Subject: The Farm Bill
From: "Rick Leach" <[email-masked]>
To: Allyson Alvaré <[email-masked]>, "April McElroy" <[email-masked]>, "Bonnie Raquet" <[email-masked]>, "Dan Glickman" <[email-masked]>, "Darcell Savage" <[email-masked]>, "Emily High Daniels" <[email-masked]>, "Gina Gallardo" <[email-masked]>, "Hunter Biden" <[email-masked]>, "Joe Stone" <[email-masked]>, "Larry Darrow" <[email-masked]>, "Lauren Smith" <[email-masked]>, "Marshall Matz" <[email-masked]>, "Michelle Springer" <[email-masked]>, "Pat Walton Butcher" <[email-masked]>
Date: Tue, 18 Dec 2018 22:49:39 +0000

Dear Members of the Board,

The 2018 Farm Bill has passed both the House and Senate and is on its way to the president for signing, likely this Thursday.  Over the past two years—working in close consultation with WFP staff—WFP USA has written and championed several provisions that were included in the final Bill. As we have discussed our Farm Bill priorities with the Board over the past few years, I wanted to highlight a few key outcomes (for those interested in the specifics of these provisions, relevant language from the Joint Statement of Managers is included below):

Technical Assistance for International Safety Net Development: The Farm Bill authorizes USDA to provide technical assistance to developing countries and development agencies as they work to create safety net systems around the world, a central component of any comprehensive food security program. In providing this assistance, USDA will draw on expertise acquired through the development and management of our own domestic programs like WIC and SNAP.

McGovern-Dole Adjustments: The Bill directs USDA to better coordinate the timing of delivery of McGovern-Dole commodities with the start of the school year in recipient countries. Timely delivery of U.S. commodities is a critical feature to ensure children are attending classes and are less likely to skip school due to hunger. The Bill also authorizes the use of 10% of McGovern-Dole funds for Local and Regional Procurement, further integrating locally and regionally grown commodities into McGovern-Dole programs and supporting the transition (i.e., graduation) to full local ownership and implementation of school feeding programs.

Annual Reporting for Food Assistance Programs:  The Bill contains a provision that allows the USAID Administrator and Secretary of Agriculture to jointly file annual reports relating to their respective food aid programs, expediting the publication of key information related to USG food assistance programs and fostering further integration of efforts between cash and commodity-based assistance.

Transportation, Storage and Handling: WFP’s adoption of new country planning procedures in 2017 created new interpretations of the Food for Peace Internal Transportation, Storage and Handling (ITSH) regulations, potentially leading to the reduction of commodity assistance being provided to WFP. The Bill clarifies that USAID can continue to fund certain transportation and storage related activities using the ITSH designation. This is a highly technical provision but critical for securing robust funding for WFP.

Monetization Requirements: The Bill eliminates the 15% monetization requirement for U.S. commodities in the Title II Food for Peace program to be sold overseas to generate resources for food security or other development programs.

Community Development Funds: The Bill clarifies that the Food for Peace non-emergency resource requirements (i.e., “safebox”) may be satisfied by using funding from other food security programs like the Community Development Fund. This accommodation will serve to increase resources available for emergency operations and organizations like WFP.

With these and other provisions, this Farm Bill not only increases the efficiency and effectiveness of humanitarian food assistance but also represents the latest chapter in the United States’ longstanding bipartisan commitment to comprehensive international food security programming.

Together with the introduction and expansion of cash-based assistance and the Feed the Future agricultural development program—both recently reauthorized in the landmark Global Food Security Act—the United States’ toolkit for international food security has never been more sophisticated or comprehensive than it is today.

On behalf of WFP USA and our Public Policy team, I’d like to express my deepest appreciation for the support of our board in championing this evolution, both in this Farm Bill and beyond.

Sincerely,
Rick

Safety Net Technical Assistance:
(14) International food security technical assistance
The Senate amendment amends the Food, Agriculture, Conservation, and Trade Act of 1990 by adding at the end of Title XV, a provision directing the Secretary to
compile and make available information on the improvement of international food security. It authorizes the Secretary to provide technical assistance to certain entities to implement programs for the improvement of international food security. (Section 3306)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision. (Section 3308)

McGovern-Dole Adjustments:
(15) McGovern-Dole international food for education and child nutrition program
The House bill amends the section by requiring, to the extent practicable, the assistance provided under this section coincide with the start of the school year and is available when needed throughout the relevant school year. It authorizes appropriations in the existing amount through FY 2023. (Section 3205)
The Senate amendment directs the Secretary of Agriculture to ensure that assistance provided under this section is provided in a timely manner and is made available when needed throughout the applicable school year. It authorizes appropriations in the existing amount through FY 2023. The section allows not more than 10% of available funds to be used for commodities produced in and procured from a developing country that is a recipient country or developing country within the same region of the recipient country and that meet nutritional, quality and labeling standards of the recipient countries, and allows funding to cover the associated costs of transporting those commodities. (Section 3307)
The Conference substitute adopts the Senate provision. (Section 3309)
The McGovern-Dole program has successfully addressed hunger and malnutrition, improved school attendance, and increased literacy and academic achievement for children around the world. The Managers expect the Secretary to use the new authority authorized in this provision to incorporate locally and regionally grown commodities into multi-year McGovern-Dole programs, particularly in the final years of a program, to support the transition to full local ownership and implementation.
The Managers strongly support the graduation of McGovern-Dole feeding programs, while also recognizing less-developed countries may need additional, longer- term assistance and should still be considered for inclusion in the program.
Additionally, the Managers encourage the Secretary to consider extending the length of a project if the Secretary determines that a project needs additional time to sustain the benefits and such an extension would support the overall purposes of the program.

Annual Reporting for Food Assistance Programs:
6) Annual report regarding food aid programs and activities
The House bill amends section 407(f) of the Food for Peace Act to allow the Administrator and Secretary of Agriculture to file annual reports relating to their respective food aid programs and activities, jointly or separately. It requires the Administrator and Secretary to notify Congress if their reports will be delayed and provide reasons for the delay. The bill requires a detailed account of the funds expended for the purposes of 202(e), 406(b)(6) and 407(c)(1)(B). Additionally, it restructures reporting requirements by moving requirements under section 403(m) of the Food for Peace Act, so they shall be included within the report required under section 407(f). It includes conforming repeal of section 403(m). (Section 3012)
The Senate amendment amends 407(f)(1)(A) of the Food for Peace Act to allow USAID Administrator and Secretary of Agriculture to file annual reports relating to their respective food aid programs and activities, jointly or separately. (Section 3109)
The Conference substitute adopts the House provision with an amendment to remove the provision requiring Congressional notification relating to reasons for delay in
production of the report. (Section 3112)
The Managers acknowledge information provided in the annual report regarding
food assistance programs and activities is essential for Congressional and public oversight of these programs. The Managers expect the relevant agencies to cooperate to ensure that annual reporting of food assistance is provided either jointly or separately in a concise, transparent, and timely manner. Agencies should promptly publish data on food aid programs and activities as available, regardless of when full reporting requirements will be met.

Transportation, Storage and Handling:
(5) Allowance of distribution costs
The Senate amendment amends section 406(b)(6) of the Food for Peace Act to clarify allowable distribution costs, including a variety of activities for which costs were paid prior to FY 2017. (Section 3107)
The House bill has no comparable provision.
The Conference substitute incorporates the Senate provision with an amendment clarifying that the costs include distribution and program implementation costs to use the commodities provided under the Food for Peace Act. (Section 3110)
The Managers intend for the allowable uses of internal transportation, storage and handling (ITSH) funds authorized under section 406(b)(6) of the Food for Peace Act to include the types of activities for which costs were paid under such paragraph prior to fiscal year 2017. Such activities must be associated with the use of agricultural commodities. The Managers do not intend for the changes made by this provision to result in increased levels of annual ITSH spending as compared to the average annual ITSH spending levels in recent years by dollar value or as a percentage of overall Food for Peace funding.

Richard Leach
President & CEO

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