Food Aid Program Proposal Splits House Appropriators

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House appropriators were divided Thursday about whether a foreign food aid program proposal should have the flexibility to buy more food and supplies abroad instead of at home. The topic also has farm bill implications.

The Obama administration wants to use 25% of the funds for Food for Peace to buy supplies closer to the foreign areas in need, instead of shipping those supplies from the US. Rep. Sam Farr (D-Calif.) said at a House Agriculture Appropriations Subcommittee hearing that the administration could save costs and help an extra 2 million people per year by purchasing materials abroad or providing vouchers to refugees in areas where there is local food.

“This ought to be a Republican issue,” Farr said. “This is the most expensive food in the world.” Farr said the ability to reduce transportation costs and shipping times by buying food supplies overseas enables the US to respond more quickly to foreign crises and to stretch its buying power. He said less than 1% of US commodities go into international food aid.

GOP push back. Rep. Robert Aderholt (R-Ala.), chairman of the subcommittee, said he was concerned about “removing the American farmer and shipper from the participation in the 60-year-old tradition.” He said the change would undermine support for the program from agriculture, shipping and other industries. He noted that purchases of US rice, wheat and soybeans through Food for Peace had already dropped by more than 50% since Congress added some flexibility to the program in 2014. Food for Peace purchases of US rice are down 65%, US wheat down 56 percent and US soybeans down by 100%, he said.

Background. The Obama administration requested $1.35 billion for the program in Fiscal 2017 and wants to set aside $338 million to buy food closer to the areas that need it. Food for Peace, administered by the US Agency for International Development, has provided food aid to 3 billion people in 150 countries since it started in 1954, according to USAID estimates.

Outlook. The next step for the subcommittee is to mark up a Fiscal 2017 spending bill. Aderholt did not indicate when that might occur.

Comments: This is the first of many lobby efforts coming from commodity and farm groups relative to the next farm bill. Debate on that bill is expected to begin in 2017, with a new bill likely sometime in 2018. However, odds are over 50% for a one-or two-year farm bill extension, depending on who controls the Senate after Nov. 8 elections. If the Democrats regain control, Republicans could take it back after 2018 elections as far more Democratic senators are up for reelection than are Republicans. That signals a likely go-slow, extension effort for a new farm bill.

NOTE: This column is copyrighted material; therefore reproduction or retransmission is prohibited under U.S. copyright laws.