I
104TH CONGRESS
1ST SESSION
H. R. 2493
To make modifications to international food aid programs.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 18, 1995
Mr. EMERSON (for himself and Mr. CONDIT) introduced the following bill;
which was referred to the Committee on International Relations, and in
addition to the Committee on Agriculture, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To make modifications to international food aid programs.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Food For Peace Reau-
thorization Act of 1995’’.
SEC. 2. FOOD ASSISTANCE TO DEVELOPING COUNTRIES.
Section 3 of the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C.1691a) is amended to
read as follows:
‘‘SEC. 102. AGREEMENTS REGARDING ELIGIBLE COUNTRIES
AND PRIVATE ENTITIES.
‘‘(a) PRIORITY.—In selecting agreements to be en-
tered into under this title, the Secretary shall give priority
to agreements providing for the export of agricultural
commodities to developing countries that—
‘‘(1) have the demonstrated potential to become
commercial markets for competitively priced United
States agricultural commodities;
‘‘(2) are undertaking measures for economic de-
velopment purposes to improve food security and ag-
ricultural development, alleviate poverty, and pro-
mote broad-based equitable and sustainable develop-
ment; and
‘‘(3) demonstrate the greatest need for food.
‘‘(b) PRIVATE ENTITIES.—An agreement entered
into under this title with a private entity shall require such
security, or such other provisions as the Secretary deter-
mines necessary, to provide reasonable and adequate as-
surance of repayment of the financing extended to the pri-
vate entity.
‘‘(c) 
AGRICULTURAL
MARKET
DEVELOPMENT
PLAN.—
‘‘(1) IN GENERAL.—If there is in effect for a
country a market development plan approved by the
Secretary, for the purposes of the priority set forth
in subsection (a), the Secretary shall deem that
country to have the demonstrated potential to be-
come a commercial market for competitively priced
United States agricultural commodities. However,
not more than 50 percent of the agricultural com-
modities sold under this title during a fiscal year
shall be granted the priority because this deeming
rule applies.
‘‘(2) REQUIREMENTS.—To be approved by the
Secretary, the agricultural market development plan
shall—
‘‘(A) be submitted by a country or private
entity in conjunction with an agricultural trade
organization;
‘‘(B) describe a project or program, de-
signed with the cooperation of the agricultural
trade organization, for the development and ex-
pansion of United States agricultural commod-
ity markets in the appropriate developing coun-
try;
‘‘(C) use funds raised from the sale of ag-
ricultural commodities received under agree-
ments under section 101;
‘‘(D) be implemented and administered in
coordination with the agricultural trade organi-
zation; and
‘‘(E) contain additional requirements de-
termined necessary by the Secretary.
‘‘(3) AGRICULTURAL TRADE ORGANIZATION.—
For purposes of this subsection, the term ‘agricul-
tural trade organization’ means a United States ag-
ricultural trade organization that promotes the ex-
port and sale of United States agricultural commod-
ities and that does not stand to profit directly from
specific sales of agricultural commodities.’’.
SEC. 5. TERMS AND CONDITIONS OF SALES.
Section 103 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1703) is amended—
(1) in subsection (a)(2)(A)—
(A) by striking ‘‘a recipient country to
make’’ and
(B) by striking ‘‘such country’’ and insert-
ing ‘‘the appropriate country’’;
(2) in subsection (c), by striking ‘‘less than 10
nor’’; and
(3) in subsection (d)—
(A) by striking ‘‘recipient country’’ and in-
serting ‘‘recipient’’; and
((B) by striking ‘‘7 years’’ and inserting
‘‘5 years’’.
SEC. 6. USE OF LOCAL CURRENCY.
Section 104 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1704) is amended—
(1) in subsection (a), by striking ‘‘recipient
country’’ and inserting ‘‘recipient’’; and
(2) in subsection (c)—
(A) by striking ‘‘recipient country’’ and in-
serting ‘‘appropriate developing country’’ each
place it appears; and
(B) by striking ‘‘recipient countries’’ and
inserting ‘‘appropriate developing countries’’.
SEC. 7. PRIVATE ENTITIES.
The Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1701 et seq.) is amended—
(1) by striking ‘‘a private voluntary organiza-
tion or cooperative’’ each place it appears in section
202(d) and subsections (a) and (d) of section 203
and inserting ‘‘a private entity, private voluntary or-
ganization, or cooperative’’;
(2) by striking ‘‘private voluntary organizations
and cooperatives’’ each place it appears in sections
203(b) and 306(a)(5) and inserting ‘‘private entities,
private voluntary organizations, and cooperatives’’;
(3) in the section heading of section 203, by
striking ‘‘PRIVATE VOLUNTARY ORGANIZATIONS
AND COOPERATIVES’’ and inserting ‘‘ PRIVATE
ENTITIES, 
PRIVATE
VOLUNTARY
ORGANIZA-
TIONS, AND COOPERATIVES’’;
(4) in section 203(c), by striking ‘‘A private
voluntary organization or cooperative’’ and inserting
‘‘A private entity, private voluntary organization, or
cooperative’’; and
(5) in section 501(a)(4), by striking ‘‘private
voluntary organizations, cooperatives,’’ and inserting
‘‘private entities, private voluntary organizations, co-
operatives,’’.
SEC. 8. PROVISION OF AGRICULTURAL COMMODITIES.
Section 202(e) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1722(e)) is
amended—
(1) in the subsection heading, by inserting
‘‘INTERGOVERNMENTAL
ORGANIZATIONS,’’ 
after
‘‘SUPPORT FOR’’;
(2) in paragraph (1)—
(A) by striking ‘‘$13,500,000’’ and insert-
ing ‘‘$28,000,000’’; and
(B) by striking ‘‘private voluntary organi-
zations and cooperatives to assist such organi-
zations and cooperatives’’ and inserting ‘‘eligi-
ble organizations described in subsection (d), to
assist those organizations’’;
(3) in paragraph (2), by striking ‘‘a private vol-
untary organization or cooperative’’ and inserting
‘‘an intergovernmental organization, private entity,
private voluntary organization, or cooperative’’; and
(4) in paragraph (3), by striking ‘‘a private vol-
untary organization or cooperative, the Adminis-
trator may provide assistance to that organization or
cooperative’’ and inserting ‘‘an eligible organization
described in subsection (d), the Administrator may
provide assistance to that eligible organization’’.
SEC. 9. EFFECTIVE USE OF COMMODITIES.
Section 202(f) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1722(f) is
amended—
(1) by striking the period at the end of para-
graph (6) and inserting ‘‘; and’’; and
(2) by adding at the end the following:
‘‘(7) be permitted to carry out a program under
this title—
‘‘(A) in a foreign country in which the
Agency for International Development does not
have a mission, office, or other presence; or
‘‘(B) that is not part of the developmental
strategy prepared by such Agency for the coun-
try in which the program is carried out.’’
SEC. 10. MONETIZATION.
Section 203 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1723) is amended—
(1) in subsection (a), by inserting ‘‘, or in a
country in the same region’’ after ‘‘in the recipient
country’’;
(2) in subsection (b)—
(A) by inserting ‘‘or in countries in the
same region’’ after ‘‘in the recipient country’’;
and
(B) by striking ‘‘10 percent’’ and inserting
‘‘15 percent’’;
(3) in subsection (c), by inserting ‘‘or within a
country in the same region’’ after ‘‘within the recipi-
ent country’’.
SEC. 11. GENERAL LEVELS OF ASSISTANCE UNDER PUBLIC
LAW 480.
Section 204(a) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1724(a)) is
amended—
(1) in paragraph (1), by striking ‘‘amount
that’’ and all that follows through the period at the
end and inserting ‘‘amount that for each of fiscal
years 1996 through 2002 is not less than 2,025,000
metric tons.’’; and
(2) in paragraph (2), by striking ‘‘amount
that’’ and all that follows through the period at the
end and inserting ‘‘amount that for each of fiscal
years 1996 through 2002 is not less than 1,550,000
metric tons.’’.
SEC. 12. USE OF VALUE ADDED COMMODITIES.
Section 204(b)(1) of the Agricultural Trade Develop-
ment and Assistance Act of 1954 (7 U.S.C. 1724(e)) is
amended by inserting ‘‘and that not less than 50 percent
of the quantity of such bagged commodities that are whole
grain commodities shall be bagged in the United States’’
before the period at the end.
SEC. 13. FOOD AID CONSULTATION GROUP.
(a) MEMBERSHIP.—Section 205(b)(2) of the Agricul-
tural Trade Development and Assistance Act of 1954 (7
U.S.C. 1725(b)(2)) is amended by striking ‘‘International
Affairs and Commodity Programs’’ and inserting ‘‘Agri-
culture for Farm and Foreign Agricultural Services’’.
(b) EXPIRATION DATE.—Section 205(f) of the Agri-
cultural Trade Development and Assistance Act of 1954
(7 U.S.C. 1725(f)) is amended by striking ‘‘1995’’ and
inserting ‘‘2002’’.
SEC. 14. FOOD FOR DEVELOPMENT.
Sections 301(b) and 303 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C.
1727(b) and 1727b) are each amended by striking ‘‘To
carry out’’ and all that follows through ‘‘section 2, the’’
and inserting ‘‘The’’.
SEC. 15. COMMODITY DETERMINATIONS.
Section 401 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1731) is amended—
(1) by striking subsections (a) through (d) and
inserting the following:
‘‘(a) AVAILABILITY OF COMMODITIES.—No agricul-
tural commodity shall be available for disposition under
this Act if the Secretary determines that the disposition
would reduce the domestic supply of the commodity below
the supply needed to meet domestic requirements and pro-
vide adequate carryover (as determined by the Secretary),
unless the Secretary determines that some part of the sup-
ply should be used to carry out urgent humanitarian pur-
poses under this Act.’’;
(2) by redesignating subsections (e) and (f) as
subsections (b) and (c), respectively; and
(3) in subsection (c) (as so redesignated), by
striking ‘‘(e)(1)’’ and inserting ‘‘(b)(1)’’.
SEC. 16. GENERAL PROVISIONS.
Section 403 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1733) is amended—
(1) in subsection (c)—
(A) by inserting ‘‘or private entities, as ap-
propriate,’’ after ‘‘commitments from coun-
tries’’; and
(B) by striking ‘‘for use’’ and inserting ‘‘or
use’’; and
(2) in subsection (f), by inserting ‘‘or private
entities, as appropriate,’’ after ‘‘from countries’’.
SEC. 17. AGREEMENTS.
Section 404 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1734) is amended—
(1) in subsection (a), by inserting ‘‘with foreign
countries’’ after ‘‘Before entering into agreements’’;
(2) in subsection (b)(2)—
(A) by inserting ‘‘with foreign countries’’
after ‘‘with respect to agreements entered into’’;
and
(B) by inserting before the semicolon at
the end the following: ‘‘and broad-based eco-
nomic growth’’; and
(3) so that subsection (c)(1) reads as follows:
‘‘(1) IN GENERAL.—
‘‘(A) TITLES
I
AND
III.—Agreements to
provide assistance on a multi-year basis under
titles I and III may be made available to recipi-
ent countries or to eligible organizations.
‘‘(B) TITLE II.—Agreements to provide as-
sistance on a multi-year basis shall be made
available to recipient countries and to eligible
organizations.’’.
SEC. 18. ADMINISTRATIVE PROVISIONS.
Section 407 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736a) is amend-
ed—
(1) in subsection (a)(1), by inserting ‘‘or pri-
vate entity’’ after ‘‘importing country’’;
(2) in subsection (c)—
(A) in paragraph (1)(A), by inserting ‘‘im-
porter or’’ before ‘‘importing country’’; and
(B) in paragraph (2)(A), by inserting ‘‘im-
porter or’’ before ‘‘importing country’’; and
(3) by striking subsection (h).
SEC. 19. EXPIRATION DATE.
Section 408 of the Agricultural Trade Development
and Assistance Act of 1954 (7 U.S.C. 1736b) is amended
by striking ‘‘1995’’ and inserting ‘‘2002’’.
(1) in the first sentence of subsection (b)(1), by
inserting ‘‘intergovernmental organizations,’’ after
‘‘private voluntary organizations,’’;
(2) in subsection (g), by striking ‘‘1995’’ and
inserting ‘‘2002’’;
(3) in subsection (k), by striking ‘‘1995’’ and
inserting ‘‘2002’’;
(4) in subsection (l)(1)—
(A) by striking ‘‘1995’’ and inserting
‘‘2002’’; and
(B) by inserting ‘‘, and to provide adminis-
trative and technical assistance for monetiza-
tion programs,’’ after ‘‘monitoring of food as-
sistance programs’’; and
(5) in subsection (m)—
(A) by striking ‘‘with respect to the inde-
pendent states of the former Soviet Union’’;
and
(B) in paragraph (2), by striking ‘‘in the
independent states’’.
SEC. 24. FOOD SECURITY COMMODITY RESERVE.
(a) FOOD SECURITY COMMODITY RESERVE ACT OF
1995.—The title heading of title III of the Agricultural
Act of 1980 (7 U.S.C. 1736f–1 note) is amended by strik-
ing ‘‘FOOD SECURITY WHEAT RESERVE ACT OF 1980’’
and inserting ‘‘FOOD
SECURITY
COMMODITY
RE-
SERVE ACT OF 1995’’.
(b) SHORT TITLE.—Section 301 of the Act (7 U.S.C.
1736f–1 note) is amended by striking ‘‘Food Security
Wheat Reserve Act of 1980’’ and inserting ‘‘Food Security
Commodity Reserve Act of 1995’’.
(c) IN GENERAL.—Section 302 of the Act (7 U.S.C.
1736f–1) is amended—
(1) in the section heading, by striking ‘‘FOOD
SECURITY
WHEAT
RESERVE’’ and inserting
‘‘FOOD SECURITY COMMODITY RESERVE’’;
(2) so that subsection (a) reads as follows:
‘‘(a) IN GENERAL.—To provide for a reserve solely
to meet emergency humanitarian food needs in developing
countries, the Secretary shall establish a reserve stock of
wheat, rice, corn, or sorghum, or any combination of the
commodities, totaling not more than 4,000,000 metric
tons for use as described in subsection (c).’’;
(3) so that subsection (b)(1) reads as follows:
‘‘(b) COMMODITIES IN RESERVE.—
‘‘(1) IN
GENERAL.—The reserve established
under this section shall consist of—
‘‘(A) wheat in the reserve established
under the Food Security Commodity Reserve
Act of 1980 as of the date of enactment of the
Food For Peace Reauthorization Act of 1995;
‘‘(B) wheat, rice, corn, and sorghum (re-
ferred to in this section as ‘eligible commod-
ities’) acquired in accordance with paragraph
(2) to replenish eligible commodities released
from the reserve, including wheat to replenish
wheat released from the reserve established
under the Food Security Wheat Reserve Act of
1980 but not replenished as of the date of en-
actment of the Food For Peace Reauthorization
Act of 1995; and
‘‘(C) such rice, corn, and sorghum as the
Secretary of Agriculture (referred to in this sec-
tion as the ‘Secretary’) may, at such time and
in such manner as the Secretary determines ap-
propriate, acquire as a result of exchanging an
equivalent value of wheat in the reserve estab-
lished under this section.’’;
(4) in subsection (b)(2)—
(A) by striking ‘‘(2)(A) Subject to’’ and in-
serting the following:
‘‘(2) REPLENISHMENT OF RESERVE.—
‘‘(A) IN GENERAL.—Subject to’’;
(B) in subparagraph (A)—
(i) by striking ‘‘(i) of this section
stocks of wheat’’ and inserting ‘‘(i) stocks
of eligible commodities’’;
(ii) in clause (ii), by striking ‘‘stocks
of wheat’’ and inserting ‘‘stocks of eligible
commodities’’; and
(iii) in the second sentence, by strik-
ing ‘‘wheat’’ and inserting ‘‘eligible com-
modities’’; and
(C) in subparagraph (B)—
(i) by striking ‘‘(B) Not later’’ and in-
serting ‘‘(B) TIME FOR REPLENISHMENT
OF RESERVE.—Not later’’; and
(ii) in clause (ii), by striking ‘‘wheat’’
and inserting ‘‘eligible commodities’’;
(5) so that subsections (c) through (f) read as
follows:
‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.—
‘‘(1) DETERMINATION.—If the Secretary deter-
mines that the amount of commodities allocated for
minimum assistance under section 204(a)(1) of the
Agricultural Trade Development and Assistance Act
of 1954 (7 U.S.C. 1724(a)(1)) less the amount of
commodities allocated for minimum non-emergency
assistance under section 204(a)(2) of the Act (7
U.S.C. 1724(a)(2)) will be insufficient to meet the
need for commodities for emergency assistance
under section 202(a) of the Act (7 U.S.C. 1722(a)),
the Secretary in any fiscal year may release from the
reserve—
‘‘(A) up to 500,000 metric tons of wheat
or the equivalent value of eligible commodities
other than wheat; and
‘‘(B) any eligible commodities which under
subparagraph (A) could have been released but
were not released in prior fiscal years.
‘‘(2) AVAILABILITY
OF
COMMODITIES.—Com-
modities released under paragraph (1) shall be made
available under title II of the Agricultural Trade De-
velopment and Assistance Act of 1954 (7 U.S.C.
1721 et seq.) for emergency assistance.
‘‘(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
PRAC-
TICES.—To the maximum extend practicable consist-
ent with the fulfillment of the purposes of this sec-
tion and the effective and efficient administration of
this section, the Secretary shall use the usual and
customary channels, facilities, arrangements, and
practices of the trade and commerce.
‘‘(5) WAIVER OF MINIMUM TONNAGE REQUIRE-
MENTS.—Nothing in this subsection shall require
the exercise of the waiver under section 204(a)(3) of
the Agricultural Trade Development and Assistance
Act of 1954 (7 U.S.C. 1724(a)(3)) as a prerequisite
for the release of eligible commodities under this
subsection.
‘‘(d) TRANSPORTATION AND HANDLING COSTS.—
‘‘(1) IN GENERAL.—The cost of transportation
and handling of eligible commodities released from
the reserve established under this section shall be
paid by the Commodity Credit Corporation in ac-
cordance with section 406 of the Agricultural Trade
Development and Assistance Act of 1954 (7 U.S.C.
1736).
‘‘(2) REIMBURSEMENT.—
‘‘(A) IN GENERAL.—The Commodity Cred-
it Corporation shall be reimbursed for the costs
incurred under paragraph (1) from the funds
made available to carry out the Agricultural
Trade Development and Assistance Act of 1954
(7 U.S.C. 1691 et seq.).
‘‘(B) BASIS
FOR
REIMBURSEMENT.—The
reimbursement shall be made on the basis of
the lesser of the actual cost incurred by the
Commodity Credit Corporation less any savings
achieved as a result of decreased storage and
handling costs for the reserve.
‘‘(C) DECREASED
STORAGE
AND
HAN-
DLING COSTS.—For purposes of this subsection,
‘decreased storage and handling costs’ shall
mean the total actual costs for storage and han-
dling incurred by the Commodity Credit Cor-
poration for the reserve established under title
III of the Agricultural Act of 1980 in fiscal
year 1995 less the total actual costs for storage
and handling incurred by the Corporation for
the reserve established under this Act in the fis-
cal year for which the savings are calculated.
‘‘(e) MANAGEMENT
OF RESERVE.—The Secretary
shall provide for—
‘‘(1) the management of eligible commodities in
the reserve as to location and quality of commodities
needed to meet emergency situations; and
‘‘(2) the periodic rotation of eligible commod-
ities in the reserve to avoid spoilage and deteriora-
tion of such stocks.
‘‘(f) TREATMENT
OF
RESERVE
UNDER
OTHER
LAW.—Eligible commodities in the reserve established
under this section shall not be—
‘‘(1) considered a part of the total domestic
supply (including carryover) for the purpose of ad-
ministering the Agricultural Trade Development and
Assistance Act of 1954 (7 U.S.C. 1691 et seq.); and
‘‘(2) subject to any quantitative limitation on
exports that may be imposed under section 7 of the
Export Administration Act of 1979 (50 U.S.C. App.
2406).’’;
(6) in subsection (g)—
(A) by striking ‘‘(g)(1) The’’ and inserting
the following:
‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—
The’’;
(B) by striking ‘‘wheat’’ and inserting ‘‘an
eligible commodity’’; and
(C) by striking paragraph (2);
(7) in subsection (h)—
(A) by striking ‘‘(h) Any’’ and inserting:
‘‘(h) FINALITY OF DETERMINATION.—Any’’; and
(B) by striking ‘‘President or the Secretary
of Agriculture’’ and inserting ‘‘Secretary’’; and
(8) in subsection (i)—
(A) by striking ‘‘(i) The’’ and inserting:
‘‘(i) TERMINATION OF AUTHORITY.—The’’;
(B) by striking ‘‘wheat’’ each place it ap-
pears and inserting ‘‘eligible commodities’’; and
(C) by striking ‘‘1995’’ each place it ap-
pears and inserting ‘‘2002’’.
(d) EFFECTIVE DATE.—Section 303 of the Act (7
U.S.C. 1736–1 note) is amended by striking ‘‘October 1,
1980’’ and all that follows through the end of the section
and inserting ‘‘on the date of enactment of this Act.’’.
(e) CONFORMING AMENDMENT.—Section 208(d)(2)
of the Agriculture Trade Suspension Adjustment Act of
1980 (7 U.S.C. 4001(d)(2)) is amended to read as follows:
‘‘(2) 
APPLICABILITY
OF
CERTAIN
PROVI-
SIONS.—Subsections (b)(2), (c), (e), and (f) of sec-
tion 302 of the Food Security Commodity Reserve
Act of 1995 shall apply to commodities in any re-
serve established under paragraph (1), except that
the references to ‘eligible commodities’ in the sub-
sections shall be deemed to be references to ‘agricul-
tural commodities’.’’.
Æ
HR 2493 IH——2