Memoire Online - International humanitarian food aid in the north-south cooperation: the case of cameroon

For almost six decades, the United States has played a leading role in global efforts to alleviate hunger and malnutrition and to enhance world food security through the sale on concessional terms or donation of U.S. agricultural commodities. The objectives for foreign food aid include providing emergency and humanitarian assistance in response to natural or manmade disasters, and promoting agricultural development and food security. In its FY2014 budget submission to Congress, the Administration proposes major changes in the funding and structure of both emergency and development food aid programs.

U.S. international food aid programs have traditionally been authorized in farm bills. The most recent of such bills, the Food, Conservation, and Energy Act of 2008 (P.L. 110-246), authorized through FY2012 and amended international food aid programs. These programs are administered either by the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture (USDA) or by the U.S. Agency for International Development (USAID). Average annual spending on international food aid programs over the decade 2002-2011 was approximately $2.2 billion. In recent years, the volume of emergency food aid has exceeded the amount of nonemergency or development food aid. The 2008 farm bill provides for a «safe box» for funding of non-emergency development assistance projects was set at $400 million for 2013.

The U.S. government has provided food aid primarily through six program authorities:

- Food for Peace Act (historically referred to as P.L. 480); - Section 416(b) of the Agricultural Act of 1949;

25 The information about US food aid has been collected in Hanrahan E. Charles, (2013) International Food Aid Programs: Background and Issues, Congressional Research Service, Washington D.C.

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

- McGovern-Dole International Food for Education and Child Nutrition Program (IFECN); and

Program	Year began	Implementing Agency
Title I: Economic Assistance and Food Security	1954	FAS
Food for Title II: Emergency and Private Peace Act Assistance	1954	USAID
Title III: Food for Development	1990	USAID
Title V: Farmer-to-Farmer	1985	USAID
Section 416(b)	1949	FAS
Food for Progress	1985	FAS
McGovern-Dole International Food for Education and Child Nutrition Program	2003	FAS
Local and Regional Procurement Pilot Project	2008	FAS
Bill Emerson Humanitarian Trust	1980	FAS

The Food for Peace Act (FPA), historically referred to as P.L. 480, is the main legislative vehicle that authorizes foreign food assistance. Over the decade 2002-2011, FPA typically accounted for 50%-90% of total annual international food aid spending. FPA food aid has several stated objectives, including combating world hunger and malnutrition and their causes; promoting sustainable agricultural development; expanding international trade; fostering private sector and market development; and preventing conflicts. FPA is comprised of four primary programs, which are each listed under a different title and have different objectives. The FPA components include:

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

- Title I, Economic Assistance and Food Security, which makes available long-term, low-interest loans to developing countries and private entities for their purchase of U.S. agricultural commodities to support specific projects;

- Title II, Emergency and Private Assistance, which provides for the donation of U.S. agricultural commodities to meet emergency and nonemergency food needs;

- Title III, Food for Development, which makes government-to-government grants available to support long-term growth in the least developed countries; and

- Title V, Farmer-to-Farmer Program, which finances short-term volunteer technical assistance to farmers, farm organizations, and agribusinesses in developing and transitional countries.

Over the past 10 years, Title II has become the largest vehicle for U.S. food aid shipments. In the early years of P.L. 480, Title I funding typically dwarfed that of other programs, but since 1980 it has declined by more than 90%. At the same time, emergency and development food aid under Title II has increased significantly since 1990, when strengthening global food security was made a formal objective of American food aid in the 1990 farm bill. Starting in FY2006, Administrations have not requested funding for any new Title I food aid programs. Title III has been inactive since FY2002. Title I of the Food for Peace Act is administered by USDA, while Titles II, III, and V are administered by USAID. Funding for Food for Peace Act programs is authorized in annual Agriculture appropriations bills. Food aid funding currently is authorized in a full fiscal year continuing resolution which expires on September 30, 2013.

A Food Aid Consultative Group (FACG) advises the USAID Administrator on food aid policy and regulations, especially related to Title II of P.L. 480. The 2008 farm bill, in addition to reauthorizing the FACG, added a

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

representative of the maritime transportation sector to the group. In addition to the maritime sector representative, the FACG membership consists of the USAID Administrator, the Under Secretary of Agriculture for Farm and Foreign Agricultural Services, the Inspector General for USAID, a representative of each private voluntary organization (PVO) and cooperative participating in FPA programs, representatives from African, Asian, and Latin American indigenous nongovernmental organizations (NGOs) as determined appropriate by the Administrator of USAID, and representatives from agricultural producer groups in the United States.

Title I, Economic Assistance and Food Security, provides for sales on credit terms of U.S. agricultural commodities to developing country governments and to private entities for U.S. dollars or for local currencies. Loan agreements under the Title I credit program may provide for repayment terms of up to 30 years with a grace period of up to five years. Donations of Title I commodities can also be made through Food for Progress grant agreements. No new funding for Title I credit sales and grants has been appropriated since FY2006, although some funding has been provided to administer previously entered into Title I program agreements.

Title II, Emergency and Private Assistance, provides for donations of U.S. agricultural commodities to meet emergency and nonemergency food needs in foreign countries. Food aid provided under Title II is primarily targeted to vulnerable populations in response to malnutrition, famine, natural disaster, civil strife, and other extraordinary relief requirements. Title II food aid is also used to meet nonemergency economic development needs that address food

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

security. Emergency assistance is provided through intergovernmental organizations, particularly the WFP and PVOs, although commodities may be used in government-to-government programs. Nonemergency assistance may be provided through PVOs, cooperatives, and intergovernmental organizations. Commodities requested may be furnished from the inventory of USDA's Commodity Credit Corporation (CCC), if available, or purchased in the market. The CCC also finances transportation costs, including both ocean freight and overland transport costs when appropriate. The CCC may also pay for storage and distribution costs for commodities, including pre-positioned commodities, made available to meet urgent or extraordinary relief requirements. Depending on the agreement, commodities provided under the program may be sold in the recipient country and the proceeds used to support development projects, a practice known as «monetization.»

The 2008 farm bill set the annual authorization level for Title II at $2.5 billion. This level of funding was $500 million more than the annual authorization for Title II under the 2002 farm bill. As this authorization is discretionary, it is up to annual appropriations bills to set the amount of annual Title II funding, which over the five-year life of the 2008 farm bill has averaged $1.8 billion annually. The 2008 farm bill mandated that Title II commodity donations provide an annual minimum tonnage level of 2.5 million metric tons (mmt), of which 1.875 mmt (75%) is to be channelled as nonemergency (development) assistance through the eligible organizations. This mandate can be waived by the USAID Administrator, who can make the determination that there is a greater emergency need, and/or that the mandated volume of commodities cannot be used effectively in nonemergency situations. In recent years, the volume of Title II emergency food aid has far exceeded the amount of nonemergency or development food aid.

The 2008 farm bill also authorized the use of up to $22 million annually for the monitoring and assessment of nonemergency food aid programs. This

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

provision is a response to criticism that monitoring of such programs by USAID has been inadequate due to such factors as limited staff, competitive priorities, and legal restrictions. This provision authorized the USAID Administrator to employ contractors as nonemergency food aid monitors.

In addition, the 2008 farm bill also increased the amount of Title II funding available annually from $3 million to $8 million for stockpiling and rapid transportation, delivery, and distribution of shelf-stable, prepackaged foods. Shelf-stable foods are developed under a cost-sharing arrangement that gives preference to organizations that provide additional funds for developing these products. The 2008 farm bill also reauthorized pre-positioning of commodities overseas and increased the funding for pre-positioning to $10 million annually from $2 million annually. USAID maintains that pre-positioning (at various sites in the United States and around the world) enables it to respond more rapidly to emergency food needs. Critics say, however, that the cost effectiveness of pre-positioning has not been evaluated.

Title III, Food for Development, provides for government-to-government grants to support long-term economic development in the least developed countries. Under this program, donated commodities can be sold in the recipient countries (i.e., monetized) and the revenue generated is used to support programs that promote economic development and food security, including development of agricultural markets, school feeding programs, nutrition programs, and infrastructure programs. The costs of procurement, processing, and transportation are also paid for by the U.S. government under Title III. No funding request has been made for Title III activities since 2002.

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

The Farmer-to-Farmer program, first authorized in the 1985 farm bill, has been reauthorized in subsequent farm bills, including the 2008 farm bill.8 The FtF program does not provide commodity food aid, but instead provides technical assistance to farmers, farm organizations, and agribusinesses in developing and transitional countries. The program mobilizes the expertise of volunteers from U.S. farms, land grant universities, cooperatives, private agribusinesses, and non-profit organizations to carry out short-term projects overseas. The 2008 farm bill provides minimum funding for the program of the greater of $10 million or 0.5% of the funds made available to Food for Peace Act programs for each year from 2008 through 2012. Special emphasis is given to activities in the Caribbean Basin and sub-Saharan Africa.

The Section 416(b) program, which is permanently authorized by the Agricultural Act of 1949, provides for the overseas donation of surplus agricultural commodities owned by the CCC. The program is administered by USDA and has been a highly variable component of food aid because it is entirely dependent on the availability of surplus commodities in CCC inventories. Section 416(b) donations may not reduce the amounts of commodities that traditionally are donated to domestic feeding programs or agencies, and may not disrupt normal commercial sales. The commodities are made available for donation through agreements with foreign governments, PVOs, cooperatives, and intergovernmental organizations. Depending on the agreement, the commodities donated under Section 416(b) may be sold in the recipient country and the proceeds used to support agricultural, economic, or infrastructure development programs. The Section 416(b) program has been inactive since FY2007 because of the unavailability of CCC-owned stocks.

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

The McGovern-Dole program was first authorized in the 2002 farm bill (P.L. 107-171), the Farm Security and Rural Investment Act of 2002, and is administered by USDA's Foreign Agricultural Service.12 The program uses

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

commodities and financial and technical assistance to carry out school feeding programs and maternal, infant, and child nutrition programs in foreign countries. The 2008 farm bill reauthorized the program through 2012 and established USDA as the permanent home for the program. The commodities used in the program are made available for donation through agreements with PVOs, cooperatives, intergovernmental organizations, and foreign governments. Commodities may be donated for direct feeding or, in limited situations, for local sale to generate proceeds to support school feeding and nutrition projects. Priority countries under the McGovern-Dole program must demonstrate sufficient need for improving domestic nutrition, literacy, and food security.

The 2008 farm bill maintained funding for McGovern-Dole on a discretionary basis. The enacted 2013 appropriation provides $185 million for the McGovern-Dole International Food for Education and Child Nutrition Program Grants. It also expanded the McGovern-Dole program by more than doubling the program from the level enacted in FY2009. The additional resources built upon an existing expansion in programming, which was included as a one-time authorization in the 2008 farm bill, of $84 million of CCC funding to the program in FY2009. The enacted appropriation also included an appropriation to the Secretary of $10 million to conduct pilot projects to develop and field-test new and improved micronutrient-fortified products to improve the nutrition of populations served through the McGovern-Dole program.

The Local and Regional Procurement Pilot Project (LRPP) was authorized as a four-year pilot program under the 2008 farm bill. The bill directed the Secretary of Agriculture to implement the pilot in developing countries and provided CCC funding totalling $60 million for 2009 through

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

2012.²⁷ Under the program, grants were provided to PVOs, cooperatives, and the WFP, to undertake the procurement activities. The primary purpose of the LRPP was to expedite the provision of food aid to vulnerable populations affected by food crises and disasters. A secondary purpose was to provide development assistance that will enhance the food consumption security of such populations. The pilot program had four phases:

USDA's evaluation report, conducted by Management Systems International and Coffey International Development, was published in December 2012.²⁸ The evaluation found that total time for LRP purchases averaged 56 days, while total time for comparable in-kind shipments to the same countries in the same time frame took an average of 130 days, that is, 74 days longer for in-kind commodities to arrive. (Evaluators did not have data on pre-positioned in-kind stocks to compare delivery times of LRP with delivery times of prepositioned in-kind commodities.) The evaluation found that for five commodity categories (unprocessed cereals, milled cereals, fortified blended foods, pulses, and vegetable oils), the in-kind commodity costs were lower than LRP commodity costs when counting commodity cost alone. However, total costs (which included ocean, inland, and internal transport, storage, and handling as well as commodity costs) were lower for LRP for every commodity category except for vegetable oils.

27 Funding will be made available as follows: $5 million in FY2009; $25 million in FY2010; $25 million in FY2011; and $5 million in FY2012.

28 USDA Local and Regional Food Aid Procurement Pilot Project, Independent Evaluation Report, December 2012,

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

The Bill Emerson Humanitarian Trust (BEHT) is a reserve of U.S. commodities and cash authorized under the Africa: Seeds of Hope Act of 1998 (P.L. 105-385). The trust is not a food aid program per se, but rather a food reserve that can be used to meet unanticipated humanitarian food aid needs in developing countries. The trust replaced the Food Security Commodity Reserve established in the 1996 farm bill and its predecessor, the Food Security Wheat Reserve, originally authorized by the Agricultural Trade Act of 1980. The 2008 farm bill reauthorized the BEHT through 2012. The program is administered under the authority of the Secretary of Agriculture.

Since 1980, the only commodity held in reserve has been wheat. The 2008 farm bill removed the previous 4 million ton cap on commodities that can be held in the trust, and provides the Secretary with the ability to exchange commodities in the trust for cash, provided the sale does not disrupt markets. It also allows the Secretary to invest the funds from the trust in low-risk, short-term securities or instruments so as to maximize its value. During 2008, USDA sold the remaining wheat in the trust (about 915,000 MT) so that currently the BEHT holds only cash (about $311 million in 2013). The cash can be used to finance activities or purchase commodities to meet emergency food needs when FPA Title II funds are not available. USDA's Commodity Credit Corporation (CCC) may be reimbursed for the value of U.S. commodities released from the Emerson Trust from either P.L. 480 appropriations or direct appropriations for reimbursement. The CCC may then use that reimbursement to replenish commodities released. Reimbursement to the CCC for ocean freight and related non-commodity costs occurs through the regular USDA appropriations process.

International humanitarian food aid in the North-South cooperation: the case of Cameroon 2014

International humanitarian food aid in the north-south cooperation: the case of cameroon

A- The United States of America25