Title III: Trade

Listed development and expansion of markets for U.S. agricultural commodities as an objective of Agricultural Trade Development and Assistance Act.

Removes market development as an objective to reflect program operation in recent years.

Required that commercial development potential be considered in choosing recipient countries and required organizations seeking funding to submit market development plans.

Removes requirement for considering commercial development potential in choosing recipient countries and requirement to submit market development plans to receive funding.

Allowed use of local currency received from sales of commodity aid to be used to develop markets for U.S. agricultural commodities in recipient countries.

Removes market development for U.S. commodities from allowable uses for local currency; adds development of trade capacity in recipient country as allowable use.

Required that funding for administrative support, internal transportation, and distribution costs of sponsoring agencies be at least 5%, but not more than 10%, of annual Title II program level.

Provides that funding for administrative support, internal transportation, and distribution costs of sponsoring agencies be at least 7.5%, but not more than 13%, of annual Title II program level.

Provides that some of these funds be used for assessment and improvement of food aid quality. Authorizes use of no more than $4.5 million over fiscal years (FY) 2009-11 from funds authorized for program oversight, monitoring, and evaluation.

Required that not less than 2.5 million metric tons (MMT)/year of agricultural commodities be made available annually. Of this amount, at least 1.875 MMT/year was to be used for nonemergency food assistance.

Continues minimum level of assistance of 2.5 million MMT/year and minimum amount to be used for nonemergency food assistance of 1.875 MMT/year.

In addition, at least $375 million/year in FY 2009, increasing by $25 million/year until FY 2012, must be used for nonemergency food assistance. Rule can be waived if an extraordinary food emergency exists and President determines, and informs Congress, that no other food or financial resources are available to meet the emergency.

Authorized appropriation of such sums as necessary for Title I concessional credit sales program, Title II emergency and nonemergency food assistance programs, and Title III bilateral grants program.

Authorizes appropriations of up to $2.5 billion/year for Title II emergency and nonemergency food assistance programs, and such sums as are necessary for Title I concessional credit sales program and Title III bilateral grants program.

Established Food Aid Consultative Group (FACG) to review and address effectiveness of regulations and procedures governing food assistance programs. Included representatives of USDA, private cooperators, indigenous African, Latin American, and Asian nongovernmental organizations, and U.S. agricultural producers.

Extends FACG through Dec 31, 2012, and adds representatives of maritime sector involved in transporting agricultural commodities for food aid programs.

No similar provision.

Requires program oversight, monitoring, and evaluation, including in-country monitoring, evaluation of food aid impacts and monetization activities, identification and implementation of best practices, early warning systems to prevent famine, and upgrading of information technology (IT) systems.

Requires implementation report on oversight activities for nonemergency programs within 180 days of enactment of 2008 Farm Act and review of these activities by Government Accountability Office within 270 days.

Provides that up to $22 million of funds for Title II for FY 2009-11 may be used for oversight activities, of which up to $2.5 million may be used for upgrading IT systems. Up to $8 million may also be used for famine early warning systems, but only if at least $8 million is provided for that purpose under Foreign Assistance Act of 1961.

Authorized appropriations of $3 million annually for FY 2001-07, to remain available until expended, to facilitate preparation, stockpiling, and rapid transportation, delivery, and distribution of shelf-stable prepackaged foods for food aid. Provided for grants to nonprofit and other private voluntary and international organizations.

Increases authorized appropriations limit to $8 million.

Prohibited donation of agricultural commodities for foreign food aid if Secretary determined donation would reduce domestic supply below necessary levels.

Removes requirement that Secretary determine domestic supply needs before releasing commodities for foreign food aid.

Allowed for use of FY 2001-07 funds to procure, transport, and store agricultural commodities for prepositioning within U.S. and in foreign countries, but limited expenditures for prepositioning in foreign countries to $2 million.

Extends permission for use of funds through FY 2012 and increases expenditures allowed for prepositioning in foreign countries to $10 million.

Allows for use of funds to assess feasibility and costs of establishing additional foreign prepositioning sites and to establish such sites if assessments warrant.

Guaranteed repayment of private credit extended for up to 7 years to foreign credit providers.

Repeals Intermediate Export Credit Guarantee Program.

Helped exporters offer direct, short-term credit to foreign buyers of U.S. food and agricultural products.

Repeals Supplier Credit Guarantee Program.

Guaranteed repayment of private credit extended for up to 3 years (short-term) to foreign credit providers.

Renews program and authorizes budget authority of $40 million/year through FY 2012, plus unobligated budget authority carried over from previous years. Removes 1% limitation on origination fees assessed on each transaction.

Credit guarantees of up to $5.5 billion/year were to be made available.

Retains provision as far as feasible under authorized budget authority.

At least 35% of export credit guarantees issued had to be used to promote exports of processed or high-value agricultural products.

Does not extend provision.

Gradually increased funding to not more than $100 million in FY 2002, $110 million in FY 2003, $125 million in FY 2004, $140 million in FY 2005, and $200 million annually in FY 2006-07 in Commodity Credit Corporation (CCC) funds or equivalent CCC commodities.

Continues funding at $200 million annually.

Funding of up to $478 million/year was made available but never utilized. (EEP was inactive after 2001.)

Repeals Export Enhancement Program.

Authorized use of CCC funds to support program. 2002 Farm Act increased funding to $34.5 million.

Retains provision at FY 2002 level.

Required continued emphasis on exporting value-added products to emerging markets.

Retains provision.

2002 Farm Act increased annual limits on administrative costs to $15 million and on noncommodity costs to $40 million.

Retains provision at FY 2002 levels.

Provided for no less than 400,000 metric tons/year of eligible commodities to go to developing countries.

Retains provision.

No similar provision.

During FY 2009, at least 1 multiyear project shall be approved for Malawi to promote sustainable agriculture and to increase number of women in leadership positions.  Project shall be carried out using at least $3 million of eligible commodities.

Authorized use of $100 million of CCC funds in FY 2003 to remain available until expended. Authorized appropriations as necessary for FY 2002-07.

Continues authorization of appropriations through FY 2013. Provides additional $84 million of CCC funding for FY 2009, to remain available until expended.

Authorized CCC reimbursement for disbursements of Trust Funds for commodities, transportation, and storage.

Continues authority for reserve.

Up to 4 MMT of commodities, or any combination of commodities and funds equivalent to 4 MMT, could be held in reserve.

Removes limit on size of reserve.

No similar provision.

Provides that Trust funds and commodities shall be immediately available upon determination by U.S Agency for International Development (USAID) Administrator that funds for emergency needs under P.L. 480 Title III are insufficient.

No similar provision.

Provides that Administrator of USAID shall contribute funds to endow Global Crop Diversity Trust to assist in conservation of genetic diversity in food crops through collection and storage of germplasm of food crops.

Authorizes appropriations of $60 million for FY 2008-12, provided that aggregate U.S. contributions shall not exceed 25% of total amount of funds contributed to Global Crop Diversity Trust.

Established program and authorized use of CCC funding of up to $2 million/year. Subsequently, Specialty Crops Competitiveness Act of 2004 authorized, beginning in FY 2005, an additional $2 million/year above amount already authorized under 2002 Farm Act for TASC.

Authorizes CCC funding:

• $4 million in FY 2008
• $7 million in FY 2009
• $8 million in FY 2010
• $9 million annually in FY 2011-12

Authorizes use of Export Credit Guarantees to help develop emerging foreign markets.

Retains provision.

Reauthorized CCC to make available direct credit or credit guarantees to assist in agriculture-related facilities projects in emerging markets. CCC guaranteed payments due from approved foreign banks to U.S. financial institutions or to U.S. exporters of goods used in construction. Loan terms ranged from 1 to 10 years.

Expands loan authority to allow longer term loans for up to lifecycle of facility's depreciation schedule (not to exceed 20 years). Waiver of general requirement to use U.S. materials in construction is permitted if use of U.S. goods is "not practicable."

No similar provision.

Establishes "Consultative Group to Eliminate the Use of Child Labor and Forced Labor in Imported Agricultural Products" to develop recommendations relating to guidelines to reduce likelihood that agricultural products or commodities imported into U.S. are produced using forced labor and child labor.

No similar provision.

Requires Secretary to enter into grants or cooperative agreements to provide local or regional procurements of eligible commodities to respond to food crises and disasters.

Provides that, to maximum extent practicable, provision of food aid should not significantly increase commodity costs for low-income consumers who procure commodities sourced from same markets at which eligible commodity is procured.

Provides that local or regional procurement shall not have disruptive impact on farmers located in, or economy of, recipient country of eligible commodity or any country in region in which eligible commodity may be procured.

Authorizes use of CCC funds:

• $5 million for FY 2009
• $25 million for FY 2010
• $25 million for FY 2011
• $5 million for FY 2012

Requires Secretary to initiate, within 30 days of enactment of 2008 Farm Act, study of prior local and regional procurements for food aid programs conducted by other donor countries, private voluntary organizations, and United Nations World Food Program. Study to be completed within 180 days of enactment.

Requires all field-based projects to be evaluated by independent third party by Nov 1, 2011.

No similar provision.

Requires USDA to establish program. Importers must report lumber imports, allowing data to be collected, verified, and reconciled, to implement the U.S.-Canada Softwood Lumber Agreement.