding agricultural export credit
negotiations regarding agricultural
U.S. agricultural exports. Financing
programs. [§321]
export credit programs. [§3102]
can be used for short-term credit
(GSM-102) for up to 3 years; and for
long-term credit (GSM-103), for 3-10
years. GSM programs are used in
countries where needed financing
may not be available without the CCC
guarantees. (At least 35% of total
credit guarantees must be to promote
processed or high-value agricultural
products.) [Agricultural Trade Act of
1978 as amended by the §243 of the
FAIR Act of 1996]
b. Supplier Credits feature permits
b. No change in supplier credit term.
b. Permits guarantees of supplier
b. Permits supplier credit guarantees
CCC to issue credit guarantees for
credits for up to 12 months. [§321]
for up to 360 days, subject to
repayment of credit made available
appropriations for any loan terms
by a U.S. exporter to a foreign buyer
longer than the current 180 days.
for up to 180 days. [Agricultural
[§3102]
Trade Act of 1978 as amended by
§243 of the FAIR Act]
6. Emerging Markets Program
a. Requires CCC through FY2002 to
a. Extends current law through
a. Extends current law through
a. Extends current law through
offer no less than $1 billion per year
FY2011. [§308]
FY2006. [§332]
FY2007. [§3203]
in direct credit, or credit guarantees,
for exports to emerging markets
(formerly emerging democracies).
[Food, Agriculture, Conservation and
Trade Act of 1990 as amended by
§277 of the FAIR Act of 1996]

CRS-8
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
b. Increases this funding to $13
b. No increase.
b. No increase.
b. Requires CCC to provide $10
million annually. [§308]
million annually through FY2002 to
send U.S. advisors to emerging
markets. Food, Agriculture,
Conservation and Trade Act of 1990
as amended by §277 of FAIR Act of
1996]
B. Food Aid Programs
1. P.L. 480 (Food for Peace)
General
a. Seeks to combat hunger and
a. Extends P.L. 480 (i.e., authority to
a. Extends P.L. 480 through
a. Extends P.L. 480 authority
encourage development overseas.
enter into new agreements) through
FY2006. [§311]
through FY2007. [§3012]
Title I makes export credit available
FY2011. [§307]
on concessional terms (e.g. low
interest rates for up to 30 years); Title
II authorizes donations for emergency
food aid and non-emergency
humanitarian assistance. Authority to
enter into new P.L. 480 agreements
(which are funded mainly through
annual appropriations) is through
FY2002. [§408 of P.L. 480
(Agricultural Trade Development and
Assistance Act of 1954) as amended
by §217 of the FAIR Act of 1996]
b. Congress has stated five specific
b. Adds “conflict prevention” as a
b. Adds “conflict prevention” as a
b. Adds “prevent conflicts” as a new
purposes of P.L. 480 (e.g. combat
new purpose. [§307]
new purpose. [§301]
purpose. [§3001]
hunger, expand international trade,
etc.). [§2 of P.L. 480]
c. Food Aid Consultative group
c. Extends Food Aid Consultative
c. Extends Food Aid Consultative
c. Extends Food Aid Consultative
consisting of specified federal
Group through FY2006; clarifies what
Group through FY2006. [§305]
Group through FY2007. [§3005]

CRS-9
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
officials, representatives of private
the group is to review to include
voluntary organizations (PVOs),
policies and guidelines. [§307]
foreign non-government
organizations, and agriculture
producer groups, is authorized
through FY2002. [§205 of P.L. 480]
2. P.L.480 Assistance Levels and
Funding
a. Minimum Title II assistance is
a. Increases the minimum level of
a. Increases the minimum level of
2.025 million metric tons (MMT) of
a. Increases the minimum level of
commodities to 2.1 MMT in
commodities to 2.5MMT annually
agricultural commodities per year
commodities to 2.25MMT per year
FY2002, 2.2MMT in FY2003, 2.3
beginning in FY2002. Changes the
through FY2002; AID Administrator
through FY2011. [§307]
MMT in FY2004, 2.4 MMT in
sub-minimum requirement for non-
has some authority to waive
FY2005, and 2.5 MMT in FY2006.
emergency programs to 1.875 MMT
minimum. Subminimum requirement
[§304]
annually. [§3004]
for non-emergency programs is
1.55MMT. [§204 of P.L. 480]
b. Limits CCC Title II costs to $1
b. Doubles limit on CCC Title II
b. Removes limit on CCC Title II
billion yearly; some Presidential
b. Removes limit on CCC Title II
costs to $2 billion per year. [§306]
costs. [§3006]
waiver authority. [§206 of P.L. 480]
costs. [§307]
c. Provides that at least $10 million
c. Replaces dollar designations by
c. Replaces dollar designations by
but not more than $28 million of Title
c. Replaces dollar designations by
setting support for eligible
setting support for eligible
II funding per year shall be use to
setting support for eligible
organizations at not less than 5%
organizations at not less than 5% and
support eligible organizations (PVOs,
organizations at not less than 5% and
and not more than 10% of Title II
not more than 10% of Title II
cooperatives, organizations like the
not more then 10% of Title II funding.
funding. [§302]
funding. [§3002]
World Food Program, etc.) in
[§307]
conducting Title II activities. [§202 of
P.L. 480]
3. P.L. 480 Operation &
Administration
a. Permits PVOs to sell Title II
a. Authorizes the use of U.S. dollars
a. Similar to House [§303, §310, &
a. Monetization language similar to
commodities in the recipient country
and other currencies for monetization
§325]. Also, a food aid commodity
House and Senate. Adopts Senate’s
(or a nearby country) to finance
in P.L. 480 — and also Food for
sale is to be “at a reasonable market
“reasonable market price” language.

CRS-10
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
commodity transportation, storage,
Progress and Section 416 programs;
price in the economy” where the
Contains language encouraging
etc., and local development projects
permits PVOs to submit multi-country
commodity is to be sold. [§310]
multi-country proposals, from all
(“monetization”). [§203 of P.L. 480]
proposals; and permits food aid
eligible organizations, not just
monetization in more than one country
PVOs. [§3003; §3009; §3106]
in the region. [§302; §303; §307]
b. The AID Administrator has 45
b. Increases the time for decisions
b. Increases, to 120 days, time the
b. Increases, to 120 days, time the
days to decide on Title II proposals
from 45 to 120 days. [§307]
Administrator has to decide on Title
Administrator has to decide on Title
submitted by eligible organizations or
II proposals. Contains other
II proposals; clarifies that the period
U.S. field missions. [§207 of P.L.
timelines for finalizing program
begins after submission of the
480]
agreements and announcing
proposal to AID Administrator, who
programs each year. Permits
is encouraged to make decisions on
USDA to approve an agreement that
proposals within that period. Deletes
provides for direct delivery of
Senate provision on direct delivery
commodities to foreign milling or
of commodities. [§3007]
processing facilities that are more
than 50% U.S.-owned, with cash
proceeds transferred to eligible
organizations for carrying out
projects. [§307]
c. Authorizes $2 million in each of
c. Extends authorization through
c. Extends authorization through
c. Extends authorization through
FY2001 and FY2002 to “preposition”
FY2011. [§307]
FY2006. [§311]
FY2007. [§3010]
food aid commodities in the U.S. and
foreign countries. [§407 of P.L. 480]
d. Authorizes appropriations of up to
d. Extends authorization through
d. Extends authorization through
d. Extends authorization through
$3 million annually through FY2002
FY2011. [§307]
FY2006. [§308]
FY2007. [§3008]
for grants to PVOs and U.S. non-
profits for stockpiling shelf-stable,
pre-packaged foods. [§208 of P.L.
480]
e. Requires USDA (if feasible) to
e. No provision.
e. Extends the authorization as an
e. Adopts the Senate provision
establish a “micronutrient
ongoing program through FY2006.
through FY2007 with technical

CRS-11
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
fortification” pilot program; authority
[§313]
corrections; includes language aimed
expires in FY2002. [§415 of P.L.
at improving and insuring quality of
480]
fortified food aid commodities.
[§3013]
f. No provision.
f. No provision.
f. Permits President to establish,
f. As part of required report to
under Title II, a “pilot emergency
Congress within 120 days on use of
relief program to provide live lamb
perishable commodities, Agriculture
to Afghanistan.” [§309.]
Secretary must report on feasibility
of transporting lambs and other live
animals in food aid programs.
[§3207]
4. Certified Institutional Partners
No provision in current law.
No provision.
Requires AID or USDA, as
For Title II Food for Peace, AID
Currently PVOs and cooperatives
applicable, to establish a process
Administrator must establish, within
generally must undergo the same
enabling PVOs and cooperatives
1 year, streamlined guidelines and
application procedures to participate
that can demonstrate their capacity
application procedures and, by
in various food aid programs each
to carry out the programs (under
FY2004, incorporate, to the
time they apply.
P.L. 480; §416; or Food for
maximum extent practicable, the
Progress) to qualify as “certified
changes. Requires consultation with
institutional partners,” which would
stakeholders and Congress, and a
entitle them to use streamlined
report to Congress within 270 days
application procedures, including
on improvements. [§3002]. For
expedited review and approval to
Food for Progress and Section 416,
receive commodities for use in
requires, respectively, the President
more than one country. [§302;
and Secretary of Agriculture, within
§325; §334]
270 days, to review and make any
needed changes in rules and
procedures aimed at streamlining
application procedures, including
consideration of pre-screening
organizations and proposals; requires
consultations with Congress.
[§3106; §3201].

CRS-12
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
5. Farmer-to-Farmer Program
Requires that no less than 0.4% of
Extends funding authority at current
Extends funding authority through
Extends funding authority through
P.L. 480 funds be used to provide
0.4% through FY2011. [§307]
FY2006, and increases minimum
FY2007, and increases minimum
U.S. farmers’ and other agricultural
funding to 0.5% of P.L. 480 funds.
funding to 0.5% of P.L. 480 funds.
experts’ technical assistance in
[§314]
Farmers for Africa and Caribbean
developing, middle income and
Basin Program is incorporated into
emerging market countries. [Title V of
this title (see No. 10, page 14, for
P.L. 480 as amended by §224 and
details). [§3014]
§277 of the FAIR Act of 1996]
[Note: renames program “John
Ogonowski Farmer-to-Farmer
Program.”]
6. CCC (Section 416) Surplus
Donations Permanent law authorizes
Maintains current law, and requires
Maintains current law, and permits
Adopts House language regarding
the use of CCC-owned surplus
USDA to publish in the Federal
USDA to approve an agreement that
October 31 and December 31
commodities for overseas donations.
Register, by each October 31, an
provides for direct delivery of
deadlines. Omits Senate provision
[§416(b) of the Agricultural Act of
estimate of Section 416 commodities
commodities to foreign milling or
on direct delivery of commodities.
1949 as amended]
to be made available for the fiscal
processing facilities that are more
[§3201]
year. Also encourages Section 416
than 50% U.S.-owned, with cash
program agreements to be finalized by
proceeds transferred to eligible
December 31. [§303]
organizations for carrying out
projects. [§334]
7. Bill Emerson Humanitarian
Trust
Authorizes, through FY2002, a trust
Extends the Trust through FY2011.
Extends the Trust through FY2006.
Extends the Trust through FY2007.
totaling not more than 4MMT of
[§309]
[§331]
[§3202]
wheat, rice, corn, sorghum, or any
combination as a reserve solely to
meet emergency humanitarian food
needs. [Bill Emerson Humanitarian
Trust Act of 1998, which replaced
Title III of the Agricultural Act of
1980 as amended (Food Security
Commodity Reserve)]

CRS-13
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
8. Food for Progress (FFP)
a. Provides commodities to support
a. Reauthorizes FFP through FY2011.
a. Reauthorizes FFP under a new
a. Reauthorizes FFP through
countries that have committed to
[§302]
Title VIII of the 1978 Agricultural
FY2007 under existing law (i.e., not
expand free enterprise in their
Trade Act called “Food for Progress
a new Title VII). Encourages
agricultural economies; commodities
and Education Programs,”
President to finalize agreements
may be provided under Title I of P.L.
authorized through FY2006.
before beginning of relevant fiscal
480 or Section 416(b) authorities, or
Permits USDA to provide
year. Requires him to submit to
using CCC funds. Authority expires
agricultural commodities to support
Congress by each December 1 a list
December 31, 2002. [§1110 of the
introduction or expansion of free
of programs, countries, eligible
Food Security Act of 1985 as
trade enterprises in recipient
commodities, and transportation and
amended by the FAIR Act of 1996]
country economies, and to provide
administrative costs for the year.
food or nutrition assistance. [§325]
Defines eligible commodities.
Incorporates a definition section into
the statute; establishes program
purposes and quality assurance
requirements; and requires President
to ensure that eligible organizations
are optimizing use of donated
commodities. [§3106]
b. Annual limits on CCC funds for
b. Increases annual limits on
b. Permits up to $55 million per
b. Increases annual limits on
administrative costs and for
administrative costs to $15 million,
year to be used for transportation,
administrative costs to $15 million,
commodity transportation costs are
and on transportation costs to $40
administrative, processing, and
and on transportation costs to $40
$10 million and $30 million,
million. [§302]
related costs. [§325]
million. [§3106]
respectively.
c. Annual limit on commodity
c. Increases annual limit on
c. Sets an annual minimum tonnage
c. Annual minimum tonnage
assistance is 500,000MT.
commodities to 1 million MT. Also,
requirement for FFP of 400,000MT
requirement: “not less than
excludes from the tonnage limit those
through FY2006, using the CCC.
400,000MT may be provided”
commodities furnished on a grant basis
In addition, authorizes the
through CCC. Excludes, from the
or on credit terms under Title I. [§302]
appropriation of such sums as may
current annual tonnage limits, those
be necessary to carry out FFP, plus
commodities furnished on a grant
permits the use of P.L. 480 Title I
basis or on credit terms under P.L.
funds. All commodities and related
480, Title I. [§3106]
expenses must be in addition to any
other P.L. 480 assistance. [§325]

CRS-14
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
9. International Food for
Education
School feeding and child nutrition
Authorizes George McGovern-Robert
Requires establishment of an
Permits President to establish the
projects have been operated within
Dole International Food for Education
International Food for Education
McGovern-Dole International Food
broader PVO and United Nations
and Child Nutrition Program whereby
and Nutrition Program whereby the
for Education and Child Nutrition
World Food Program (WFP) food aid
the President is permitted to direct the
Secretary of Agriculture may
Program, with mandatory funding
portfolios. Clinton Administration
provision of U.S. agricultural
provide commodities and technical
from CCC of $100 million in
initiated a pilot global food for
commodities and financial and
and nutrition assistance for
FY2003 to continue existing pilot
education initiative whereby USDA
technical assistance for foreign
programs that improve food
projects; and subject to
has committed to provide up to $300
preschool and school feeding programs
security and enhance educational
appropriations in FY2004-2007.
million (under Section 416 authority)
to reduce hunger and improve literacy
opportunities for preschool and
Eligible costs include commodity
for commodities and transportation
(particularly among girls), and
primary school children in recipient
acquisition, processing,
costs for school and pre-school
nutrition programs for pregnant and
countries. CCC authority and funds
transportation, handling (including
nutrition projects and related
nursing women and young children.
of not more than $150 million shall
specified in-country costs if
activities in developing countries.
Authorizes the appropriation of such
be used in each of FY2002-2005.
President makes certain
Approved projects conducted through
sums as may be necessary each year
Eligible organizations include
determinations). Eligible
the WFP, PVOs, and eligible foreign
through FY2011. Gives President
PVOs, cooperatives,
organizations: cooperatives, PVO’s,
governments using USDA
authority to designate the federal
nongovernmental organizations,
intergovernmental organizations,
discretionary authorities. [General
agency to administer program; defines
and foreign countries, which are
governments of developing countries
authority under Section 416]
eligible recipients to include PVOs,
subject to a “graduation
and their agencies, and other
cooperatives, intergovernmental
requirement” to provide for
organizations. Includes Senate
organizations, governments and their
continuation of program after end
graduation requirement; program
agencies, and other organizations.
of funding. [§325]
funding priorities and application
[§312]
guidelines; assurances that recipient
country production and marketing
are not disrupted. [§3107]
10. Farmers for Africa &
Caribbean Basin
No provision in current law.
Creates a Farmers for Africa and
No provision.
House provision is incorporated into
Caribbean Basin Program offering
the John Ogonowski Farmer-to-
grants to eligible organizations for
Farmer Program, with authorization
bilateral exchange programs utilizing
for appropriations of up to $10
African-American and other U.S.
million annually through FY2007.
farmers and agricultural specialists.
Up to 5% of appropriation can be
Authorizes $10 million in annual
used for administrative expenses.

CRS-15
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
appropriations annually through
[§3014]
FY2011. [§311]
11. Terrorism and Foreign
Assistance
No provision.
No provision.
Sense of Senate that U.S. foreign
Sense of Congress that U.S. foreign
aid should play increased role in
aid should play increased role in
addressing conditions breeding
addressing conditions breeding
global terrorism. [§338]
global terrorism. [§3209]
C. Other Trade Provisions
1. Trade Agreement Compliance
Under the 1994 Uruguay Round
If the Secretary of Agriculture
Same as House bill, but with
If Secretary determines that
Agreement on Agriculture (URAA)
determines that total spending for such
additional language requiring
expenditures will exceed URAA
the United States agreed to limit the
commodity support will exceed the
annual notifications to Congress on
allowable levels for any applicable
value of trade-distorting U.S.
limits in the URAA, the Secretary may
current and following marketing
reporting period, Secretary shall, to
domestic farm supports to $19.1
make adjustments in the programs to
year estimates of support to be
the maximum extent practicable,
billion per year. However, U.S. law
reduce spending to (but not below)
reported to the World Trade
make adjustments in such
itself does not place an upper limit on
such limits. [§181]
Organization, and effectively
expenditures to ensure that they do
such supports.
requiring Congress to consider
not exceed allowable levels. Prior to
amending (within 18 months) any
doing so, Congress must be notified
programs that might cause the
of the adjustment types and levels.
URAA limits to be breached.
[Title I, §1601]
[§164]
2. Technical Assistance for
Barriers to Trade
Various trade agreements discipline
Requires USDA to establish a
A section within the Biotechnology
Requires USDA to establish, outside
countries’ use of sanitary and
“Technical Assistance for Speciality
and Agricultural Trade Program
of the Biotechnology and
phytosanitary (SPS) and other
Crops” program, providing direct
(see below) directs USDA to assist
Agricultural Trade Program (see
technical barriers to trade, used by
assistance through public and private
U.S. exporters harmed by
below), a “Technical Assistance for
countries to protect their consumers,
projects and technical assistance, to
“unwarranted and arbitrary”
Specialty Crops” program providing
agricultural and natural resources.
help overcome the “unique barriers”
barriers to trade due to marketing of
direct assistance through public and
USDA agencies, the U.S. Trade
— such as SPS and related barriers —
biotechnology products, food
private projects and technical
Representative, and other federal
inhibiting exports of U.S. specialty
safety, disease, or other SPS
assistance to remove, resolve, or
authorities have established
crops (e.g., fruits, vegetables).
concerns; authorizes appropriations
mitigate SPS and related barriers to

CRS-16
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
mechanisms for identifying such
Requires use of $3 million annually in
of $1 million annually through
exports of U.S. specialty crops.
barriers and attempting to resolve
CCC funds through FY2011. [§310]
FY2006. [§333]
Requires use of $2 million annually
disputes over them.
in CCC resources through FY2007.
[§3205]
3. Biotechnology and Agricultural
Trade Program
No provision.
No provision.
Requires USDA to establish a
Establishes a Biotechnology and
Biotechnology and Agricultural
Agricultural Trade Program, using
Trade Program to address the
technical assistance and public and
market access, regulatory, and
private sector project grants, to
marketing issues related to exports
remove, resolve, or mitigate
of U.S. agricultural biotechnology
significant regulatory nontariff
products. Requires CCC to make
barriers to U.S. exports involving:
available $15 million for the
agricultural commodities produced
program annually through FY2006.
through biotechnology; food safety;
[§333]
disease; or other SPS concerns.
Authorizes appropriations of $6
million annually through FY2007.
[§3204]
4. Trade Negotiating Objectives
Multilateral negotiations are under
No provision.
Sense of Congress provision also
Contains an explicit description of
way to reform further the terms of
contains an explicit description of
agricultural trade negotiating
agricultural trade in place under the
agricultural trade negotiating
objectives, but as a Sense of Senate
1994 Uruguay Round Agreement on
objectives. [§336]
rather than Sense of Congress.
Agriculture. Present trade law
[§3210]
contains a list of explicit U.S.
objectives and consultation
requirements for agriculture that U.S.
negotiators are supposed to follow.
[Trade Act of 2002, Title XXI]
5. Exporter Assistance Initiative
Various federal agencies routinely
No provision.
Authorizes appropriations ($1
Requires Secretary to maintain a
provide market intelligence, trade
million for each of FY2002-2004
website with information to assist

CRS-17
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
data, and other information aimed at
and $500,000 for each of FY2005-
U.S. agricultural exporters. No
helping U.S. agricultural exporters
2006) for an “Exporter Assistance
appropriations authorized. [§3101]
find, understand, and sell into
Initiative” to create an Internet
[Note: extensive conference report
overseas markets. For example, both
website providing a single source of
language directs Secretary to
USDA’s Economic Research Service
information from all federal
improve FAS web-based
and Foreign Agricultural Service
agencies to help U.S. agricultural
information.]
maintain written and web-based
exporters. [§326]
publications and data series
containing much of this information.
6. Cuba Trade Sanctions
FY2001 agriculture appropriations
No provision.
Lifts restrictions on private
No provision.
law codified the lifting of unilateral
financing of agricultural sales to
sanctions on commercial sales of
Cuba [§335]
food, agricultural commodities,
medicine, and medical products to
Iran, Libya, North Korea, and Sudan;
and extended this policy to apply to
Cuba, but in a more restrictive way by
prohibiting all financing of such sales,
even with private credit sources.
[§908 of the Agriculture, Rural
Development, Food and Drug
Administration and Related Agencies
Act, 2001]
7. Studies and Reports
a. Services provided by USDA’s
a. Requires USDA to study and report
a. No provision.
a. Requires study, but only of fees
Foreign Agricultural Service (FAS)
to Congress within 1 year on the
for services beyond those already
are generally taxpayer-funded.
feasibility of a program charging fees
provided by FAS as part of an
to pay for providing commercial
overall market development strategy
services abroad on matters under FAS.
for a particular country or region.
[§313]
[§3208]
b. Secretary of Agriculture is
b. Requires USDA to report to
b. No provision.
b. Requires USDA to consult with
required to develop a long-term
Congress within 1 year on national
relevant congressional committees

CRS-18
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
agricultural trade strategy every 3
export strategy. [§314]
on Global Market Strategy within
years. Subsequent farm bills have
180 days of enactment and every 2
provided more explicit guidance on
years after that. [§3206]
trade strategy goals and procedures.
[Agricultural Trade Act of 1978;
Food, Agriculture, Conservation, and
Trade Act of 1990; FAIR Act of
1996.]
c. No provision.
c. Requires USDA annual report to
c. No provision.
c. No provision.
Congress on U.S. beef and pork
imports each calendar year. [§946]
d. No provision.
d. No provision.
d. Requires USDA to report to
d. Requires USDA to report to
Congress within 120 days on
Congress within 120 days on
transportation, infrastructure, and
implications of storage and
funding deficiencies that have
transportation capacity and funding
limited the use of perishable
for use of perishable and semi-
commodities in food aid programs.
perishable commodities in food aid
[§337]
programs. [§3207]
8. Country of Origin Labeling;
Grading
a. Most imports, including many
a. Requires retailers other than
a. Requires retailers other than
a. Requires retailers other than
food items, must bear labels
restaurants and other food service
restaurants and other food service
restaurants and other food service
informing the final purchaser of their
establishments to inform consumers of
establishments to inform consumers
establishments to inform consumers
country of origin. However, certain
the country of origin of “perishable
of the country of origin of ground
of the country of origin of ground
“natural products” including fresh
agricultural commodities” (fresh or
and muscle cuts of beef, lamb and
and muscle cuts of beef, lamb, and
fruits, vegetables, nuts, live and dead
fresh frozen fruits and vegetables)
pork, of wild and farm-raised fish,
pork, of farm-raised and wild fish, of
animals (e.g., meats), and fish, among
through labels, marks, or other in-store
of perishable agricultural
perishable agricultural commodities,
others, generally are exempted. [§304
information; specifies the daily fines
commodities, and of peanuts,
and of peanuts, through labels,
of the Tariff Act of 1930 as amended;
for violations. [Title IX, §944]
through labels, marks, or other in-
marks, or other in-store information.
Federal Meat Inspection Act and
store information. Defines what is
Defines what is meant by country of
Poultry Products Inspection Act as
meant by country of origin for each
origin for each category (e.g., meats
amended]
of these categories; authorizes the
must be from animals born, raised
Secretary to set up a record-keeping
and slaughtered in the United

CRS-19
PRIOR LAW/POLICY
HOUSE BILL (H.R. 2646)
SENATE BILL (S. 1731
NEW LAW (P.L. 107-171)
Through 2002
Covers 2002-2011
Amended) Covers 2002-2006
Covers 2002-2007
system; authorizes but does not
States); includes language on
specify fines for violations. [Title
implementation and enforcement.
X, §1001]
Program is voluntary beginning
September 30, 2002, and mandatory
beginning September 30, 2004.
[Title X, § 10816]
b. USDA provides a fee-based
b. No provision.
b. Prohibits imported carcasses,
b. No provision.
service to the industry that grades
meats, or meat food products from
meats and meat products based on
bearing a USDA quality grade
their quality and affixes those grades
label. [Title X, §1002]
to such products; both domestic and
imported meats are eligible.
[Agricultural Marketing Act of 1946
as amended]

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