TITLE 7 - US CODE - CHAPTER 41 - FOOD FOR PEACE

TITLE 7 - US CODE - SUBCHAPTER I - BARTER

7 USC 1692 - Transferred

1693 to 1697. Repealed. Pub. L. 89808, 2(D), Nov. 11, 1966, 80 Stat. 1535

Section 1693, acts July 10, 1954, ch. 469, title III, 304, 68 Stat. 459; Aug. 13, 1957, Pub. L. 85–128, § 1(6), 71 Stat. 345; Oct. 8, 1964, Pub. L. 88–638, § 1(16), 78 Stat. 1037, provided for assistance to friendly nations in being independent of Russian or Communist Chinese trade, prevention of increased availability of commodities to unfriendly nations, and nonauthorization of transactions with Russia or Communist China. See section 1703 (j) of this title. Section 1694, acts July 10, 1954, ch. 469, title III, 305, 68 Stat. 459; Sept. 21, 1959, Pub. L. 86–341, title I, § 10, 73 Stat. 607, provided for identification of packages and containers by appropriate markings. See section 1722 of this title. Section 1695, act July 10, 1954, ch. 469, title III, 306, as added Sept. 21, 1959, Pub. L. 86–341, title I, § 11, 73 Stat. 608, provided for distribution of surplus food commodities to needy persons in United States: authorization, term of program, and cost limitation; duties of Secretary of Agriculture; issuance of food stamps and their redemption; receipt of benefits not deemed income or resources under provisions of other laws; availability of surplus foods for distribution; definition of needy person; report to Congress; and authorization of appropriations. See Supplemental Nutrition Assistance Program classified to chapter 51 of this title. Section 1696, act July 10, 1954, ch. 469, title III, 307, as added Sept. 21, 1959, Pub. L. 86–341, title I, § 12, 73 Stat. 609, provided for availability of surplus commodities for distribution to needy families and persons in United States. See Supplemental Nutrition Assistance Program classified to chapter 51 of this title and provisions of section 1721 et seq. of this title relating to donations of food on a government-to-government basis and through voluntary organizations. Section 1697, act July 10, 1954, ch. 469, title III, 308, as added Sept. 21, 1959, Pub. L. 86–341, title I, § 13, 73 Stat. 609; amended Sept. 27, 1962, Pub. L. 87–703, title II, § 203, 76 Stat. 611, related to disposal of animal fats and edible oils. See section 1721 et seq. of this title.

TITLE 7 - US CODE - SUBCHAPTER II - ECONOMIC ASSISTANCE AND FOOD SECURITY

7 USC 1701 - Economic assistance and food security

(a) In general
The President shall establish a program under this subchapter to provide for the sale of agricultural commodities to developing countries and private entities for dollars on credit terms, or for local currencies (including for local currencies on credit terms) for use under this subchapter. Such program shall be implemented by the Secretary.

(b) General authority
To carry out the policies and accomplish the objectives described in section 1691 of this title, the Secretary may negotiate and execute agreements with developing countries and private entities to finance the sale and exportation of agricultural commodities to such countries and entities.

7 USC 1702 - Agreements regarding eligible countries and private entities

(a) Priority
In selecting agreements to be entered into under this subchapter, the Secretary shall give priority to agreements providing for the export of agricultural commodities to developing countries that

(1) are undertaking measures for economic development purposes to improve food security and agricultural development, alleviate poverty, and promote broad-based equitable and sustainable development; and

(2) demonstrate the greatest need for food.

(b) Private entities
An agreement entered into under this subchapter with a private entity shall require such security, or such other provisions as the Secretary determines necessary, to provide reasonable and adequate assurance of repayment of the financing extended to the private entity.

7 USC 1703 - Terms and conditions of sales

(a) Payment

(1) Dollars
Except as provided in paragraph (2), agreements under this subchapter shall require that payment for agricultural commodities be made in dollars.

(2) Local currencies

(A) In general
The Secretary may permit payment under an agreement under this subchapter in the local currency of the appropriate country in order to use the proceeds from such payments to carry out activities under section 1704 of this title.

(B) Rates of exchange
Payments in local currency shall be at rates of exchange that are no less favorable than the highest exchange rate legally obtainable in the country and that are no less favorable than the highest exchange rate obtainable by any other country.

(b) Interest
Such agreements shall provide that interest accrue on the payment deferred under such agreement at a concessional rate as determined appropriate by the Secretary.

(c) Duration
Payments required under such agreements may be made in reasonable annual amounts over the period (not more than 30 years from the date of the last delivery of commodities in each year under such agreement) specified in the agreement.

(d) Deferral of payments
The Secretary may defer the date on which the developing country or private entity is required to begin making payment, under such agreements, for a period of not in excess of 5 years after the date of the last delivery of commodities in each year under the agreement, and interest shall be computed from the date of such last delivery.

(e) Delivery of commodities
Delivery of the commodities shall be made in accordance with the terms of the agreement.

7 USC 1704 - Use of local currency payment

(a) In general
Agreements under this subchapter may provide that the Secretary shall use payments made in local currencies by the developing country or private entity in accordance with this section.

(b) Special account
Foreign currencies received by the Secretary under this subchapter shall be deposited in a separate account, that may be interest-bearing, to the credit of the United States and such currencies and interest thereon shall be used as provided for in this section.

(c) Activities
The proceeds from the payments referred to in subsection (a) of this section may be used in the appropriate developing country, through agreements with recipient governments, private voluntary organizations, and cooperatives, for the following:

(1) Agricultural development
To support

(A) increased agricultural production, including availability of agricultural inputs, with emphasis on small farms, processing of agricultural commodities, forestry management, and land and water management;

(B) credit policies for private-sector agriculture development;

(C) establishment and expansion of institutions for basic and applied agricultural research and the use of such research through development of extension services;

(D) programs to control rodents, insects, weeds, and other animal or plant pests; and

(E) the improvement of the trade capacity of the recipient country.

(2) Agricultural business development loans
To make loans to United States business entities (including cooperatives) and branches, subsidiaries, or affiliates of such entities for development of agricultural businesses and agricultural trade capacity in such appropriate developing countries.

(3) Agricultural facilities loans
To make loans to domestic or foreign entities (including cooperatives) for the establishment of facilities for aiding in the utilization or distribution of agricultural products.

(4) Trade promotion
To promote agricultural trade development, under procedures established by the Secretary, by making loans or through other activities (including trade fairs to promote agricultural products produced in appropriate developing countries) that the Secretary determines to be appropriate.

(5) Private sector agricultural trade development
To conduct private sector agricultural trade development activities in the appropriate developing country, as determined appropriate by the Secretary.

(6) Research
To conduct research in agriculture, forestry, and aquaculture, including collaborative research which is mutually beneficial to the United States and the appropriate developing country.

(7) United States obligations
To make payments of United States obligations (including obligations entered into pursuant to other laws).

(8) Safe water and sanitation
To provide assistance under section 2152h1 of title 22 to promote good health, economic development, poverty reduction, womens empowerment, conflict prevention, and environmental sustainability by increasing affordable and equitable access to safe water and sanitation.

(d) Fiscal requirements regarding use of local currencies

(1) Exemption
Section 1306 of title 31 shall not apply to local currencies used by the President under paragraphs (1) through (7) of subsection (c) of this section.

(2) Use of currencies by other agencies
Any department or agency of the Federal Government other than the Department of Agriculture using any such local currencies for a purpose for which funds have been appropriated shall reimburse the Commodity Credit Corporation in an amount equivalent to the dollar value of the currencies used.

[1] See References in Text note below.

7 USC 1704a - Agreements for use of foreign currencies; reports to Congress

Within sixty days after any agreement is entered into for the use of any foreign currencies, a full report thereon shall be made to the Senate and the House of Representatives of the United States and to the Committees on Agriculture and Appropriations thereof.

7 USC 1704b - Repealed. Pub. L. 97214, 7(4), July 12, 1982, 96 Stat. 173

Section, Pub. L. 86–149, title IV, § 420, Aug. 10, 1959, 73 Stat. 324, related to utilization of foreign currencies for construction of military projects and reimbursement of Commodity Credit Corporation.

7 USC 1704c - Payments by Secretary of Defense in liquidation of amount due for foreign currencies

The Secretary of Defense shall pay to the Commodity Credit Corporation an amount not to exceed $6,000,000 per year until the amount due for foreign currencies used for housing constructed or acquired under title II of the Food for Peace Act (7 U.S.C. 1721–1726) has been liquidated.

1705, 1706. Repealed. Pub. L. 104127, title II, 206, 265(a), Apr. 4, 1996, 110 Stat. 953, 974

Section 1705, acts July 10, 1954, ch. 469, title I, 105, 68 Stat. 457; Dec. 16, 1963, Pub. L. 88–205, pt. IV, 403(b), 77 Stat. 390; Nov. 11, 1966, Pub. L. 89–808, § 2(B), 80 Stat. 1532; Dec. 23, 1985, Pub. L. 99–198, title XI, § 1111(e), 99 Stat. 1475; Nov. 28, 1990, Pub. L. 101–624, title XV, § 1512, 104 Stat. 3636, set out congressional declaration of policy with regard to value-added foods. Section 1706, Pub. L. 101–624, title XV, § 1517, Nov. 28, 1990, 104 Stat. 3664, related to debt-for-health-and-protection swap. A prior section 1706, acts July 10, 1954, ch. 469, title I, 106, 68 Stat. 457; Aug. 12, 1955, ch. 873, 2, 69 Stat. 721; Aug. 8, 1961, Pub. L. 87–128, title II, § 201(4), 75 Stat. 307; Dec. 16, 1963, Pub. L. 88–205, pt. IV, 403 (c)(1), 77 Stat. 390; Nov. 11, 1966, Pub. L. 89–808, § 2(B), 80 Stat. 1532; Dec. 20, 1975, Pub. L. 94–161, title II, § 205, 89 Stat. 852; Aug. 3, 1977, Pub. L. 95–88, title II, § 211(b)(2), 91 Stat. 551; Oct. 6, 1978, Pub. L. 95–424, title I, § 102(b)(2)(C), 92 Stat. 941; Dec. 29, 1981, Pub. L. 97–113, title IV, § 401(6), 95 Stat. 1537; Dec. 23, 1985, Pub. L. 99–198, title XI, § 1111(f), (g), 99 Stat. 1475, related to payments for commodities and use of proceeds prior to the general revision of this chapter by Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3633.

7 USC 1707 - Omitted

7 USC 1707a - Repealed. Pub. L. 101624, title XV, 1574, Nov. 28, 1990, 104 Stat. 3702

Section, Pub. L. 89–808, § 4, Nov. 11, 1966, 80 Stat. 1538; Pub. L. 95–501, title I, § 101, Oct. 21, 1978, 92 Stat. 1685; Pub. L. 97–98, title XII, § 1201, Dec. 22, 1981, 95 Stat. 1274; Pub. L. 98–623, title IV, § 405(c), Nov. 8, 1984, 98 Stat. 3409; Pub. L. 99–198, title XI, §§ 1130, 1131, Dec. 23, 1985, 99 Stat. 1486; Pub. L. 100–418, title IV, § 4402(b), Aug. 23, 1988, 102 Stat. 1400, provided for an export credit sales program. See section 5621 et seq. of this title.

1707b to 1707d. Omitted

1708 to 1715. Omitted

TITLE 7 - US CODE - SUBCHAPTER III - EMERGENCY AND PRIVATE ASSISTANCE PROGRAMS

7 USC 1721 - General authority

The President shall establish a program under this subchapter to provide agricultural commodities to foreign countries on behalf of the people of the United States to

(1) address famine and food crises, and respond to emergency food needs, arising from man-made and natural disasters;

(2) combat malnutrition, especially in children and mothers;

(3) carry out activities that attempt to alleviate the causes of hunger, mortality and morbidity;

(4) promote economic and community development;

(5) promote food security and support sound environmental practices;

(6) carry out feeding programs; and

(7) promote economic and nutritional security by increasing educational, training, and other productive activities.

Such program shall be implemented by the Administrator.

7 USC 1722 - Provision of agricultural commodities

(a) Emergency assistance
Notwithstanding any other provision of law, the Administrator may provide agricultural commodities to meet emergency food needs under this subchapter through governments and public or private agencies, including intergovernmental organizations such as the World Food Program and other multilateral organizations, in such manner and on such terms and conditions as the Administrator determines appropriate to respond to the emergency.

(b) Nonemergency assistance

(1) In general
The Administrator may provide agricultural commodities for nonemergency assistance under this subchapter through eligible organizations (as described in subsection (d) of this section) that have entered into an agreement with the Administrator to use the commodities in accordance with this subchapter.

(2) Limitation
The Administrator may not use as a sole rationale for denying a request for funds submitted under this subsection because the program for which the funds are requested

(A) would be carried out by the eligible organization in a foreign country in which the Agency for International Development does not have a mission, office, or other presence; or

(B) is not part of a development plan for the country prepared by the Agency.

(3) Program diversity
The Administrator shall

(A) encourage eligible organizations to propose and implement program plans to address 1 or more aspects of the program under section 1721 of this title; and

(B) consider proposals that incorporate a variety of program objectives and strategic plans based on the identification by eligible organizations of appropriate activities, consistent with section 1721 of this title, to assist development of foreign countries.

(c) Uses of assistance
Agricultural commodities provided under this subchapter may be made available for direct distribution, sale, barter, or other appropriate disposition.

(d) Eligible organizations
To be eligible to receive assistance under subsection (b) of this section an organization shall be

(1) a private voluntary organization or cooperative that is, to the extent practicable, registered with the Administrator; or

(2) an intergovernmental organization, such as the World Food Program.

(e) Support for eligible organizations

(1) In general
Of the funds made available in each fiscal year under this subchapter to the Administrator, not less than 7.5 percent nor more than 13 percent of the funds shall be made available in each fiscal year to eligible organizations described in subsection (d) of this section, to assist the organizations in

(A) establishing new programs under this subchapter;

(B) meeting specific administrative, management, personnel and internal transportation and distribution costs for carrying out programs in foreign countries under this subchapter; and

(C) improving and implementing methodologies for food aid programs, including needs assessments (upon the request of the Administrator), monitoring, and evaluation.

(2) Request for funds
To receive funds made available under paragraph (1), an eligible organization described in subsection (d) of this section shall submit a request for the funds that is subject to approval by the Administrator.

(3) Assistance with respect to sale
Upon the request of an eligible organization, the Administrator may provide assistance to the eligible organization with respect to the sale of agricultural commodities made available to it under this subchapter.

(f) Effective use of commodities
To ensure that agricultural commodities made available under this subchapter are used effectively and in the areas of greatest need, organizations or cooperatives through which such commodities are distributed shall

(1) to the extent feasible, work with indigenous institutions and employ indigenous workers;

(2) assess and take into account nutritional and other needs of beneficiary groups;

(3) help such beneficiary groups design and carry out mutually acceptable projects;

(4) recommend to the Administrator methods of making assistance available that are the most appropriate for each local setting;

(5) supervise the distribution of commodities provided and the implementation of programs carried out under this subchapter; and

(6) periodically evaluate the effectiveness of projects undertaken under this subchapter.

(g) Labeling
Commodities provided under this subchapter shall, to the extent practicable, be clearly identified with appropriate markings on the package or container of such commodity in the language of the locality in which such commodities are distributed, as being furnished by the people of the United States of America.

(h) Food aid quality

(1) In general
The Administrator shall use funds made available for fiscal year 2009 and subsequent fiscal years to carry out this subchapter

(A) to assess the types and quality of agricultural commodities and products donated for food aid;

(B) to adjust products and formulations (including the potential introduction of new fortificants and products) as necessary to cost-effectively meet nutrient needs of target populations; and

(2) Administration
The Administrator

(A) shall carry out this subsection in consultation with and through independent entities with proven expertise in food aid commodity quality enhancements;

(B) may enter into contracts to obtain the services of such entities; and

(3) Funding limitation
Of the funds made available under section 1726a (f) of this title,^[1] for fiscal years 2009 through 2011, not more than $4,500,000 may be used to carry out this subsection.

[1] So in original. The comma probably should not appear.

7 USC 1723 - Generation and use of currencies by private voluntary organizations and cooperatives

(a) Local sale and barter of commodities
An agreement entered into between the Administrator and a private voluntary organization or cooperative to provide food assistance through such organization or cooperative under this subchapter may provide for the sale or barter in 1 or more recipient countries, or 1 or more countries in the same region, of the commodities to be provided under such agreement.

(b) Minimum level of local sales
In carrying out agreements of the type referred to in subsection (a) of this section, the Administrator shall permit private voluntary organizations and cooperatives to sell, in 1 or more recipient countries, or in 1 or more countries in the same region, an amount of commodities equal to not less than 15 percent of the aggregate amounts of all commodities distributed under non-emergency programs under this subchapter for each fiscal year, to generate proceeds to be used as provided in this section.

(c) Description of intended uses
A private voluntary organization or cooperative submitting a proposal to enter into a non-emergency food assistance agreement under this subchapter shall include in such proposal a description of the intended uses of any proceeds that may be generated through the sale, in 1 or more recipient countries, or in 1 or more countries in the same region, of any commodities provided under an agreement entered into between the Administrator and the organization or cooperative.

(d) Use
Proceeds generated from any partial or full sale or barter of commodities by a private voluntary organization or cooperative under a non-emergency food assistance agreement under this subchapter may

(1) be used to transport, store, distribute, and otherwise enhance the effectiveness of the use of agricultural commodities provided under this subchapter;

(2) be used to implement income-generating, community development, health, nutrition, cooperative development, agricultural, and other developmental activities within 1 or more recipient countries or within 1 or more countries in the same region; or

(3) be invested, and any interest earned on such investment may be used, for the purposes for which the assistance was provided to that organization, without further appropriation by Congress.

7 USC 1724 - Levels of assistance

(a) Minimum levels

(1) Minimum assistance
Except as provided in paragraph (3), the Administrator shall make agricultural commodities available for food distribution under this subchapter in an amount that for each of fiscal years 2008 through 2012 is not less than 2,500,000 metric tons.

(2) Minimum non-emergency assistance
Of the amounts specified in paragraph (1), and except as provided in paragraph (3), the Administrator shall make agricultural commodities available for non-emergency food distribution through eligible organizations under section 1722 of this title in an amount that for each of fiscal years 2008 through 2012 is not less than 1,875,000 metric tons.

(3) Exception
The Administrator may waive the requirements of paragraphs (1) and (2) for any fiscal year if the Administrator determines that such quantities of commodities cannot be used effectively to carry out this subchapter or in order to meet an emergency. In making a waiver under this paragraph, the Administrator shall prepare and submit to the Committees on International Relations, Agriculture and Appropriations of the House of Representatives, and the Committees on Appropriations and Agriculture, Nutrition, and Forestry of the Senate a report containing the reasons for the waiver. No waiver shall be made before the beginning of the applicable fiscal year.

(b) Use of value-added commodities

(1) Minimum levels
Except as provided in paragraph (2), in making agricultural commodities available under this subchapter, the Administrator shall ensure that not less than 75 percent of the quantity of such commodities required to be distributed during each fiscal year under subsection (a)(2) of this section be in the form of processed, fortified, or bagged commodities and that not less than 50 percent of the quantity of the bagged commodities that are whole grain commodities be bagged in the United States.

(2) Waiver of minimum
The Administrator may waive the requirement of paragraph (1) for any fiscal year in which the Administrator determines that the requirements of the programs established under this subchapter will not be best served by the enforcement of such requirement under such paragraph.

7 USC 1725 - Food Aid Consultative Group

(a) Establishment
There is established a Food Aid Consultative Group (hereinafter referred to in this section as the Group) that shall meet regularly to review and address issues concerning the effectiveness of the regulations and procedures that govern food assistance programs established and implemented under this subchapter, and the implementation of other provisions of this subchapter that may involve eligible organizations described in section 1722 (d)(1) of this title.

(b) Membership
The Group shall be composed of

(1) the Administrator;

(2) the Under Secretary of Agriculture for Farm and Foreign Agricultural Services;

(3) the Inspector General of the Agency for International Development;

(4) a representative of each private voluntary organization and cooperative participating in a program under this subchapter, or receiving planning assistance funds from the Agency to establish programs under this subchapter;

(5) representatives from African, Asian and Latin American indigenous non-governmental organizations determined appropriate by the Administrator;

(6) representatives from agricultural producer groups in the United States; and

(7) representatives from the maritime transportation sector involved in transporting agricultural commodities overseas for programs under this chapter.

(d) Consultations
In preparing regulations, handbooks, or guidelines implementing this subchapter, or significant revisions thereto, the Administrator shall provide such proposals to the Group for review and comment. The Administrator shall consult and, when appropriate (but at least twice per year), meet with the Group regarding such proposed regulations, handbooks, guidelines, or revisions thereto prior to the issuance of such.

(e) Advisory Committee Act
The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Group.

(f) Termination
The Group shall terminate on December 31, 2012.

7 USC 1726 - Repealed. Pub. L. 107171, title III, 3006, May 13, 2002, 116 Stat. 282

Section, act July 10, 1954, ch. 469, title II, 206, as added Pub. L. 94–161, title II, § 209, Dec. 20, 1975, 89 Stat. 854; amended Pub. L. 95–88, title II, § 210, Aug. 3, 1977, 91 Stat. 548; Pub. L. 96–53, title II, § 203, Aug. 14, 1979, 93 Stat. 368; Pub. L. 99–198, title XI, § 1112(a)(2), Dec. 23, 1985, 99 Stat. 1478; Pub. L. 100–202, §§ 12, 13, Dec. 22, 1987, 101 Stat. 1329–448; Pub. L. 100–418, title IV, § 4610(d), Aug. 23, 1988, 102 Stat. 1411; Pub. L. 101–624, title XV, § 1512, Nov. 28, 1990, 104 Stat. 3640, related to maximum level of expenditures.

7 USC 1726a - Administration

(a) Proposals

(1) Recipient countries
A proposal to enter into a nonemergency food assistance agreement under this subchapter shall identify the recipient country or countries that are the subject of the agreement.

(2) Timing
Not later than 120 days after the date of receipt by the Administrator of a proposal submitted by an eligible organization under this subchapter, the Administrator shall determine whether to accept the proposal.

(3) Denial
If a proposal under paragraph (1) is denied, the response shall specify the reasons for denial.

(b) Notice and comment
Not later than 30 days prior to the issuance of a final guideline or annual policy guidance to carry out this subchapter, the Administrator shall

(1) provide notice of the existence of a proposed guideline or annual policy guidance, and that such guideline or annual policy guidance is available for review and comment, to eligible organizations that participate in programs under this subchapter, and to other interested persons;

(2) make the proposed guideline or annual policy guidance available, on request, to the eligible organizations and other persons referred to in paragraph (1); and

(3) take any comments received into consideration prior to the issuance of the final guideline or annual policy guidance.

(1) In general
The Administrator shall promptly issue all necessary regulations and make revisions to agency guidelines with respect to changes in the operation or implementation of the program established under this subchapter.

(2) Requirements
The Administrator shall develop regulations with the intent of

(A) simplifying procedures for participation in the programs established under this subchapter;

(B) reducing paperwork requirements under such programs;

(C) establishing reasonable and realistic accountability standards to be applied to eligible organizations participating in the programs established under this subchapter, taking into consideration the problems associated with carrying out programs in developing countries; and

(D) providing flexibility for carrying out programs under this subchapter.

(d) Timely provision of commodities
The Administrator, in consultation with the Secretary, shall develop procedures that ensure expedited processing of commodity call forwards in order to provide commodities overseas in a timely manner and to the extent feasible, according to planned delivery schedules.

(e) Timely approval
The Administrator is encouraged to finalize program agreements and resource requests for programs under this section before the beginning of each fiscal year.

(f) Program oversight, monitoring, and evaluation

(1) Duties of Administrator
The Administrator, in consultation with the Secretary, shall establish systems and carry out activities

(A) to determine the need for assistance provided under this subchapter; and

(B) to improve, monitor, and evaluate the effectiveness and efficiency of the assistance provided under this subchapter to maximize the impact of the assistance.

(2) Requirements of systems and activities
The systems and activities described in paragraph (1) shall include

(A) program monitors in countries that receive assistance under this subchapter;

(B) country and regional food aid impact evaluations;

(D) the evaluation of monetization programs;

(E) early warning assessments and systems to help prevent famines; and

(F) upgraded information technology systems.

(3) Implementation report
Not later than 180 days after June 18, 2008, the Administrator shall submit to the appropriate committees of Congress a report on efforts undertaken by the Administrator to conduct oversight of nonemergency programs under this subchapter.

(4) Government Accountability Office report
Not later than 270 days after the date of submission of the report under paragraph (3), the Comptroller General of the United States shall submit to the appropriate committees of Congress a report that contains

(A) a review of, and comments addressing, the report described in paragraph (3); and

(B) recommendations relating to any additional actions that the Comptroller General of the United States determines to be necessary to improve the monitoring and evaluation of assistance provided under this subchapter.

(5) Contract authority

(A) In general
Subject to subparagraphs (B) and (C), in carrying out administrative and management activities relating to each activity carried out by the Administrator under paragraph (1), the Administrator may enter into contracts with 1 or more individuals for personal service to be performed in recipient countries or neighboring countries.

(B) Prohibition
An individual who enters into a contract with the Administrator under subparagraph (A) shall not be considered to be an employee of the Federal Government for the purpose of any law (including regulations) administered by the Office of Personnel Management.

(C) Personal service
Subparagraph (A) does not limit the ability of the Administrator to enter into a contract with any individual for personal service under section 1722 (a) of this title.

(6) Funding

(A) In general
Subject to section 1722 (h)(3) of this title, in addition to other funds made available to the Administrator to carry out the monitoring of emergency food assistance, the Administrator may implement this subsection using up to $22,000,000 of the funds made available under this subchapter for each of fiscal years 2009 through 2012, except for paragraph (2)(F), for which only $2,500,000 shall be made available during fiscal year 2009.

(B) Limitations

(i) In general Subject to clause (ii), of the funds made available under subparagraph (A), for each of fiscal years 2009 through 2012, not more than $8,000,000 may be used by the Administrator to carry out paragraph (2)(E).

(ii) Condition No funds shall be made available under subparagraph (A), in accordance with clause (i), unless not less than $8,000,000 is made available under chapter 1 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) for such purposes for such fiscal year.

(g) Project reporting

(1) In general
In submitting project reports to the Administrator, a private voluntary organization or cooperative shall provide a copy of the report in such form as is necessary for the report to be displayed for public use on the website of the United States Agency for International Development.

(2) Confidential information
An organization or cooperative described in paragraph (1) may omit any confidential information from the copy of the report submitted for public display under that paragraph.

7 USC 1726b - Assistance for stockpiling and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods

(a) In general
The Administrator may provide grants to

(1) United States nonprofit">nonprofit organizations (described in section 501 (c)(3) of title 26 and exempt from tax under section 501 (a) of title 26) for the preparation of shelf-stable prepackaged foods requested by eligible organizations and the establishment and maintenance of stockpiles of the foods in the United States; and

(2) private voluntary organizations and international organizations for the rapid transportation, delivery, and distribution of shelf-stable prepackaged foods described in paragraph (1) to needy individuals in foreign countries.

(b) Grants for establishment of stockpiles

(1) In general
Not more than 70 percent of the amount made available to carry out this section shall be used to provide grants under subsection (a)(1) of this section.

(2) Priority
In providing grants under subsection (a)(1) of this section, the Administrator shall provide a preference to a United States nonprofit">nonprofit organization that agrees to provide

(A) non-Federal funds in an amount equal to 50 percent of the amount of funds received under a grant under subsection (a)(1) of this section;

(B) an in-kind contribution in an amount equal to that percentage; or

for the preparation of shelf-stable prepackaged foods and the establishment and maintenance of stockpiles of the foods in the United States in accordance with subsection (a)(1) of this section.

(c) Grants for rapid transportation, delivery, and distribution
Not less than 20 percent of the amount made available to carry out this section shall be used to provide grants under subsection (a)(2) of this section.

(d) Administration
Not more than 10 percent of the amount made available to carry out this section may be used by the Administrator for the administration of grants under subsection (a) of this section.

(e) Regulations or guidelines
Not later than 180 days after November 9, 2000, the Administrator, in consultation with the Secretary, shall issue such regulations or guidelines as the Administrator determines to be necessary to carry out this section, including regulations or guidelines that provide to United States nonprofit">nonprofit organizations eligible to receive grants under subsection (a)(1) of this section guidance with respect to the requirements for qualified shelf-stable prepackaged foods and the quantity of the foods to be stockpiled by the organizations.

(f) Authorization of appropriations
There is authorized to be appropriated to the Administrator to carry out this section, in addition to amounts otherwise available to carry out this section, $8,000,000 for each of fiscal years 2001 through 2012, to remain available until expended.

7 USC 1726c - Local and regional food aid procurement projects

(a) Definitions
In this section:

(1) Administrator
The term Administrator means the Administrator of the Agency for International Development.

(2) 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

(3) Eligible commodity
The term eligible commodity means an agricultural commodity (or the product of an agricultural commodity) that

(A) is produced in, and procured from, a developing country; and

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

(4) Eligible organization
The term eligible organization means an organization that is

(A) described in section 1722 (d) of this title; and

(B) with respect to nongovernmental organizations, subject to regulations promulgated or guidelines issued to carry out this section, including United States audit requirements that are applicable to nongovernmental organizations.

(b) Study; field-based projects

(1) Study

(A) In general
Not later than 30 days after June 18, 2008, the Secretary shall initiate a study of prior local and regional procurements for food aid programs conducted by

(i) other donor countries;

(ii) private voluntary organizations; and

(iii) the World Food Program of the United Nations.

(B) Report
Not later than 180 days after June 18, 2008, the Secretary shall submit to the appropriate committees of Congress a report containing the results of the study conducted under subparagraph (A).

(2) Field-based projects

(A) In general
In accordance with subparagraph (B), the Secretary shall provide grants to, or enter into cooperative agreements with, eligible organizations to carry out field-based projects that consist of local or regional procurements of eligible commodities to respond to food crises and disasters in accordance with this section.

(B) Consultation with Administrator
In carrying out the development and implementation of field-based projects under subparagraph (A), the Secretary shall consult with the Administrator.

(1) In general
Any eligible commodity that is procured for a field-based project carried out under subsection (b)(2) shall be procured through any approach or methodology that the Secretary considers to be an effective approach or methodology to provide adequate information regarding the manner by which to expedite, to the maximum extent practicable, the provision of food aid to affected populations without significantly increasing commodity costs for low-income consumers who procure commodities sourced from the same markets at which the eligible commodity is procured.

(2) Requirements

(A) Impact on local farmers and countries
The Secretary shall ensure that the local or regional procurement of any eligible commodity under this section will not have a disruptive impact on farmers located in, or the economy of

(i) the recipient country of the eligible commodity; or

(ii) any country in the region in which the eligible commodity may be procured.

(B) Transshipment
The Secretary shall, in accordance with such terms and conditions as the Secretary considers to be appropriate, require from each eligible organization commitments designed to prevent or restrict

(i) the resale or transshipment of any eligible commodity procured under this section to any country other than the recipient country; and

(ii) the use of the eligible commodity for any purpose other than food aid.

(i) In general In carrying out this section, the Secretary shall take any precaution that the Secretary considers to be reasonable to ensure that the procurement of eligible commodities will not unduly disrupt

(I) world prices for agricultural commodities; or

(II) normal patterns of commercial trade with foreign countries.

(ii) Procurement price The procurement of any eligible commodity shall be made at a reasonable market price with respect to the economy of the country in which the eligible commodity is procured, as determined by the Secretary.

(d) Regulations; guidelines

(1) In general
In accordance with paragraph (2), not later than 180 days after the date of completion of the study under subsection (b)(1), the Secretary shall promulgate regulations or issue guidelines to carry out field-based projects under this section.

(2) Requirements

(A) Use of study
In promulgating regulations or issuing guidelines under paragraph (1), the Secretary shall take into consideration the results of the study described in subsection (b)(1).

(B) Public review and comment
In promulgating regulations or issuing guidelines under paragraph (1), the Secretary shall provide an opportunity for public review and comment.

(3) Availability
The Secretary shall not approve the procurement of any eligible commodity under this section until the date on which the Secretary promulgates regulations or issues guidelines under paragraph (1).

(e) Field-based project grants or cooperative agreements

(1) In general
The Secretary shall award grants to, or enter into cooperative agreements with, eligible organizations to carry out field-based projects.

(2) Requirements of eligible organizations

(A) Application

(i) In general To be eligible to receive a grant from, or enter into a cooperative agreement with, the Secretary under this subsection, an eligible organization shall submit to the Secretary an application by such date, in such manner, and containing such information as the Secretary may require.

(ii) Other applicable requirements Any other applicable requirement relating to the submission of proposals for consideration shall apply to the submission of an application required under clause (i), as determined by the Secretary.

(B) Completion requirement
To be eligible to receive a grant from, or enter into a cooperative agreement with, the Secretary under this subsection, an eligible organization shall agree

(i) to collect by September 30, 2011, data containing the information required under subsection (f)(1)(B) relating to the field-based project funded through the grant; and

(ii) to provide to the Secretary the data collected under clause (i).

(3) Requirements of Secretary

(A) Project diversity

(i) In general Subject to clause (ii) and subparagraph (B), in selecting proposals for field-based projects to fund under this section, the Secretary shall select a diversity of projects, including projects located in

(I) food surplus regions;

(II) food deficit regions (that are carried out using regional procurement methods); and

(III) multiple geographical regions.

(ii) Priority In selecting proposals for field-based projects under clause (i), the Secretary shall ensure that the majority of selected proposals are for field-based projects that

(I) are located in Africa; and

(II) procure eligible commodities that are produced in Africa.

(B) Development assistance
A portion of the funds provided under this subsection shall be made available for field-based projects that provide development assistance for a period of not less than 1 year.

(4) Availability
The Secretary shall not award a grant to any eligible organization under paragraph (1) until the date on which the Secretary promulgates regulations or issues guidelines under subsection (d)(1).

(f) Independent evaluations; report

(1) Independent evaluations

(A) In general
Not later than November 1, 2011, the Secretary shall ensure that an independent third party conducts an independent evaluation of all field-based projects that

(i) addresses each factor described in subparagraph (B); and

(ii) is conducted in accordance with this section.

(B) Required factors
The Secretary shall require the independent third party to develop

(i) with respect to each relevant market in which an eligible commodity was procured under this section, a description of

(I) the prevailing and historic supply, demand, and price movements of the market (including the extent of competition for procurement bids);

(II) the impact of the procurement of the eligible commodity on producer and consumer prices in the market;

(III) each government market interference or other activity of the donor country that might have significantly affected the supply or demand of the eligible commodity in the area at which the local or regional procurement occurred;

(IV) the quantities and types of eligible commodities procured in the market;

(V) the time frame for procurement of each eligible commodity; and

(VI) the total cost of the procurement of each eligible commodity (including storage, handling, transportation, and administrative costs);

(ii) an assessment regarding

(I) whether the requirements of this section have been met;

(II) the impact of different methodologies and approaches on

(aa) local and regional agricultural producers (including large and small agricultural producers);

(bb) markets;

(cc) low-income consumers; and

(dd) program recipients; and

(III) the length of the period beginning on the date on which the Secretary initiated the procurement process and ending on the date of delivery of eligible commodities;

(iii) a comparison of different methodologies used to carry out this section, with respect to

(I) the benefits to local agriculture;

(II) the impact on markets and consumers;

(III) the period of time required for procurement and delivery;

(IV) quality and safety assurances; and

(V) implementation costs; and

(iv) to the extent adequate information is available (including the results of the report required under subsection (b)(1)(B)), a comparison of the different methodologies used by other donor countries to make local and regional procurements.

(C) Independent third party access to records and reports
The Secretary shall provide to the independent third party access to each record and report that the independent third party determines to be necessary to complete the independent evaluation.

(D) Public access to records and reports
Not later than 180 days after the date described in paragraph (2), the Secretary shall provide public access to each record and report described in subparagraph (C).

(2) Report
Not later than 4 years after June 18, 2008, the Secretary shall submit to the appropriate committees of Congress a report that contains the analysis and findings of the independent evaluation conducted under paragraph (1)(A).

(g) Funding

(1) Commodity Credit Corporation
The Secretary shall use the funds, facilities, and authorities of the Commodity Credit Corporation to carry out this section.

(2) Funding amounts
Of the funds of the Commodity Credit Corporation, the Secretary shall use to carry out this section

(A) $5,000,000 for fiscal year 2009;

(B) $25,000,000 for fiscal year 2010;

(D) $5,000,000 for fiscal year 2012.

TITLE 7 - US CODE - SUBCHAPTER IIIA - FOOD FOR DEVELOPMENT

7 USC 1727 - Bilateral grant program

(a) In general
The President shall establish a program under which agricultural commodities are donated in accordance with this subchapter to least developed countries. The revenue generated by the sale of such commodities in the recipient country may be utilized for economic development activities. Such program shall be implemented by the Administrator.

(b) General authority
To carry out the policies and accomplish the objectives described in section 1691 of this title, the Administrator may negotiate and execute agreements with least developed countries to provide commodities to such countries on a grant basis.

7 USC 1727a - Eligible countries

(a) Least developed countries
A country shall be considered to be a least developed country and eligible for the donation of agricultural commodities under this subchapter if

(1) such country meets the poverty criteria established by the International Bank for Reconstruction and Development for Civil Works Preference for providing financial assistance; or

(2) such country is a food deficit country and is characterized by high levels of malnutrition among significant numbers of its population, as determined by the Administrator under subsection (b) of this section.

(b) Indicators of food deficit countries
To make a finding under subsection (a)(2) of this section that a country is a food deficit country and is characterized by high levels of malnutrition, the Administrator must determine that the country meets all of the following indicators of national food deficit and malnutrition:

(1) Calorie consumption
That the daily per capita calorie consumption of the country is less than 2300 calories.

(2) Food security requirements
That the country cannot meet its food security requirements through domestic production or imports due to a shortage of foreign exchange earnings.

(3) Child mortality rate
That the mortality rate of children under 5 years of age in the country is in excess of 100 per 1000 births.

(c) Priority
In determining whether and to what extent agricultural commodities shall be made available to least developed countries under this subchapter, the Administrator shall give priority to countries that

(1) demonstrate the greatest need for food;

(2) demonstrate the capacity to use food assistance effectively;

(3) have demonstrated a commitment to policies to promote food security, including policies to reduce measurably hunger and malnutrition through efforts such as establishing and institutionalizing supplemental nutrition programs targeted to reach those who are nutritionally at risk; and

(4) have a long-term plan for broad-based, equitable, and sustainable development.

7 USC 1727b - Grant programs

To carry out the policies and accomplish the objectives described in section 1691 of this title, the Administrator may negotiate and execute agreements with least developed countries to provide commodities to such countries on a grant basis either through the Commodity Credit Corporation or through private trade channels.

7 USC 1727c - Direct uses or sales of commodities

Agricultural commodities provided to a least developed country under this section

(1) may be used in such country for

(A) direct feeding programs, including programs that include activities that deal directly with the special health needs of children and mothers consistent with section 2151b (c)(2) of title 22, relating to the Child Survival Fund; or

(B) the development of emergency food reserves; or

(2) may be sold in such country by the government of the country or the Administrator (or their designees) as provided in the agreement, and the proceeds of such sale used in accordance with this subchapter.

7 USC 1727d - Local currency accounts

(a) Retention of proceeds
To the extent determined to be appropriate by the Administrator, revenues generated from the sale, under section 1727c (2) of this title, of agricultural commodities provided under this subchapter shall be deposited into a separate account (that may be interest bearing) in the recipient country to be disbursed for the benefit of such country in accordance with local currency agreements entered into between the recipient country and the Administrator. The Administrator may determine not to deposit such revenues in a separate account if

(1) local currencies are to be programmed for specific economic development purposes listed in section 1727e (a) of this title; and

(2) the recipient country programs an equivalent amount of money for such purposes as specified in an agreement entered into by the Administrator and the recipient country.

(b) Ownership and programming of accounts
The proceeds of sales pursuant to section 1727c (2) of this title shall be the property of the recipient country or the United States, as specified in the applicable agreement. Such proceeds shall be utilized for the benefit of the recipient country, shall be jointly programmed by the Administrator and the government of the recipient country, and shall be disbursed for the benefit of such country in accordance with local currency agreements between the Administrator and that government.

(c) Overall development strategy
The Administrator shall consider the local currency proceeds as an integral part of the overall development strategy of the Agency for International Development and the recipient country.

7 USC 1727e - Use of local currency proceeds

(a) In general
The local currency proceeds of sales pursuant to section 1727c (2) of this title shall be used in the recipient country for specific economic development purposes, including

(1) the promotion of specific policy reforms to improve food security and agricultural development within the country and to promote broad-based, equitable, and sustainable development;

(2) the establishment of development programs, projects, and activities that promote food security, alleviate hunger, improve nutrition, and promote family planning, maternal and child health care, oral rehydration therapy, and other child survival objectives consistent with section 2151b (c)(2) of title 22, relating to the Child Survival Fund;

(3) the promotion of increased access to food supplies through the encouragement of specific policies and programs designed to increase employment and incomes within the country;

(4) the promotion of free and open markets through specific policies and programs;

(5) support for United States private voluntary organizations and cooperatives and encouragement of the development and utilization of indigenous nongovernmental organizations;

(6) the purchase of agricultural commodities (including transportation and processing costs) produced in the country

(A) to meet urgent or extraordinary relief requirements in the country or in neighboring countries; or

(B) to develop emergency food reserves;

(7) the purchase of goods and services (other than agricultural commodities and related services) to meet urgent or extraordinary relief requirements;

(8) the payment, to the extent practicable, of the costs of carrying out the program authorized in subchapter V of this chapter;

(9) private sector development activities designed to further the policies set forth in section 1691 of this title, including loans to financial intermediaries for use in making loans to private individuals, cooperatives, corporations, or other entities;

(10) activities of the Peace Corps that relate to agricultural production;

(11) the development of rural infrastructure such as roads, irrigation systems, and electrification to enhance agricultural production;

(12) research on malnutrition and its causes, as well as research relating to the identification and application of policies and strategies for targeting resources made available under this section to address the problem of malnutrition; and

(13) support for research (including collaborative research which is mutually beneficial to the United States and the recipient country), education, and extension activities in agricultural sciences.

Section 1306 of title 31 shall not apply to the use under this subsection of local currency proceeds that are owned by the United States.

(b) Support of nongovernmental organizations
To the extent practicable, not less than 10 percent of the amounts contained in an account established for a recipient country under section 1727d (a) of this title shall be used by such country to support the development and utilization of nongovernmental organizations and cooperatives that are active in rural development, agricultural education, sustainable agricultural production, other measures to assist poor people, and environmental protection projects within such country.

(c) Investment of local currencies by nongovernmental organizations
A nongovernmental organization may invest local currencies that accrue to that organization as a result of assistance under subsection (a) of this section, and any interest earned on such investment may be used for the purpose for which the assistance was provided to that organization without further appropriation by the Congress.

(d) Support for certain educational institutions
If the Administrator determines that local currencies deposited in a special account pursuant to this subchapter are not needed for any of the activities prescribed in paragraphs (1) through (13) of subsection (a) of this section or for any other specific economic development purpose in the recipient country, the Administrator may use those currencies to provide support for any institution (other than an institution whose primary purpose is to provide religious education) located in the recipient country that provides education in agricultural sciences or other disciplines for a significant number of United States nationals (who may include members of the United States Armed Forces or the Foreign Service or dependents of such members).

1727f, 1727g. Omitted

TITLE 7 - US CODE - SUBCHAPTER IIIB - EMERGENCY FOOD ASSISTANCE

7 USC 1728 - Findings regarding emergency food assistance

The Congress finds that

(1) acute food crises continue to cause loss of life, severe malnutrition, and general human suffering in many areas of the Third World, especially in sub-Saharan Africa;

(2) the United States continues to respond to these needs, as a reflection of its humanitarian concern for the people of the Third World, with emergency food and other necessary assistance to alleviate the suffering of those affected by severe food shortages;

(3) the timely provision of food and other necessary assistance to those in need is of paramount importance if the worst effects of such food crises are to be mitigated; and

(4) the ability of the United States to provide food and other necessary assistance on a timely basis, and to ensure that such assistance is distributed to those in need, should be enhanced in order to better enable the United States to help those affected by severe food shortages.

7 USC 1728a - Presidents Emergency Food Assistance Fund

(a) Establishment; authority of President to furnish assistance from Fund
There is hereby established the Presidents Emergency Food Assistance Fund (hereafter in this subchapter referred to as the Fund). Whenever the President determines it to be in the national interest of the United States, he is authorized to furnish, in accordance with the provisions of this subchapter, and on such terms and conditions as he may determine, assistance from the Fund for the purpose of alleviating the human suffering of peoples outside the United States caused by acute food shortages. Such assistance may be provided through such governments or other entities, private or public, including intergovernmental and multilateral organizations, as the President deems appropriate.

(b) Types of assistance authorized
Because the effects of severe food shortages will vary with the country or region, assistance to alleviate human suffering may include the provision of food assistance or such activities as the provision of seed, animal fodder, animal vaccines, and transportation (including inland transportation) and distribution services.

(c) Authorization of appropriations
There are authorized to be appropriated to the President $50,000,000 each for fiscal year 1985 and fiscal year 1986 to carry out the purposes of this subchapter, to remain available until expanded.^[1]

(d) Authority of President
The President may make loans, advances, and grants to, make and perform agreements and contracts with, or enter into transactions with, any individual, corporation, or other body of persons, government or government agency, whether within or without the United States, and international and intergovernmental organizations in furtherance of the purposes and within the limitations of this subchapter.

[1] So in original. Probably should be “expended.”

7 USC 1728b - Omitted

TITLE 7 - US CODE - SUBCHAPTER IV - GENERAL AUTHORITIES AND REQUIREMENTS

7 USC 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) of this section 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.

7 USC 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 of this chapter, 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

(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.

7 USC 1733 - General provisions

(a) Prohibition
No agricultural commodity shall be made available under this chapter unless it is determined that

(1) 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 commodity 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 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.

(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 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) of this section shall apply to sales of commodities in recipient countries to generate proceeds to carry out projects under

(A) subchapters II and III of this chapter;

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

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

7 USC 1734 - Agreements

(a) In general
Before entering into agreements with foreign countries under subchapters II and IIIA of this chapter 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 IIIA of this chapter, 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 IIIA of this chapter, 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.

(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 IIIA of this chapter; and

(B) shall be made available under subchapter III of this chapter.

(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.

7 USC 1735 - Consultation

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

7 USC 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 IIIA of this chapter, 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;

(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 and distribution costs; 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.

7 USC 17361 - 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.

(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.

7 USC 1736a - Administrative provisions

(a) Subchapter II programs

(1) Acquisitions
The importing country or private entity that enters into an agreement under subchapter II of this chapter shall acquire the agricultural commodities to be financed under subchapter II of this chapter.

(2) Invitation for bid
No purchase of agricultural commodities from private stock or purchase of ocean transportation shall be financed under subchapter II of this chapter 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 of this chapter 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 of this chapter.

(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 of this chapter 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.

(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 IIIA of this chapter.

(B) Certain commodities made available for nonemergency assistance
In the case of agricultural commodities made available for nonemergency assistance under subchapter III of this chapter 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 the Federal Property and Administrative Services Act of 1949^[1] or other similar provisions of law relating to the making or performance of Federal Government contracts, ocean transportation under subchapters III and IIIA of this chapter 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 IIIA of this chapter 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 2012 to carry out subchapters III and III-A of this chapter 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 such fiscal year not more than $10,000,000 of such funds may be used to store agricultural commodities for prepositioning in foreign countries.

(B) Additional prepositioning sites

(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.

(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 of this chapter
An agreement under subchapters II and IIIA of this chapter 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 reports

(1) Annual report regarding agricultural trade programs and activities

(A) Annual report
Not later than April 1 of each fiscal year, the Administrator and the Secretary shall jointly prepare and submit to the appropriate committees of Congress a report regarding each program and activity carried out under this chapter during the prior fiscal year.

(B) Contents
An annual report described in subparagraph (A) shall include, with respect to the prior fiscal year

(i) 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);

(ii) a general description of each project and activity implemented under this chapter (including each activity funded through the use of local currencies);

(iii) a statement describing the quantity of agricultural commodities made available to each country pursuant to

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

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

(iv) 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;

(v) 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;

(vi) 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; and

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

(2) Annual report regarding the provision of agricultural commodities to foreign countries

(A) Annual report
Not later than February 1 of each fiscal year, the Administrator shall prepare and submit to the appropriate committees of Congress a report regarding the administration of food assistance programs under subchapter III to benefit foreign countries during the prior fiscal year.

(B) Contents
An annual report described in subparagraph (A) shall include, with respect to the prior fiscal year

(i) a list that contains a description of each program, country, and commodity approved for assistance under section 1726a of this title; and

(ii) a statement that contains a description of the total amount of funds approved for transportation and administrative costs under section 1726a of this title.

[1] See References in Text note below.

7 USC 1736b - Expiration date

No agreements to finance sales or to provide other assistance under this chapter shall be entered into after December 31, 2012.

1736c, 1736d. Repealed. Pub. L. 104127, 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 IIIA of this chapter and report to Congress.

7 USC 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 of this chapter 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) of this section 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.

7 USC 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 IIIA; 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 IIIA of this chapter be used to carry out subchapter III of this chapter.

(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) Funds and commodities
Of the amounts made available to carry out emergency and nonemergency food assistance programs under subchapter III, not less than $375,000,000 for fiscal year 2009, $400,000,000 for fiscal year 2010, $425,000,000 for fiscal year 2011, and $450,000,000 for fiscal year 2012 shall be expended for nonemergency food assistance programs under subchapter III.

(2) Exception
The President may use less than the amount specified in paragraph (1) in a fiscal year for nonemergency food assistance programs under subchapter III only if

(A) the President has made a determination that there is an urgent need for additional emergency food assistance;

(B) the funds and commodities held in the Bill Emerson Humanitarian Trust have been exhausted; and

(C) the President has submitted to Congress a supplemental appropriations request for a sum equal to the amount needed to reach the required spending level for nonemergency food assistance under paragraph (1) and the amount exhausted under paragraph (2)(B).

(3) Notification to Congress
If the President makes the determination described in paragraph (2)(A), the President shall submit to Congress written notification that the determination has been made.

7 USC 1736f1 - 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) of this section.

(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) of this section, 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 2012 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) of this section, 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 2012;

(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).

(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) of this section, for the management of the trust to preserve the value of the trust through acquisitions under subsection (b)(2) of this section; 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) of this section 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 2406 of title 50, Appendix.

(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) of this section.

(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.

(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, 2012.

(2) Disposal of eligible commodities
Eligible commodities remaining in the trust after September 30, 2012, shall be disposed of by release for use in providing for emergency humanitarian food needs in developing countries as provided in this section.

[1] So in original. Probably should be followed by “and”.
[2] So in original. The “; and” probably should be a period.

7 USC 1736g - Coordination of foreign assistance programs

(a) In general
To the maximum extent practicable, assistance for a foreign country under subchapter IIIA of this chapter 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 IIIA of this chapter, and child survival programs and projects, in least developed countries by improving the design and implementation of such programs and projects.

(b) Report regarding efforts to improve procurement planning

(1) Report required
Not later than 90 days after June 18, 2008, the Administrator and the Secretary shall submit to each appropriate committee of Congress a report that contains a description of each effort taken by the Administrator and the Secretary to improve planning for food and transportation procurement (including efforts to eliminate bunching of food purchases).

(2) Contents
A report required under paragraph (1) should include a description of each effort taken by the Administrator and the Secretary

(A) to improve the coordination of food purchases made by

(i) the United States Agency for International Development; and

(ii) the Department of Agriculture;

(B) to increase flexibility with respect to procurement schedules;

(D) to improve and streamline legal claims processes for resolving transportation disputes.

7 USC 1736g1 - 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) of this section, 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.

[1] So in original. Probably should be section “2291(e)(2)”.

7 USC 1736g2 - 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, 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.

(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, 2012.

7 USC 1736g3 - Use of certain local currency

Local currency payments received by the United States pursuant to agreements entered into under subchapter II of this chapter (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).

7 USC 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.

1736i to 1736k. Repealed. Pub. L. 101624, 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.

7 USC 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.

1736m, 1736n. Repealed. Pub. L. 104127, 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.

7 USC 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 President 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;

(D) a nonprofit">nonprofit agricultural organization or cooperative;

(E) a nongovernmental organization; and

(F) 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 President under this section.

(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 President shall enter into agreements with eligible entities to furnish to the countries eligible commodities made available under subsections (e) and (f) of this section.

(d) Consideration for agreements
In determining whether to enter into an agreement under this section, the President 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 countrys 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 President such eligible commodities as the President 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) of this section 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 President 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 President.

(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 2012 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 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)].

(6) Project in malawi.—

(A) In general.—
In carrying out this section during fiscal year 2009, the President shall approve not less than 1 multiyear project for Malawi

(i) to promote sustainable agriculture; and

(ii) to increase the number of women in leadership positions.

(B) Use of eligible commodities.—
Of the eligible commodities used to carry out this section during the period in which the project described in subparagraph (A) is carried out, the President shall carry out the project using eligible commodities with a total value of not less than $3,000,000 during the course of the project.

(g) Minimum tonnage
Subject to subsection (f)(3) of this section, 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 2012.

(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 President 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 President, 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 President 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 December 1 of each fiscal year, the President shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a list of programs, countries, and eligible commodities, and the total amount of funds for transportation and administrative costs, approved to date for the fiscal year under this section.

(k) Effective and termination dates
This section shall be effective during the period beginning October 1, 1985, and ending December 31, 2012.

(l) Administrative expenses

(1) To enhance the development of private sector agriculture in countries receiving assistance under this section the President may, in each of the fiscal years 1996 through 2012, 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 President 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 President 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

(m) Presidential approval
In carrying out this section, the President shall approve, as determined appropriate by the President, 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 President 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 President, facilitate accurate and timely reporting.

(2) Requirements

(A) In general
Not later than 270 days after May 13, 2002, the President 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 President 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 President 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 President, at such time as the President may request, a report containing such information as the President 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) of this section, the President (acting through the Secretary)

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

(2) shall not discriminate against such eligible entities.

7 USC 1736o1 - 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 is produced in the United States.

(b) Program
Subject to subsection (l) of this section, 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.

(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; and

(vi) 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">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 to^[1]

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

(F) 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 childrens 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) of this section 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 2012.

(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.

[1] So in original. The word “to” probably should not appear.

7 USC 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.

7 USC 1736q - Repealed. Pub. L. 104127, 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.

7 USC 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.

1736s, 1736t. Repealed. Pub. L. 101624, 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.

7 USC 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">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 A110 issued by the Office of Management and Budget.

1736v to 1736x. Repealed. Pub. L. 101624, 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 attaches. See section 1748 of this title.

7 USC 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 [50 App. U.S.C. 2401 et seq.]; 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.

1736z, 1736aa. Repealed. Pub. L. 101624, 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 1736bb6. Repealed. Pub. L. 104127, 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.

7 USC 1736cc - Repealed. Pub. L. 101624, 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.

TITLE 7 - US CODE - SUBCHAPTER V - FARMER-TO-FARMER PROGRAM

7 USC 1737 - John Ogonowski and Doug Bereuter Farmer-to-Farmer Program

(a) Definitions
In this section:

(1) Caribbean Basin country
The term Caribbean Basin country means a country eligible for designation as a beneficiary country under section 2702 of title 19.

(2) Emerging market
The term emerging market means a country that the Secretary determines

(A) is taking steps toward a market-oriented economy through the food, agriculture, or rural business sectors of the economy of the country; and

(B) has the potential to provide a viable and significant market for United States agricultural commodities or products of United States agricultural commodities.

(3) Middle income country
The term middle income country means a country that has developed economically to the point at which the country does not receive bilateral development assistance from the United States.

(4) Sub-Saharan African country
The term sub-Saharan African country has the meaning given the term in section 3706 of title 19.

(b) Provision
Notwithstanding any other provision of law, to further assist developing countries, middle-income countries, emerging markets, sub-Saharan African countries, and Caribbean Basin countries to increase farm production and farmer incomes, the President may

(1) establish and administer a program, to be known as the John Ogonowski and Doug Bereuter Farmer-to-Farmer Program, of farmer-to-farmer assistance between the United States and such countries to assist in

(A) increasing food production and distribution; and

(B) improving the effectiveness of the farming and marketing operations of agricultural producers in those countries;

(2) use United States agricultural producers, agriculturalists, colleges and universities (including historically black colleges and universities, land grant colleges or universities, and foundations maintained by colleges or universities), private agribusinesses, private organizations (including grassroots organizations with an established and demonstrated capacity to carry out such a bilateral exchange program), private corporations, and nonprofit">nonprofit farm organizations to work in conjunction with agricultural producers and farm organizations in those countries, on a voluntary basis

(A) to improve agricultural and agribusiness operations and agricultural systems in those countries, including improving

(i) animal care and health;

(ii) field crop cultivation;

(iii) fruit and vegetable growing;

(iv) livestock operations;

(v) food processing and packaging;

(vi) farm credit;

(vii) marketing;

(viii) inputs; and

(ix) agricultural extension; and

(B) to strengthen cooperatives and other agricultural groups in those countries;

(3) transfer the knowledge and expertise of United States agricultural producers and businesses, on an individual basis, to those countries while enhancing the democratic process by supporting private and public agriculturally related organizations that request and support technical assistance activities through cash and in-kind services;

(4) to the maximum extent practicable, make grants to or enter into contracts or other cooperative agreements with private voluntary organizations, cooperatives, land grant universities, private agribusiness, or nonprofit">nonprofit farm organizations to carry out this section (except that any such contract or other agreement may obligate the United States to make outlays only to the extent that the budget authority for such outlays is available under subsection (d) of this section or has otherwise been provided in advance in appropriation Acts);

(5) coordinate programs established under this section with other foreign assistance programs and activities carried out by the United States; and

(6) to the extent that local currencies can be used to meet the costs of a program established under this section, augment funds of the United States that are available for such a program through the use, within the country in which the program is being conducted, of

(A) foreign currencies that accrue from the sale of agricultural commodities and products under this chapter; and

(B) local currencies generated from other types of foreign assistance activities.

(1) Findings
Congress finds that

(A) agricultural producers in sub-Saharan African and Caribbean Basin countries need training in agricultural techniques that are appropriate for the majority of eligible agricultural producers in those countries, including training in

(i) standard growing practices;

(ii) insecticide and sanitation procedures; and

(iii) other agricultural methods that will produce increased yields of more nutritious and healthful crops;

(B) agricultural producers in the United States (including African-American agricultural producers) and banking and insurance professionals have agribusiness expertise that would be invaluable for agricultural producers in sub-Saharan African and Caribbean Basin countries;

(C) a commitment by the United States is appropriate to support the development of a comprehensive agricultural skills training program for those agricultural producers that focuses on

(i) improving knowledge of insecticide and sanitation procedures to prevent crop destruction;

(ii) teaching modern agricultural techniques that would facilitate a continual analysis of crop production, including

(I) the identification and development of standard growing practices; and

(II) the establishment of systems for recordkeeping;

(iii) the use and maintenance of agricultural equipment that is appropriate for the majority of eligible agricultural producers in sub-Saharan African or Caribbean Basin countries;

(iv) the expansion of small agricultural operations into agribusiness enterprises by increasing access to credit for agricultural producers through

(I) the development and use of village banking systems; and

(II) the use of agricultural risk insurance pilot products; and

(v) marketing crop yields to prospective purchasers (including businesses and individuals) for local needs and export; and

(D) programs that promote the exchange of agricultural knowledge and expertise through the exchange of American and foreign agricultural producers have been effective in promoting improved agricultural techniques and food security and the extension of additional resources to such farmer-to-farmer exchanges is warranted.

(2) Goals for programs carried out in sub-Saharan African and Caribbean Basin countries
The goals of programs carried out under this section in sub-Saharan African and Caribbean Basin countries shall be

(A) to expand small agricultural operations in those countries into agribusiness enterprises by increasing access to credit for agricultural producers through

(i) the development and use of village banking systems; and

(ii) the use of agricultural risk insurance pilot products;

(B) to provide training to agricultural producers in those countries that will

(i) enhance local food security; and

(ii) help mitigate and alleviate hunger;

(C) to provide training to agricultural producers in those countries in groups to encourage participants to share and pass on to other agricultural producers in the home communities of the participants, the information and skills obtained from the training, rather than merely retaining the information and skills for the personal enrichment of the participants; and

(D) to maximize the number of beneficiaries of the programs in sub-Saharan African and Caribbean Basin countries.

(d) Minimum funding
Notwithstanding any other provision of law, in addition to any funds that may be specifically appropriated to carry out this section, not less than the greater of $10,000,000 or 0.5 percent of the amounts made available for each of fiscal years 2008 through 2012 to carry out this chapter shall be used to carry out programs under this section, with

(1) not less than 0.2 percent to be used for programs in developing countries; and

(2) not less than 0.1 percent to be used for programs in sub-Saharan African and Caribbean Basin countries.

(e) Authorization of appropriations

(1) In general
There are authorized to be appropriated for each of fiscal years 2008 through 2012 to carry out the programs under this section

(A) $10,000,000 for sub-Saharan African and Caribbean Basin countries; and

(B) $5,000,000 for other developing or middle-income countries or emerging markets not described in subparagraph (A).

(2) Administrative costs
Not more than 5 percent of the funds made available for a fiscal year under paragraph (1) may be used to pay administrative costs incurred in carrying out programs in sub-Saharan African and Caribbean Basin countries.

TITLE 7 - US CODE - SUBCHAPTER VI - ENTERPRISE FOR THE AMERICAS INITIATIVE

7 USC 1738 - Establishment of Facility

There is established in the Department of the Treasury an entity to be known as the Enterprise for the Americas Facility (hereafter referred to in this subchapter as the Facility).

7 USC 1738a - Purpose

The purpose of this subchapter is to encourage and support improvement in the lives of the people of Latin America and the Caribbean through market-oriented reforms and economic growth with inter-related actions to promote debt reduction, investment reforms, and community-based conservation and sustainable use of the environment. The Facility will support such objectives through the administration of debt reduction operations relating to those countries that meet investment reform and other policy conditions provided for in this subchapter.

7 USC 1738b - Eligibility for benefits under Facility

(a) Requirements
To be eligible for benefits from the Facility under this subchapter, a country shall

(1) be a Latin American or Caribbean country;

(2) have in effect or have received approval for, or, as appropriate in exceptional circumstances, be making significant progress towards the establishment of

(A) an International Monetary Fund (hereafter referred to in this subchapter as the IMF) standby arrangement, extended IMF arrangement, or an arrangement under the structural adjustment facility or enhanced structural adjustment facility, or in exceptional circumstances, an IMF-monitored program or its equivalent; and

(B) as appropriate, structural or sectoral adjustment loans from the International Bank for Reconstruction and Development (hereafter referred to in this subchapter as the World Bank) or the International Development Association (hereafter referred to in this subchapter as the IDA);

(3) have placed into effect major investment reforms in conjunction with an Inter-American Development Bank (hereafter referred to as the IDB) loan or otherwise be implementing, or making significant progress towards an open investment regime; and

(4) if appropriate, have agreed with its commercial bank lenders on a satisfactory financing program, including, as appropriate, debt or debt service reduction.

(b) Eligibility determination
The President shall determine whether a country is an eligible country for purposes of subsection (a) of this section.

7 USC 1738c - Reduction of certain debt

(a) Authority to reduce debt

(1) In general
Notwithstanding any other provision of law, the President may reduce the amount owed to the United States or any agency of the United States, and outstanding as of January 1, 1990, as a result of any credits extended under subchapter II of this chapter to a country eligible for benefits from the Facility.

(2) Availability of appropriations
The authorities under this section may be exercised only to the extent provided for in advance in appropriation Acts.

(b) Limitation
A debt reduction authorized under subsection (a) of this section shall be accomplished, at the direction of the Facility, through the exchange of a new obligation under this subchapter for obligations of the type referred to in subsection (a) of this section outstanding as of January 1, 1990.

(c) Exchange of obligations
The Facility shall notify the Commodity Credit Corporation of an agreement entered into under subsection (b) of this section with an eligible country to exchange a new obligation for outstanding obligations. At the direction of the Facility, the old obligations that are the subject of the agreement may be canceled and a new debt obligation may be established for the country relating to the agreement. The Commodity Credit Corporation shall make an adjustment in its accounts to reflect a debt reduction under this section.

7 USC 1738d - Repayment of principal

(a) Currency of payment
The principal amount owed under each new obligation issued under section 1738c of this title shall be repaid in United States dollars.

(b) Deposit of payments
Principal repayments on new obligations issued under section 1738c of this title shall be deposited in Commodity Credit Corporation accounts.

7 USC 1738e - Interest of new obligations

(a) Rate of interest
New obligations issued to an eligible country under section 1738c of this title shall bear interest at a concessional rate.

(b) Currency of payment, deposits

(1) United States dollars
An eligible country to which a new obligation has been issued under section 1738c of this title that has not entered into an agreement under section 1738f of this title, shall be required to pay interest on such obligation in United States dollars which shall be deposited in Commodity Credit Corporation accounts.

(2) Local currency
If an eligible country to which a new obligation has been issued under section 1738c of this title has entered into an agreement under section 1738f of this title, interest under such obligation may be paid in the local currency of the eligible country and deposited into an Environmental Fund as provided for in section 1738g of this title. Such interest shall be the property of the eligible country until such time as it is disbursed under section 1738g of this title. Such local currencies shall be used for the purposes specified in the agreement entered into under section 1738f of this title.

(c) Interest previously paid
If an eligible country to which a new obligation has been issued under section 1738c of this title enters into an agreement under section 1738f of this title subsequent to the date on which interest first becomes due on such new obligation, any interest paid on such new obligation prior to such agreement being entered into shall not be redeposited into the Fund established for the eligible country under section 1738g (a) of this title but shall be deposited into Commodity Credit Corporation accounts.

7 USC 1738f - Environmental framework agreements

(a) Authority
The President is authorized to enter into an environmental framework agreement with each country eligible for benefits from the Facility concerning the operation and use of an Enterprise for the Americas Environmental Fund (hereafter referred to in this subchapter as the Environmental Fund) established under section 1738g of this title for that country. The President shall consult with the Board established under section 1738i of this title when entering into such agreements.

(b) Requirements
An environmental framework agreement entered into under this section shall

(1) require the eligible country to establish an Environmental Fund;

(2) require the eligible country to make interest payments under section 1738g (a) of this title into the Environmental Fund;

(3) require the eligible country to make prompt disbursements from the Environmental Fund to the body described in subsection (c) of this section;

(4) where appropriate, seek to maintain the value of the local currency resources deposited into the appropriate Environmental Fund in terms of United States dollars;

(5) specify, in accordance with section 1738k of this title, the purposes for which the Environmental Fund may be used; and

(6) contain reasonable provisions for the enforcement of the terms of the agreement.

(c) Administering body
Funds disbursed from the Environmental Fund in an eligible country shall be administered by a body constituted under the laws of the country. Such body shall

(1) be composed of

(A) one or more representatives appointed by the President;

(B) one or more representatives appointed by the eligible country; and

(C) representatives from a broad range of environmental and local community development nongovernmental organizations of the host country;

the majority of which shall be local representatives from nongovernmental organizations, and scientific or academic bodies;

(2) receive proposals for grant assistance from local organizations, and make grants to such organizations in accordance with the priorities agreed upon in the framework agreement and consistent with the overall purposes of section 1738k of this title;

(3) be responsible for the management of the program and oversight of grant activities funded from resources of the Environmental Fund;

(4) be subject to fiscal audits by an independent auditor on an annual basis;

(5) present an annual program for review by the Board established under section 1738i of this title each year;

(6) present an annual report on the activities undertaken during the previous year to the Chairman of the Board established under section 1738i of this title, and the government of the eligible country each year; and

(7) have any grant over $100,000 be subject to veto by the United States and the government of the eligible country.

7 USC 1738g - Enterprise for the Americas environmental funds

(a) Establishment
An eligible country shall, under the terms of an environmental framework agreement entered into under section 1738f of this title, establish an Environmental Fund to receive payments in local currency pursuant to section 1738f (b)(1) of this title.

(b) Investment
Amounts deposited into an Environmental Fund shall be invested until disbursed. Notwithstanding any other provision of law, any return on such investment may be retained by the Environmental Fund and need not be deposited to the account of the Commodity Credit Corporation and may be retained without further appropriation by Congress.

7 USC 1738h - Disbursement of environmental funds

Funds in an Environmental Fund shall be disbursed only pursuant to a framework agreement entered into pursuant to section 1738f of this title.

7 USC 1738i - Enterprise for the Americas Board

(a) Establishment
There is established a board to be known as the Enterprise for the Americas Board (hereafter referred to in this subchapter as the Board).

(b) Membership and chairperson

(1) Membership
The Board shall be composed of

(A) six representatives from the United States Government, at least one of whom shall be a representative of the Department of Agriculture; and

(B) five representatives from private nongovernmental environmental, child survival and child development, community development, scientific, and academic organizations with experience and expertise in Latin America and the Caribbean, at least one of whom shall be a representative from a child survival and child development organization;

to be appointed by the President.

(2) Chairperson
The Board shall be headed by a chairperson who shall be appointed by the President from among the representatives appointed under paragraph (1)(A).

(1) advise the President on the negotiations for the environmental framework agreements described in subsections (a) and (b) of section 1738f of this title;

(2) ensure, in consultation with the government of the appropriate eligible country, with nongovernmental organizations of such eligible country, and if appropriate, of the region, and with environmental, scientific, and academic leaders of such eligible country and, as appropriate, of the region, that a suitable body referred to in section 1738f (c) of this title is identified; and

(3) review the programs, operations, and fiscal audits of the bodies referred to in section 1738f (c) of this title.

7 USC 1738j - Oversight

The President may designate appropriate United States agencies to review the implementation of programs under this subchapter and the fiscal audits relating to such programs. Such oversight shall not constitute active management of an Environmental Fund.

7 USC 1738k - Eligible activities and grantees

(a) Eligible entities
Activities eligible to receive assistance through the framework agreements entered into under section 1738f of this title, shall include

(1) activities of the type described in the Global Environmental Protection Assistance Act of 1989 (22 U.S.C. 2281 et seq.);

(2) agriculture-related activities, including those that provide for the biological prevention and control of animal and plant pests and diseases, to benefit the environment; and

(3) local community initiatives that promote conservation and sustainable use of the environment.

(b) Regulation
All activities of the type referred to in subsection (a) of this section shall, where appropriate, include initiatives that link conservation of natural resources with local community development.

(c) Setting of priorities
Appropriate activities and priorities relating to the use of an Environmental Fund shall be set by local nongovernmental organizations within the appropriate eligible country.

(d) Grants
Grants may be made by the body referred to in section 1738f (c) of this title from the Environmental Fund for environmental purposes to

(1) host country nongovernmental environmental, conservation, development, educational, and indigenous peoples organizations;

(2) other appropriate local or regional entities; or

(3) in exceptional circumstances, the government of the eligible country.

(e) Priority
In providing assistance from an Environmental Fund, the body established under section 1738f (c) of this title within the eligible country shall give priority to projects that are run by nongovernmental organizations and other private entities, and that involve local communities in their planning and execution.

7 USC 1738l - Encouraging multilateral debt donations

(a) Encouraging donations from official creditors
The President should actively encourage other official creditors of an eligible country to provide debt reduction to such eligible country.

(b) Encouraging donations from other sources
The President shall make every effort to insure that programs established through Environmental Funds are able to receive donations from private and public entities, and private creditors of the eligible country.

7 USC 1738m - Annual report to Congress

(a) In general
Not later than December 31 of each fiscal year, the President shall prepare and submit to the Speaker of the House of Representatives and the President Pro Tempore of the Senate an annual report concerning the operation of the Facility for the prior fiscal year. This report shall include

(1) a description of the activities undertaken by the Facility during the previous fiscal year;

(2) a description of any Enviromental^[1] Framework Agreement entered into under this subchapter;

(3) a report on what Environmental Funds have been established under this subchapter and on the operations of such Funds; and

(4) a description of any grants that have been extended by administering bodies pursuant to an Enviromental^[1] Framework Agreement under this subchapter.

(b) Supplemental views in annual report
No later than December 15 of each fiscal year, each member of the Board shall be entitled to receive a copy of the report required under subsection (a) of this section. Each member of the Board may prepare and submit supplemental views to the President on the implementation of this subchapter by December 31 for inclusion in the annual report when it is transmitted to Congress pursuant to this section.

[1] So in original. Probably should be “Environmental”.

7 USC 1738n - Consultations with Congress

The President shall consult with the appropriate congressional committees on a periodic basis to review the operation of the Facility under this subchapter and the eligibility of countries for benefits from the Facility under this subchapter.

7 USC 1738o - Sale of qualified debt to eligible countries

(a) In general

(1) Authorization
The President may sell to an eligible country up to 40 percent of such countrys qualified debt, only if an amount of the local currency of such country (other than the price paid for the debt) equal to

(A) not less than 40 percent of the price paid for such debt by such eligible country, or

(B) the difference between the price paid for such debt and the face value of such debt;

whichever is less, is used by such country through an Environmental Fund for eligible activities described in section 1738k of this title.

(2) Environmental funds
For purposes of this section, the term Environmental Fund means an Environmental Fund established under section 1738g of this title. In the case of Mexico, such fund may be designated as the Good Neighbor Environmental Fund for the Border.

(3) Establishment and operation of environmental funds
The President should advise eligible countries on the procedures required to establish and operate the Environmental Funds required to be established under paragraph (1).

(b) Terms and conditions
The President shall establish the terms and conditions, including the amount to be paid by the eligible country, under which such countrys qualified debt may be sold under this section.

(c) Appropriations requirement
The authorities provided by this section may be exercised only in such amounts and to such extent as is provided in advance in appropriations Acts.

(d) Certain prohibitions inapplicable
A sale of debt under this section shall not be considered assistance for purposes of any provision of law limiting assistance to a country.

(e) Implementation by Facility
A sale of debt authorized under this section shall be accomplished at the direction of the Facility. The Facility shall direct the Commodity Credit Corporation to carry out such sale. The Commodity Credit Corporation shall make an adjustment in its accounts to reflect the sale.

(f) Deposit of proceeds
The proceeds from a sale of qualified debt under this section shall be deposited in the account or accounts established by the Commodity Credit Corporation for the repayment of such debt by the eligible country.

(g) Debtor consultation
Before any sale of qualified debt may occur under this section, the President should consult with the eligible countrys government concerning such sale. The topics addressed in the consultation shall include the amount of qualified debt involved in the transaction and the uses to which funds made available as a result of the sale shall be applied.

7 USC 1738p - Sale, reduction, or cancellation of qualified debt to facilitate certain debt swaps

(a) Authority to sell, reduce, or cancel qualified debt
For the purpose of facilitating eligible debt swaps, the President, in accordance with this section

(1) may sell to an eligible purchaser (as determined pursuant to subsection (c)(1) of this section) any qualified debt of an eligible country; or

(2) may reduce or cancel eligible debt of an eligible country upon receipt of payment from an eligible payor (as determined under subsection (c)(2) of this section).

(b) Terms and conditions
The President shall establish the terms and conditions under which qualified debt may be sold, reduced, or canceled pursuant to this section.

(1) Sales of debt
Qualified debt may be sold pursuant to subsection (a)(1) of this section only to a purchaser who presents plans satisfactory to the President for using the debt for the purpose of engaging in eligible debt swaps.

(2) Reduction or cancellation of debt
Qualified debt may be reduced or cancelled pursuant to subsection (a)(2) of this section only if the payor presents plans satisfactory to the President for using such reduction or cancellation for the purpose of facilitating eligible debt swaps.

(d) Debtor consultation and right of first refusal

(1) Consultation
Before selling, reducing, or canceling any qualified debt of an eligible country pursuant to this section, the President should consult with that country concerning, among other things, the amount of debt to be sold, reduced, or canceled and the uses of such debt for eligible debt swaps.

(2) Right of first refusal
The qualified debt of an eligible country may be sold, reduced, or cancelled pursuant to this section only if that country has been offered the opportunity to purchase that debt pursuant to section 1738o of this title and has not accepted that offer.

(e) Limitation
In the aggregate, not more than 40 percent of the qualified debt of an eligible country may be sold, reduced, or cancelled under this section or sold under section 1738o of this title.

(f) Administration
The Facility shall notify the Commodity Credit Corporation of purchasers and payors the President has determined to be eligible under subsection (c) of this section, and shall direct the corporation to carry out the sale, reduction, or cancellation of a qualified debt pursuant to this section. The Commodity Credit Corporation shall make an adjustment in its accounts to reflect such sale, reduction, or cancellation.

(g) Appropriations requirement
The authorities provided by this section may be exercised only in such amounts and to such extent as is provided in advance in appropriations Acts.

(h) Deposit of proceeds
The proceeds from the sale, reduction, or cancellation of qualified debt pursuant to this section shall be deposited in the United States Government account or accounts established for the repayment of such debt.

(i) Eligible debt swaps
As used in this section, the term eligible debt swap means a debt-for-development swap or debt-for-nature swap.

7 USC 1738q - Notification to congressional committees

(a) Notice of negotiations
The Secretary of State and the Secretary of the Treasury shall, in every feasible instance, notify the designated congressional committees not less than 15 days prior to any formal negotiation for debt relief under this subchapter.

(b) Transmittal of text of agreements
The Secretary of State shall transmit to the designated congressional committees a copy of the text of any agreement with any foreign government which would result in any debt relief under this subchapter no less than 30 days prior to its entry into force, together with a detailed justification of the interest of the United States in the proposed debt relief.

(c) Annual report
The Secretary of State or the Secretary of the Treasury, as appropriate, shall submit to the designated congressional committees not later than February 1 of each year a consolidated statement of the budgetary implications of all debt relief agreements entered into force under this subchapter during the preceding fiscal year.

(d) Designated congressional committees
As used in this section, the term designated congressional committees means 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.

7 USC 1738r - Qualified debt defined

As used in sections 1738o, 1738p, and 1738q of this title, the term qualified debt means any obligation, or portion of such obligation, of an eligible country to pay for purchases of United States agricultural commodities guaranteed by the Commodity Credit Corporation under export credit guarantee programs authorized pursuant to section 714c (f) of title 15 or section 1707a (b)1 of this title

(1) in which the Commodity Credit Corporation obtained a legal right or interest, as a result of assignment or subrogation, not later than September 1, 1992; and

(2) the payment of which obligation has been, not later than September 1, 1992, rescheduled in accordance with principles set forth in an Agreed Minute of the Paris Club.

Such term includes the obligation to pay any interest which was due or accrued not later than September 1, 1992, and unpaid as of the date of a debt sale pursuant to section 1738o of this title or a debt sale, reduction, or cancellation pursuant to section 1738p of this title (as the case may be).

[1] See References in Text note below.

7 USC 1691 - United States policy

It is the policy of the United States to use its abundant agricultural productivity to promote the foreign policy of the United States by enhancing the food security of the developing world through the use of agricultural commodities and local currencies accruing under this chapter to

(1) combat world hunger and malnutrition and their causes;

(2) promote broad-based, equitable, and sustainable development, including agricultural development;

(3) expand international trade;

(4) foster and encourage the development of private enterprise and democratic participation in developing countries; and

(5) prevent conflicts.

7 USC 1691a - Food aid to developing countries

(a) Policy
In light of the Uruguay Round Agreement on Agriculture and the Ministerial Decision on Measures Concerning the Possible Negative Effects of the Reform Program on Least-Developed and Net-Food Importing Developing Countries, the United States reaffirms the commitment of the United States to providing food aid to developing countries.

(b) Sense of Congress
It is the sense of Congress that

(1) in negotiations at the Food Aid Convention, the World Trade Organization, the United Nations Food and Agriculture Organization, and other appropriate venues, the President shall

(A) seek commitments of higher levels of food aid by donors in order to meet the legitimate needs of developing countries;

(B) ensure, to the maximum extent practicable, that humanitarian nongovernmental organizations, recipient country governments, charitable bodies, and international organizations shall continue

(i) to be eligible to receive resources based on assessments of need conducted by those organizations and entities; and

(ii) to implement food aid programs in agreements with donor countries; and

(C) ensure, to the maximum extent practicable, that options for providing food aid for emergency and nonemergency needs shall not be subject to limitation, including in-kind commodities, provision of funds for agricultural commodity procurement, and monetization of commodities, on the condition that the provision of those commodities or funds

(i) is based on assessments of need and intended to benefit the food security of, or otherwise assist, recipients, and

(ii) is provided in a manner that avoids disincentives to local agricultural production and marketing and with minimal potential for disruption of commercial markets; and

(2) the United States should increase its contribution of bona fide food assistance to developing countries consistent with the Agreement on Agriculture.