While all the current screaming in Washington is about the fiscal cliff, an aspect of USAID’s aid efforts has already slipped off its own precipice, and is hanging by the roots of a dried-out shrub. The farm bill is stalled – some analysts don’t expect any movement until April 2013. Given all of the fiscal challenges the country faces, this might sound reasonable – but within the aid and development world, the deferral of the farm bill is setting up a trainwreck. The Office of Food for Peace’s (FFP) Title II programs are authorized by the farm bill. In the absence of a new bill, a number of FFP’s authorities expired at the end of the fiscal year (September 30th). The rest of Title II’s new awards, which are authorized by the farm bill, will expire at the end of the calendar year.
What is Title II? According to the Foreign Agricultural Service of the USDA:
Title II provides for the donation of U.S. agricultural commodities by the U.S. government to meet humanitarian food needs in foreign countries. Commodities may be provided to meet emergency needs under government-to-government agreements, through public and private agencies, including intergovernmental organizations such as the World Food Program, and other multilateral organizations. Non-emergency assistance may be provided through private voluntary organizations, cooperatives, and intergovernmental organizations. Commodities requested may be furnished from the Commodity Credit Corporation’s (CCC’s) inventory acquired under price support programs or purchased from private stocks. The CCC also finances the costs of ocean transportation to ports of entry, or to points of entry other than ports in the case of landlocked countries, or when the use of a point of entry other than port would result in substantial savings in costs or time. The CCC may also pay transportation costs from designated ports of entry or points of entry abroad to storage and distribution sites, and associated storage and distribution costs for commodities, including pre-positioned commodities, made available to meet urgent or extraordinary relief requirements.
Who cares? Title II funds authorize a huge chunk of the FFP program each year. There are some limited community development funds, and similarly limited emergency food security funds. In fiscal year 2009, this was a $2.6 billion program. Billion, with a B. For FY 2012, the appropriated amount was $1.466 billion, down significantly but still a huge share of the global food aid budget. Note that this is the aid that the United States moves through various NGOs and intergovernmental organizations like WFP, so if Title II grinds to a halt, these organizations and their work will be severely compromised.
We might get away with this without a total disaster. For example, FEWS-NET shows a lot of stress in the horn of Africa right now, but projects improving situations over the next few months. But if Title II grinds to a halt, and any major food crisis hits (which could include food price spikes), FFP will little capacity to do anything about it.
Congress cannot agree on much these days, but I suspect there are few in that august body that think it is OK to leave the world’s poorest and most vulnerable to their fates because they can’t get their legislative act together. Let’s hope they figure this out. Soon.