U.S. Global Food Security Funding, FY2010-FY2012
Released: 2011-04-28T00:00:00

Background

The United States currently addresses issues related to global hunger and food security through two primary types of approaches: (1) agricultural development, such as the Obama Administration's Feed the Future initiative; and (2) emergency and humanitarian food aid and assistance, such as the Food for Peace (P.L. 480) program.

Foreign assistance, including agricultural development and some emergency food assistance programs, is administered primarily by the U.S. Agency for International Development (USAID), using existing authorities provided in the Foreign Assistance Act of 1961, as amended. Funding is provided through the annual Department of State and Foreign Operations appropriation bill. Funding for bilateral agricultural development and food security-related activities is allocated primarily from USAID's Development Assistance (DA) account, but also from the Economic Support Fund (ESF), and from the Assistance for Europe, Eurasia, and Central Asia (AEECA), Global Health and Child Survival (GHCS), and International Development Assistance (IDA) accounts. In addition, funding for some multilateral efforts, such as the World Bank Global Agriculture and Food Security Program (GAFSP) Trust Fund, is provided through annual appropriations to the Treasury Department. U.S. international food aid programs are administered by USAID and USDA's Foreign Agricultural Service (FAS), as authorized by the 2008 farm bill ( P.L. 110-246 ), and are funded through annual Agriculture appropriation bills.

Agricultural Development: The Administration's Feed the Future (FtF) Initiative3

In June 2009, at the G8 Summit in L'Aquila, Italy, President Obama pledged $3.5 billion over three years (FY2010 to FY2012) to a global hunger and food security initiative to address hunger and poverty worldwide. The U.S. commitment is part of a global pledge, by the G20 countries and others, of more than $22 billion. In May 2010, the Department of State officially launched the Administration's global hunger and food security initiative, called Feed the Future (FtF). FtF aims to sustainably reduce hunger and poverty by "addressing the root causes of hunger that limit the potential of millions of people," and by "establishing a lasting foundation for aligning our resources with country-owned processes and sustained, multi-stakeholder partnerships." The two primary objectives of the FtF initiative are (1) to accelerate inclusive agricultural sector growth, and (2) to improve the nutritional status in developing countries, particularly of women and children.

The Department of State was the lead agency initially in developing the Feed the Future strategy, while USAID is the primary agency responsible for coordinating its implementation. Feed the Future builds on the five principles for sustainable food security first articulated at L'Aquila and endorsed at the 2009 World Summit on Food Security in Rome: (1) supporting comprehensive strategies; (2) investing in country-owned plans; (3) improving coordination among donors; (4) leveraging effective multilateral institutions; and (5) delivering on sustained and accountable commitments. In order to "increase the effectiveness of [our] investments," FtF focuses activities in 20 developing countries in sub-Saharan Africa, Asia, and Latin America and the Caribbean that have been determined by USAID to have the greatest potential to realize impact based on the Rome Principles ( Table 1 ). Investments are taking place in two phases, depending on the extent that country investment plans have been developed in a given host country. The Feed the Future strategy does not explicitly include food aid funding or programs (such as Food for Peace/P.L. 480), but the strategy guide states "that the United States will maintain its strong commitment to providing emergency and humanitarian food assistance to meet urgent needs and mitigate unexpected disasters."

The World Bank Global Agriculture and Food Security Program (GAFSP) Trust Fund

In addition to bilateral engagement, the United States also has committed to provide funding for multilateral efforts to address global food security. In January 2010, the World Bank Board approved the establishment of the Global Agriculture and Food Security Program (GAFSP) Trust Fund in direct response to a request made by the leaders of the G20 in 2009. The primary objective of the GAFSP is to improve the food security and livelihoods of the poor in developing countries through more effective public and private sector investment in the agricultural and rural sectors. On April 22, 2010, the World Bank officially launched GAFSP with contributions from the United States, Canada, Spain, South Korea, and the Bill & Melinda Gates Foundation. Subsequently in 2010, Ireland and Spain made contributions. Financial commitments to the GAFSP Trust Fund as of January 31, 2011, totaled $925.2 million and are allocated to public and private sector funding windows. GAFSP financing is available to International Development Association (IDA)-eligible World Bank member countries. Additional need-based screens, such as undernourishment levels, per capita GDP, a suitable policy environment, and the development of a comprehensive agricultural development strategy, further restrict country eligibility. The GAFSP Trust Fund has awarded a total of $337 million to eight countries, including Bangladesh ($52.5 million); Ethiopia ($54 million); Haiti ($36.75 million); Mongolia ($13.125 million); Niger ($34.6 million); Rwanda ($52.5 million); Sierra Leone ($52.5 million); and Togo ($41 million)

Food Aid and Humanitarian Assistance15

For over 55 years, the United States has provided food aid for emergency food relief and to support development projects. Foreign food aid is distributed primarily through five program authorities: the Food for Peace Act (P.L. 480); Section 416(b) of the Agricultural Act of 1949; the Food for Progress Act of 1985; the McGovern-Dole International Food for Education and Child Nutrition Program; and the Local and Regional Procurement Pilot Project. The Food, Conservation, and Energy Act of 2008 ( P.L. 110-246 , the 2008 farm bill) authorizes through FY2012 and amends most U.S. international food aid programs. These programs are primarily funded through the annual Agriculture appropriations bills and are administered either by USAID or by USDA's Foreign Agricultural Service (FAS). The 2008 farm bill also reauthorizes the Bill Emerson Humanitarian Trust (BEHT), a reserve of commodities and cash for use in the Food for Peace programs to meet unanticipated food aid needs. Average annual spending on all international food aid programs over the past decade has been approximately $2.2 billion, with Food for Peace Title II activities comprising the largest portion of the total budget (about 50% to 90% of the total food aid budget annually over the past decade). Also, in recent years, the President's budget request has included up to $300 million annually in International Disaster Assistance for emergency food assistance interventions such as local and regional procurement and cash vouchers as options for delivering food assistance.

Funding for Global Food Security: Administration Requests and Congressional Action

As mentioned previously, funding for foreign assistance and agricultural development activities, including Feed the Future, is made available through the annual Department of State, Foreign Operations, and Related Programs appropriations bill from several different budget accounts at USAID. For FY2010, the Administration allocated about $1.31 billion to FtF from resources available. FtF allocations in FY2010 included $1.17 billion for agricultural development programs at USAID, $75 million for nutrition-related activities from the Global Health and Child Survival (GHCS) account at USAID, and $67 million allocated to the World Bank GAFSP. Separately, the Title II program within Food for Peace received $1.84 billion and the McGovern-Dole International Food for Education and Child Nutrition Program was allocated $209.5 million.

The FY2011 congressional budget justification for the Department of State and Foreign Operations was the first instance in which the Administration requested funds specifically to implement FtF. The Administration's FY2011 budget request included $1.84 billion for FtF-related activities, which was a little over 3% of the total international affairs budget request, and just over 40% more than the estimated FY2010 allocation to similar activities. The FY2011 increase was largely due to a new request in FY2011 of $408 million for the World Bank GAFSP Trust Fund. For FY2011, the Administration also requested an additional $2 billion for humanitarian and emergency assistance related to food security, which included $1.690 billion for Food for Peace Title II emergency and non-emergency food aid, and $861 million for International Disaster Assistance (IDA), of which up to $300 million from the IDA account was designated for emergency food assistance purposes, as was the case in FY2010.

On April 14, 2011, Congress passed a continuing resolution (final FY2011 CR; P.L. 112-10 ) that funded federal agencies and programs through the remainder of FY2011. The final FY2011 CR included funding allocations to the major USAID budget accounts, such as Development Assistance (DA), Economic Support Fund (ESF), Assistance to Europe, Eurasia, and Central Asia (AEECA), Global Health and Child Survival (GHCS), and International Disaster Assistance (IDA), but it did not provide specific recommendations about how much funding from these accounts should be allocated toward FtF programming. As a result, it is unclear at this point how the changes in USAID's FY2011 funding level will translate to changes in the level of funding and programming for FtF activities ( Table 2 ). After appropriations bills have been passed and become law, USAID is required to submit a statement known as a Section 653(a) report to Congress to show how USAID plans to allocate the appropriated budget to each USAID mission and how funds will be allocated by country. The Section 653(a) report, which is typically completed a few months after the final appropriations bill is passed, should provide additional insights about FtF funding levels for FY2011.

The final FY2011 CR included $2.53 billion for DA, which is essentially no change from FY2010 levels, but is 15% less than the Administration's FY2011 request; $5.96 billion for ESF, which is a 20% decrease from FY2010 and an almost 24% decrease below the Administration's FY2011 request; $697 million for AEECA, which is a 6% decrease from FY2010 and about 30% under the Administration's FY2011 request; and $2.42 billion for GHCS activities administered by USAID, which is an almost 4% reduction from FY2010 levels and the Administration's request ( Table 2 ). The tight federal fiscal situation, the need to find areas for deficit reduction, and the generally less than positive view of foreign assistance by the current House leadership are all in part responsible for the reductions in several of the USAID foreign aid funding accounts. The most dramatic cut made to ESF may be due to Congress's growing desire to reduce funding to "frontline states," such as Iraq and Afghanistan. ESF funds are typically used to promote special U.S. economic, political, or security interests. For instance, following the Camp David accords, most ESF funds went to countries such as Egypt and Jordan to support the Middle East peace process. Since 9/11, ESF has primarily been used to support countries of importance in the war on terrorism. While many activities funded through ESF are essentially identical to those provided under regular humanitarian and development programs (such as those funded through Development Assistance), the objectives, decision criteria, and motivation for project and country selection are based more on the direct political and strategic interests of the United States, and less on the development and humanitarian needs of the recipient country.

In addition, the final FY2011 CR includes $1.5 billion for Title II Food for Peace food aid programs, an 18% decrease from FY2010 levels and 11% below the Administration's request; $199.5 million for the McGovern-Dole Food for Education program, an almost 5% decrease from the FY2010 levels and the Administration's request; and $865 million for IDA, a 33% decrease from FY2010 and about 2% above the Administration's request ( Table 3 ).

In February 2011, the Administration submitted its FY2012 budget, which requests funding of $1.56 billion for the FtF initiative, about $250 million, or 19%, more than the amount allocated in FY2010 ( Table 3 ). The largest component of FY2012 FtF funding would be the allocation of $922.3 million of Development Assistance (DA) for bilateral agricultural development-related activities, and the request also includes $134.4 million for ESF and $43.5 million for AEECA ( Table 4 ). The FY2012 request for FtF activities further includes $150 million for the Global Health and Child Survival program, to be directed to nutrition activities linked with the FtF initiative, and a U.S. contribution of $308 million to the World Bank GAFSP. Separately, for FY2012, the Administration also requests $1.690 billion for Food for Peace Title II emergency and non-emergency food aid and $300 million of International Disaster Assistance for emergency food security, which could be used for local and regional purchase of food and interventions such as cash vouchers and cash transfer programs to facilitate access to food ( Table 3 ).

A breakdown of the Administration's proposed FtF funding allocation for FY2012 by region and activities is given in Figure 1 . In addition to bilateral investments in focus countries, the FtF initiative will also include investments in related and complementary programming in the following areas: regional programs to address food security challenges that require cooperation across national borders; multilateral mechanisms such as the World Bank GAFSP Trust Fund (as described above); strategic partners, such as Brazil, India, and China, in order to promote technical, policy, and scientific cooperation with FtF focus countries; and global research and innovation to improve technology development and dissemination that will continue to drive agricultural productivity around the world.