Shah, groups signal fight over food aid monetization to continue
February 10, 2014 | 09:43 AM
In a statement issued after President Barack Obama signed the farm bill on Friday, U.S. Agency for International Development Administrator Rajiv Shah has signaled he will continue to urge Congress to end the practice of monetization, the sale of U.S.food aid with the proceeds used for development purposes.
Shah urged Congress to end monetization in the farm bill, but Congress only restricted its use.
The battle pitted USAID and groups that favor direct cash assistance for development and purchases of food near the areas of shortages against U.S. humanitarian groups that use monetized food aid for development. U.S. commodity groups representing the farmers who produce the foodstuffs and the U.S. maritime industry that ships food aid agreed with them.
Rajiv Shah
“With strong bipartisan support in both chambers of Congress, the president signed into law today a farm bill that includes the most significant reforms to enhance the flexibility and effectiveness of our food assistance in the history of the Food for Peace program,” Shah said in his statement Friday.
“The reforms to the Food for Peace program, which has fed billions of hungry people around the world over the last six decades, will increase the impact of this life-saving assistance.”
Then Shah added, “The reforms in the bill significantly limit the inefficient practice of monetization, which requires USAID to ship American food aid to foreign markets where it is sold to fund food security-related development activities. In its place, we will have greater flexibility to directly fund these programs, enabling the United States to reach an estimated 600,000 more people annually with the same amount of resources.”
“This important step forward on the path to reform results from the support of a strong, bipartisan coalition of reformers, including humanitarian and faith-based organizations, think tanks and members of Congress. We look forward to working with Congress to further the important work started by the reforms in this legislation.”
Oxfam America, one of the groups that had pushed for the changes, backed up Shah’s statement.
“The farm bill agreement shows that the sun is setting on outdated, wasteful regulations on international food aid programs,” the group said in a statement.
Oxfam also thanked congressional leaders for “achieving modest first steps to reform international food aid programs that will help more life-saving aid reach hungry people in crisis without costing taxpayers one extra penny,” but added “Sadly, special interests continue to wield undue influence to block more ambitious change. This deal represents real progress from the 2007 farm bill and is a stepping stone for comprehensive reforms that we expect will be included in the president’s FY 15 budget.”
Oxfam said the changes will “reduce the ‘monetization’ of food aid whereby food aid is dumped on developing country markets, a wasteful way to raise funds for long-term development projects.”
Carolyn Miles
Carolyn Miles, president and CEO of Save the Children, said “The relatively modest but important changes to global food aid passed in the farm bill are a critical first step. Save the Children looks forward to working with the administration and Congress to swiftly put these cost- and time-saving reform provisions into place and to continuing to push to modernize our U.S. food aid program.”
The American-Jewish World Service, a New York-based development and human rights organization, also praised the changes and noted that with allies it had mounted a campaign that resulted in 203 House members voting in favor of a farm bill amendment to change food aid.
Ellen Levinson
But Ellen Levinson, executive director of the Alliance for Global Food Security, which is composed of U.S. groups that distribute food aid and engage in monetization, praised the farm bill provisions as written and the provisions in the fiscal year 2014 appropriations bill.
“Together, the 2014 appropriations act and the new farm bill balance the Obama administration’s request for greater flexibility with the importance of continuing the time-tested Food for Peace program,” Levinson said in an email. “It is a win-win for people in need overseas and for all of the constituencies. Now, USAID and USDA have more tools and more funding to fight hunger.”
“Congress responded to the Obama administration’s request for greater options for local and regional procurement of food commodities and to use cash to fund development activities associated with food aid programs rather than just relying on monetized proceeds,” Levinson continued.
“First, in the 2014 appropriations bill, $1.2 billion more was provided for Food for Peace and international disaster assistance than the president’s request,” she said. “Food for Peace uses U.S. commodities, while disaster assistance distributes cash to beneficiaries and buys food locally and regionally.
“Second, the farm bill authorizes $80 million for USDA to use for local and regional procurement of food aid for such things as school meals, child nutrition and emergency programs.
“Finally, the farm bill assures that not less than $350 million will be used for development — focused food aid programs under Food for Peace. It also increases the amount of cash available to directly fund development activities, rather than just relying on monetized proceeds. This is an important option in countries where monetization is not a good option due to local market conditions.”
The members of the alliance include Adventist Development & Relief Agency, ACDI/VOCA, the Congressional Hunger Center, Feed the Children, Food for the Hungry, Joint Aid Management, International Relief & Development, Opportunities Industrialization Centers International, Planet Aid, Salesian Missions, the United Methodist Committee on Relief and World Vision.
Shah urged Congress to end monetization in the farm bill, but Congress only restricted its use.
The battle pitted USAID and groups that favor direct cash assistance for development and purchases of food near the areas of shortages against U.S. humanitarian groups that use monetized food aid for development. U.S. commodity groups representing the farmers who produce the foodstuffs and the U.S. maritime industry that ships food aid agreed with them.
Rajiv Shah
“With strong bipartisan support in both chambers of Congress, the president signed into law today a farm bill that includes the most significant reforms to enhance the flexibility and effectiveness of our food assistance in the history of the Food for Peace program,” Shah said in his statement Friday.
“The reforms to the Food for Peace program, which has fed billions of hungry people around the world over the last six decades, will increase the impact of this life-saving assistance.”
Then Shah added, “The reforms in the bill significantly limit the inefficient practice of monetization, which requires USAID to ship American food aid to foreign markets where it is sold to fund food security-related development activities. In its place, we will have greater flexibility to directly fund these programs, enabling the United States to reach an estimated 600,000 more people annually with the same amount of resources.”
“This important step forward on the path to reform results from the support of a strong, bipartisan coalition of reformers, including humanitarian and faith-based organizations, think tanks and members of Congress. We look forward to working with Congress to further the important work started by the reforms in this legislation.”
Oxfam America, one of the groups that had pushed for the changes, backed up Shah’s statement.
“The farm bill agreement shows that the sun is setting on outdated, wasteful regulations on international food aid programs,” the group said in a statement.
Oxfam also thanked congressional leaders for “achieving modest first steps to reform international food aid programs that will help more life-saving aid reach hungry people in crisis without costing taxpayers one extra penny,” but added “Sadly, special interests continue to wield undue influence to block more ambitious change. This deal represents real progress from the 2007 farm bill and is a stepping stone for comprehensive reforms that we expect will be included in the president’s FY 15 budget.”
Oxfam said the changes will “reduce the ‘monetization’ of food aid whereby food aid is dumped on developing country markets, a wasteful way to raise funds for long-term development projects.”
Carolyn Miles
Carolyn Miles, president and CEO of Save the Children, said “The relatively modest but important changes to global food aid passed in the farm bill are a critical first step. Save the Children looks forward to working with the administration and Congress to swiftly put these cost- and time-saving reform provisions into place and to continuing to push to modernize our U.S. food aid program.”
The American-Jewish World Service, a New York-based development and human rights organization, also praised the changes and noted that with allies it had mounted a campaign that resulted in 203 House members voting in favor of a farm bill amendment to change food aid.
Ellen Levinson
But Ellen Levinson, executive director of the Alliance for Global Food Security, which is composed of U.S. groups that distribute food aid and engage in monetization, praised the farm bill provisions as written and the provisions in the fiscal year 2014 appropriations bill.
“Together, the 2014 appropriations act and the new farm bill balance the Obama administration’s request for greater flexibility with the importance of continuing the time-tested Food for Peace program,” Levinson said in an email. “It is a win-win for people in need overseas and for all of the constituencies. Now, USAID and USDA have more tools and more funding to fight hunger.”
“Congress responded to the Obama administration’s request for greater options for local and regional procurement of food commodities and to use cash to fund development activities associated with food aid programs rather than just relying on monetized proceeds,” Levinson continued.
“First, in the 2014 appropriations bill, $1.2 billion more was provided for Food for Peace and international disaster assistance than the president’s request,” she said. “Food for Peace uses U.S. commodities, while disaster assistance distributes cash to beneficiaries and buys food locally and regionally.
“Second, the farm bill authorizes $80 million for USDA to use for local and regional procurement of food aid for such things as school meals, child nutrition and emergency programs.
“Finally, the farm bill assures that not less than $350 million will be used for development — focused food aid programs under Food for Peace. It also increases the amount of cash available to directly fund development activities, rather than just relying on monetized proceeds. This is an important option in countries where monetization is not a good option due to local market conditions.”
The members of the alliance include Adventist Development & Relief Agency, ACDI/VOCA, the Congressional Hunger Center, Feed the Children, Food for the Hungry, Joint Aid Management, International Relief & Development, Opportunities Industrialization Centers International, Planet Aid, Salesian Missions, the United Methodist Committee on Relief and World Vision.
