[USC10] 7 USC CHAPTER 41, SUBCHAPTER IV: GENERAL AUTHORITIES AND REQUIREMENTS
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7 USC CHAPTER 41, SUBCHAPTER IV: GENERAL AUTHORITIES AND REQUIREMENTS
From Title 7—AGRICULTURECHAPTER 41—FOOD FOR PEACE

SUBCHAPTER IV—GENERAL AUTHORITIES AND REQUIREMENTS

§1731. Commodity determinations

(a) Ineligible commodities

(1) Alcoholic beverages

Alcoholic beverages shall not be made available for disposition under this chapter.

(2) Tobacco

Tobacco or the products thereof shall not be made available under section 1727b of this title or subchapter III of this chapter.

(b) Market development activities

Subsection (a)(1) shall not be construed to prohibit representatives of the United States wine, beer, distilled spirits, or other alcoholic beverage industry from participating in agricultural market development activities carried out by the Secretary with foreign currencies made available under subchapter II of this chapter.

(July 10, 1954, ch. 469, title IV, §401, as added Pub. L. 86–341, title I, §14, Sept. 21, 1959, 73 Stat. 610; amended Pub. L. 87–703, title II, §201(1), Sept. 27, 1962, 76 Stat. 610; Pub. L. 89–808, §2(E), Nov. 11, 1966, 80 Stat. 1535; Pub. L. 95–88, title II, §212, Aug. 3, 1977, 91 Stat. 551; Pub. L. 95–113, title XII, §1204, Sept. 29, 1977, 91 Stat. 956; Pub. L. 96–53, title II, §208, Aug. 14, 1979, 93 Stat. 370; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3645; Pub. L. 104–127, title II, §212, Apr. 4, 1996, 110 Stat. 955; Pub. L. 110–246, title III, §3014(a), June 18, 2008, 122 Stat. 1826.)

Amendments

2008Pub. L. 110–246 redesignated subsecs. (b) and (c) as (a) and (b), respectively, in subsec. (b), substituted "(a)(1)" for "(b)(1)", and struck out former subsec. (a). Prior to amendment, text read as follows: "No agricultural commodity shall be available for disposition under this chapter if the Secretary determines that the disposition would reduce the domestic supply of the commodity below the supply needed to meet domestic requirements and provide adequate carryover (as determined by the Secretary), unless the Secretary determines that some part of the supply should be used to carry out urgent humanitarian purposes under this chapter."

1996Pub. L. 104–127 added subsec. (a) and struck out former subsec. (a) which authorized Secretary, after consultation with other affected Federal agencies, to determine agricultural commodities and quantities thereof available for disposition, redesignated subsec. (e) as (b) and struck out former subsec. (b) which provided for modification of determination by Secretary, redesignated subsec. (f) as (c) and substituted "(b)(1)" for "(e)(1)", struck out former subsec. (c) which provided for nonavailability of commodities if domestic supply of such commodities was adversely affected, and struck out subsec. (d) which outlined policies for distribution of commodities to developing countries.

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions authorizing Secretary to determine types and quantities of commodities available for distribution, limiting distribution where domestic supply is threatened, and requiring available storage facilities in recipient country prior to making commodities available to such country as well as finding that distribution will not result in interference with production or marketing in that country.

1979—Subsec. (b)(2). Pub. L. 96–53 substituted "to or interference with domestic production or marketing in" for "to domestic production in".

1977—Subsec. (a). Pub. L. 95–113 inserted provisions under which commodities may be made available for disposition if the Secretary of Agriculture determines that some part of the supply of commodities should be used to carry out urgent humanitarian purposes, even though such disposition would reduce the domestic supply of those commodities below that needed to meet domestic requirements, provide adequate carryover, and allow for anticipated exports.

Pub. L. 95–88 designated existing provisions as subsec. (a).

Subsec. (b). Pub. L. 95–88 added subsec. (b).

1966Pub. L. 89–808 substituted provisions relating to determination and criteria for such determination by the Secretary of Agriculture of agricultural commodities available for disposition for former statement of purpose of provisions relating to long-term supply contracts, now covered by subchapter II of this chapter.

1962Pub. L. 87–703 included in the statement of purpose the stimulation and increase of sales of surplus agricultural commodities for dollars through long-term supply contracts and through the extension of credit for the purchase of such commodities, by agreements with friendly nations or with private trade.

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Effective Date of 1979 Amendment

Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Intercourse.

Effective Date of 1977 Amendments

Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

Amendment by Pub. L. 95–88 effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as a note under section 1702 of this title.

Effective Date of 1966 Amendment

Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.

Export Sales of Dairy Products

Pub. L. 99–198, title XI, §1163, Dec. 23, 1985, 99 Stat. 1499, as amended by Pub. L. 100–435, title I, §107, Sept. 19, 1988, 102 Stat. 1651; Pub. L. 101–624, title I, §111, Nov. 28, 1990, 104 Stat. 3380; Pub. L. 103–465, title IV, §411(c), Dec. 8, 1994, 108 Stat. 4963, provided that:

"(a) In each fiscal year, the Secretary of Agriculture may sell dairy products for export, at such prices as the Secretary determines appropriate, in a quantity and allocated as determined by the Secretary, consistent with the obligations undertaken by the United States set forth in the Uruguay Round Agreements, if the disposition of the commodities will not interfere with the usual marketings of the United States nor disrupt world prices of agricultural commodities and patterns of commercial trade.

"(b) Such sales shall be made through the Commodity Credit Corporation under existing authority available to the Secretary or the Commodity Credit Corporation.

"(c) Through September 30, 1995, the Secretary shall report semiannually to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the volume of sales made under this section."

[Amendment of section 1163 of Pub. L. 99–198, set out above, by Pub. L. 103–465 effective on the date of entry into force of the WTO Agreement with respect to the United States (Jan. 1, 1995), except as otherwise provided, see section 451 of Pub. L. 103–465, set out as an Effective Date note under section 3601 of Title 19, Customs Duties.]

[Amendment of section 1163 of Pub. L. 99–198, set out above, by Pub. L. 100–435 effective and implemented on Oct. 1, 1988, see section 701 of Pub. L. 100–435, set out as a note under section 2012 of this title.]

§1732. Definitions

As used in this chapter:

(1) Administrator

The term "Administrator" means the Administrator of the Agency for International Development, unless otherwise specified in this chapter.

(2) Agricultural commodity

The term "agricultural commodity", unless otherwise provided for in this chapter, includes any agricultural commodity or the products thereof produced in the United States, including wood and processed wood products, fish, and livestock as well as value-added, fortified, or high-value agricultural products. Effective beginning on October 1, 1991, for purposes of subchapter III, a product of an agricultural commodity shall not be considered to be produced in the United States if it contains any ingredient that is not produced in the United States, if that ingredient is produced and is commercially available in the United States at fair and reasonable prices.

(3) Appropriate committee of Congress

The term "appropriate committee of Congress" means—

(A) the Committee on Agriculture, Nutrition, and Forestry of the Senate;

(B) the Committee on Agriculture of the House of Representatives; and

(C) the Committee on Foreign Affairs of the House of Representatives.

(4) Cooperative

The term "cooperative" means a private sector organization whose members own and control the organization and share in its services and its profits and that provides business services and outreach in cooperative development for its membership.

(5) Developing country

The term "developing country" means a country that has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels.

(6) Food security

The term "food security" means access by all people at all times to sufficient food and nutrition for a healthy and productive life.

(7) Nongovernmental organization

The term "nongovernmental organization" means an organization that works at the local level to solve development problems in a foreign country in which the organization is located, except that the term does not include an organization that is primarily an agency or instrumentality of the government of the foreign country.

(8) Private voluntary organization

The term "private voluntary organization" means a not-for-profit, nongovernmental organization (in the case of a United States organization, an organization that is exempt from Federal income taxes under section 501(c)(3) of title 26) that receives funds from private sources, voluntary contributions of money, staff time, or in-kind support from the public, and that is engaged in or is planning to engage in voluntary, charitable, or development assistance activities (other than religious activities).

(9) Secretary

The term "Secretary" means the Secretary of Agriculture, unless otherwise specified in this chapter.

(July 10, 1954, ch. 469, title IV, §402, as added Pub. L. 86–341, title I, §14, Sept. 21, 1959, 73 Stat. 610; amended Pub. L. 87–703, title II, §201(2), Sept. 27, 1962, 76 Stat. 611; Pub. L. 89–808, §2(E), Nov. 11, 1966, 80 Stat. 1536; Pub. L. 92–42, July 1, 1971, 85 Stat. 99; Pub. L. 95–113, title XII, §1205, Sept. 29, 1977, 91 Stat. 956; Pub. L. 96–72, §24, Sept. 29, 1979, 93 Stat. 536; Pub. L. 97–98, title XII, §1213, Dec. 22, 1981, 95 Stat. 1281; Pub. L. 98–623, title IV, §405(b), Nov. 8, 1984, 98 Stat. 3409; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3645; Pub. L. 104–127, title II, §211(b), Apr. 4, 1996, 110 Stat. 955; Pub. L. 110–246, title III, §3015, June 18, 2008, 122 Stat. 1826.)

Amendments

2008—Pars. (3) to (9). Pub. L. 110–246 added par. (3) and redesignated former pars. (3) to (8) as (4) to (9), respectively.

1996—Par. (6). Pub. L. 104–127 added par. (6) and struck out heading and text of former par. (6). Prior to amendment, text read as follows: "The term 'indigenous nongovernmental organization' means an organization that operates under the laws of the recipient country, or that has its principal place of activity in such country, and that works at the local level to solve development problems in the foreign country in which it is located, except that the term does not include an organization that is primarily an agent or instrumentality of the foreign government."

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions defining agricultural commodity.

1984Pub. L. 98–623 inserted "(including fish, without regard to whether such fish are harvested in aquacultural operations)" and struck out provision that subject to the availability of appropriations therefor, any domestically produced fishery product could be made available under this chapter.

1981Pub. L. 97–98 substituted "wine, beer, distilled spirits, or other alcoholic beverage" for "wine or beer".

1979Pub. L. 96–72 inserted reference to beer.

1977Pub. L. 95–113 required that in allocation of funds made available under subchapter II of this chapter priority be given to financing the sale of food and fiber commodities.

1971Pub. L. 92–42 inserted sentence that proviso excluding alcoholic beverages from term "agricultural commodity" shall not be construed as prohibiting domestic wine industry from participating in market development activities for expansion of export sales of domestic agricultural commodities.

1966Pub. L. 89–808 substituted definition of agricultural commodity and provisions as to availability of fishery products for former provisions respecting agreements for delivery of surplus agricultural commodities, period, and security for payments in relation to long-term supply contracts, now covered by subchapter II of this chapter. See section 1707 of this title.

1962Pub. L. 87–703 authorized executive agreements with financial institutions acting in behalf of friendly nations and administrative sales agreements with foreign and United States private trade with provision for security for payments.

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Effective Date of 1984 Amendment

Amendment by Pub. L. 98–623 to be considered as having taken effect before Sept. 8, 1982, for purposes of section 135 of Pub. L. 97–253 (set out as a note under section 612c of this title), see section 405(d) of Pub. L. 98–623, set out as a note under section 1707a of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title.

Effective Date of 1977 Amendment

Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

Effective Date of 1966 Amendment

Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.

§1733. General provisions

(a) Prohibition

No agricultural commodity, food procured outside of the United States, food voucher, or cash transfer for food shall be made available under this chapter unless it is determined that—

(1) in the case of the provision of an agricultural commodity, adequate storage facilities will be available in the recipient country at the time of the arrival of the commodity to prevent the spoilage or waste of the commodity; and

(2) the distribution of the agricultural commodity or use of the food procured outside of the United States, food voucher, or cash transfer for food in the recipient country will not result in a substantial disincentive to or interference with domestic production or marketing in that country.

(b) Impact on local farmers and economy

The Secretary or the Administrator, as appropriate, shall ensure that the importation of United States agricultural commodities, the use of food procured outside of the United States, food vouchers, and cash transfers for food, and the use of local currencies for development purposes will not have a disruptive impact on the farmers or the local economy of the recipient country. The Secretary or the Administrator, as appropriate, shall seek information, as part of the regular proposal and submission process, from implementing agencies on the potential costs and benefits to the local economy within the recipient country.

(c) Transshipment

The Secretary or the Administrator, as appropriate, shall, under such terms and conditions as are determined to be appropriate, require commitments designed to prevent or restrict the resale or transshipment to other countries, or use for other than domestic purposes, of agricultural commodities donated or purchased under this chapter.

(d) Private trade channels and small business

Private trade channels shall be used under this chapter to the maximum extent practicable in the United States and in the recipient countries with respect to—

(1) sales from privately owned stocks;

(2) sales from stocks owned by the Commodity Credit Corporation; and

(3) donations.


Small businesses shall be provided adequate and fair opportunity to participate in such sales.

(e) World prices

(1) In general

In carrying out this chapter, reasonable precautions shall be taken to assure that sales or donations of agricultural commodities will not unduly disrupt world prices for agricultural commodities or normal patterns of commercial trade with foreign countries.

(2) Sale price

Sales of agricultural commodities described in paragraph (1) shall be made at a reasonable market price in the economy where the agricultural commodity is to be sold, as determined by the Secretary or the Administrator, as appropriate.

(f) Publicity

Commitments shall be obtained from countries or private entities, as appropriate, receiving commodities under this chapter that such countries or private entities will widely publicize, to the extent practicable, through the use of the public media and through other means, that such commodities are being provided through the friendship of the American people as food for peace.

(g) Participation of private sector

The Secretary or the Administrator, as appropriate, shall encourage the private sector of the United States and private importers in developing countries to participate in the programs established under this chapter.

(h) Safeguard usual marketings

In carrying out this chapter, reasonable precautions shall be taken to safeguard the usual marketings of the United States and to avoid displacing any sales of the United States agricultural commodities that the Secretary or Administrator determines would otherwise be made.

(i) Military distribution of food aid

(1) In general

The Secretary or the Administrator, as appropriate, shall attempt to ensure that agricultural commodities made available under this chapter will be provided without regard to the political affiliation, geographic location, ethnic, tribal, or religious identity of the recipient or without regard to other extraneous factors.

(2) Prohibition on handling of commodities by the military

(A) In general

Except as provided in subparagraph (B), the Secretary or the Administrator, as appropriate, shall not enter into an agreement under this chapter to provide agricultural commodities if such agreement requires or permits the distribution, handling, or allocation of such commodities by the military forces of any government or insurgent group.

(B) Exception

Notwithstanding subparagraph (A), the Secretary or the Administrator, as appropriate, may authorize the handling or distribution of commodities by the military forces of a country in exceptional circumstances in which—

(i) nonmilitary channels are not available for such handling or distribution;

(ii) such action is consistent with the requirements of paragraph (1); and

(iii) the Secretary or the Administrator, as appropriate, determines that such action is necessary to meet the emergency health, safety, or nutritional requirements of the recipient population.

(3) Encouragement of safe passage

When entering into agreements under this chapter that involve areas within recipient countries that are experiencing protracted warfare or civil strife, the Secretary or the Administrator, as appropriate, shall, to the extent practicable, encourage all parties to the conflict to permit safe passage of the commodities and other relief supplies and to establish safe zones for medical and humanitarian treatment and evacuation of injured persons.

(j) Violations of human rights

(1) Ineligible countries

The Secretary or the Administrator, as appropriate, shall not enter into any agreement under this chapter to provide agricultural commodities, or to finance the sale of agricultural commodities, to the government of any country determined by the President to engage in a consistent pattern of gross violations of internationally recognized human rights, including—

(A) the torture or cruel, inhuman, or degrading treatment or punishment of individuals;

(B) the prolonged detention of individuals without charges;

(C) the responsibility for causing the disappearance of individuals through the abduction and clandestine detention of such individuals; or

(D) other flagrant denials of the right to life, liberty, and the security of persons.

(2) Waiver

Paragraph (1) shall not prohibit the provision of assistance to such a country if the assistance is targeted to the most needy people in such country and is made available in such country through channels other than the government.

(k) Abortion prohibition

Local currencies that are made available for use under this chapter may not be used to pay for the performance of abortions as a method of family planning or to motivate or coerce any person to practice abortions.

(l) Sale procedure

(1) In general

Subsections (b) and (h) shall apply to sales of commodities in recipient countries to generate proceeds to carry out projects under—

(A) subchapters II and III;

(B) section 1431(b) of this title; and

(C) the Food for Progress Act of 1985 (7 U.S.C. 1736o).

(2) Currency

A sale described in paragraph (1) may be made in United States dollars or other currencies.

(July 10, 1954, ch. 469, title IV, §403, as added Pub. L. 86–341, title I, §14, Sept. 21, 1959, 73 Stat. 610; amended Pub. L. 87–703, title II, §201(3), Sept. 27, 1962, 76 Stat. 611; Pub. L. 88–638, §1(17), Oct. 8, 1964, 78 Stat. 1037; Pub. L. 89–808, §2(E), Nov. 11, 1966, 80 Stat. 1536; Pub. L. 95–113, title XII, §1206, Sept. 29, 1977, 91 Stat. 956; Pub. L. 96–533, title IV, §407, Dec. 16, 1980, 94 Stat. 3151; Pub. L. 97–98, title XII, §1214, Dec. 22, 1981, 95 Stat. 1282; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3646; Pub. L. 102–237, title III, §321, Dec. 13, 1991, 105 Stat. 1857; Pub. L. 104–127, title II, §213, Apr. 4, 1996, 110 Stat. 956; Pub. L. 107–171, title III, §3009(a), May 13, 2002, 116 Stat. 283; Pub. L. 113–79, title III, §3008, Feb. 7, 2014, 128 Stat. 775; Pub. L. 115–334, title III, §§3109, 3112(b), Dec. 20, 2018, 132 Stat. 4604, 4606.)

References in Text

The Food for Progress Act of 1985, referred to in subsec. (l)(1)(C), is Pub. L. 99–198, title XI, §1110, Dec. 23, 1985, 99 Stat. 1472, as amended, which is classified to section 1736o of this title.

Amendments

2018—Subsec. (a). Pub. L. 115–334, §3109(a)(1), inserted ", food procured outside of the United States, food voucher, or cash transfer for food" after "agricultural commodity" in introductory provisions.

Subsec. (a)(1). Pub. L. 115–334, §3109(a)(2), inserted "in the case of the provision of an agricultural commodity," before "adequate".

Subsec. (a)(2). Pub. L. 115–334, §3109(a)(3), substituted "agricultural commodity or use of the food procured outside of the United States, food voucher, or cash transfer for food" for "commodity".

Subsec. (b). Pub. L. 115–334, §3109(b), in first sentence, inserted ", the use of food procured outside of the United States, food vouchers, and cash transfers for food," after "agricultural commodities" and, in second sentence, struck out "of sales of agricultural commodities" after "benefits to the local economy".

Subsec. (m). Pub. L. 115–334, §3112(b), struck out subsec. (m) which related to annual report on use of funds.

2014—Subsec. (b). Pub. L. 113–79, §3008(a), inserted at end "The Secretary or the Administrator, as appropriate, shall seek information, as part of the regular proposal and submission process, from implementing agencies on the potential costs and benefits to the local economy of sales of agricultural commodities within the recipient country."

Subsec. (m). Pub. L. 113–79, §3008(b), added subsec. (m).

2002—Subsec. (e). Pub. L. 107–171, §3009(a)(1), designated existing provisions as par. (1), inserted heading, and added par. (2).

Subsec. (l). Pub. L. 107–171, §3009(a)(2), added subsec. (l).

1996—Subsec. (b). Pub. L. 104–127, §213(1), inserted heading and struck out former heading "Consultations" and in text struck out "consult with representatives from the International Monetary Fund, the International Bank for Reconstruction and Development, the World Bank, and other donor organizations to" before "ensure that".

Subsec. (c). Pub. L. 104–127, §213(2), struck out "from countries" after "require commitments" and substituted "or use for other" for "for use for other".

Subsec. (f). Pub. L. 104–127, §213(3), inserted "or private entities, as appropriate," after "from countries" and "or private entities" after "such countries".

Subsec. (i)(2)(C). Pub. L. 104–127, §213(4), struck out heading and text of subpar. (C). Text read as follows: "Not later than 30 days after an authorization is provided under subparagraph (B), the Secretary or the Administrator, as appropriate, shall prepare and submit to the appropriate committees of Congress a report concerning such authorization and include in any such report the reason for the authorization, including an explanation of why no alternatives to such handling or distribution were available."

1991—Subsec. (i)(2)(C). Pub. L. 102–237 substituted "committees" for "Committees".

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions authorizing appropriations necessary for this chapter, classifying such expenditures under international affairs and finance rather than agriculture, valuing commodity, for purpose of reimbursing Commodity Credit Corporation, at price not greater than export market price at time commodity was made available, and authorizing President to transfer up to 15 percent of funding for any fiscal year from any subchapter of this chapter to any other subchapter.

1981—Subsec. (b). Pub. L. 97–98 inserted "a price not greater than".

1980—Subsec. (c). Pub. L. 96–533 added subsec. (c).

1977Pub. L. 95–113 designated existing provisions as subsec. (a) and added subsec. (b).

1966Pub. L. 89–808 substituted provisions for authorization of appropriations, including reimbursement of Commodity Credit Corporation, and classification of expenditures, formerly covered in former section 1703(a) of this title, for provision for payment for commodities, now provided for by section 1706(a) of this title.

1964Pub. L. 88–638 substituted "less than the minimum rate required by section 2161 of Title 22 for loans made under that section" for "more than the cost of the funds to the United States Treasury as determined by the Secretary of the Treasury, taking into consideration the current average market yields on outstanding marketable obligations of the United States having maturity comparable to the maturities of loans made by the President under this section".

1962Pub. L. 87–703 substituted "reasonable" for "approximately equal" annual amounts and provided for deferral of date for beginning annual payment.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title.

Effective Date of 1977 Amendment

Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

Effective Date of 1966 Amendment

Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.

Delegation of Functions

Functions of President under subsec. (j) of this section delegated to Secretary of State by section 4(b) of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8256, set out as a note under section 1691 of this title.

§1734. Agreements

(a) In general

Before entering into agreements with foreign countries under subchapters II and III–A for the provision of commodities, the Secretary or the Administrator, as appropriate, shall consider the extent to which the recipient country is undertaking measures for economic development purposes in order to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable development.

(b) Terms of agreement

An agreement entered into under this chapter shall—

(1) include an estimate of the annual value or volume of agricultural commodities proposed to be made available to the country or eligible organization under the agreement;

(2) with respect to agreements entered into with foreign countries under subchapters II and III–A, include a statement of the manner in which the agricultural commodities provided under the agreement or the revenues generated by the sale of such commodities (if such commodities are sold), will be integrated into the overall development plans of the country to improve food security and agricultural development, alleviate poverty, and promote broad-based, equitable, and sustainable agriculture and broad-based economic growth;

(3) with respect to agreements entered into under subchapters II and III–A, include a statement of the manner in which competitive private sector participation within the recipient country in the storage, marketing, transportation, and distribution of agricultural commodities made available under this chapter will be encouraged;

(4) include a statement that such agreement shall be subject to the availability, during each fiscal year to which the agreement applies, of the necessary appropriations and agricultural commodities; and

(5) contain such other terms and conditions as the Secretary or the Administrator, as appropriate, determines to be necessary.

(c) Multi-year agreements

(1) In general

Agreements to provide assistance on a multi-year basis to recipient countries or to eligible organizations—

(A) may be made available under subchapters II and III–A; and

(B) shall be made available under subchapter III.

(2) Exception

The Secretary or the Administrator, as appropriate, may determine not to make assistance available on a multi-year basis with respect to a recipient country or an eligible organization if it is determined that assistance should be provided to such country or through such organization only on an annual basis because—

(A) the past performance of the country or organization in meeting program objectives does not warrant a multi-year agreement;

(B) it is anticipated that the need of the country or organization for food aid does not extend beyond 1 year; or

(C) other circumstances, as determined by the Secretary or the Administrator, as appropriate, indicate there is only a need for a 1 year agreement.

(d) Review of agreements

The Secretary or the Administrator, as appropriate, may make a determination to terminate, or refuse to enter into, a multi-year agreement with respect to a recipient country if the Secretary or the Administrator determines that such country is not fulfilling the objectives or requirements of this chapter. In making such a determination, the Secretary or the Administrator, as appropriate, may consider the extent to which the country is—

(1) making significant economic development reforms;

(2) promoting free and open markets for food and agricultural producers; and

(3) fostering increased food security.

(July 10, 1954, ch. 469, title IV, §404, as added Pub. L. 86–341, title I, §14, Sept. 21, 1959, 73 Stat. 610; amended Pub. L. 89–808, §2(E), Nov. 11, 1966, 80 Stat. 1536; Pub. L. 96–53, title II, §209, Aug. 14, 1979, 93 Stat. 370; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3648; Pub. L. 104–127, title II, §214, Apr. 4, 1996, 110 Stat. 956.)

Amendments

1996—Subsec. (a). Pub. L. 104–127, §214(1), inserted "with foreign countries" after "Before entering into agreements".

Subsec. (b)(2). Pub. L. 104–127, §214(2), inserted "with foreign countries" after "agreements entered into" and "and broad-based economic growth" before semicolon at end.

Subsec. (c)(1). Pub. L. 104–127, §214(3), added par. (1) and struck out heading and text of former par. (1). Text read as follows: "Agreements to provide assistance on a multi-year basis under this chapter shall be made available to recipient countries or to eligible organizations."

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions outlining aims of assistance programs, namely humanitarian and national interest objectives, and requiring assessments of recipient countries to determine types and quantities of commodities needed, conditions under which distribution should take place, most suitable timing for delivery, etc.

1979Pub. L. 96–53 designated existing provisions as subsec. (a), substituted provisions relating to aims of programs of assistance conducted under this chapter and sections 1427 and 1431 of this title and the types and quantities of agricultural commodities to be made available, for provisions relating to aims of assistance programs undertaken pursuant to this chapter and sections 1427 and 1431 of this title, and added subsec. (b).

1966Pub. L. 89–808 substituted provision declaratory of aims of assistance programs as the attainment of humanitarian objectives and the national interest for provisions requiring the Secretary of Agriculture to maximize the sale of commodities and avoid displacement of cash sales, now provided for by sections 1703(n) and 1707(b) of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Effective Date of 1979 Amendment

Amendment by Pub. L. 96–53 effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as a note under section 2151 of Title 22, Foreign Relations and Intercourse.

Effective Date of 1966 Amendment

Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.

§1735. Consultation

The Secretary and the Administrator shall cooperate and consult in the implementation of this chapter.

(July 10, 1954, ch. 469, title IV, §405, as added Pub. L. 86–341, title I, §14, Sept. 21, 1959, 73 Stat. 610; amended Pub. L. 87–703, title II, §201(4), Sept. 27, 1962, 76 Stat. 611; Pub. L. 89–808, §2(E), Nov. 11, 1966, 80 Stat. 1536; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3650.)

Amendments

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions requiring funds and authority under this chapter be used to assist friendly countries determined to increase their self-reliance in food production and managing population growth.

1966Pub. L. 89–808 substituted provisions respecting self-help in meeting food requirements and in resolving problems relative to population growth for provisions respecting entry into agreements for participation in supply and assistance program on a proportionate and equitable basis.

1962Pub. L. 87–703 substituted "In the case of such agreements, the Secretary may enter into agreements with other friendly and historic supplying nations" for "In entering into such agreements, the Secretary shall endeavor to reach agreement with other exporting nations".

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Effective Date of 1966 Amendment

Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.

§1736. Use of Commodity Credit Corporation

(a) In general

The Commodity Credit Corporation may acquire and make available such agricultural commodities as necessary to carry out agreements under this chapter.

(b) Included expenses

With respect to commodities made available under subchapters III and III–A, the Commodity Credit Corporation may pay—

(1) the cost of acquiring such commodities;

(2) the costs associated with packaging, enrichment, preservation, and fortification of such commodities, including the costs of carrying out section 1736g–2 of this title;

(3) the processing, transportation, handling, and other incidental costs up to the time of the delivery of such commodities free on board vessels in United States ports;

(4) the vessel freight charges from United States ports or designated Canadian transshipment ports, as determined by the Secretary, to designated ports of entry abroad;

(5) the costs associated with transporting such commodities from United States ports to designated points of entry abroad in the case—

(A) of landlocked countries;

(B) of ports that cannot be used effectively because of natural or other disturbances;

(C) of the unavailability of carriers to a specific country; or

(D) of substantial savings in costs or time that may be effected by the utilization of points of entry other than ports;


(6) in the case of commodities for urgent and extraordinary relief requirements (including pre-positioned commodities) the transportation costs incurred in moving the commodities from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage, distribution, and program implementation costs to use the commodities; and

(7) the charges for general average contributions arising out of the ocean transport of commodities transferred pursuant thereto.

(c) Commodity Credit Corporation

The funds, facilities, and authorities of the Commodity Credit Corporation may be used to carry out this chapter.

(d) Availability of funds

Funds shall be available under this chapter only to the extent provided in advance in appropriation Acts.

(July 10, 1954, ch. 469, title IV, §406, as added Pub. L. 86–341, title I, §14, Sept. 21, 1959, 73 Stat. 610; amended Pub. L. 87–703, title II, §201(5), Sept. 27, 1962, 76 Stat. 611; Pub. L. 89–808, §2(E), Nov. 11, 1966, 80 Stat. 1536; Pub. L. 94–161, title II, §214, Dec. 20, 1975, 89 Stat. 855; Pub. L. 101–508, title I, §1204(b)(2), Nov. 5, 1990, 104 Stat. 1388–11; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3650; Pub. L. 102–237, title III, §323, Dec. 13, 1991, 105 Stat. 1857; Pub. L. 104–127, title II, §215, Apr. 4, 1996, 110 Stat. 956; Pub. L. 110–246, title III, §§3014(b)(1), 3016, June 18, 2008, 122 Stat. 1826, 1827; Pub. L. 115–334, title III, §3110, Dec. 20, 2018, 132 Stat. 4605.)

Amendments

2018—Subsec. (b)(6). Pub. L. 115–334 substituted "storage, distribution, and program implementation costs to use the commodities" for "storage and distribution costs".

2008—Subsec. (a). Pub. L. 110–246, §3014(b)(1), struck out "(that have been determined to be available under section 1731(a) of this title)" after "commodities".

Subsec. (b)(2). Pub. L. 110–246, §3016, inserted ", including the costs of carrying out section 1736g–2 of this title" before semicolon at end.

1996—Subsec. (a). Pub. L. 104–127, §215(1), substituted "may" for "shall" after "Corporation".

Subsec. (b). Pub. L. 104–127, §215(2)(A), in introductory provisions, substituted "subchapters III and III–A" for "this chapter".

Subsec. (b)(4). Pub. L. 104–127, §215(2)(B), added par. (4) and struck out former par. (4) which read as follows: "the ocean freight charges from United States ports to designated ports of entry abroad;".

1991—Subsec. (b)(5)(D). Pub. L. 102–237 substituted "time" for "items".

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions authorizing appropriations and authorizing the President to administer a program of farmer-to-farmer assistance, enter into agreements or make grants to train farmers in recipient countries, seek exchange of farm youth and farm leaders with developing countries, conduct research in tropical and subtropical agriculture, coordinate program with other foreign assistance programs, establish conditions for eligibility in farmer-to-farmer program, and pay costs of program through use of foreign currencies accruing from sale of commodities.

Subsec. (d). Pub. L. 101–508 added subsec. (d).

1975—Subsec. (a). Pub. L. 94–161, §214(1), substituted "the President" for "the Secretary of Agriculture".

Subsec. (a)(1). Pub. L. 94–161, §214(2), struck out "through existing agencies of the Department of Agriculture" after "establish and administer".

Subsec. (a)(5). Pub. L. 94–161, §214(3), substituted "with other foreign assistance activities of the United States" for "with the activities of the Peace Corps, the Agency for International Development, and other agencies of the United States and to assign, upon agreement with such agencies, such persons to work with and under the administration of such agencies: Provided, That nothing in this section shall be construed to infringe upon the powers or functions of the Secretary of State".

1966Pub. L. 89–808 substituted food production assistance provisions for provision respecting applicability of other laws, now provided for by section 1707(d) of this title.

1962Pub. L. 87–703 made section 1701(b) and (c) applicable to this subchapter.

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendments

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Amendment by Pub. L. 101–508 effective Nov. 29, 1990, see section 1301 of Pub. L. 101–508, set out as an Effective Date note under section 1994 of this title.

Effective Date of 1966 Amendment

Amendment by Pub. L. 89–808 effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as a note under section 1691 of this title.

Farmer-to-Farmer Programs for Fiscal Years 1986 Through 1990

Pub. L. 99–198, title XI, §1107, Dec. 23, 1985, 99 Stat. 1467, as amended by Pub. L. 100–277, §6, Apr. 4, 1988, 102 Stat. 69, directed that not less than one-tenth of 1 percent of the funds available for each of the fiscal years ending Sept. 30, 1986, through Sept. 30, 1990, to carry out this chapter be used to carry out section 1736(a)(1), (2) of this title, and directed the Administrator of the Agency for International Development, in conjunction with the Secretary of Agriculture, to submit to Congress a report, not later than 120 days after Dec. 23, 1985, indicating the manner in which the Agency intended to implement such provisions.

§1736–1. Special Assistant for Agricultural Trade and Food Assistance

(a) Appointment by President

The President shall appoint a Special Assistant to the President for Agricultural Trade and Food Assistance (hereinafter in this section referred to as the "Special Assistant"). The President shall appoint the initial Special Assistant not later than May 1, 1986.

(b) Service in Executive Office of President

The Special Assistant shall serve in the Executive Office of the President.

(c) Required functions

The Special Assistant shall—

(1) assist and advise the President in order to improve and enhance food assistance programs carried out in the United States and foreign countries;

(2) be available to receive suggestions and complaints concerning the implementation of United States food aid and agricultural export programs anywhere in the United States Government and provide prompt responses thereto, including expediting the program implementation in any instances in which there is unreasonable delay;

(3) make recommendations to the President on means to coordinate and streamline the manner in which food assistance programs are carried out by the Department of Agriculture and the Agency for International Development, in order to improve their overall effectiveness;

(4) make recommendations to the President on measures to be taken to increase use of United States agricultural commodities and the products thereof through food assistance programs;

(5) advise the President on agricultural trade;

(6) advise the President on the Food for Progress Program and expedite its implementation;

(7) serve as a member of the Development Coordination Committee and the Food Aid Subcommittee of such Committee;

(8) advise departments and agencies of the Federal Government on their policy guidelines on basic issues of food assistance policy to the extent necessary to assure the coordination of food assistance programs, consistent with law, and with the advice of such Subcommittee; and

(9) submit a report to the President and Congress each year through 1990 containing—

(A) a global analysis of world food needs and production; and

(B) a detailed plan for using available export and food aid authorities to increase United States agricultural exports to those targeted countries.

(d) Compensation

Compensation for the Special Assistant shall be fixed by the President at an annual rate of basic pay of not less than the rate applicable to positions in level III of the Executive Schedule.

(Pub. L. 99–198, title XI, §1113(a)–(d), Dec. 23, 1985, 99 Stat. 1479; Pub. L. 99–260, §4(a)(1), (b), (d), Mar. 20, 1986, 100 Stat. 49; Pub. L. 101–624, title XV, §1572(2), Nov. 28, 1990, 104 Stat. 3702.)

References in Text

Level III of the Executive Schedule, referred to in subsec. (d), is set out in section 5314 of Title 5, Government Organization and Employees.

Codification

Section was enacted as part of the Food Security Act of 1985, and not as part of the Food for Peace Act which comprises this chapter.

Another section 1113(d) of Pub. L. 99–198 amended section 5312 of Title 5, Government Organization and Employees.

Amendments

1990—Subsec. (c)(9)(B), (C). Pub. L. 101–624 redesignated subpar. (C) as (B) and struck out former subpar. (B) which required that report contain identification of at least 15 target countries most likely to emerge as growth markets for commodities in next 5 to 10 years.

1986Pub. L. 99–260, §4(a)(1)(A), substituted "Food Assistance" for "Food Aid" in section catchline.

Subsec. (a). Pub. L. 99–260, §4(a)(1)(B), (b), substituted "Food Assistance" for "Food Aid" and inserted provision that the President appoint the initial Special Assistant not later than May 1, 1986.

Subsec. (d). Pub. L. 99–260, §4(d), amended subsec. (d) generally, substituting provision relating to compensation of the Special Assistant for provision relating to additional required functions of the Special Assistant.

§1736a. Administrative provisions

(a) Subchapter II programs

(1) Acquisitions

The importing country or private entity that enters into an agreement under subchapter II shall acquire the agricultural commodities to be financed under subchapter II.

(2) Invitation for bid

No purchase of agricultural commodities from private stock or purchase of ocean transportation shall be financed under subchapter II unless such purchases are made on the basis of an invitation for bid that is publicly advertised in the United States, and on the basis of bid offerings that shall conform to such invitation and be received and publicly opened in the United States. All awards in the purchase of commodities or ocean transportation financed under subchapter II shall be consistent with open, competitive, and responsive bid procedures, as determined appropriate by the Secretary. Resulting contracts may contain such terms and conditions as the Secretary determines are necessary and appropriate.

(b) Agents

(1) Authority of Secretary or Commodity Credit Corporation

(A) General rule

Except as provided in subparagraph (B), if it is determined appropriate, the Secretary or the Commodity Credit Corporation may serve as the purchasing or shipping agent, or both, for the importer or importing country in arranging the purchase or shipping of commodities financed under subchapter II.

(B) Exception

Notwithstanding subparagraph (A), the Secretary or the Commodity Credit Corporation may award, under a competitive bidding process, contracts for establishing freight agents who shall act on behalf of the Secretary or the Corporation to handle the shipping of commodities financed under this chapter.

(C) Avoidance of conflict of interest of contractors

Freight agents employed by the Secretary or the Commodity Credit Corporation under subchapter II shall not represent any foreign government during the period of their contract with the United States Government.

(2) Reasonable fees and commissions

(A) Fees

Notwithstanding any other provision of law, the Secretary or the Commodity Credit Corporation may enter into an agreement with the importer or importing country that contains the terms and conditions that will govern the provision of purchasing or shipping agent services by the Secretary or the Corporation, including the establishment of fees for such services. Any such fees shall be fair and reasonable in relation to the services performed and shall be available as reimbursement for costs incurred in providing such services.

(B) Prohibition on commissions

Commissions, fees, or other payments to any selling agent or to any agent of a purchaser shall be prohibited in the purchase of agricultural commodities that are financed under subchapter II of this chapter.

(3) Limitations

No commission, fees, or other payments to an agent, broker, consultant, or other representative of the importer or importing country for ocean transportation brokerage services in connection with the carriage of commodities provided under subchapter II of this chapter may—

(A) be paid in excess of an amount determined appropriate by the Secretary; and

(B) be shared by such person with the importer or importing country or any agent thereof.

(4) Avoidance of conflict of interest

A person may not be an agent, broker, consultant, or other representative of the United States Government, an importer, or an importing country in connection with agricultural commodities provided under this chapter during a fiscal year in which such person provides or acts as an agent, broker, consultant, or other representative of a person engaged in providing ocean transportation or transportation-related services for such commodities. For the purpose of this paragraph, the term "transportation-related services" means lightening, stevedoring, bagging, or inland transportation to the destination point.

(c) Subchapters III and III–A program

(1) Acquisition

(A) In general

The Administrator shall transfer, arrange for the transportation, and take other steps necessary to make available agricultural commodities to be provided under subchapter III and subchapter III–A.

(B) Certain commodities made available for nonemergency assistance

In the case of agricultural commodities made available for nonemergency assistance under subchapter III for least developed countries that meet the poverty and other eligibility criteria established by the International Bank for Reconstruction and Development for financing under the International Development Association, the Administrator may pay the transportation costs incurred in moving the agricultural commodities from designated points of entry or ports of entry abroad to storage and distribution sites and associated storage and distribution costs.

(2) Freight procurement

Notwithstanding chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41 or other similar provisions of law relating to the making or performance of Federal Government contracts, ocean transportation under subchapters III and III–A may be procured on the basis of full and open competitive procedures. Resulting contracts may contain such terms and conditions as the Administrator determines are necessary and appropriate.

(3) Avoidance of conflict of interest

Freight agents employed by the Agency for International Development under subchapters III and III–A shall not represent any foreign government during the period of their contract with the United States Government.

(4) Prepositioning

(A) In general

Funds made available for fiscal years 2001 through 2023 to carry out subchapters III and III-A may be used by the Administrator to procure, transport, and store agricultural commodities for prepositioning within the United States and in foreign countries, except that for each of fiscal years 2001 through 2013 not more than $10,000,000 of such funds and for each of fiscal years 2014 through 2023 not more than $15,000,000 of such funds may be used to store agricultural commodities for prepositioning in foreign countries.

(B) Additional prepositioning sites

The Administrator may establish additional sites for prepositioning in foreign countries or change the location of current sites for prepositioning in foreign countries after conducting, and based on the results of, assessments of need, the availability of appropriate technology for long-term storage, feasibility, and cost.

(5) Nonemergency or multiyear agreements

Annual resource requests for ongoing nonemergency or ongoing multiyear agreements under subchapter III shall be finalized not later than October 1 of the fiscal year in which the agricultural commodities will be shipped under the agreement.

(d) Timing of shipments

In determining the timing of the shipment of agricultural commodities to be provided under this chapter, the Secretary or the Administrator, as appropriate, shall consider—

(1) the time of harvest of any competing commodities in the recipient country; and

(2) such other concerns determined to be appropriate.

(e) Deadline for agreements under subchapters II and III–A

An agreement under subchapters II and III–A shall, to the extent practicable, be entered into not later than—

(1) November 30 of the first fiscal year in which agricultural commodities are to be shipped under the agreement; or

(2) 60 days after the date of enactment of the annual Rural Development, Agriculture, and Related Agencies Appropriations Act for the first fiscal year in which agricultural commodities are to be shipped under the agreement,


whichever is later.

(f) Annual report regarding food aid programs and activities

(1) Annual report

Not later than April 1 of each fiscal year, the Administrator and the Secretary shall jointly, or each separately, prepare and submit to the appropriate committees of Congress a report regarding each program and activity carried out under this chapter by the Administrator, the Secretary, or both, as applicable, during the prior fiscal year.

(2) Contents

An annual report described in paragraph (1) shall include, with respect to the prior fiscal year, the following:

(A) A list that contains a description of each country and organization that receives food and other assistance under this chapter (including the quantity of food and assistance provided to each country and organization).

(B) A general description of each project and activity implemented under this chapter (including each activity funded through the use of local currencies) and the total number of beneficiaries of the project.

(C) A statement describing the quantity of agricultural commodities made available to, and the total number of beneficiaries in, each country pursuant to—

(i) this chapter;

(ii) section 1431(b) of this title;

(iii) the Food for Progress Act of 1985 (7 U.S.C. 1736o); and

(iv) the McGovern-Dole International Food for Education and Child Nutrition Program established by section 1736o–1 of this title.


(D) An assessment of the progress made through programs under this chapter towards reducing food insecurity in the populations receiving food assistance from the United States.

(E) A description of efforts undertaken by the Food Aid Consultative Group under section 1725 of this title to achieve an integrated and effective food assistance program.

(F) An assessment of—

(i) each program oversight, monitoring, and evaluation system implemented under section 1726a(f) of this title; and

(ii) the impact of each program oversight, monitoring, and evaluation system on the effectiveness and efficiency of assistance provided under this subchapter.


(G) An assessment of the progress made by the Administrator in addressing issues relating to quality with respect to the provision of food assistance.

(H) A statement of the amount of funds (including funds for administrative costs, indirect cost recovery, internal transportation, storage and handling, and associated distribution costs) provided to each eligible organization that received assistance under this chapter, that further describes the following:

(i) How such funds were used by the eligible organization.

(ii) The actual rate of return for each commodity made available under this chapter, including factors that influenced the rate of return, and, for the commodity, the costs of bagging or further processing, ocean transportation, inland transportation in the recipient country, storage costs, and any other information that the Administrator and the Secretary determine to be necessary.

(iii) For each instance in which a commodity was made available under this chapter at a rate of return less than 70 percent, the reasons for the rate of return realized.


(I) For funds expended for purposes of section 1 1722(e), 1736(b)(6), and 1736a(c)(1)(B) of this title, a detailed accounting of the expenditures and purposes of such expenditures with respect to each such section.

(3) Rate of return described

For purposes of applying subparagraph (H) of paragraph (2), the rate of return for a commodity shall be equal to the proportion that—

(A) the proceeds the implementing partners generate through monetization; bears to

(B) the cost to the Federal Government to procure and ship the commodity to a recipient country for monetization.

(July 10, 1954, ch. 469, title IV, §407, as added Pub. L. 89–808, §2(E), Nov. 11, 1966, 80 Stat. 1537; amended Pub. L. 90–436, §8, July 29, 1968, 82 Stat. 451; Pub. L. 94–161, title II, §210, Dec. 20, 1975, 89 Stat. 854; Pub. L. 101–508, title I, §1204(b)(3), Nov. 5, 1990, 104 Stat. 1388–11; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3650; Pub. L. 102–237, title III, §§319, 324, 325, 328, 329, 332, Dec. 13, 1991, 105 Stat. 1857, 1858; Pub. L. 104–66, title I, §1011(e), Dec. 21, 1995, 109 Stat. 709; Pub. L. 104–127, title II, §216, Apr. 4, 1996, 110 Stat. 957; Pub. L. 106–472, title III, §310(b), Nov. 9, 2000, 114 Stat. 2076; Pub. L. 107–171, title III, §§3010, 3011, May 13, 2002, 116 Stat. 284; Pub. L. 110–246, title III, §§3017, 3018(a), June 18, 2008, 122 Stat. 1827; Pub. L. 113–79, title III, §§3009, 3010, Feb. 7, 2014, 128 Stat. 776, 777; Pub. L. 115–334, title III, §§3111, 3112(a), Dec. 20, 2018, 132 Stat. 4605.)

References in Text

The Food for Progress Act of 1985, referred to in subsec. (f)(2)(C)(iii), is Pub. L. 99–198, title XI, §1110, Dec. 23, 1985, 99 Stat. 1472, which is classified to section 1736o of this title.

Codification

In subsec. (c)(2), "chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41" substituted for "the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.)" on authority of Pub. L. 107–217, §5(c), Aug. 21, 2002, 116 Stat. 1303, which Act enacted Title 40, Public Buildings, Property, and Works, and Pub. L. 111–350, §6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.

Amendments

2018—Subsec. (c)(4)(A). Pub. L. 115–334, §3111, substituted "2023" for "2018" in two places.

Subsec. (f). Pub. L. 115–334, §3112(a), amended subsec. (f) generally. Prior to amendment, subsec. (f) related to annual report regarding each program and activity carried out under this chapter and annual report regarding the administration of food assistance programs under subchapter III to benefit foreign countries.

2014—Subsec. (c)(4)(A). Pub. L. 113–79, §3009(1), substituted "2018" for "2012" and "for each of fiscal years 2001 through 2013 not more than $10,000,000 of such funds and for each of fiscal years 2014 through 2018 not more than $15,000,000 of such funds" for "for each such fiscal year not more than $10,000,000 of such funds".

Subsec. (c)(4)(B). Pub. L. 113–79, §3009(2), added subpar. (B) and struck out former subpar. (B). Prior to amendment, text read as follows:

"(i) Feasibility assessments.—The Administrator may carry out assessments for the establishment of not less than 2 sites to determine the feasibility of, and costs associated with, using the sites to store and handle agricultural commodities for prepositioning in foreign countries.

"(ii) Establishment of sites.—Based on the results of each assessment carried out under clause (i), the Administrator may establish additional sites for prepositioning in foreign countries."

Subsec. (f)(1). Pub. L. 113–79, §3010(1), substituted "food aid" for "agricultural trade" in heading.

Subsec. (f)(1)(B)(ii). Pub. L. 113–79, §3010(2), inserted "and the total number of beneficiaries of the project and the activities carried out through such project" before semicolon at end.

Subsec. (f)(1)(B)(iii). Pub. L. 113–79, §3010(3)(A), inserted ", and the total number of beneficiaries in," after "commodities made available to" in introductory provisions.

Subsec. (f)(1)(B)(iii)(III). Pub. L. 113–79, §3010(3)(B)–(D), added subcl. (III).

2008—Subsec. (c)(4). Pub. L. 110–246, §3017(1), designated existing provisions as subpar. (A), inserted heading, substituted "2012" for "2007" and "$10,000,000" for "$2,000,000", and added subpar. (B).

Subsec. (c)(5). Pub. L. 110–246, §3017(2), added par. (5).

Subsec. (f). Pub. L. 110–246, §3018(a), added subsec. (f) and struck out former subsec. (f) which directed President to prepare an annual report concerning programs and activities implemented under this chapter for the preceding fiscal year, described contents of report, and directed that it be submitted not later than Jan. 15 of each year to the Committee on Agriculture and the Committee on Foreign Affairs of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate.

2002—Subsec. (c)(1). Pub. L. 107–171, §3011, designated existing provisions as subpar. (A), inserted heading, and added subpar. (B).

Subsec. (c)(4). Pub. L. 107–171, §3010, substituted "through 2007" for "and 2002".

2000—Subsec. (c)(4). Pub. L. 106–472 added par. (4).

1996Pub. L. 104–127, §216(2)–(5), which directed amendment of subsecs. (c), (d), (g), and (h), respectively, of this section, was executed to subsecs. (b), (c), (f), and (g), respectively, of this section, to reflect the probable intent of Congress and the intervening amendment by Pub. L. 104–66 which struck out subsec. (b) and redesignated subsecs. (c) to (h) as (b) to (g), respectively. See 1995 Amendment note below.

Subsec. (a)(1). Pub. L. 104–127, §216(1)(A), inserted "or private entity that enters into an agreement under subchapter II of this chapter" after "importing country".

Subsec. (a)(2). Pub. L. 104–127, §216(1)(B), inserted at end "Resulting contracts may contain such terms and conditions as the Secretary determines are necessary and appropriate."

Subsec. (b)(1)(A), (2)(A). Pub. L. 104–127, §216(2), inserted "importer or" before "importing country".

Subsec. (c)(2). Pub. L. 104–127, §216(3)(A), added par. (2) and struck out heading and text of former par. (2). Text read as follows: "No purchase of agricultural commodities from private stocks or purchase of ocean transportation services by the United States Government shall be financed under subchapters III and III–A of this chapter unless such purchases are made on the basis of full and open competition utilizing such procedures as are determined necessary and appropriate by the Administrator."

Subsec. (c)(4). Pub. L. 104–127, §216(3)(B), struck out heading and text of par. (4). Text read as follows: "Notwithstanding any provision of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.) or other similar provisions relating to the making or performance of Federal Government contracts, the Administrator may procure ocean transportation services under this chapter under such full and open competitive procedures as the Administrator determines are necessary and appropriate."

Subsec. (f)(2)(D). Pub. L. 104–127, §216(4), added subpar. (D).

Subsec. (g). Pub. L. 104–127, §216(5), struck out heading and text of subsec. (g). Text read as follows: "On World Food Day, October 16 of each year, the President shall submit to the appropriate committees of Congress a report, prepared with the assistance of the Secretary and the Administrator, assessing progress towards food security in each country receiving United States Government food assistance. Special emphasis should be given in such report to the nutritional status of the poorest populations in such countries."

1995—Subsecs. (b) to (h). Pub. L. 104–66 redesignated subsecs. (c) to (h) as (b) to (g), respectively, and struck out former subsec. (b) which required reporting of agricultural commodity or ocean transportation supplier fees.

1991—Subsec. (b)(1). Pub. L. 102–237, §329, struck out "or agricultural commodity donated" after "ocean transportation financed".

Subsec. (c)(1)(A). Pub. L. 102–237, §324, substituted "subchapter II of this chapter" for "this section".

Subsec. (c)(1)(C). Pub. L. 102–237, §325, struck out "other" before "foreign government".

Subsec. (c)(2)(B), (3). Pub. L. 102–237, §319, inserted "subchapter II of" before "this chapter".

Subsec. (c)(4). Pub. L. 102–237, §328(a), inserted "provides or" after "in which such person" and substituted "of a person" for "if the person is".

Subsec. (d)(3). Pub. L. 102–237, §328(b), struck out "other" before "foreign government".

Subsec. (d)(4). Pub. L. 102–237, §332, substituted "the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.)" for "the Federal Property Act of 1949, as amended,".

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions which established an Advisory Committee to survey the general policies relating to the administration of this chapter, including implementation of self-help provisions, uses to be made of foreign currencies, amount of currencies to be reserved in sales agreements for loans to private industry, rates of exchange, interest rates, and terms under which dollar credit sales are made.

Subsec. (c)(4). Pub. L. 101–508 substituted "providing ocean transportation or" for "providing ocean".

1975Pub. L. 94–161 inserted ", or their designees (who shall be members of such committees or, in the case of members from the executive branch, who shall have been confirmed by the Senate)" in first sentence.

1968Pub. L. 90–436 struck out provisions that the vice chairman and one ranking minority member of the specified House committees and the next ranking majority member and one ranking minority member of the specified Senate committees be members of the Advisory Committee, and inserted provisions requiring the Advisory Committee to meet not less than four times during each calendar year and setting forth the order of precedence at such meetings.

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendments

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Amendment by Pub. L. 101–508 effective Nov. 29, 1990, see section 1301 of Pub. L. 101–508, set out as an Effective Date note under section 1994 of this title.

Effective Date

Section effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as an Effective Date of 1966 Amendment note under section 1691 of this title.

Preparation of Annual Report

For provisions requiring Food Assistance Policy Council to prepare annual report pursuant to subsec. (g)(1) [now (f)(1)] of this section, see Ex. Ord. No. 12752, §3(c), Feb. 25, 1991, 56 F.R. 8256, set out as a note under section 1691 of this title.

1 So in original. Probably should be "sections".

§1736b. Expiration date

No agreements to finance sales or to provide other assistance under this chapter shall be entered into after December 31, 2023.

(July 10, 1954, ch. 469, title IV, §408, as added Pub. L. 89–808, §2(E), Nov. 11, 1966, 80 Stat. 1537; amended Pub. L. 94–161, title II, §211, Dec. 20, 1975, 89 Stat. 854; Pub. L. 95–88, title II, §213, Aug. 3, 1977, 91 Stat. 551; Pub. L. 95–113, title XII, §1207, Sept. 29, 1977, 91 Stat. 957; Pub. L. 96–470, title II, §213, Oct. 19, 1980, 94 Stat. 2246; Pub. L. 97–98, title XII, §1215, Dec. 22, 1981, 95 Stat. 1282; Pub. L. 99–83, title X, §1006, Aug. 8, 1985, 99 Stat. 271; Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3653; Pub. L. 104–127, title II, §217, Apr. 4, 1996, 110 Stat. 957; Pub. L. 107–171, title III, §3012, May 13, 2002, 116 Stat. 284; Pub. L. 110–246, title III, §3019, June 18, 2008, 122 Stat. 1828; Pub. L. 113–79, title III, §3011, Feb. 7, 2014, 128 Stat. 777; Pub. L. 115–334, title III, §3113, Dec. 20, 2018, 132 Stat. 4607.)

Prior Provisions

Provisions covering the termination date for agreements to finance sales under subchapter II and programs of assistance under subchapter III were covered by section 1736c of this title prior to amendment of that section by Pub. L. 101–624, and by sections 1709, 1724 of this title prior to the amendment of those sections by Pub. L. 89–808.

Amendments

2018Pub. L. 115–334 substituted "2023" for "2018".

2014Pub. L. 113–79 substituted "2018" for "2012".

2008Pub. L. 110–246 substituted "2012" for "2007".

2002Pub. L. 107–171 substituted "2007" for "2002".

1996Pub. L. 104–127 substituted "2002" for "1995".

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions relating to Presidential reports to Congress concerning activities carried out under this chapter, a global assessment of food production and needs and planned programming of food assistance, and a comparative cross-country evaluation of programs conducted under portions of this chapter, provisions requiring the Secretary to issue revised regulations governing operations of subchapter II of this chapter, and provisions relating to the delivery of bagged commodities.

1985—Subsec. (b). Pub. L. 99–83 inserted reference to subchapter III in two places.

1981—Subsec. (a). Pub. L. 97–98 substituted "February 15" for "April 1".

1980—Subsec. (b). Pub. L. 96–470 struck out requirement that the President submit a report not later than March 31 of each year.

1977—Subsec. (b). Pub. L. 95–88 substituted provisions that, not later than September 30 of each year, the President submit to the Congress a report containing a global assessment of food production and needs and setting forth planned programing of food assistance under subchapter II of this chapter for the coming fiscal year, and that, not later than December 31, March 31, and June 30 of each year, the President submit a report to the Congress showing the current status of planned programing of food assistance under subchapter II of this chapter for the current fiscal year, for provisions that, in his presentation to the Congress of planned programing of food assistance for each fiscal year, the President include a global assessment of food production and needs, self-help steps which are being taken by food-short countries under section 1709(a) of this title, steps which are being taken to encourage other countries to increase their participation in food assistance or the financing of food assistance, and the relationship between food assistance provided to each country under this chapter and other foreign assistance provided to such country by the United States and other donors.

Subsec. (c). Pub. L. 95–88 substituted provisions that, beginning Oct. 1, 1978, and at each five-year interval thereafter, the President submit to the Congress a comparative cross-country evaluation of programs conducted under subchapters I, III, and III–A of this chapter, and that such evaluations cover no fewer than five countries sampled from the developing regions (Asia, Africa, Latin America, and Caribbean), and assess the nutritional and other impacts, achievements, problems, and future prospects for programs thereunder, for provisions that, not later than November 1 of each calendar year the President submit to the House Committee on Agriculture, the House Committee on International Relations, the Senate Committee on Agriculture and Forestry, and the Senate Committee on Foreign Relations a revised global assessment of food production and needs, and revised planned programming of food assistance for the current fiscal year, to reflect, to the maximum extent feasible, the actual availability of commodities for food assistance.

Subsecs. (d), (e). Pub. L. 95–113 added subsecs. (d) and (e).

1975Pub. L. 94–161 designated existing provisions as subsec. (a), substituted "fiscal" for "calendar" in first sentence, and added subsecs. (b) and (c).

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Effective Date of 1985 Amendment

Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under section 2151–1 of Title 22, Foreign Relations and Intercourse.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–98 effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as an Effective Date note under section 4301 of this title.

Effective Date of 1977 Amendments

Amendment by Pub. L. 95–113 effective Oct. 1, 1977, see section 1901 of Pub. L. 95–113, set out as a note under section 1307 of this title.

Amendment by Pub. L. 95–88 effective Oct. 1, 1977, see section 215 of Pub. L. 95–88, set out as a note under section 1702 of this title.

Effective Date

Section effective Jan. 1, 1967, see section 5 of Pub. L. 89–808, set out as an Effective Date of 1966 Amendment note under section 1691 of this title.

§§1736c, 1736d. Repealed. Pub. L. 104–127, title II, §§218, 219, Apr. 4, 1996, 110 Stat. 957

Section 1736c, act July 10, 1954, ch. 469, title IV, §409, as added Nov. 11, 1966, Pub. L. 89–808, §2(E), 80 Stat. 1537; amended July 29, 1968, Pub. L. 90–436, §1, 82 Stat. 450; Nov. 30, 1970, Pub. L. 91–524, title VII, §701, 84 Stat. 1379; Aug. 10, 1973, Pub. L. 93–86, §1(26), 87 Stat. 237; Sept. 29, 1977, Pub. L. 95–113, title XII, §1208, 91 Stat. 957; Dec. 22, 1981, Pub. L. 97–98, title XII, §1216, 95 Stat. 1282; Dec. 23, 1985, Pub. L. 99–198, title XI, §1105, 99 Stat. 1466; Nov. 28, 1990, Pub. L. 101–624, title XV, §1512, 104 Stat. 3653; Dec. 13, 1991, Pub. L. 102–237, title III, §322, 105 Stat. 1857, required promulgation of regulations to implement chapter not later than 180 days after Nov. 28, 1990.

Section 1736d, act July 10, 1954, ch. 469, title IV, §410, as added Nov. 11, 1966, Pub. L. 89–808, §2(E), 80 Stat. 1538; amended Nov. 28, 1990, Pub. L. 101–624, title XV, §1512, 104 Stat. 3653; Dec. 13, 1991, Pub. L. 102–237, title III, §322, 105 Stat. 1857, provided for independent evaluation of programs under subchapters II, III, and III–A of this chapter and report to Congress.

§1736e. Debt forgiveness

(a) Authority

The President, taking into account the financial resources of a country, may waive payments of principal and interest that such country would otherwise be required to make to the Commodity Credit Corporation under dollar sales agreements under subchapter II if—

(1) that country is a least developed country; and

(2) either—

(A) an International Monetary Fund standby agreement is in effect with respect to that country;

(B) a structural adjustment program of the International Bank for Reconstruction and Development or of the International Development Association is in effect with respect to that country;

(C) a structural adjustment facility, enhanced structural adjustment facility, or similar supervised arrangement with the International Monetary Fund is in effect with respect to that country; or

(D) even though such an agreement, program, facility, or arrangement is not in effect, the country is pursuing national economic policy reforms that would promote democratic, market-oriented, and long term economic development.

(b) Request for debt relief by President

The President may provide debt relief under subsection (a) only if a notification is submitted to Congress at least 10 days prior to providing the debt relief. Such a notification shall—

(1) specify the amount of official debt the President proposes to liquidate; and

(2) identify the countries for which debt relief is proposed and the basis for their eligibility for such relief.

(c) Appropriations action required

The aggregate amount of principal and interest waived under this section may not exceed the amount approved for such purpose in an Act appropriating funds to carry out this chapter.

(d) Limitation on new credit assistance

If the authority of this section is used to waive payments otherwise required to be made by a country pursuant to this chapter, the President may not provide any new credit assistance for that country under this chapter during the 2-year period beginning on the date such waiver authority is exercised, unless the President provides to the Congress, before the assistance is provided, a written justification for the provision of such new credit assistance.

(e) Applicability

The authority of this section applies with respect to credit sales agreements entered into before November 28, 1990.

(July 10, 1954, ch. 469, title IV, §411, as added Pub. L. 91–524, title VII, §704, Nov. 30, 1970, as added Pub. L. 93–86, §1(26), Aug. 10, 1973, 87 Stat. 237; amended Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3654; Pub. L. 102–237, title III, §§322, 326, 336, Dec. 13, 1991, 105 Stat. 1857, 1859.)

Amendments

1991—Subsec. (a). Pub. L. 102–237, §326, substituted "subchapter II" for "this subchapter" in introductory provisions.

Subsec. (b). Pub. L. 102–237, §336, inserted "at least 10 days prior to providing the debt relief" before period at end of first sentence.

Subsec. (e). Pub. L. 102–237, §322, substituted "November 28, 1990" for "the date of enactment of this Act".

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions prohibiting assistance under subchapters II, III and III–A of this chapter to North Vietnam after July 1, 1973, unless specifically authorized by Act of Congress.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Delegation of Functions

Functions of President under this section delegated to Secretary of Agriculture, in consultation with Food Assistance Policy Council and Department of the Treasury, by section 4(d) of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8256, set out as a note under section 1691 of this title.

Renegotiation of Payment Terms of Loans for Sale of Agricultural Commodities

Pub. L. 102–27, title II, Apr. 10, 1991, 105 Stat. 147, as amended by Pub. L. 110–246, title III, §3001(c), June 18, 2008, 122 Stat. 1821, provided that: "Title I of the Public Law 480 [7 U.S.C. 1701 et seq.] program allowed for the repayment of loans for the sale of agricultural commodities in foreign or local currencies until December 31, 1971. Since that time, until the law was changed in the 1985 farm bill [probably means Pub. L. 99–198, see Tables for classification], all sales have been on dollar credit terms. In view of the present financial situation, it is impossible for many countries to repay their loans in dollars. Therefore, the President may use the authority in section 411 and section 604 of the Food for Peace Act [7 U.S.C. 1736e, 1738c] to renegotiate the payment on Public Law 480 debt in eligible countries in Latin America, the Caribbean and sub-Saharan Africa."

§1736f. Authorization of appropriations

(a) Authorization of appropriations

There are authorized to be appropriated—

(1) for fiscal year 2008 and each fiscal year thereafter, $2,500,000,000 to carry out the emergency and nonemergency food assistance programs under subchapter III; and

(2) such sums as are necessary—

(A) to carry out the concessional credit sales program established under subchapter II;

(B) to carry out the grant program established under subchapter III–A; and

(C) to make payments to the Commodity Credit Corporation to the extent the Commodity Credit Corporation is not reimbursed under the programs under this chapter for the actual costs incurred or to be incurred by the Commodity Credit Corporation in carrying out such programs.

(b) Transfer of funds

(1) In general

Except as provided in paragraph (2) and notwithstanding any other provision of law, the President may direct that up to 15 percent of the funds available for any fiscal year for carrying out any subchapter of this chapter be used to carry out any other subchapter of this chapter.

(2) Subchapter III–A funds

The President may direct that up to 50 percent of the funds available for any fiscal year for carrying out subchapter III–A be used to carry out subchapter III.

(c) Budget

In presenting the Budget of the United States, the President shall classify expenditures under this chapter as expenditures for international affairs and finance rather than for agriculture and agricultural resources.

(d) Value of commodities

Notwithstanding any other provision of law, in determining the reimbursement due the Commodity Credit Corporation for all expenses incurred under this chapter, commodities from the inventory of the Commodity Credit Corporation that were acquired under dairy price support operations shall be valued at a price not greater than the export market price for such commodities, as determined by the Secretary, as of the time such commodity is made available under this chapter.

(e) Minimum level of nonemergency food assistance

(1) In general

For each of fiscal years 2019 through 2023, not less than $365,000,000 of the amounts made available to carry out emergency and nonemergency food assistance programs under subchapter II, nor more than 30 percent of such amounts, shall be expended for nonemergency food assistance programs under such subchapter.

(2) Community development funds

Funds appropriated each year to carry out part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) that are made available through grants or cooperative agreements to strengthen food security in developing countries and that are consistent with section 1722(e)(1)(C) of this title may be considered amounts expended for nonemergency food assistance programs for purposes of paragraph (1).

(3) Farmer-to-farmer program

In determining the amount expended for a fiscal year for nonemergency food assistance programs under paragraph (1), amounts expended for that year to carry out programs under section 1737 of this title may be considered amounts expended for nonemergency food assistance programs.

(July 10, 1954, ch. 469, title IV, §412, as added Pub. L. 94–161, title II, §212, Dec. 20, 1975, 89 Stat. 855; amended Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3655; Pub. L. 104–127, title II, §220, Apr. 4, 1996, 110 Stat. 958; Pub. L. 106–387, §1(a) [title VII, §768], Oct. 28, 2000, 114 Stat. 1549, 1549A-45; Pub. L. 110–246, title III, §§3020, 3021, June 18, 2008, 122 Stat. 1829; Pub. L. 113–79, title III, §3012, Feb. 7, 2014, 128 Stat. 777; Pub. L. 115–334, title III, §3114, Dec. 20, 2018, 132 Stat. 4607.)

References in Text

The Foreign Assistance Act of 1961, referred to in subsec. (e)(2), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424. Part I of the Act is classified generally to subchapter I (§2151 et seq.) of chapter 32 of Title 22, Foreign Relations and Intercourse. For provisions deeming references to subchapter I to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of chapter 32, see section 202(b) of Pub. L. 92–226, set out as a note under section 2346 of Title 22, and sections 2348c and 2349aa–5 of Title 22. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of Title 22 and Tables.

Amendments

2018—Subsec. (e). Pub. L. 115–334 amended subsec. (e) generally. Prior to amendment, subsec. (e) related to minimum level of nonemergency food assistance for each of fiscal years 2014 through 2018.

2014—Subsec. (e). Pub. L. 113–79 amended subsec. (e) generally. Prior to amendment, subsec. (e) specified minimum amounts to be expended for nonemergency food assistance programs under subchapter III for fiscal years 2009 to 2012, provided an exception allowing the President to use less than the amount specified, and required notification to Congress if the President determined that there was an urgent need for additional emergency food assistance.

2008—Subsec. (a). Pub. L. 110–246, §3020, added subsec. (a) and struck out former subsec. (a) which authorized appropriations for programs under subchapters II, III, and III–A of this chapter.

Subsec. (e). Pub. L. 110–246, §3021, added subsec. (e).

2000—Subsec. (d). Pub. L. 106–387 substituted "dairy price support operations" for "title I of the Agricultural Act of 1949 (7 U.S.C. 1421 et seq.)".

1996—Subsec. (b). Pub. L. 104–127, §220(1), added subsec. (b) and struck out heading and text of former subsec. (b). Text read as follows: "Of the amounts made available in each fiscal year to carry out subchapters II and III–A of this chapter, not less than—

"(1) 40 percent shall be made available to carry out the credit sales program established under subchapter II of this chapter; and

"(2) 40 percent shall be made available to carry out the grant program established under subchapter III–A of this chapter."

Subsecs. (c) to (e). Pub. L. 104–127, §220, redesignated subsecs. (d) and (e) as (c) and (d), respectively, and struck out heading and text of former subsec. (c). Text read as follows: "Notwithstanding any other provision of law and except as provided in subsection (b) of this section, if the President determines it to be necessary for purposes of this chapter, the President may direct that not in excess of 15 percent of the funds available in any fiscal year for carrying out any subchapter of this chapter be used to carry out any other subchapter of this chapter."

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions authorizing President to seek agreement for international food reserve, with costs to be shared equitably among nations, and with safeguards against price disruptions.

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Delegation of Functions

Functions of President under subsec. (b) of this section delegated to Director of the Office of Management and Budget by section 4(e) of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8256, set out as a note under section 1691 of this title.

Availability of Funds

Pub. L. 109–97, title VII, §722, Nov. 10, 2005, 119 Stat. 2152, as amended by Pub. L. 110–246, title III, §3001(c), June 18, 2008, 122 Stat. 1821, provided that: "Hereafter, notwithstanding section 412 of the Food for Peace Act (7 U.S.C. 1736f), any balances available to carry out title III of such Act [7 U.S.C. 1727 et seq.] as of the date of enactment of this Act [Nov. 10, 2005], and any recoveries and reimbursements that become available to carry out title III of such Act, may be used to carry out title II of such Act [7 U.S.C. 1721 et seq.]."

Similar provisions were contained in the following prior appropriation acts:

Pub. L. 108–447, div. A, title VII, §724, Dec. 8, 2004, 118 Stat. 2841.

Pub. L. 108–199, div. A, title VII, §724, Jan. 23, 2004, 118 Stat. 34.

Pub. L. 108–7, div. A, title VII, §727, Feb. 20, 2003, 117 Stat. 42.

Pub. L. 107–76, title VII, §730, Nov. 28, 2001, 115 Stat. 736.

§1736f–1. Establishment of commodity trust

(a) In general

To provide for a trust solely to meet emergency humanitarian food needs in developing countries, the Secretary of Agriculture (referred to in this section as the "Secretary") shall establish and maintain a trust of wheat, rice, corn, or sorghum, any combination of the commodities, or funds for use as described in subsection (c).

(b) Commodities or funds in trust

(1) In general

The trust established under this section shall consist of—

(A) wheat in the reserve established under the Food Security Wheat Reserve Act of 1980 as of April 4, 1996;

(B) wheat, rice, corn, and sorghum (referred to in this section as "eligible commodities") acquired in accordance with paragraph (2) to replenish eligible commodities released from the trust, including wheat to replenish wheat released from the reserve established under the Food Security Wheat Reserve Act of 1980 but not replenished as of April 4, 1996;

(C) such rice, corn, and sorghum as the Secretary may, at such time and in such manner as the Secretary determines appropriate, acquire as a result of exchanging an equivalent value of wheat in the trust established under this section; and

(D) funds made available—

(i) under paragraph (2)(B);

(ii) as a result of an exchange of any commodity held in the trust for an equivalent amount of funds from the market, if the Secretary determines that such a sale of the commodity on the market will not unduly disrupt domestic markets; or

(iii) to maximize the value of the trust, in accordance with subsection (d)(3).

(2) Replenishment of trust

(A) In general

Subject to subsection (h), commodities of equivalent value to eligible commodities in the trust established under this section may be acquired—

(i) through purchases—

(I) from producers; or

(II) in the market, if the Secretary determines that the purchases will not unduly disrupt the market; or


(ii) by designation by the Secretary of stocks of eligible commodities of the Commodity Credit Corporation.

(B) Funds

Any funds used to acquire eligible commodities through purchases from producers or in the market to replenish the trust shall be derived—

(i) with respect to fiscal years 2000 through 2023 from funds made available to carry out the Food for Peace Act (7 U.S.C. 1691 et seq.) that are used to repay or reimburse the Commodity Credit Corporation for the release of eligible commodities under subsections (c)(1) and (f)(2), except that, of such funds, not more than $20,000,000 may be expended for this purpose in each of the fiscal years 2000 through 2023;

(ii) from funds authorized for that use by an appropriations Act; or

(iii) from funds accrued through the management of the trust under subsection (d).

(c) Release of eligible commodities

(1) Releases for emergency assistance

(A) Definition of emergency

(i) In general

In this paragraph, the term "emergency" means an urgent situation—

(I) in which there is clear evidence that an event or series of events described in clause (ii) has occurred—

(aa) that causes human suffering; and

(bb) for which a government concerned has not chosen, or has not the means, to remedy; or


(II) created by a demonstrably abnormal event or series of events that produces dislocation in the lives of residents of a country or region of a country on an exceptional scale.

(ii) Event or series of events

An event or series of events referred to in clause (i) includes 1 or more of—

(I) a sudden calamity, such as an earthquake, flood, locust infestation, or similar unforeseen disaster;

(II) a human-made emergency resulting in—

(aa) a significant influx of refugees;

(bb) the internal displacement of populations; or

(cc) the suffering of otherwise affected populations;


(III) food scarcity conditions caused by slow-onset events, such as drought, crop failure, pest infestation, and disease, that result in an erosion of the ability of communities and vulnerable populations to meet food needs; and

(IV) severe food access or availability conditions resulting from sudden economic shocks, market failure, or economic collapse, that result in an erosion of the ability of communities and vulnerable populations to meet food needs.

(B) Releases

(i) In general

Any funds or commodities held in the trust may be released to provide food, and cover any associated costs, under title II of the Food for Peace Act (7 U.S.C. 1721 et seq.)—

(I) to assist in averting an emergency, including during the period immediately preceding the emergency;

(II) to respond to an emergency; or

(III) for recovery and rehabilitation after an emergency.

(ii) Procedure

A release under clause (i) shall be carried out in the same manner, and pursuant to the same authority as provided in title II of that Act.

(C) Insufficiency of other funds

The funds and commodities held in the trust shall be made immediately available on a determination by the Administrator that funds available for emergency needs under title II of that Act (7 U.S.C. 1721 et seq.) for a fiscal year are insufficient to meet emergency needs during the fiscal year.

(D) Waiver relating to minimum tonnage requirements

Nothing in this paragraph requires a waiver by the Administrator of the Agency for International Development under section 204(a)(3) of the Food for Peace Act (7 U.S.C. 1724(a)(3)) as a condition for a release of funds or commodities under subparagraph (B).

(2) Processing of eligible commodities

Eligible commodities that are released from the trust established under this section may be processed in the United States and shipped to a developing country when conditions in the recipient country require processing.

(3) Exchange

The Secretary may exchange an eligible commodity for another United States commodity of equal value, including powdered milk, pulses, and vegetable oil.

(4) Use of normal commercial practices

To the maximum extent practicable consistent with the fulfillment of the purposes of this section and the effective and efficient administration of this section, the Secretary shall use the usual and customary channels, facilities, arrangements, and practices of trade and commerce to carry out this subsection.

(d) Management of trust

(1) In general

The Secretary shall provide for the management of eligible commodities and funds held in the trust in a manner that is consistent with maximizing the value of the trust, as determined by the Secretary.

(2) Eligible commodities

The Secretary shall provide—

(A) for the management of eligible commodities in the trust established under this section as to location and quality of eligible commodities needed to meet emergency situations;

(B) for the periodic rotation or replacement of stocks of eligible commodities in the trust to avoid spoilage and deterioration of the commodities; 1

(C) subject to the need for release of commodities from the trust under subsection (c)(1), for the management of the trust to preserve the value of the trust through acquisitions under subsection (b)(2); and 2

(3) Funds

(A) Exchanges

If any commodity held in the trust is exchanged for funds under subsection (b)(1)(D)(ii), the funds shall be held in the trust until the date on which the funds are released in the case of an emergency under subsection (c).

(B) Investment

The Secretary may invest funds held in the trust in any short-term obligation of the United States or any other low-risk short-term instrument or security insured by the Federal Government in which a regulated insurance company may invest under the laws of the District of Columbia.

(e) Treatment of trust under other law

Eligible commodities in the trust established under this section shall not be—

(1) considered a part of the total domestic supply (including carryover) for the purpose of subsection (c) or for the purpose of administering the Food for Peace Act (7 U.S.C. 1691 et seq.); and

(2) subject to any quantitative limitation on exports that may be imposed under section 4606 3 of title 50.

(f) Use of Commodity Credit Corporation

(1) In general

Subject to the limitations provided in this section, the funds, facilities, and authorities of the Commodity Credit Corporation shall be used by the Secretary in carrying out this section, except that any restriction applicable to the acquisition, storage, or disposition of eligible commodities owned or controlled by the Commodity Credit Corporation shall not apply.

(2) Reimbursement of trust

(A) In general

The Commodity Credit Corporation shall be reimbursed for the release of eligible commodities from funds made available to carry out the Food for Peace Act (7 U.S.C. 1691 et seq.) and the funds shall be available to replenish the trust under subsection (b).

(B) Basis for reimbursement

The reimbursement shall be made on the basis of the lesser of—

(i) the actual costs incurred by the Commodity Credit Corporation with respect to the eligible commodity; or

(ii) the export market price of the eligible commodity (as determined by the Secretary) as of the time the eligible commodity is released from the trust.

(C) Source of funds

The reimbursement may be made from funds appropriated for subsequent fiscal years.

(g) Finality of determination

Any determination by the Secretary under this section shall be final.

(h) Termination of authority

(1) In general

The authority to replenish stocks of eligible commodities to maintain the trust established under this section shall terminate on September 30, 2023.

(2) Disposal of eligible commodities

Eligible commodities remaining in the trust after September 30, 2023, shall be disposed of by release for use in providing for emergency humanitarian food needs in developing countries as provided in this section.

(Pub. L. 96–494, title III, §302, as added Pub. L. 104–127, title II, §225(a), Apr. 4, 1996, 110 Stat. 959; amended Pub. L. 105–385, title II, §212(a), (b)(3), Nov. 13, 1998, 112 Stat. 3465, 3467; Pub. L. 107–171, title III, §3202, May 13, 2002, 116 Stat. 300; Pub. L. 110–246, title III, §§3001(b)(1)(A), (2)(E), 3201, June 18, 2008, 122 Stat. 1820, 1834; Pub. L. 113–79, title III, §3202, Feb. 7, 2014, 128 Stat. 779; Pub. L. 115–334, title III, §3303, Dec. 20, 2018, 132 Stat. 4619.)

References in Text

The Food Security Wheat Reserve Act of 1980, referred to in subsec. (b)(1)(A), (B), is title III of the Agricultural Act of 1980, Pub. L. 96–494, Dec. 3, 1980, 94 Stat. 2578, which enacted former section 1736f–1 of this title and provisions set out as notes under that section, prior to the general amendment of title III by Pub. L. 104–127, title II, §225(a), Apr. 4, 1996, 110 Stat. 959.

The Food for Peace Act, referred to in subsecs. (b)(2)(B)(i), (c)(1)(B), (C), (e)(1), and (f)(2)(A), is act July 10, 1954, ch. 469, 68 Stat. 454, which is classified generally to this chapter (§1691 et seq.). Title II of the Act is classified to subchapter III (§1721 et seq.) of this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1691 of this title and Tables.

Section 4606 of title 50, referred to in subsec. (e)(2), was repealed by Pub. L. 115–232, div. A, title XVII, §1766(a), Aug. 13, 2018, 132 Stat. 2232.

Codification

The authorities provided by each provision of, and each amendment made by, Pub. L. 110–246, as in effect on Sept. 30, 2012, to continue, and the Secretary of Agriculture to carry out the authorities, until the later of Sept. 30, 2013, or the date specified in the provision of, or amendment made by, Pub. L. 110–246, see section 701(a) of Pub. L. 112–240, set out in a 1-Year Extension of Agricultural Programs note under section 8701 of this title.

Section was enacted as part of the Bill Emerson Humanitarian Trust Act which is title III of the Agricultural Act of 1980, and not as part of the Food for Peace Act which comprises this chapter.

Prior Provisions

A prior section 1736f–1, Pub. L. 96–494, title III, §302, Dec. 3, 1980, 94 Stat. 2578; Pub. L. 99–198, title X, §1013, Dec. 23, 1985, 99 Stat. 1456; Pub. L. 101–624, title XI, §1143, title XV, §1515(c), Nov. 28, 1990, 104 Stat. 3515, 3663, established food security wheat reserve, prior to general amendment of title III of Pub. L. 96–494 by Pub. L. 104–127, §225(a).

Amendments

2018—Subsec. (b)(2)(B)(i). Pub. L. 115–334, §3303(1), substituted "2023" for "2018" in two places.

Subsec. (h). Pub. L. 115–334, §3303(2), substituted "2023" for "2018" in pars. (1) and (2).

2014—Subsec. (b)(2)(B)(i). Pub. L. 113–79, §3202(1), substituted "2018" for "2012" in two places.

Subsec. (h). Pub. L. 113–79, §3202(2), substituted "2018" for "2012" in pars. (1) and (2).

2008—Subsec. (a). Pub. L. 110–246, §3201(1), substituted "establish and maintain a trust" for "establish a trust stock" and "any combination of the commodities, or funds" for "or any combination of the commodities, totaling not more than 4,000,000 metric tons".

Subsec. (b)(1)(D). Pub. L. 110–246, §3201(2)(A), added subpar. (D) and struck out former subpar. (D) which read as follows: "funds made available under paragraph (2)(B) which shall be used solely to replenish commodities in the trust."

Subsec. (b)(2)(B)(i). Pub. L. 110–246, §3201(2)(B)(i), substituted "2012" for "2007" in two places, substituted "(c)(1)" for "(c)(2)", and struck out "and" at end.

Pub. L. 110–246, §3001(b)(1)(A), (2)(E), substituted "Food for Peace Act" for "Agricultural Trade Development and Assistance Act of 1954".

Subsec. (b)(2)(B)(ii), (iii). Pub. L. 110–246, §3201(2)(B)(ii), (iii), substituted "; or" for period at end of cl. (ii) and added cl. (iii).

Subsec. (c). Pub. L. 110–246, §3201(3), added par. (1), redesignated former pars. (3) to (5) as (2) to (4), respectively, and struck out former pars. (1) and (2) which related to, in par. (1), release of eligible commodities to provide emergency assistance to developing countries under title II of the Agricultural Trade Development and Assistance Act of 1954, and, in par. (2), release of eligible commodities to provide emergency food assistance to developing countries at such time as the domestic supply of such commodities had been so limited that quantities of them could not have been made available for disposition under the Act.

Subsec. (d). Pub. L. 110–246, §3201(4), substituted "Management of trust" for "Management of eligible commodities" in subsec. heading, added par. (1), designated existing provisions as par. (2), inserted par. heading, redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, of par. (2), and added par. (3).

Subsecs. (e)(1), (f)(2)(A). Pub. L. 110–246, §3001(b)(1)(A), (2)(E), substituted "Food for Peace Act" for "Agricultural Trade Development and Assistance Act of 1954".

Subsec. (h). Pub. L. 110–246, §3201(5), substituted "2012" for "2007" in pars. (1) and (2).

2002—Subsec. (b)(2)(B)(i). Pub. L. 107–171 substituted "2007" for "2002" in two places.

Subsec. (h). Pub. L. 107–171 substituted "2007" for "2002" in pars. (1) and (2).

1998Pub. L. 105–385, §212(b)(3)(A), substituted "trust" for "reserve" in section catchline.

Subsec. (a). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve" in two places.

Subsec. (b). Pub. L. 105–385, §212(a)(1)(A), (b)(3)(C)(i), in heading inserted "or funds" after "Commodities" and substituted "trust" for "reserve".

Subsec. (b)(1). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve" in introductory provisions.

Subsec. (b)(1)(B). Pub. L. 105–385, §212(b)(3)(C)(ii), substituted "trust," for "reserve,".

Subsec. (b)(1)(C). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve".

Subsec. (b)(1)(D). Pub. L. 105–385, §212(a)(1)(B), added subpar. (D).

Subsec. (b)(2). Pub. L. 105–385, §212(b)(3)(C)(iii), substituted "trust" for "reserve" in heading.

Subsec. (b)(2)(A). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve" in introductory provisions.

Subsec. (b)(2)(B). Pub. L. 105–385, §212(a)(1)(C), added subpar. (B) and struck out heading and text of former subpar. (B). Text read as follows: "Any use of funds to acquire eligible commodities through purchases from producers or in the market to replenish the reserve must be authorized in an appropriations Act."

Subsec. (c)(1)(B). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve" in introductory provisions.

Subsec. (c)(2). Pub. L. 105–385, §212(a)(2), (b)(3)(B), designated existing provisions as subpar. (A), inserted heading, substituted "trust" for "reserve", and added subpar. (B).

Subsecs. (c)(3), (d)(1), (2). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve".

Subsec. (d)(3). Pub. L. 105–385, §212(a)(3), added par. (3).

Subsec. (e). Pub. L. 105–385, §212(b)(3)(B), (D), substituted "trust" for "reserve" in heading and introductory provisions.

Subsec. (f)(2). Pub. L. 105–385, §212(a)(4)(A), inserted "of trust" after "Reimbursement" in heading.

Subsec. (f)(2)(A). Pub. L. 105–385, §212(a)(4)(B), inserted before period at end "and the funds shall be available to replenish the trust under subsection (b)".

Subsecs. (f)(2)(B)(ii), (h)(1), (2). Pub. L. 105–385, §212(b)(3)(B), substituted "trust" for "reserve".

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date

Pub. L. 96–494, title III, §303, Dec. 3, 1980, 94 Stat. 2580, provided that title III of Pub. L. 96–494 (enacting former section 1736f–1 of this title and provisions formerly set out as a note under that section) became effective on Dec. 3, 1980, prior to the general amendment of title III of Pub. L. 96–494 by Pub. L. 104–127, §225(a).

Short Title

Pub. L. 96–494, title III, §301, as added by Pub. L. 104–127, title II, §225(a), Apr. 4, 1996, 110 Stat. 959, and amended by Pub. L. 105–385, title II, §212(b)(2), Nov. 13, 1998, 112 Stat. 3466, provided that: "This title [enacting this section] may be cited as the 'Bill Emerson Humanitarian Trust Act'."

A prior section 301 of title III of Pub. L. 96–494 provided that title III (enacting former section 1736f–1 of this title and provisions set out as a note under that section) could be cited as the "Food Security Wheat Reserve Act of 1980", prior to the general amendment of title III of Pub. L. 96–494 by Pub. L. 104–127, §225(a).

1 So in original. Probably should be followed by "and".

2 So in original. The "; and" probably should be a period.

3 See References in Text note below.

§1736g. Coordination of foreign assistance programs

To the maximum extent practicable, assistance for a foreign country under subchapter III–A shall be coordinated and integrated with United States development assistance objectives and programs for that country and with the overall development strategy of that country. Special emphasis should be placed on, and funds devoted to, activities that will increase the nutritional impact of programs of assistance under subchapter III–A, and child survival programs and projects, in least developed countries by improving the design and implementation of such programs and projects.

(July 10, 1954, ch. 469, title IV, §413, as added Pub. L. 96–53, title II, §210, Aug. 14, 1979, 93 Stat. 370; amended Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3656; Pub. L. 104–127, title II, §221, Apr. 4, 1996, 110 Stat. 958; Pub. L. 110–246, title III, §3022, June 18, 2008, 122 Stat. 1829; Pub. L. 113–79, title III, §3015, Feb. 7, 2014, 128 Stat. 778.)

Amendments

2014Pub. L. 113–79 struck out subsec. (a) designation and heading before "To the maximum" and struck out subsec. (b) which required a report to Congress regarding efforts to improve procurement planning not later than 90 days after June 18, 2008.

2008Pub. L. 110–246 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

1996Pub. L. 104–127 substituted "subchapter III–A" for "this chapter" in two places.

1990Pub. L. 101–624 amended section generally, substituting present provisions for provisions requiring, to maximum extent practicable, availability of commodities on multiyear basis.

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Effective Date of 1990 Amendment

Amendment by Pub. L. 101–624 effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as a note under section 1691 of this title.

Effective Date

Section effective Oct. 1, 1979, see section 512(a) of Pub. L. 96–53, set out as an Effective Date of 1979 Amendment note under section 2151 of Title 22, Foreign Relations and Intercourse.

§1736g–1. Assistance in furtherance of narcotics control objectives of United States

(a) Substantial injury

Local currencies that are made available for use under this chapter may not be used to finance the production for export of agricultural commodities (or products thereof) that would compete in the world market with similar agricultural commodities (or products thereof) produced in the United States, if such competition would cause substantial injury to the United States producers, as determined by the President.

(b) Exception for narcotics control

Notwithstanding subsection (a), the President may provide assistance under this chapter, including assistance through the use of local currencies generated by the sale of commodities under such chapter, for economic development activities undertaken in an eligible country that is a major illicit drug producing country (as defined in section 2291(i)(2) 1 of title 22), for the purpose of reducing the dependence of the economy of such country on the production of crops from which narcotic and psychotropic drugs are derived.

(July 10, 1954, ch. 469, title IV, §414, as added Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3656.)

Effective Date

Section effective Jan. 1, 1991, see section 1513 of Pub. L. 101–624, set out as an Effective Date of 1990 Amendment note under section 1691 of this title.

1 So in original. Probably should be section "2291(e)(2)".

§1736g–2. Micronutrient fortification programs

(a) In general

(1) Programs

Not later than September 30, 2008, the Administrator, in consultation with the Secretary, shall establish micronutrient fortification programs.

(2) Purpose

The purpose of a program shall be to—

(A) assist developing countries in correcting micronutrient dietary deficiencies among segments of the populations of the countries; and

(B) assess and apply technologies and systems to improve and ensure the quality, shelf life, bioavailability, and safety of fortified food aid agricultural commodities, and products of those agricultural commodities.

(b) Fortification

Under a program, grains and other commodities made available to a developing country selected to participate in a program may be fortified with 1 or more micronutrients (such as vitamin A, iron, iodine, and folic acid) with respect to which a substantial portion of the population in the country is deficient. The commodity may be fortified in the United States or in the developing country.

(c) Termination of authority

The authority to carry out programs established under this section shall terminate on September 30, 2023.

(July 10, 1954, ch. 469, title IV, §415, as added Pub. L. 104–127, title II, §222, Apr. 4, 1996, 110 Stat. 958; amended Pub. L. 107–171, title III, §3013, May 13, 2002, 116 Stat. 284; Pub. L. 110–246, title III, §3023, June 18, 2008, 122 Stat. 1830; Pub. L. 113–79, title III, §3013, Feb. 7, 2014, 128 Stat. 777; Pub. L. 115–334, title III, §3115, Dec. 20, 2018, 132 Stat. 4607.)

Codification

The authorities provided by each provision of, and each amendment made by, Pub. L. 110–246, as in effect on Sept. 30, 2012, to continue, and the Secretary of Agriculture to carry out the authorities, until the later of Sept. 30, 2013, or the date specified in the provision of, or amendment made by, Pub. L. 110–246, see section 701(a) of Pub. L. 112–240, set out in a 1-Year Extension of Agricultural Programs note under section 8701 of this title.

Amendments

2018—Subsec. (c). Pub. L. 115–334 substituted "2023" for "2018".

2014—Subsec. (a)(2)(B). Pub. L. 113–79, §3013(a), struck out ", using recommendations included in the report entitled 'Micronutrient Compliance Review of Fortified Public Law 480 Commodities', published in October 2001, with implementation by independent entities with proven experience and expertise in food aid commodity quality enhancements" before period at end.

Subsec. (c). Pub. L. 113–79, §3013(b), substituted "2018" for "2012".

2008—Subsec. (a)(1). Pub. L. 110–246, §3023(1)(A), substituted "2008" for "2003".

Subsec. (a)(2). Pub. L. 110–246, §3023(1)(B), in subpar. (A), inserted "and" at end, added subpar. (B), and struck out former subpars. (B) and (C) which read as follows:

"(B) encourage the development of technologies for the fortification of grains and other commodities that are readily transferable to developing countries; and

"(C) assess and apply technologies and systems to improve and ensure the quality, shelf life, bioavailability, and safety of fortified food aid commodities, and products of those commodities, that are provided to developing countries, by using the same mechanism that was used to assess the micronutrient fortification program in the report entitled 'Micronutrient Compliance Review of Fortified P.L. 480 Commodities', published October 2001 with funds from the Bureau for Humanitarian Response of the United States Agency for International Development."

Subsecs. (b) to (d). Pub. L. 110–246, §3023(2), (3), redesignated subsecs. (c) and (d) as (b) and (c), respectively, in subsec. (c), substituted "2012" for "2007", and struck out former subsec. (b). Prior to amendment, text read as follows: "From among the countries eligible for assistance under this chapter, the Secretary may select not more than 5 developing countries to participate in a program under this section."

2002Pub. L. 107–171, §3013(1), substituted "programs" for "pilot program" in section catchline.

Subsec. (a). Pub. L. 107–171, §3013(2), designated first sentence as par. (1), inserted heading, and substituted "Not later than September 30, 2003, the Administrator, in consultation with the Secretary, shall establish micronutrient fortification programs." for "Subject to the availability of practical technology and to cost effectiveness, not later than September 30, 1997, the Secretary, in consultation with the Administrator, shall establish a micronutrient fortification pilot program under this chapter.", designated second sentence as par. (2), inserted heading, and substituted "The purpose of a program" for "The purpose of the program", redesignated former pars. (1) and (2) as subpars. (A) and (B) of par. (2), respectively, struck out "and" at end of subpar. (A), struck out "whole" before "grains and other commodities" and substituted "; and" for period at end of subpar. (B), and added subpar. (C).

Subsec. (b). Pub. L. 107–171, §3013(3), substituted "a program under this section" for "the pilot program".

Subsec. (c). Pub. L. 107–171, §3013(4), substituted "a program, grains" for "the pilot program, whole grains", "a program may be fortified" for "the pilot program may be fortified", and "(such as vitamin A, iron, iodine, and folic acid)" for "(including vitamin A, iron, and iodine)".

Subsec. (d). Pub. L. 107–171, §3013(5), substituted "programs" for "the pilot program" and "2007" for "2002".

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

§1736g–3. Use of certain local currency

Local currency payments received by the United States pursuant to agreements entered into under subchapter II (as in effect on November 27, 1990) may be utilized by the Secretary in accordance with section 1708 of this title (as in effect on November 27, 1990).

(July 10, 1954, ch. 469, title IV, §416, as added Pub. L. 104–127, title II, §223, Apr. 4, 1996, 110 Stat. 958.)

References in Text

Section 1708 of this title (as in effect on November 27, 1990), referred to in text, was omitted in the general amendment of this chapter by Pub. L. 101–624, title XV, §1512, Nov. 28, 1990, 104 Stat. 3633.

§1736h. Congressional consultation on bilateral commodity supply agreements

As soon as practicable before the Government of the United States enters into any bilateral international agreement, other than a treaty, involving a commitment on the part of the United States to assure access by a foreign country or instrumentality thereof to United States agricultural commodities or products thereof on a commercial basis, the President is encouraged to notify and consult with the appropriate committees of Congress for the purpose of setting forth in detail the terms of and reasons for negotiating such agreement.

(Pub. L. 97–98, title XII, §1202, Dec. 22, 1981, 95 Stat. 1275.)

Codification

Section was enacted as part of the Agriculture and Food Act of 1981, and not as part of the Food for Peace Act which comprises this chapter.

Effective Date

Section effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as a note under section 4301 of this title.

§§1736i to 1736k. Repealed. Pub. L. 101–624, title XV, §1573, Nov. 28, 1990, 104 Stat. 3702

Section 1736i, Pub. L. 97–98, title XII, §1203, Dec. 22, 1981, 95 Stat. 1275, provided for a special standby export subsidy program.

Section 1736j, Pub. L. 97–98, title XII, §1204, Dec. 22, 1981, 95 Stat. 1276; Pub. L. 99–198, title XI, §1133(b), Dec. 23, 1985, 99 Stat. 1489, provided for protection against agricultural embargo. See section 5672 of this title.

Section 1736k, Pub. L. 97–98, title XII, §1205, Dec. 22, 1981, 95 Stat. 1277, provided for development of plans, recommendations, and programs to alleviate the adverse impact of export embargoes on agricultural commodities. See section 5672 of this title.

§1736l. Consultation on grain marketing

Congress encourages the Secretary of Agriculture, in coordination with other appropriate Federal departments and agencies, to continue to consult with representatives of other major grain exporting nations toward the goal of establishing more orderly marketing of grain and achieving higher farm income for producers of grain.

(Pub. L. 97–98, title XII, §1206, Dec. 22, 1981, 95 Stat. 1278.)

Codification

Section was enacted as part of the Agriculture and Food Act of 1981, and not as part of the Food for Peace Act which comprises this chapter.

Effective Date

Section effective Dec. 22, 1981, see section 1801 of Pub. L. 97–98, set out as a note under section 4301 of this title.

§§1736m, 1736n. Repealed. Pub. L. 104–127, title II, §§226, 266, Apr. 4, 1996, 110 Stat. 962, 974

Section 1736m, Pub. L. 97–98, title XII, §1207, Dec. 22, 1981, 95 Stat. 1278; Pub. L. 99–198, title XI, §1126(c), Dec. 23, 1985, 99 Stat. 1482, related to expansion of international markets for United States agricultural commodities and products.

Section 1736n, Pub. L. 97–98, title XII, §1208, Dec. 22, 1981, 95 Stat. 1280; Pub. L. 101–624, title XV, §1515(a), Nov. 28, 1990, 104 Stat. 3663, directed Secretary of Agriculture to continue investigating potential for increased usage of protein byproducts derived from alcohol fuel production and report results to Congress.

§1736o. Food for progress

(a) Short title

This section may be cited as the "Food for Progress Act of 1985".

(b) Definitions

In this section:

(1) Cooperative

The term "cooperative" has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).

(2) Corporation

The term "Corporation" means the Commodity Credit Corporation.

(3) Developing country

The term "developing country" has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).

(4) Eligible commodity

The term "eligible commodity" means an agricultural commodity, or a product of an agricultural commodity, in inventories of the Corporation or acquired by the Secretary or the Corporation for disposition through commercial purchases under a program authorized under this section.

(5) Eligible entity

The term "eligible entity" means—

(A) the government of an emerging agricultural country;

(B) an intergovernmental organization;

(C) a private voluntary organization;

(D) a nonprofit agricultural organization or cooperative;

(E) a nongovernmental organization;

(F) a college or university (as such terms are defined in section 3103(4) of this title); and

(G) any other private entity.

(6) Food security

The term "food security" means access by all people at all times to sufficient food and nutrition for a healthy and productive life.

(7) Nongovernmental organization

The term "nongovernmental organization" has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).

(8) Private voluntary organization

The term "private voluntary organization" has the meaning given the term in section 402 of the Food for Peace Act (7 U.S.C. 1732).

(9) Program

The term "program" means a food assistance or development initiative proposed by an eligible entity and approved by the Secretary under this section.

(10) Rate of return

For purposes of applying subsection (j)(3), the rate of return for an eligible commodity shall be equal to the proportion that—

(A) the proceeds eligible entities generate through monetization of such commodity, bears to

(B) the cost to the Federal Government to procure and ship the commodity to the country where it is monetized.

(11) Secretary

The term "Secretary" means the Secretary of Agriculture.

(c) Program

In order to use the food resources of the United States more effectively in support of developing countries, and countries that are emerging democracies that have made commitments to introduce or expand free enterprise elements in their agricultural economies through changes in commodity pricing, marketing, input availability, distribution, and private sector involvement, the Secretary shall enter into agreements with eligible entities to furnish to the countries eligible commodities made available under subsections (e) and (f).

(d) Consideration for agreements

In determining whether to enter into an agreement under this section, the Secretary shall consider whether a potential recipient country is committed to carry out, or is carrying out, policies that promote economic freedom, private, domestic production of eligible commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of such eligible commodities. Such policies may provide for, among other things—

(1) access, on the part of farmers in the country, to private, competitive markets for their product;

(2) market pricing of eligible commodities to foster adequate private sector incentives to individual farmers to produce food on a regular basis for the country's domestic needs;

(3) establishment of market-determined foreign exchange rates;

(4) timely availability of production inputs (such as seed, fertilizer, or pesticides) to farmers;

(5) access to technologies appropriate to the level of agricultural development in the country; and

(6) construction of facilities and distribution systems necessary to handle perishable products.

(e) Funding of eligible commodities

(1) The Corporation shall make available to the Secretary such eligible commodities as the Secretary may request for purposes of furnishing eligible commodities under this section.

(2) Notwithstanding any other provision of law, the Corporation may use funds appropriated to carry out title I of the Food for Peace Act [7 U.S.C. 1701 et seq.] in carrying out this section with respect to eligible commodities made available under that Act [7 U.S.C. 1691], and subsection (g) does not apply to eligible commodities furnished on a grant basis or on credit terms under that title.

(3) The Corporation may finance the sale and exportation of eligible commodities, made available under the Food for Peace Act [7 U.S.C. 1691 et seq.], which are furnished under this section. Payment for eligible commodities made available under that Act which are purchased on credit terms under this section shall be on the same basis as the terms provided in section 103 of that Act [7 U.S.C. 1703].

(4) In the case of eligible commodities made available under the Food for Peace Act for purposes of this section, section 406 of that Act [7 U.S.C. 1736] shall apply to eligible commodities furnished on a grant basis under this section and sections 402, 403(a), 403(c), and 403(i) of that Act [7 U.S.C. 1732, 1733(a), (c), (i)] shall apply to all eligible commodities furnished under this section.

(5) No effect on domestic programs.—The Secretary shall not make an eligible commodity available for disposition under this section in any amount that will reduce the amount of the eligible commodity that is traditionally made available through donations to domestic feeding programs or agencies, as determined by the Secretary.

(f) Provision of eligible commodities to developing countries

(1) The Corporation may provide for—

(A) grants, or

(B) sales on credit terms,


of eligible commodities made available under section 1431(b) of this title for use in carrying out this section.

(2) In carrying out section 1431(b) of this title, the Corporation may purchase eligible commodities for use under this section if—

(A) the Corporation does not hold stocks of such eligible commodities; or

(B) Corporation stocks are insufficient to satisfy commitments made in agreements entered into under this section and such eligible commodities are needed to fulfill such commitments.


(3) No funds of the Corporation in excess of $40,000,000 (exclusive of the cost of eligible commodities) may be used for each of fiscal years 1996 through 2023 to carry out this section with respect to eligible commodities made available under section 1431(b) of this title unless authorized in advance in appropriation Acts.

(4) The cost of eligible commodities made available under section 1431(b) of this title which are furnished under this section, and the expenses incurred in connection with furnishing such eligible commodities, shall be in addition to the level of assistance programmed under the Food for Peace Act [7 U.S.C. 1691 et seq.] and may not be considered expenditures for international affairs and finance.

(5) Sale procedure.—In making sales of eligible eligible 1 commodities under this section, the Secretary shall follow the sale procedure described in section 403(l) of the Food for Peace Act [7 U.S.C. 1733(l)].

(g) Minimum tonnage

Subject to subsection (f)(3), not less than 400,000 metric tons of eligible commodities shall be provided under this section for the program for each of fiscal years 2002 through 2023.

(h) Prohibition on resale or transshipment of eligible commodities

An agreement entered into under this section shall prohibit the resale or transshipment of the eligible commodities provided under the agreement to other countries.

(i) Displacement of United States commercial sales

In entering into agreements under this section, the Secretary shall take reasonable steps to avoid displacement of any sales of United States commodities that would otherwise be made to such countries.

(j) Multicountry or multiyear basis

(1) In general

In carrying out this section, the Secretary, on request and subject to the availability of eligible commodities, is encouraged to approve agreements that provide for eligible commodities to be made available for distribution or sale by the recipient on a multicountry or multiyear basis if the agreements otherwise meet the requirements of this section.

(2) Deadline for program announcements

Before the beginning of any fiscal year, the Secretary shall, to the maximum extent practicable—

(A) make all determinations concerning program agreements and resource requests for programs under this section; and

(B) announce those determinations.

(3) Report

Not later than April 1 of each fiscal year, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate—

(A) a list of programs, countries, and eligible commodities, and the total amount of funds for transportation and administrative costs, approved during the prior fiscal year under this section;

(B) a description of the actual rate of return for each commodity made available under this section for the previous fiscal year including—

(i) factors that influenced the rate of return; and

(ii) with respect to the commodity, the costs of bagging or further processing, ocean transportation, inland transportation, storage costs, and any other information that the Secretary determines to be necessary; and


(C) for each instance in which a commodity was made available under this section at a rate of return less than 70 percent, an explanation for the rate of return realized.

(k) Effective and termination dates

This section shall be effective during the period beginning October 1, 1985, and ending December 31, 2023.

(l) Administrative expenses

(1) To enhance the development of private sector agriculture in countries receiving assistance under this section the Secretary may, in each of the fiscal years 1996 through 2023, use in addition to any amounts or eligible commodities otherwise made available under this section for such activities, not to exceed $15,000,000 (or, in the case of fiscal year 1999, $12,000,000) of Corporation funds (or eligible commodities of an equal value owned by the Corporation), to provide assistance in the administration, sale, and monitoring of food assistance programs, and to provide technical assistance for monetization programs, to strengthen private sector agriculture in recipient countries.

(2) To carry out this subsection, the Secretary may provide eligible commodities under agreements entered into under this section in a manner that uses the commodity transaction as a means of developing in the recipient countries a competitive private sector that can provide for the importation, transportation, storage, marketing and distribution of such eligible commodities.

(3) The Secretary may use the assistance provided under this subsection and proceeds derived from the sale of eligible commodities under paragraph (2) to design, monitor, and administer activities undertaken with such assistance, for the purpose of strengthening or creating the capacity of recipient country private enterprises to undertake commercial transactions, with the overall goal of increasing potential markets for United States agricultural eligible commodities.

(4) Humanitarian or development purposes.—The Secretary may authorize the use of proceeds to pay the costs incurred by an eligible entity under this section for—

(A)(i) programs targeted at hunger and malnutrition; or

(ii) development programs involving food security;

(B) transportation, storage, and distribution of eligible commodities provided under this section; and

(C) administration, sales, monitoring, and technical assistance.

(m) Secretarial approval

In carrying out this section, the Secretary shall approve, as determined appropriate by the Secretary, agreements with agricultural trade organizations, intergovernmental organizations, private voluntary organizations, and cooperatives that provide for—

(1) the sale of eligible commodities, including the marketing of eligible commodities through the private sector; and

(2) the use of the proceeds generated in the humanitarian and development programs of such agricultural trade organizations, intergovernmental organizations, private voluntary organizations, and cooperatives.

(n) Program management

(1) In general

The Secretary shall ensure, to the maximum extent practicable, that each eligible entity participating in 1 or more programs under this section—

(A) uses eligible commodities made available under this section—

(i) in an effective manner;

(ii) in the areas of greatest need; and

(iii) in a manner that promotes the purposes of this section;


(B) in using eligible commodities, assesses and takes into account the needs of recipient countries and the target populations of the recipient countries;

(C) works with recipient countries, and indigenous institutions or groups in recipient countries, to design and carry out mutually acceptable programs authorized under this section; and

(D) monitors and reports on the distribution or sale of eligible commodities provided under this section using methods that, as determined by the Secretary, facilitate accurate and timely reporting.

(2) Requirements

(A) In general

Not later than 270 days after May 13, 2002, the Secretary shall review and, as necessary, make changes in regulations and internal procedures designed to streamline, improve, and clarify the application, approval, and implementation processes pertaining to agreements under this section.

(B) Considerations

In conducting the review, the Secretary shall consider—

(i) revising procedures for submitting proposals;

(ii) developing criteria for program approval that separately address the objectives of the program;

(iii) pre-screening organizations and proposals to ensure that the minimum qualifications are met;

(iv) implementing e-government initiatives and otherwise improving the efficiency of the proposal submission and approval processes;

(v) upgrading information management systems;

(vi) improving commodity and transportation procurement processes; and

(vii) ensuring that evaluation and monitoring methods are sufficient.

(C) Consultations

Not later than 1 year after May 13, 2002, the Secretary shall consult with the Committee on Agriculture, and the Committee on International Relations, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on changes made in regulations and procedures.

(3) Reports

Each eligible entity that enters into an agreement under this section shall submit to the Secretary, at such time as the Secretary may request, a report containing such information as the Secretary may request relating to the use of eligible commodities and funds furnished to the eligible entity under this section.

(o) Private voluntary organizations and other private entities

In entering into agreements described in subsection (c), the Secretary—

(1) shall enter into agreements with eligible entities described in subparagraphs (C) and (G) of subsection (b)(5); and

(2) shall not discriminate against such eligible entities.

(p) Pilot agreements

(1) In general

For each of fiscal years 2019 through 2023, subject to the availability of appropriations pursuant to the authorization in paragraph (3), the Secretary shall enter into 1 or more pilot agreements with 1 or more eligible entities through which the Secretary shall provide financial assistance to the eligible entities to carry out activities consistent with subsection (l)(4)(A).

(2) Report required

In each of fiscal years 2020 through 2024, the Secretary shall submit to the Committee on Agriculture of the House of Representatives and Committee on Agriculture, Nutrition, and Forestry of the Senate a report describing, with respect to the previous fiscal year—

(A) the amount provided to eligible entities under each pilot agreement pursuant to paragraph (1) and how the funds were used;

(B) the activities carried out under each pilot agreement;

(C) the number of direct and indirect beneficiaries of those activities; and

(D) the effectiveness of the pilot agreements, including as applicable the impact on food security and agricultural productivity.

(3) Authorization of appropriations

There is authorized to be appropriated to carry out pilot agreements pursuant to this subsection $10,000,000 for each of fiscal years 2019 through 2023.

(Pub. L. 99–198, title XI, §1110, Dec. 23, 1985, 99 Stat. 1472; Pub. L. 100–418, title IV, §4303, Aug. 23, 1988, 102 Stat. 1397; Pub. L. 101–624, title XV, §§1516, 1572(1), Nov. 28, 1990, 104 Stat. 3663, 3702; Pub. L. 102–237, title III, §335, Dec. 13, 1991, 105 Stat. 1859; Pub. L. 102–511, title VII, §701, Oct. 24, 1992, 106 Stat. 3348; Pub. L. 104–127, title II, §§227, 265(b), Apr. 4, 1996, 110 Stat. 962, 974; Pub. L. 105–277, div. A, §101(a) [title XI, §1125], Oct. 21, 1998, 112 Stat. 2681, 2681-45; Pub. L. 107–171, title III, §§3009(b)(2), 3106, May 13, 2002, 116 Stat. 283, 291; Pub. L. 108–7, div. A, title VII, §745, Feb. 20, 2003, 117 Stat. 44; Pub. L. 110–246, title III, §§3001(b)(1)(A), (2)(F), 3014(b)(2), 3105, June 18, 2008, 122 Stat. 1820, 1826, 1833; Pub. L. 113–79, title III, §3201, Feb. 7, 2014, 128 Stat. 779; Pub. L. 115–334, title III, §3302, Dec. 20, 2018, 132 Stat. 4617.)

References in Text

The Food for Peace Act, referred to in subsecs. (e) and (f)(4), is act July 10, 1954, ch. 469, 68 Stat. 454, which is classified generally to this chapter (§1691 et seq.). Title I of the Act is classified to subchapter II (§1701 et seq.) of this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 1691 of this title and Tables.

Codification

Section was enacted as part of the Food Security Act of 1985, and not as part of the Food for Peace Act which comprises this chapter.

Amendments

2018Pub. L. 115–334, §3302(1), substituted "Secretary" for "President" wherever appearing, except in subsecs. (f)(5) and (l)(4).

Subsec. (b)(5)(F), (G). Pub. L. 115–334, §3302(2)(A), added subpar. (F) and redesignated former subpar. (F) as (G).

Subsec. (b)(10), (11). Pub. L. 115–334, §3302(2)(B), added pars. (10) and (11).

Subsec. (f)(3). Pub. L. 115–334, §3302(3), substituted "2023" for "2018".

Subsec. (g). Pub. L. 115–334, §3302(4), substituted "2023" for "2018".

Subsec. (j)(3). Pub. L. 115–334, §3302(5), substituted "April 1" for "December 1", inserted dash after "the Senate" and subpar. (A) designation before "a list", substituted "approved during the prior fiscal year" for "approved to date for the fiscal year", and added subpars. (B) and (C).

Subsec. (k). Pub. L. 115–334, §3302(6), substituted "2023" for "2018".

Subsec. (l)(1). Pub. L. 115–334, §3302(7), substituted "2023" for "2018".

Subsec. (m). Pub. L. 115–334, §3302(8), substituted "Secretarial" for "Presidential" in heading.

Subsec. (o). Pub. L. 115–334, §3302(9), struck out "(acting through the Secretary)" before dash at end of introductory provisions.

Subsec. (o)(1). Pub. L. 115–334, §3302(10), substituted "subparagraphs (C) and (G)" for "subparagraphs (C) and (F)".

Subsec. (p). Pub. L. 115–334, §3302(11), added subsec. (p).

2014—Subsec. (f)(3). Pub. L. 113–79, §3201(a)(1), substituted "2018" for "2012".

Subsec. (f)(6). Pub. L. 113–79, §3201(b), struck out par. (6) which related to approval of project for Malawi during fiscal year 2009.

Subsecs. (g), (k), (l)(1). Pub. L. 113–79, §3201(a)(2)–(4), substituted "2018" for "2012".

2008—Subsec. (b). Pub. L. 110–246, §3001(b)(1)(A), (2)(F), substituted "Food for Peace Act" for "Agricultural Trade Development and Assistance Act of 1954" wherever appearing.

Subsec. (e)(1). Pub. L. 110–246, §3014(b)(2), struck out "determined to be available under section 401 of the Agricultural Trade Development and Assistance Act of 1954" after "such eligible commodities".

Subsec. (e)(2) to (4). Pub. L. 110–246, §3001(b)(1)(A), (2)(F), substituted "Food for Peace Act" for "Agricultural Trade Development and Assistance Act of 1954".

Subsec. (f)(3). Pub. L. 110–246, §3105(a), substituted "2012" for "2007".

Subsec. (f)(4), (5). Pub. L. 110–246, §3001(b)(1)(A), (2)(F), substituted "Food for Peace Act" for "Agricultural Trade Development and Assistance Act of 1954".

Subsec. (f)(6). Pub. L. 110–246, §3105(b), added par. (6).

Subsecs. (g), (k), (l)(1). Pub. L. 110–246, §3105(a), substituted "2012" for "2007".

2003—Subsecs. (c), (g). Pub. L. 108–7, §745(1), substituted "shall" for "may".

Subsec. (o). Pub. L. 108–7, §745(2), added subsec. (o).

2002—Subsecs. (b), (c). Pub. L. 107–171, §3106(b)(1), added heading and text of subsecs. (b) and (c) and struck out former subsecs. (b) and (c) which read as follows:

"(b) In order to use the food resources of the United States more effectively in support of developing countries, and countries that are emerging democracies, that have made commitments to introduce or expand free enterprise elements in their agricultural economies through changes in commodity pricing, marketing, input availability, distribution, and private sector involvement, the President is authorized to enter into agreements with the governments of such countries (including the independent states of the former Soviet Union), or with private voluntary organizations, nonprofit agricultural organizations, cooperatives, intergovernmental organizations, or other private entities, to furnish commodities made available pursuant to subsections (e) and (f) of this section. Such agreements may provide for commodities to be furnished on a multiyear basis.

"(c) As used in this section, the term 'commodities' means agricultural commodities and the products thereof."

Subsec. (d). Pub. L. 107–171, §3106(b)(2)(A), (D), (c), inserted heading, in introductory provisions struck out "food" after "domestic production of" and substituted "eligible commodities" for "commodities" in two places, and in par. (2) substituted "eligible commodities" for "commodities".

Subsec. (e). Pub. L. 107–171, §3106(b)(2)(D), (E), (d), inserted heading, substituted "eligible commodities" for "commodities" and "Corporation" for "Commodity Credit Corporation" wherever appearing, inserted ", and subsection (g) does not apply to eligible commodities furnished on a grant basis or on credit terms under that title" before period at end of par. (2), and added par. (5).

Subsec. (f). Pub. L. 107–171, §3106(b)(2)(D), (E), (e)(1), inserted heading and substituted "eligible commodities" for "commodities" and "Corporation" for "Commodity Credit Corporation" wherever appearing.

Subsec. (f)(3). Pub. L. 107–171, §3106(a), (b)(2)(D), (E), substituted "Corporation" for "Commodity Credit Corporation", "eligible commodities" for "commodities" in two places, and "2007" for "2002".

Pub. L. 107–171, §3106(e)(2), which directed substitution of "$40,000,000" for "$30,000,000 (or in the case of fiscal year 1999, $35,000,000)", was executed by making the substitution for "$30,000,000 (or, in the case of fiscal year 1999, $35,000,000)" to reflect the probable intent of Congress.

Subsec. (f)(5). Pub. L. 107–171, §3009(b)(2), added par. (5).

Subsec. (g). Pub. L. 107–171, §3106(f), added subsec. (g) and struck out former subsec. (g) which read as follows: "Not more than 500,000 metric tons of commodities may be furnished under this section in each of the fiscal years 1986 through 2002."

Subsec. (h). Pub. L. 107–171, §3106(b)(2)(D), (g), inserted heading and substituted "eligible commodities" for "commodities".

Subsec. (i). Pub. L. 107–171, §3106(h), inserted heading.

Subsec. (j). Pub. L. 107–171, §3106(b)(2)(D), (i), inserted heading, designated existing provisions as par. (1), inserted par. (1) heading, struck out "may" after "the President", substituted "eligible commodities" for "commodities" in two places, "is encouraged to approve" for "approve", and "multicountry or multiyear" for "multiyear", and added pars. (2) and (3).

Subsec. (k). Pub. L. 107–171, §3106(a), (j), inserted heading and substituted "2007" for "2002".

Subsec. (l). Pub. L. 107–171, §3106(a), (b)(2)(B), (D), (E), (k), inserted heading, substituted "eligible commodities" for "commodities" wherever appearing, in par. (1) substituted "2007" for "2002", "$15,000,000" for "$10,000,000", and "Corporation" for "Commodity Credit Corporation" after "$12,000,000) of", in par. (2) struck out "agricultural" after "President may provide", in par. (3) substituted "proceeds" for "local currencies", and added par. (4).

Subsec. (m). Pub. L. 107–171, §3106(b)(2)(C), (D), (l), inserted heading and, in par. (1), substituted "eligible commodities" for "commodities" in two places and struck out "these" after "marketing of".

Subsec. (n). Pub. L. 107–171, §3106(m), added subsec. (n) and struck out former subsec. (n) which read as follows: "During fiscal year 1999, to the maximum extent practicable, the Secretary shall utilize Private Voluntary Organizations to carry out this section."

Subsec. (o). Pub. L. 107–171, §3106(b)(2)(F), struck out subsec. (o) which read as follows: "As used in this section, the term 'independent states of the former Soviet Union' means the independent states of the former Soviet Union as defined in section 5602(8) of this title."

1998—Subsec. (f)(3). Pub. L. 105–277, §101(a) [title XI, §1125(1)], inserted "(or, in the case of fiscal year 1999, $35,000,000)" after "$30,000,000".

Subsec. (l)(1). Pub. L. 105–277, §101(a) [title XI, §1125(2)], inserted "(or, in the case of fiscal year 1999, $12,000,000)" after "$10,000,000".

Subsecs. (n), (o). Pub. L. 105–277, §101(a) [title XI, §1125(3), (4)], added subsec. (n) and redesignated former subsec. (n) as (o).

1996—Subsec. (b). Pub. L. 104–127, §227(1), struck out "(1)" before "In order to use", inserted "intergovernmental organizations," after "cooperatives,", and struck out par. (2) which read as follows: "The annual tonnage limitation contained in subsection (g) of this section shall not apply with respect to commodities furnished to the independent states of the former Soviet Union during fiscal year 1993."

Subsec. (e)(3). Pub. L. 104–127, §265(b), substituted "section 103" for "section 106".

Subsec. (e)(4). Pub. L. 104–127, §227(2), substituted "section 406" for "section 203".

Subsec. (f)(1)(B). Pub. L. 104–127, §227(3)(A), struck out "in the case of the independent states of the former Soviet Union," before "sales on credit terms,".

Subsec. (f)(2) to (5). Pub. L. 104–127, §227(3)(B)–(D), in par. (4), inserted "for each of fiscal years 1996 through 2002" after "may be used", redesignated pars. (3) to (5) as (2) to (4), respectively, and struck out former par. (2) which read as follows: "Not less than 75,000 metric tons shall be made available pursuant to section 1431(b)(10)(C) of this title to carry out this section unless the President determines there are an insufficient number of eligible recipients."

Subsec. (g). Pub. L. 104–127, §227(4), substituted "2002" for "1995".

Subsec. (j). Pub. L. 104–127, §227(5), substituted "may" for "shall".

Subsec. (k). Pub. L. 104–127, §227(6), substituted "2002" for "1995".

Subsec. (l)(1). Pub. L. 104–127, §227(7), substituted "1996 through 2002" for "1991 through 1995" and inserted ", and to provide technical assistance for monetization programs," after "monitoring of food assistance programs".

Subsec. (m). Pub. L. 104–127, §227(8), in introductory provisions, struck out "with respect to the independent states of the former Soviet Union" after "this section" and substituted "agricultural trade organizations, intergovernmental organizations, private voluntary organizations, and cooperatives" for "private voluntary organizations and cooperatives", and in par. (2), struck out "in the independent states" after "the use" and substituted "agricultural trade organizations, intergovernmental organizations, private voluntary organizations, and cooperatives" for "private voluntary organizations and cooperatives".

1992—Subsec. (b). Pub. L. 102–511, §701(1), designated existing provisions as par. (1), inserted "(including the independent states of the former Soviet Union)" after "such countries", substituted "cooperatives, or other private entities" for "or cooperatives", and added par. (2).

Subsec. (f)(1). Pub. L. 102–511, §701(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: "Commodities made available under section 1431(b) of this title for use in carrying out this section shall be provided on a grant basis."

Subsecs. (m) and (n). Pub. L. 102–511, §701(3), added subsecs. (m) and (n).

1991—Subsec. (k). Pub. L. 102–237, §335(1), (3), redesignated subsec. (l) as (k) and struck out "September 30," before "December 31".

Subsecs. (l), (m). Pub. L. 102–237, §335(2), (3), redesignated subsec. (m) as (l) and substituted "this section" for "this Act" wherever appearing.

1990—Subsec. (b). Pub. L. 101–624, §1516(1), substituted "developing countries, and countries that are emerging democracies, that" for "countries that", and "the governments of such countries, or with private voluntary organizations, nonprofit agricultural organizations, or cooperatives," for "developing countries".

Subsec. (d). Pub. L. 101–624, §1516(2), struck out "with countries" before "under this section" in introductory provisions.

Subsec. (e)(3). Pub. L. 101–624, §1516(3), struck out "to a developing country" before "under this section", and "by a developing country" before "for commodities".

Subsec. (e)(4). Pub. L. 101–624, §1516(4), struck out "to a developing country" before "under this section" in two places, and substituted "sections 402, 403(a), 403(c), and 403(i)" for "section 401(b)".

Subsec. (f)(1). Pub. L. 101–624, §1516(5), struck out "to developing countries" before "on a grant basis".

Subsec. (g). Pub. L. 101–624, §1516(6), substituted "1995" for "1990".

Subsec. (j). Pub. L. 101–624, §1572(1), redesignated subsec. (k) as (j) and struck out former subsec. (j) which read as follows: "Within 90 days after the end of each fiscal year in which an agreement under this section is in effect with respect to a country, the President shall report to the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the status of such agreement and the progress being made to implement private, free enterprise agricultural policies for long-term agricultural development in such country."

Pub. L. 101–624, §1516(7), struck out "entered into with a country" before "under this section", and inserted "with respect to a country" after "effect".

Subsec. (k). Pub. L. 101–624, §1572(1)(B), redesignated subsec. (k) as (j).

Pub. L. 101–624, §1516(8), substituted "the recipient" for "recipient countries".

Subsec. (l). Pub. L. 101–624, §1516(9), substituted "December 31, 1995" for "1990".

Subsec. (m). Pub. L. 101–624, §1516(10), added subsec. (m).

1988—Subsecs. (k), (l). Pub. L. 100–418 added subsec. (k) and redesignated former subsec. (k) as (l).

Change of Name

Committee on International Relations of House of Representatives changed to Committee on Foreign Affairs of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007.

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Executive Order No. 12583

Ex. Ord. No. 12583, Feb. 19, 1987, 52 F.R. 5427, which related to the delegation of functions relating to entering into agreements with developing countries and waiving minimum tonnage requirements, was revoked by section 6 of Ex. Ord. No. 12752, Feb. 25, 1991, 56 F.R. 8256, set out as a note under section 1691 of this title.

1 So in original.

§1736o–1. McGovern-Dole International Food for Education and Child Nutrition Program

(a) Definition of agricultural commodity

In this section, the term "agricultural commodity" means an agricultural commodity, or a product of an agricultural commodity, that—

(1) is produced in the United States; or

(2)(A) is produced in and procured from—

(i) a developing country that is a recipient country; or

(ii) a developing country in the same region as a recipient country; and


(B) at a minimum, meets each nutritional, quality, and labeling standard of the recipient country, as determined by the Secretary.

(b) Program

Subject to subsection (l), the Secretary may establish a program, to be known as "McGovern-Dole International Food for Education and Child Nutrition Program", requiring the procurement of agricultural commodities and the provision of financial and technical assistance to carry out—

(1) preschool and school food for education programs in foreign countries to improve food security, reduce the incidence of hunger, and improve literacy and primary education, particularly with respect to girls; and

(2) maternal, infant, and child nutrition programs for pregnant women, nursing mothers, infants, and children who are 5 years of age or younger.

(c) Eligible commodities and cost items

Notwithstanding any other provision of law—

(1) any agricultural commodity is eligible to be provided under this section;

(2) as necessary to achieve the purposes of this section, funds appropriated under this section may be used to pay—

(A)(i) the cost of acquiring agricultural commodities;

(ii) the costs associated with packaging, enrichment, preservation, and fortification of agricultural commodities;

(iii) the processing, transportation, handling, and other incidental costs up to the time of the delivery of agricultural commodities free on board vessels in United States ports;

(iv) the vessel freight charges from United States ports or designated Canadian transshipment ports, as determined by the Secretary, to designated ports of entry abroad;

(v) the costs associated with transporting agricultural commodities from United States ports to designated points of entry abroad in the case—

(I) of landlocked countries;

(II) of ports that cannot be used effectively because of natural or other disturbances;

(III) of the unavailability of carriers to a specific country; or

(IV) of substantial savings in costs or time that may be effected by the utilization of points of entry other than ports;


(vi) the costs associated with transporting the commodities described in subsection (a)(2) from a developing country described in subparagraph (A)(ii) of that subsection to any designated point of entry within the recipient country; and

(vii) the charges for general average contributions arising out of the ocean transport of agricultural commodities transferred pursuant thereto;

(B) all or any part of the internal transportation, storage, and handling costs incurred in moving the eligible commodity, if the Secretary determines that—

(i) payment of the costs is appropriate; and

(ii) the recipient country is a low income, net food-importing country that—

(I) meets the poverty criteria established by the International Bank for Reconstruction and Development for Civil Works Preference; and

(II) has a national government that is committed to or is working toward, through a national action plan, the goals of the World Declaration on Education for All convened in 1990 in Jomtien, Thailand, and the followup Dakar Framework for Action of the World Education Forum, convened in 2000;


(C) the costs of activities conducted in the recipient countries by a nonprofit voluntary organization, cooperative, or intergovernmental agency or organization that would enhance the effectiveness of the activities implemented by such entities under this section; and

(D) the costs of meeting the allowable administrative expenses of private voluntary organizations, cooperatives, or intergovernmental organizations that are implementing activities under this section.

(d) General authorities

The Secretary shall—

(1) implement the program established under this section;

(2) ensure that the program established under this section is consistent with the foreign policy and development assistance objectives of the United States; and

(3) consider, in determining whether a country should receive assistance under this section, whether the government of the country is taking concrete steps to improve the preschool and school systems in the country.

(e) Eligible entities

Assistance may be provided under this section to private voluntary organizations, cooperatives, intergovernmental organizations, governments of developing countries and their agencies, and other organizations.

(f) Procedures

(1) In general

In carrying out subsection (b), the Secretary shall ensure that procedures are established that—

(A) provide for the submission of proposals by eligible entities, each of which may include 1 or more recipient countries, for commodities and other assistance under this section;

(B) provide for eligible commodities and assistance on a multiyear basis;

(C) ensure that eligible entities demonstrate the organizational capacity and the ability to develop, implement, monitor, report on, and provide accountability for activities conducted under this section;

(D) provide for the expedited development, review, and approval of proposals submitted in accordance with this section;

(E) ensure to the maximum extent practicable that assistance—

(i) is provided under this section in a timely manner; and

(ii) is available when needed throughout the applicable school year;


(F) ensure monitoring and reporting by eligible entities on the use of commodities and other assistance provided under this section; and

(G) allow for the sale or barter of commodities by eligible entities to acquire funds to implement activities that improve the food security of women and children or otherwise enhance the effectiveness of programs and activities authorized under this section.

(2) Priorities for program funding

In carrying out paragraph (1) with respect to criteria for determining the use of commodities and other assistance provided for programs and activities authorized under this section, the Secretary may consider the ability of eligible entities to—

(A) identify and assess the needs of beneficiaries, especially malnourished or undernourished mothers and their children who are 5 years of age or younger, and school-age children who are malnourished, undernourished, or do not regularly attend school;

(B)(i) in the case of preschool and school-age children, target low-income areas where children's enrollment and attendance in school is low or girls' enrollment and participation in preschool or school is low, and incorporate developmental objectives for improving literacy and primary education, particularly with respect to girls; and

(ii) in the case of programs to benefit mothers and children who are 5 years of age or younger, coordinate supplementary feeding and nutrition programs with existing or newly-established maternal, infant, and children programs that provide health-needs interventions, including maternal, prenatal, and postnatal and newborn care;

(C) involve indigenous institutions as well as local communities and governments in the development and implementation of the programs and activities to foster local capacity building and leadership; and

(D) carry out multiyear programs that foster local self-sufficiency and ensure the longevity of programs in the recipient country.

(g) Use of Food and Nutrition Service

The Food and Nutrition Service of the Department of Agriculture may provide technical advice on the establishment of programs under subsection (b)(1) and on implementation of the programs in the field in recipient countries.

(h) Multilateral involvement

(1) In general

The Secretary is urged to engage existing international food aid coordinating mechanisms to ensure multilateral commitments to, and participation in, programs similar to programs supported under this section.

(2) Reports

The Secretary shall annually submit to the Committee on International Relations and the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on the commitments and activities of governments, including the United States government, in the global effort to reduce child hunger and increase school attendance.

(i) Private sector involvement

The Secretary is urged to encourage the support and active involvement of the private sector, foundations, and other individuals and organizations in programs assisted under this section.

(j) Graduation

An agreement with an eligible organization under this section shall include provisions—

(1) to—

(A) sustain the benefits to the education, enrollment, and attendance of children in schools in the targeted communities when the provision of commodities and assistance to a recipient country under a program under this section terminates; and

(B) estimate the period of time required until the recipient country or eligible organization is able to provide sufficient assistance without additional assistance under this section; or


(2) to provide other long-term benefits to targeted populations of the recipient country.

(k) Requirement to safeguard local production and usual marketing

The requirement of section 1733(a) of this title applies with respect to the availability of commodities under this section.

(l) Funding

(1) Use of Commodity Credit Corporation funds

Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section $84,000,000 for fiscal year 2009, to remain available until expended.

(2) Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section for each of fiscal years 2008 through 2023.

(3) Administrative expenses

Funds made available to carry out this section may be used to pay the administrative expenses of the Department of Agriculture or any other Federal agency assisting in the implementation of this section.

(4) Purchase of commodities

Of the funds made available to carry out this section, not more than 10 percent shall be used to purchase agricultural commodities described in subsection (a)(2).

(Pub. L. 107–171, title III, §3107, May 13, 2002, 116 Stat. 295; Pub. L. 110–246, title III, §§3001(b)(1)(A), (2)(G), 3106, June 18, 2008, 122 Stat. 1820, 1833; Pub. L. 113–79, title III, §3204, Feb. 7, 2014, 128 Stat. 780; Pub. L. 115–334, title III, §3309, Dec. 20, 2018, 132 Stat. 4622.)

Codification

Section was enacted as part of the Farm Security and Rural Investment Act of 2002, and not as part of the Food for Peace Act which comprises this chapter.

Amendments

2018—Subsec. (a). Pub. L. 115–334, §3309(1), inserted dash after "that" and par. (1) designation before "is produced" and added par. (2).

Subsec. (c)(2)(A)(vi), (vii). Pub. L. 115–334, §3309(2), added cl. (vi) and redesignated former cl. (vi) as (vii).

Subsec. (f)(1)(E) to (G). Pub. L. 115–334, §3309(3), added subpar. (E) and redesignated former subpars. (E) and (F) as (F) and (G), respectively.

Subsec. (l)(2). Pub. L. 115–334, §3309(4)(A), substituted "2023" for "2018".

Subsec. (l)(4). Pub. L. 115–334, §3309(4)(B), added par. (4).

2014—Subsec. (d). Pub. L. 113–79, §3204(b), struck out "to" after "shall" in introductory provisions.

Subsec. (l)(2). Pub. L. 113–79, §3204(a), substituted "2018" for "2012".

2008—Subsecs. (b), (c)(2)(B). Pub. L. 110–246, §3106(1), substituted "Secretary" for "President" in introductory provisions.

Subsec. (d). Pub. L. 110–246, §3106(2), substituted "The Secretary shall" for "The President shall designate 1 or more Federal agencies" in introductory provisions.

Subsec. (f)(1). Pub. L. 110–246, §3106(1), substituted "Secretary" for "President" in introductory provisions.

Subsec. (f)(2). Pub. L. 110–246, §3106(3), substituted "Secretary" for "implementing agency" in introductory provisions.

Subsecs. (h), (i). Pub. L. 110–246, §3106(1), substituted "Secretary" for "President" wherever appearing.

Subsec. (k). Pub. L. 110–246, §3001(b)(1)(A), (2)(G), made technical amendment to reference in original act which appears in text as reference to section 1733(a) of this title.

Subsec. (l)(1). Pub. L. 110–246, §3106(4)(A), added par. (1) and struck out former par. (1). Prior to amendment, text read as follows: "Of the funds of the Commodity Credit Corporation, the Secretary shall use $100,000,000 for fiscal year 2003 to carry out this section."

Pub. L. 110–246, §3106(1), substituted "Secretary" for "President".

Subsec. (l)(2). Pub. L. 110–246, §3106(4)(B), substituted "2008 through 2012" for "2004 through 2007".

Subsec. (l)(3). Pub. L. 110–246, §3106(4)(C), substituted "the Department of Agriculture or any other Federal agency assisting" for "any Federal agency implementing or assisting".

Change of Name

Committee on International Relations of House of Representatives changed to Committee on Foreign Affairs of House of Representatives by House Resolution No. 6, One Hundred Tenth Congress, Jan. 5, 2007.

Effective Date of 2008 Amendment

Amendment by Pub. L. 110–246 effective May 22, 2008, see section 4(b) of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Implementation of Section 3107 of the Farm Security and Rural Investment Act of 2002, Relating to Food for Education and Child Nutrition

Memorandum of President of the United States, Mar. 11, 2003, 68 F.R. 12569, provided:

Memorandum for the Secretary of Agriculture

Effective upon the publication of this memorandum in the Federal Register, there is established the program relating to food for education and child nutrition authorized by subsection 3107(b) of the Farm Security and Rural Investment Act of 2002 (Public Law 107–171) (7 U.S.C. 17360–1 [1736o–1]). Pursuant to subsection 3107(d) of the Act, the Department of Agriculture is designated to take actions specified in that subsection. The authorities and duties of the President under section 3107 (except the authority to designate under 3107(d)) are delegated to the Secretary of Agriculture.

In the implementation of a program for which section 3107 provides, the Secretary of Agriculture shall consult as appropriate with the Food Policy Assistance Council established by section 3 of Executive Order 12752 of February 25, 1991, as amended [7 U.S.C. 1691 note], and such heads of Federal departments and agencies as the Secretary determines appropriate.

You are authorized and directed to publish this memorandum in the Federal Register.

George W. Bush.      

§1736p. Trade policy declaration

It is hereby declared to be the agricultural trade policy of the United States to—

(1) be the premier supplier of agricultural and food products to world markets and expand exports of high value products;

(2) support the principle of free trade and the promotion of fair trade in agricultural commodities and products;

(3) cooperate fully in all efforts to negotiate with foreign countries further reductions in tariff and nontariff barriers to trade, including sanitary and phytosanitary measures and trade-distorting subsidies;

(4) aggressively counter unfair foreign trade practices as a means of encouraging fairer trade;

(5) remove foreign policy constraints to maximize United States economic interests through agricultural trade; and

(6) provide for consideration of United States agricultural trade interests in the design of national fiscal and monetary policy that may foster continued strength in the value of the dollar.

(Pub. L. 99–198, title XI, §1121, Dec. 23, 1985, 99 Stat. 1480; Pub. L. 104–127, title II, §267, Apr. 4, 1996, 110 Stat. 974.)

Codification

Section was enacted as part of the Food Security Act of 1985, and not as part of the Food for Peace Act which comprises this chapter.

Amendments

1996Pub. L. 104–127 struck out subsec. (a) which stated congressional findings regarding United States agricultural export policy, struck out subsec. designation "(b)", and substituted pars. (1) to (4) for former pars. (1) to (4) which read as follows:

"(1) provide through all means possible agricultural commodities and their products for export at competitive prices, with full assurance of quality and reliability of supply;

"(2) support the principle of free trade and the promotion of fairer trade in agricultural commodities and their products;

"(3) cooperate fully in all efforts to negotiate with foreign countries reductions in current barriers to fair trade;

"(4) counter aggressively unfair foreign trade practices using all available means, including export restitution, export bonus programs, and, if necessary, restrictions on United States imports of foreign agricultural commodities and their products, as a means to encourage fairer trade;".

§1736q. Repealed. Pub. L. 104–127, title II, §268, Apr. 4, 1996, 110 Stat. 975

Section, Pub. L. 99–198, title XI, §1122, Dec. 23, 1985, 99 Stat. 1480, related to liberalization of agricultural trade policy.

§1736r. Trade negotiations policy

(a) Findings

Congress finds that—

(1) on a level playing field, United States producers are the most competitive suppliers of agricultural products in the world;

(2) exports of United States agricultural products accounted for $54,000,000,000 in 1995, contributing a net $24,000,000,000 to the merchandise trade balance of the United States and supporting approximately 1,000,000 jobs;

(3) increased agricultural exports are critical to the future of the farm, rural, and overall United States economy, but the opportunities for increased agricultural exports are limited by the unfair subsidies of the competitors of the United States, and a variety of tariff and nontariff barriers to highly competitive United States agricultural products;

(4) international negotiations can play a key role in breaking down barriers to United States agricultural exports;

(5) the Uruguay Round Agreement on Agriculture made significant progress in the attainment of increased market access opportunities for United States exports of agricultural products, for the first time—

(A) restraining foreign trade-distorting domestic support and export subsidy programs; and

(B) developing common rules for the application of sanitary and phytosanitary restrictions;


that should result in increased exports of United States agricultural products, jobs, and income growth in the United States;

(6) the Uruguay Round Agreement on Agriculture did not succeed in completely eliminating trade distorting domestic support and export subsidies by—

(A) allowing the European Union to continue unreasonable levels of spending on export subsidies; and

(B) failing to discipline monopolistic state trading entities, such as the Canadian Wheat Board, that use nontransparent and discriminatory pricing as a hidden de facto export subsidy;


(7) during the period 1996 through 2002, there will be several opportunities for the United States to negotiate fairer trade in agricultural products, including further negotiations under the World Trade Organization, and steps toward possible free trade agreements of the Americas and Asian-Pacific Economic Cooperation (APEC); and

(8) the United States should aggressively use these opportunities to achieve more open and fair opportunities for trade in agricultural products.

(b) Goals of the United States in agricultural trade negotiations

The objectives of the United States with respect to future negotiations on agricultural trade include—

(1) increasing opportunities for United States exports of agricultural products by eliminating tariff and nontariff barriers to trade;

(2) leveling the playing field for United States producers of agricultural products by limiting per unit domestic production supports to levels that are no greater than those available in the United States;

(3) ending the practice of export dumping by eliminating all trade distorting export subsidies and disciplining state trading entities so that they do not (except in cases of bona fide food aid) sell in foreign markets at prices below domestic market prices or prices below their full costs of acquiring and delivering agricultural products to the foreign markets; and

(4) encouraging government policies that avoid price-depressing surpluses.

(Pub. L. 99–198, title XI, §1123, Dec. 23, 1985, 99 Stat. 1481; Pub. L. 104–127, title II, §269, Apr. 4, 1996, 110 Stat. 975.)

Codification

Section was enacted as part of the Food Security Act of 1985, and not as part of the Food for Peace Act which comprises this chapter.

Amendments

1996Pub. L. 104–127 amended section generally, substituting present provisions for provisions relating to initiation and pursuit of agricultural trade consultations among major agricultural producing countries, providing for sense of Congress concerning objectives of such consultations, and requiring annual reports by Secretary of Agriculture on progress of such consultations.

Agricultural Trade Negotiating Objectives and Consultations With Congress

Pub. L. 106–200, title IV, §409, May 18, 2000, 114 Stat. 295, provided that:

"(a) Findings.—Congress finds that—

"(1) United States agriculture contributes positively to the United States balance of trade and United States agricultural exports support in excess of 1,000,000 United States jobs;

"(2) United States agriculture competes successfully worldwide despite the fact that United States producers are at a competitive disadvantage because of the trade distorting support and subsidy practices of other countries and despite the fact that significant tariff and nontariff barriers exist to United States exports; and

"(3) a successful conclusion of the current World Trade Organization agricultural negotiations is critically important to the United States agricultural sector.

"(b) Objectives.—The agricultural trade negotiating objectives of the United States with respect to the current World Trade Organization agricultural negotiations include as matters of the highest priority—

"(1) the expeditious elimination of all export subsidies worldwide while maintaining bona fide food aid and preserving United States market development and export credit programs that allow the United States to compete with other foreign export promotion efforts;

"(2) leveling the playing field for United States producers of agricultural products by eliminating blue box subsidies and disciplining domestic supports in a way that forces producers to face world prices on all production in excess of domestic food security needs while allowing the preservation of nontrade distorting programs to support family farms and rural communities;

"(3) the elimination of state trading enterprises or the adoption of rigorous disciplines that ensure operational transparency, competition, and the end of discriminatory pricing practices, including policies supporting cross-subsidization and price undercutting in export markets;

"(4) affirming that the World Trade Organization Agreement on the Application of Sanitary and Phytosanitary Measures applies to new technologies, including biotechnology, and that labeling requirements to allow consumers to make choices regarding biotechnology products or other regulatory requirements may not be used as disguised barriers to trade;

"(5) increasing opportunities for United States exports of agricultural products by reducing tariffs to the same levels that exist in the United States or to lower levels and by eliminating all nontariff barriers, including—

"(A) restrictive or trade distorting practices, including those that adversely impact perishable or cyclical products;

"(B) restrictive rules in the administration of tariff-rate quotas; and

"(C) other barriers to agriculture trade, including unjustified restrictions or commercial requirements affecting new technologies, including biotechnology;

"(6) eliminating government policies that create price-depressing surpluses; and

"(7) strengthening dispute settlement procedures to ensure prompt compliance by foreign governments with their World Trade Organization obligations including commitments not to maintain unjustified restrictions on United States exports.

"(c) Consultation With Congressional Committees.—

"(1) Consultation before offer made.—In developing and before submitting an initial or revised negotiating proposal that would reduce United States tariffs on agricultural products or require a change in United States agricultural law, the United States Trade Representative shall consult with the Committee on Agriculture, Nutrition, and Forestry and the Committee on Finance of the Senate and the Committee on Agriculture and the Committee on Ways and Means of the House of Representatives.

"(2) Consultation with congressional trade advisers.—Prior to and during the course of current negotiations on agricultural trade, the United States Trade Representative shall consult closely with the congressional trade advisers.

"(3) Consultation before agreement initialed.—Not less than 48 hours before initialing an agreement reached as part of current World Trade Organization agricultural negotiations, the United States Trade Representative shall consult closely with the committees referred to in paragraph (1) regarding—

"(A) the details of the agreement;

"(B) the potential impact of the agreement on United States agricultural producers; and

"(C) any changes in United States law necessary to implement the agreement.

"(4) Disclosure of commitments.—Any agreement or other understanding addressing agricultural trade with a foreign government or governments (whether oral or in writing) that relates to a trade agreement with respect to which Congress must enact implementing legislation and that is not disclosed to Congress before legislation implementing that agreement is introduced in either House of Congress shall not be considered to be part of the agreement approved by Congress and shall have no force and effect under United States law or in any dispute settlement body.

"(d) Sense of the Congress.—It is the sense of the Congress that—

"(1) granting the President trade negotiating authority is essential to the successful conclusion of the new round of World Trade Organization agricultural negotiations;

"(2) reaching a successful agreement on agriculture should be the top priority of United States negotiators; and

"(3) if by the conclusion of the negotiations, the primary agricultural competitors of the United States do not agree to reduce their trade distorting domestic supports and eliminate export subsidies in accordance with the negotiating objectives expressed in this section, the United States should take steps to increase the leverage of United States negotiators and level the playing field for United States producers."

§§1736s, 1736t. Repealed. Pub. L. 101–624, title XV, §1572(3), Nov. 28, 1990, 104 Stat. 3702

Section 1736s, Pub. L. 99–198, title XI, §1124, Dec. 23, 1985, 99 Stat. 1481; Pub. L. 99–260, §5, Mar. 20, 1986, 100 Stat. 49; Pub. L. 100–418, title IV, §4304, Aug. 23, 1988, 102 Stat. 1397; Pub. L. 101–239, title I, §1005(b), Dec. 19, 1989, 103 Stat. 2109, provided for targeted export assistance for fiscal years 1986 through 1990.

Section 1736t, Pub. L. 99–198, title XI, §1125, Dec. 23, 1985, 99 Stat. 1482; Pub. L. 100–418, title IV, §4402(a), Aug. 23, 1988, 102 Stat. 1400, provided for short-term export credits.

Export Credit Guarantee Program

Pub. L. 100–418, title IV, §4305, Aug. 23, 1988, 102 Stat. 1398, which stated the sense of Congress that, to the extent that the Commodity Credit Corporation made a specified allocation of credit guarantees available under the export credit guarantee program referred to in section 1736t for short-term credit extended to finance the export sales of United States agricultural commodities and products, such allocation was to be made on a country-only basis and not on a commodity basis or a commodity and country basis, was repealed by Pub. L. 101–624, title XV, §1571, Nov. 28, 1990, 104 Stat. 3702.

§1736u. Cooperator market development program

(a) Sense of Congress

It is the sense of Congress that the cooperator market development program of the Foreign Agricultural Service should be continued to help develop new markets and expand and maintain existing markets for United States agricultural commodities, using nonprofit agricultural trade organizations to the maximum extent practicable.

(b) Exemption from requirements of OMB circular

The cooperator market development program shall be exempt from the requirements of Circular A 110 issued by the Office of Management and Budget.

(Pub. L. 99–198, title XI, §1126(a), (b), Dec. 23, 1985, 99 Stat. 1482.)

Codification

Section consists of subsecs. (a) and (b) of section 1126 of Pub. L. 99–198. Subsec. (c) of section 1126 amended section 1736m(a)(5)(B) of this title.

Section was enacted as part of the Food Security Act of 1985, and not as part of the Food for Peace Act which comprises this chapter.

§§1736v to 1736x. Repealed. Pub. L. 101–624, title XV, §1572(3), Nov. 28, 1990, 104 Stat. 3702

Section 1736v, Pub. L. 99–198, title XI, §1127, Dec. 23, 1985, 99 Stat. 1483; Pub. L. 99–260, §6, Mar. 20, 1986, 100 Stat. 50; Pub. L. 100–418, title IV, §4306, Aug. 23, 1988, 102 Stat. 1398, provided for program to develop and expand markets for United States agricultural commodities.

Section 1736w, Pub. L. 99–198, title XI, §1128, Dec. 23, 1985, 99 Stat. 1485, provided for program of export sales of poultry, beef and pork meats and meat-food products for 1986 through 1989.

Section 1736x, Pub. L. 99–198, title XI, §1132, Dec. 23, 1985, 99 Stat. 1488; Pub. L. 100–418, title IV, §4307, Aug. 23, 1988, 102 Stat. 1398, provided for reports by agricultural attachés. See section 1748 of this title.

§1736y. Contract sanctity and producer embargo protection

It is hereby declared to be the policy of the United States—

(1) to foster and encourage the export of agricultural commodities and the products of such commodities;

(2) not to restrict or limit the export of such commodities and products except under the most compelling circumstances;

(3) that any prohibition or limitation on the export of such commodities or products should be imposed only in time of a national emergency declared by the President under the Export Administration Act; and

(4) that contracts for the export of such commodities or products entered into before the imposition of any prohibition or limitation on the export of such commodities or products should not be abrogated.

(Pub. L. 99–198, title XI, §1133(a), Dec. 23, 1985, 99 Stat. 1489.)

References in Text

The Export Administration Act, referred to in par. (3), probably means the Export Administration Act of 1979, Pub. L. 96–72, Sept. 29, 1979, 93 Stat. 503, which was classified principally to chapter 56 (§4601 et seq.) of Title 50, War and National Defense, prior to repeal by Pub. L. 115–232, div. A, title XVII, §1766(a), Aug. 13, 2018, 132 Stat. 2232, except for sections 11A, 11B, and 11C thereof (50 U.S.C. 4611, 4612, 4613).

Codification

Section is comprised of section 1133(a) of Pub. L. 99–198. Section 1133(b) of Pub. L. 99–198 amended section 1736j of this title.

Section was enacted as part of the Food Security Act of 1985, and not as part of the Food for Peace Act which comprises this chapter.

§§1736z, 1736aa. Repealed. Pub. L. 101–624, title XV, §1572(3), Nov. 28, 1990, 104 Stat. 3702

Section 1736z, Pub. L. 99–198, title XI, §1162, Dec. 23, 1985, 99 Stat. 1499, provided for a regular assessment of certain projects and activities administered by the Secretary and Department of Agriculture.

Section 1736aa, Pub. L. 99–198, title XI, §1167(d), Dec. 23, 1985, 99 Stat. 1503, provided for barter by exporters of agricultural commodities and products for foreign products needed by exporters.

§§1736bb to 1736bb–6. Repealed. Pub. L. 104–127, title II, §271(a), Apr. 4, 1996, 110 Stat. 976

Section 1736bb, Pub. L. 100–202, §1, Dec. 22, 1987, 101 Stat. 1329–445; Pub. L. 100–418, title IV, §4610(b), Aug. 23, 1988, 102 Stat. 1411, related to establishment of agricultural aid and trade missions.

Section 1736bb–1, Pub. L. 100–202, §2, Dec. 22, 1987, 101 Stat. 1329–445, related to required and additional missions and eligible countries.

Section 1736bb–2, Pub. L. 100–202, §3, Dec. 22, 1987, 101 Stat. 1329–446, related to functions of members of missions to eligible countries.

Section 1736bb–3, Pub. L. 100–202, §4, Dec. 22, 1987, 101 Stat. 1329–446; Pub. L. 100–418, title IV, §4610(b), Aug. 23, 1988, 102 Stat. 1411, related to mission reports.

Section 1736bb–4, Pub. L. 100–202, §5, Dec. 22, 1987, 101 Stat. 1329–446; Pub. L. 100–418, title IV, §4610(b), Aug. 23, 1988, 102 Stat. 1411, related to quarterly progress reports on implementing recommendations of missions.

Section 1736bb–5, Pub. L. 100–202, §6, Dec. 22, 1987, 101 Stat. 1329–447; Pub. L. 100–418, title IV, §4610(b), Aug. 23, 1988, 102 Stat. 1411, related to authorization of appropriations.

Section 1736bb–6, Pub. L. 100–202, §7, Dec. 22, 1987, 101 Stat. 1329–447; Pub. L. 100–418, title IV, §4610(b), Aug. 23, 1988, 102 Stat. 1411; Pub. L. 101–624, title XV, §1515(b), Nov. 28, 1990, 104 Stat. 3663; Pub. L. 102–237, title III, §307, Dec. 13, 1991, 105 Stat. 1856, provided definitions for former sections 1736bb to 1736bb–6.

Inapplicability of Federal Advisory Committee Act to Agricultural Aid and Trade Missions

Pub. L. 100–277, §7, Apr. 4, 1988, 102 Stat. 69, provided that any agricultural aid and trade mission established under this section and any other activity under sections 1736bb to 1736bb–6 of this title were not to be considered advisory committee for purposes of Federal Advisory Committee Act, 5 App. U.S.C., prior to repeal by Pub. L. 104–127, title II, §271(b), Apr. 4, 1996, 110 Stat. 976.

§1736cc. Repealed. Pub. L. 101–624, title XV, §1577, Nov. 28, 1990, 104 Stat. 3702

Section, Pub. L. 101–220, §13, Dec. 12, 1989, 103 Stat. 1884, prohibited duty drawback claims by exporters who used certain export promotion programs.

§1736dd. International food security technical assistance

(a) Definition of international food security

In this section, the term "international food security" means access by any person at any time to food and nutrition that is sufficient for a healthy and productive life.

(b) Collection of information

The Secretary of Agriculture (referred to in this section as the "Secretary") shall compile information from appropriate mission areas of the Department of Agriculture (including the Food, Nutrition, and Consumer Services mission area) relating to the improvement of international food security.

(c) Public availability

To benefit programs for the improvement of international food security, the Secretary shall organize the information described in subsection (b) and make the information available in a format suitable for—

(1) public education; and

(2) use by—

(A) a Federal, State, or local agency;

(B) an agency or instrumentality of the government of a foreign country;

(C) a domestic or international organization, including a domestic or international nongovernmental organization; and

(D) an intergovernmental organization.

(d) Technical assistance

On request by an entity described in subsection (c)(2), the Secretary may provide technical assistance to the entity to implement a program for the improvement of international food security.

(e) Program priority

In carrying out this section, the Secretary shall give priority to programs relating to the development of food and nutrition safety net systems with a focus on food insecure countries.

(f) Authorization of appropriations

There is authorized to be appropriated to carry out this section $1,000,000 for each of fiscal years 2019 through 2023.

(Pub. L. 101–624, title XV, §1543B, as added Pub. L. 115–334, title III, §3308, Dec. 20, 2018, 132 Stat. 4621.)

Codification

Section was enacted as part of the Food, Agriculture, Conservation, and Trade Act of 1990, and not as part of the Food for Peace Act which comprises this chapter.