*EPF105 01/22/01
Text: USDA Announces PL 480 Allocations for Fiscal 2001
(12 countries eligible for commodities worth $123 million) (810)
The U.S. Department of Agriculture (USDA) has announced preliminary allocations of $123 million for subsidized U.S. agricultural exports to be made available to 12 countries during the fiscal year that started October 1.
Eight countries are eligible to receive commodities valued $88 million through the Food for Peace program, according to a USDA announcement January 18. In addition, USDA said it will use $10 million for agreements with other private sector entities, as authorized in the 1996 farm bill.
The largest allocations go to the Philippines -- 33.3 million metric tons of rice, 6.7 million metric tons of feed grains, and 44.2 million metric tons of soybean meal -- valued at $20 million.
The Food for Peace program, formally Title I of Public Law (PL) 480, authorizes exports of U.S. farm commodities at concessional rates to foster broad-based sustainable development in recipient countries.
USDA also announced allocations for Food for Progress program exports totalling $25 million to four countries. Food for Progress, an independently authorized program that may be funded with Title I funds, is used to support countries that have made commitments to introduce or expand free enterprise elements in their agricultural economies.
In addition to the $123 million for commodity costs, USDA also announced there was $17.1 million for ocean freight costs.
Following is the text of the USDA announcement:
(begin text)
[U.S. Department of Agriculture
Washington, D.C.
January 18, 2001]
USDA ANNOUNCES P.L. 480, TITLE I, COUNTRY ALLOCATIONS FOR FISCAL 2001
WASHINGTON, Jan. 18, 2001--The U.S. Department of Agriculture today announced preliminary allocations under Public Law (P.L.) 480, Title I, and the Title I-funded Food for Progress program for fiscal year 2001. Allocations total $123 million for commodity costs and $17.1 million for ocean freight differential costs associated with the cargo preference requirements of P.L. 480, Title I.
Eight countries have been identified to receive commodities valued at $88 million through the Title I concessional sales program. This amount includes a $15-million program with private-sector entities in Indonesia. In addition, USDA will use $10 million for agreements with other private entities, as authorized in the 1996 farm bill. The allocations for Title I-funded Food for Progress programs total $25 million to four countries. USDA's ocean freight differential costs associated with cargo preference requirements for these allocations are an estimated $17.1 million. Situations can develop that cause a change in allocations during the fiscal year, so these allocations do not necessarily represent final U.S. commitments with participating governments or private entities.
P.L. 480, Title I, is a concessional sales program to promote exports of U.S. agricultural commodities and to foster broad-based sustainable development in recipient countries. The program provides export financing over payment periods of up to 30 years, low interest rates, and maximum grace periods of up to 5 years on payments of principal. Private entities, including agricultural trade organizations, are authorized to participate in the program.
Countries eligible for the Title I program are those developing countries experiencing a shortage of foreign exchange earnings and difficulty meeting all of their food needs through commercial channels. The factors that determine priorities for country allocations include food needs and likely improvement of food security through agricultural projects and economic measures. The allocations take into account changing economic and foreign policy situations, market development opportunities, existence of adequate storage facilities, and possible disincentives to local production.
Food for Progress is an independently authorized program that may be funded with Title I monies. It is used to support countries that have made commitments to introduce or expand free enterprise elements in their agricultural economies. These changes involve commodity pricing, marketing, input availability, distribution, and private sector involvement.
USDA's Foreign Agricultural Service administers the P.L. 480, Title I, and Food for Progress programs.
Preliminary FY 2001 PL 480 Title I
Country and Commodity Allocations
Country Total Wheat Rice Veg. Feed Soybean Soy-
(Mil$) Oil Grains Meal beans
(-------------Metric Tons----------------)
El Salvador 5 ----- ---- 18.1 ------ ------- -----
Eritrea 10 54.5 ---- ---- ------ ------- -----
Guatemala 10 36.4 ---- ---- ------ 22.1 -----
Indonesia 15 109.2 ---- ---- ------ ------- -----
Peru 10 72.8 ---- ---- ------ ------- -----
Philippines 20 ----- 33.3 ---- 6.7 44.2 -----
Sri Lanka 8 58.2 ---- ---- ------ ------- -----
Uzbekistan 10 ----- ---- ---- ------ ------- 55.2
Private 10 ----- ---- ---- ------ ------- -----
Sector
Total 98 331.1 33.3 18.1 6.7 66.3 55.2
Title I Funded Food for Progress Programs FY 2001
(In Metric Tons)
Country Total Wheat
(Mil$)
Bosina- 5 29.9
Herzegovina
Ecuador 10 60.8
Guyana 5 28.2
Mozambique 5 28.2
Total 25 147.1
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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
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